Great Elm Capital (NASDAQ: GECC) lifts Q2 NAV and declares 18.9% yield dividend

Q: What were Great Elm Capital Corp. (GECC) key financial results for Q2 2026?

GECC generated total investment income of $10.9 million and net investment income of $4.5 million ($0.32 per share) in Q2 2026. Earnings per share were $0.46 , and net realized and unrealized gains totaled about $1.9 million for the quarter.

Q: How did Great Elm Capital Corp. (GECC) net asset value change in Q2 2026?

GECC’s net asset value per share rose to $7.95 as of June 30, 2026, from $7.74 as of March 31, 2026. Total net assets increased to $110.4 million , with quarter-over-quarter growth driven mainly by realized and unrealized gains on investments, including a CoreWeave-related equity position.

Q: What dividend did Great Elm Capital Corp. (GECC) declare and what is the implied yield?

The board approved a $0.25 per share cash distribution for the quarter ending September 30, 2026. This equates to an 18.9% annualized yield on GECC’s August 4, 2026 closing price of $5.29 and a 12.6% annualized yield on its June 30, 2026 NAV of $7.95.

Q: What fee waivers affected Great Elm Capital Corp. (GECC) results in 2026?

GECC’s investment adviser waived $0.9 million of incentive fees, or $0.06 per share, for Q2 2026. It had also previously waived all $2.8 million of accrued incentive fees through March 31, 2026, which affected both reported expenses and net investment income across periods.

Q: What is Great Elm Capital Corp. (GECC) current debt and liquidity position?

As of June 30, 2026, GECC had $166.4 million of total debt outstanding and an asset coverage ratio of 166.4% . Liquidity comprised about $6 million in cash and money market funds plus $39 million of availability on its revolving credit facility, which now matures in 2029.

Q: How is Great Elm Capital Corp. (GECC) returning capital through buybacks?

Under a $10.0 million stock repurchase program authorized in October 2025, GECC repurchased about 0.1 million shares for $0.5 million through August 4, 2026. The average repurchase price was $4.98 per share, a 37% discount to the June 30, 2026 NAV, leaving about $9.5 million of remaining capacity.

Filing Impact

(Moderate)

Filing Sentiment

(Neutral)

Form Type

8-K

Rhea-AI Filing Summary

Great Elm Capital Corp. reported second-quarter 2026 total investment income of $10.9 million, up from $9.5 million in the prior quarter. Net investment income was $4.5 million, or $0.32 per share, and earnings per share were $0.46, supported by approximately $1.9 million of net realized and unrealized gains. Net asset value per share increased to $7.95 as of June 30, 2026, from $7.74 as of March 31, 2026.

The company’s adviser waived $0.9 million of incentive fees in the quarter, in addition to $2.8 million previously waived through March 31, 2026. The board declared a $0.25 per share cash distribution for Q3 2026, implying an 18.9% annualized yield on the August 4, 2026, closing price and 12.6% on NAV. Liquidity included about $6 million of cash, $39 million of revolver availability, and an asset coverage ratio of 166.4%. Total debt outstanding was $166.4 million, with no debt maturities until 2029, and the company repurchased roughly 0.1 million shares for $0.5 million under its $10 million buyback program.

8-K Event Classification

2 items: 2.02, 9.01

2 items

Item 2.02 Results of Operations and Financial Condition Financial

Disclosure of earnings results, typically an earnings press release or preliminary financials.

Item 9.01 Financial Statements and Exhibits Exhibits

Financial statements, pro forma financial information, and exhibit attachments filed with this report.

Key Figures

Total investment income: $10.9 million Net investment income: $4.5 million Earnings per share: $0.46 +5 more

8 metrics

Total investment income $10.9 million For the quarter ended June 30, 2026

Net investment income $4.5 million Q2 2026, equal to $0.32 per share

Earnings per share $0.46 Basic and diluted EPS for Q2 2026

NAV per share $7.95 Net asset value per share as of June 30, 2026

Quarterly dividend $0.25 per share Cash distribution for the quarter ending September 30, 2026

Dividend yield on market price 18.9% Annualized yield based on $5.29 closing price on August 4, 2026

Asset coverage ratio 166.4% As of June 30, 2026

Total debt outstanding $166.4 million Par value of notes and revolver as of June 30, 2026

Key Terms

Net investment income, Net asset value, asset coverage ratio, incentive fee waiver, +2 more

6 terms

Net investment income financial

"Net investment income (“NII”) for the quarter ended June 30, 2026, was $4.5 million"

Net investment income is the money an investor or fund actually keeps from its investments after subtracting the costs of running those investments (like management fees, interest, and losses). Think of it as your paycheck from owning assets: gross returns minus the bills needed to earn them. Investors watch it because it shows how profitable the investment activities are, influences dividend payouts and cash available for growth, and helps compare true performance across funds or companies.

Net asset value financial

"Net asset value (“NAV”) Per Share ... $7.95"

Net asset value is the total value of an investment fund's assets minus any liabilities, divided by the number of shares or units outstanding. It represents the per-share worth of the fund, similar to how the value of a house is determined by its total worth after debts are subtracted. Investors use it to gauge the true value of their holdings and to compare different investment options.

asset coverage ratio financial

"GECC’s asset coverage ratio was 166.4% as of June 30, 2026"

Asset coverage ratio measures how much of a company’s debt or preferred claims could be paid off using its tangible assets if the business had to be sold. It’s a safety check for investors and creditors, showing the size of the asset “cushion” available to meet obligations; a higher ratio means more protection, like having enough savings and sellable belongings to cover outstanding bills, while a low ratio signals greater risk of loss.

incentive fee waiver financial

"Pre-incentive fee NII increased approximately 66% quarter-over-quarter"

nonaccrual financial

"At quarter end, less than 1% of investments were on nonaccrual"

A nonaccrual asset is a loan or investment that a lender stops counting as earning interest because the borrower is not making scheduled payments or the lender doubts future payments. Think of it like putting a subscription on hold when you stop receiving payments; it reduces reported income and signals a higher risk that the lender may not get repaid, which can affect a bank's profits and the value of its loan portfolio.

business development company regulatory

"GECC is an externally managed business development company that seeks to generate current income"

A business development company is a publicly traded investment vehicle that lends to and buys stakes in smaller or privately held companies, acting like a combination of a lender, investor, and business partner. It matters to investors because BDCs offer the potential for higher regular income through dividends and diversified exposure to growing businesses, but they can also carry greater credit and liquidity risk than typical stocks or bonds—think higher-yielding but riskier income instruments.

Earnings Snapshot

Total investment income: $10.9 million

quarter ended June 30, 2026

Total investment income $10.9 million up from $9.5 million for the quarter ended March 31, 2026

Net investment income $4.5 million down from $5.0 million for the quarter ended March 31, 2026

NII per share $0.32 down from $0.36 for the quarter ended March 31, 2026

Earnings per share $0.46 compared with $(0.05) for the quarter ended March 31, 2026

NAV per share $7.95 up from $7.74 as of March 31, 2026

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Available on EDGAR 08/05/2026 - 04:08 PM Accepted by SEC EDGAR 08/05/2026 - 04:06 PM

FAQ

What were Great Elm Capital Corp. (GECC) key financial results for Q2 2026?

GECC generated total investment income of $10.9 million and net investment income of $4.5 million ($0.32 per share) in Q2 2026. Earnings per share were $0.46, and net realized and unrealized gains totaled about $1.9 million for the quarter.

How did Great Elm Capital Corp. (GECC) net asset value change in Q2 2026?

GECC’s net asset value per share rose to $7.95 as of June 30, 2026, from $7.74 as of March 31, 2026. Total net assets increased to $110.4 million, with quarter-over-quarter growth driven mainly by realized and unrealized gains on investments, including a CoreWeave-related equity position.

What dividend did Great Elm Capital Corp. (GECC) declare and what is the implied yield?

The board approved a $0.25 per share cash distribution for the quarter ending September 30, 2026. This equates to an 18.9% annualized yield on GECC’s August 4, 2026 closing price of $5.29 and a 12.6% annualized yield on its June 30, 2026 NAV of $7.95.

What fee waivers affected Great Elm Capital Corp. (GECC) results in 2026?

GECC’s investment adviser waived $0.9 million of incentive fees, or $0.06 per share, for Q2 2026. It had also previously waived all $2.8 million of accrued incentive fees through March 31, 2026, which affected both reported expenses and net investment income across periods.

What is Great Elm Capital Corp. (GECC) current debt and liquidity position?

As of June 30, 2026, GECC had $166.4 million of total debt outstanding and an asset coverage ratio of 166.4%. Liquidity comprised about $6 million in cash and money market funds plus $39 million of availability on its revolving credit facility, which now matures in 2029.

How is Great Elm Capital Corp. (GECC) returning capital through buybacks?

Under a $10.0 million stock repurchase program authorized in October 2025, GECC repurchased about 0.1 million shares for $0.5 million through August 4, 2026. The average repurchase price was $4.98 per share, a 37% discount to the June 30, 2026 NAV, leaving about $9.5 million of remaining capacity.

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

     Date of Report (Date of earliest event reported): August 05, 2026

    

Great Elm Capital Corp.

(Exact name of Registrant as Specified in Its Charter)


Maryland	814-01211	81-2621577
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(IRS Employer Identification No.)

3801 PGA Boulevard, Suite 603
Palm Beach Gardens, Florida		33410
(Address of Principal Executive Offices)		(Zip Code)

     Registrant’s Telephone Number, Including Area Code: 617 375-3006

    

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common stock, par value $0.01 per share	GECC	Nasdaq Global Market
8.50% Notes due 2029	GECCI	Nasdaq Global Market
8.125% Notes due 2029	GECCH	Nasdaq Global Market
7.75% Notes due 2030	GECCG	Nasdaq Global Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02 Results of Operations and Financial Condition.

On August 5, 2026, Great Elm Capital Corp. ("we," "us," "our" or the "Company") issued the press release furnished as exhibit 99.1 to this report.

The foregoing information (including the exhibit hereto) is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall such information be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such filing.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.

The following exhibits are furnished with this report but shall not be deemed filed:



Exhibit Number		Description
99.1		Earnings Press Release, dated August 5, 2026.
104		The cover page of this Current Report on Form 8-K, formatted as inline XBRL.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.


		Great Elm Capital Corp.

Date: August 5, 2026	By:	/s/ Keri Davis
		Keri Davis Chief Financial Officer

Exhibit 99.1

Great Elm Capital Corp. Announces

SECOND Quarter 2026 Financial Results

Company to Host Conference Call and Webcast at 8:30 AM ET on August 6, 2026

GECC’s Investment Adviser Waives Incentive Fees Totaling $0.9 million or $0.06 Per Share for the Quarter Ended June 30, 2026, in Addition to Previously Waiving all $2.8 million, or $0.20 Per Share of Accrued Incentive Fees Through March 31, 2026

Net Investment Income (“NII”) of $0.32 Per Share in 2Q26

NAV of $7.95 Per Share as of June 30, 2026, Growing Approximately 3% Quarter-over-Quarter

Approximately $1.9 Million of Net Realized and Unrealized Investment Gains Generated During 2Q26

Strong Liquidity Position with Approximately $6 Million of Cash and Equivalents, $39 Million of Revolving Credit Facility Availability, and Ample Liquid Assets as of June 30, 2026

Extended Revolving Credit Facility Maturity from 2027 to 2029

Called Remaining $18.6 Million of GECCO Notes due June 2026, Leaving No Debt Maturity Until 2029

In July 2026, Called $6.5 Million of GECCI Notes due April 2029, Retiring Highest Cost Debt

Board Declares $0.25 Per Share Distribution for 3Q26, Resulting in an Annualized Dividend Yield of 18.9% on GECC’s Closing Price as of August 4, 2026

PALM BEACH GARDENS, Florida, August 5, 2026 – Great Elm Capital Corp. (“we,” “our,” the “Company” or “GECC”) (NASDAQ: GECC), a business development company, today announced its financial results for the second quarter ended June 30, 2026.

Management Commentary

Jason Reese, Chairman of the Board of Directors and Chief Executive Officer of the Company, stated: “Our second quarter results reflect continued progress toward the priorities we established earlier this year. We increased NAV, generated net investment income that fully covered our quarterly distribution, reported approximately $1.9 million of net realized and unrealized gains, and further strengthened our balance sheet.

We remain disciplined in how we deploy capital. During the quarter, we completed several attractive private credit investments, selectively expanded our broadly syndicated investment portfolio, and continued to actively manage portfolio risk. At quarter end, less than 1% of investments were on nonaccrual, reflecting the quality of the portfolio and our disciplined underwriting approach.

We also continued to strengthen our capital structure by retiring all outstanding GECCO notes during the quarter, extending the maturity of our revolving credit facility, and, subsequent to quarter end, calling $6.5 million of GECCI notes, our highest cost debt. Combined with meaningful cash on hand, $39 million of available capacity under our revolving credit facility, and ample liquid investments, we believe GECC is well positioned to pursue attractive investment opportunities while maintaining financial flexibility.

Although the market remains competitive, we believe our disciplined investment process, strong liquidity, and conservative balance sheet position us to continue creating long-term value for our shareholders.”

Recent Board Actions and Shareholder Returns

▪

GECM waived all accrued incentive fees for the quarter ended June 30, 2026, totaling $0.9 million, or $0.06 per share, in addition to previously waiving all $2.8 million, or $0.20 per share, of accrued incentive fees through March 31, 2026.

▪

The Company’s Board of Directors approved a quarterly dividend of $0.25 per share for the third quarter of 2026, equating to an 18.9% annualized yield on GECC’s August 4, 2026, closing price of $5.29.

▪

Beginning January 1, 2026 through August 4, 2026, the Company repurchased approximately 0.1 million shares for $0.5 million, at an average price of $4.98 per share or a 37% discount to the Company’s net asset value (“NAV”) on June 30, 2026, leaving approximately $9.5 million of remaining capacity under the $10 million stock repurchase program previously authorized by the Company's Board of Directors.

Second Quarter and Recent Operating Highlights

▪

Total investment income (“TII”) for the quarter ended June 30, 2026, was $10.9 million, as compared to $9.5 million for the quarter ended March 31, 2026.

▪

The quarter-over-quarter increase was primarily driven by a $2.0 million dividend received from the Company's investment in insurance-related preference shares.

▪

Net investment income (“NII”) for the quarter ended June 30, 2026, was $4.5 million, or $0.32 per share, as compared to $5.0 million, or $0.36 per share, for the quarter ended March 31, 2026.

▪

NII decreased, despite higher TII, primarily due to the size of the benefit of the incentive fee waiver received in the prior quarter.

▪

Pre-incentive fee NII increased approximately 66% quarter-over-quarter to $4.5 million for the quarter ended June 30, 2026, from $2.7 million for the quarter ended March 31, 2026.

▪

Net assets were $110.4 million, or $7.95 per share, as of June 30, 2026, as compared to $107.5 million, or $7.74 per share, as of March 31, 2026.

▪

2.7% quarter-over-quarter growth in net assets was primarily driven by realized and unrealized gains on investments, notably the CoreWeave-related equity investment.

▪

During the quarter ended June 30, 2026, GECC received $2.6 million of distributions from its CoreWeave-related equity investment, bringing total distributions to date to approximately $9.5 million, well in excess of its $6.0 million original capital investment.

▪

GECC’s asset coverage ratio was 166.4% as of June 30, 2026, as compared to 161.8% as of March 31, 2026.

Financial Highlights – Per Share Data


	Q2/2025		Q3/2025			Q4/2025			Q1/2026			Q2/2026
Earnings Per Share ("EPS")	$	1.02	$	(1.79	)	$	(1.57	)	$	(0.05	)	$	0.46
Net Investment Income ("NII") Per Share	$	0.51	$	0.20		$	0.31		$	0.36		$	0.32
Net Realized and Unrealized Gains / (Losses) Per Share	$	0.51	$	(1.98	)	$	(1.88	)	$	(0.41	)	$	0.14
Net Asset Value ("NAV") Per Share	$	12.10	$	10.01		$	8.07		$	7.74		$	7.95
Distributions Paid / Declared Per Share	$	0.37	$	0.37		$	0.37		$	0.30		$	0.25

-2-

Financial Review

Total investment income for the quarter ended June 30, 2026, was $10.9 million, or $0.78 per share. Total expenses for the quarter ended June 30, 2026, were $6.4 million, or $0.46 per share, inclusive of excise tax expense.

Net realized and unrealized gains for the quarter ended June 30, 2026, were approximately $1.9 million, or $0.14 per share, primarily driven by realized gains on the CoreWeave-related equity investment.

Liquidity and Capital Resources

As of June 30, 2026, cash and money market fund investments totaled approximately $6 million. In addition, GECC had $39 million of availability on its revolving line of credit (the “Revolver”) and ample liquid assets as of June 30, 2026.

As of June 30, 2026, total debt outstanding (par value) was $166.4 million, comprised of $56.5 million 8.50% senior notes due April 2029 (NASDAQ: GECCI), $41.4 million 8.125% senior notes due December 2029 (NASDAQ: GECCH), $57.5 million 7.75% senior notes due December 2030 (NASDAQ: GECCG), and $11.0 million on the Revolver due June 2029.

Distributions

The Company’s Board of Directors has approved a quarterly cash distribution of $0.25 per share for the quarter ending September 30, 2026, to be paid from distributable earnings. The third quarter distribution will be payable on September 30, 2026, to stockholders of record as of September 15, 2026.

The distribution equates to an 18.9% annualized dividend yield on the Company’s closing market price of $5.29 on August 4, 2026, and a 12.6% annualized dividend yield on the Company’s June 30, 2026, NAV of $7.95 per share.

Stock Repurchase Program

The Company’s Board of Directors authorized a stock repurchase program in October 2025, whereby the Company may opportunistically repurchase up to an aggregate of $10.0 million of its outstanding common shares. The authorization represents approximately 14% of the Company’s market capitalization as of August 4, 2026. Beginning January 1, 2026 through August 4, 2026, the Company has repurchased approximately 0.1 million shares for $0.5 million, at an average price of $4.98 per share or a 37% discount to the Company’s NAV on June 30, 2026, leaving approximately $9.5 million of remaining capacity under the program for future repurchases.

Conference Call and Webcast

GECC will discuss these results in a conference call at 8:30 a.m. ET on August 6, 2026.

Conference Call Details

Date/Time: Thursday, August 6, 2026 – 8:30 a.m. ET

Participant Dial-In Numbers:

(United States): 844-825-9789

(International): 412-317-5180

To access the call, please dial-in approximately five minutes before the start time and, when asked, provide the operator with passcode “GECC”. An accompanying slide presentation will be available in pdf format via the “Events and Presentations” section of Great Elm Capital Corp.’s website here after the issuance of the earnings release.

Webcast

The call and presentation will also be simultaneously webcast over the internet via the “Events and Presentations” section of GECC’s website or by clicking on the webcast link here.

-3-

About Great Elm Capital Corp.

GECC is an externally managed business development company that seeks to generate current income and capital appreciation by investing in debt and income generating equity securities, including investments in specialty finance businesses and CLOs. For additional information, please visit http://www.greatelmcc.com.

Cautionary Statement Regarding Forward-Looking Statements

Statements in this communication that are not historical facts are “forward-looking” statements within the meaning of the federal securities laws. These statements include statements regarding our future business plans and expectations. These statements are often, but not always, made through the use of words or phrases such as “expect,” “anticipate,” “should,” “will,” “estimate,” “designed,” “seek,” “continue,” “upside,” “potential” and similar expressions. All such forward-looking statements involve estimates and assumptions that are subject to risks, uncertainties and other factors that could cause actual results to differ materially from the results expressed in the statements. The key factors that could cause actual results to differ materially from those projected in the forward-looking statements include, without limitation: conditions in the credit markets, our expected financings and investments, including interest rate volatility, inflationary pressure, the price of GECC common stock and the performance of GECC’s portfolio and investment manager. Information concerning these and other factors can be found in GECC’s Annual Report on Form 10-K and other reports filed with the Securities and Exchange Commission. GECC assumes no obligation to, and expressly disclaims any duty to, update any forward-looking statements contained in this communication or to conform prior statements to actual results or revised expectations except as required by law. Readers are cautioned not to place undue reliance on these forward-looking statements that speak only as of the date hereof.

Media & Investor Contact:

Investor Relations

investorrelations@greatelmcap.com

-4-

GREAT ELM CAPITAL CORP.

STATEMENTS OF ASSETS AND LIABILITIES (unaudited)

Dollar amounts in thousands (except per share amounts)


	June 30, 2026			December 31, 2025
Assets
Investments
Non-affiliated, non-controlled investments, at fair value (amortized cost of $227,363 and $254,313, respectively)	$	187,290		$	218,381
Non-affiliated, non-controlled short-term investments, at fair value (amortized cost of $3,966 and $32,803, respectively)		3,966			32,803
Affiliated investments, at fair value (amortized cost of $12,379 and $12,379, respectively)		-			-
Controlled investments, at fair value (amortized cost of $101,133 and $94,683, respectively)		80,996			79,887
Total investments		272,252			331,071

Cash and cash equivalents		1,669			1,834
Receivable for investments sold		1,764			3,215
Interest receivable		1,821			2,182
Dividends receivable		782			1,046
Due from affiliates		68			218
Deferred financing costs		524			256
Prepaid expenses and other assets		1,102			953
Total assets	$	279,982		$	340,775

Liabilities
Notes payable (including unamortized discount of $4,546 and $5,064, respectively)	$	150,853		$	189,319
Revolving credit facility		11,000			-
Payable for investments purchased		5,340			33,652
Interest payable		153			64
Accrued incentive fees payable		-			2,267
Due to affiliates		1,402			1,475
Accrued expenses and other liabilities		816			1,052
Total liabilities	$	169,564		$	227,829

Commitments and contingencies (Note 7)

Net Assets
Common stock, par value $0.01 per share (100,000,000 shares authorized, 13,889,750 shares issued and outstanding and 13,998,168 shares issued and outstanding, respectively)	$	139		$	140
Additional paid-in capital		358,239			358,778
Accumulated losses		(247,960	)		(245,972	)
Total net assets	$	110,418		$	112,946
Total liabilities and net assets	$	279,982		$	340,775
Net asset value per share	$	7.95		$	8.07

-5-