Company to Host Conference Call and Webcast at
GECC’s Investment Adviser Waives 2Q26 Incentive Fees, Following the Waiver of
Net Investment Income (“NII”) of
NAV of
Called or Repurchased All
Strong Liquidity Position with Approximately
Repurchased Approximately 1% of GECC's Outstanding Shares at an Average 36% Discount to
Board Declares
Management Commentary
The Manager's decision to waive all accrued and unpaid incentive fees through the second quarter of 2026 demonstrates alignment with GECC shareholders. We remain focused on increasing net asset value, improving earnings quality, and positioning GECC for sustainable performance. With a strong foundation in place and continued discipline across credit underwriting and portfolio oversight, I am confident we are well-positioned to navigate the current market environment and deliver attractive, risk-adjusted returns to our investors. Our first quarter results exhibit meaningful progress in building a portfolio positioned for durable, long-term performance. At quarter end, GECC had less than 1% of investments on nonaccrual, a stark contrast to our peers.
While capital deployment remained measured during the quarter given the historically tight spread environment, we expanded our private credit pipeline and further diversified the portfolio. We ended the period with ample liquidity, including meaningful cash on hand, full availability under our revolving credit facility, and a healthy base of liquid assets.”
Recent Board Actions and Shareholder Returns
- GECC’s Board of Directors appointed
Jason Reese as Chief Executive Officer onMay 4, 2026 , succeedingMatt Kaplan , following Mr. Reese’s appointment as Executive Chairman onMarch 2, 2026 , to provide seasoned credit investment experience and active management oversight.Mr. Reese currently serves as Chairman and CEO ofGreat Elm Group, Inc. (NASDAQ: GEG), the parent of the Company’s investment adviser,Great Elm Capital Management, LLC (“GECM” or “Investment Adviser”). - GECM waived all accrued incentive fees through
June 30, 2026 , in addition to previously waiving all$2.8 million , or$0.20 per share, of accrued incentive fees throughMarch 31, 2026 . - The Company’s Board of Directors approved a quarterly dividend of
$0.25 per share for the second quarter of 2026, equating to an 18% annualized yield on GECC’sMay 1, 2026 , closing price of$5.56 . - 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 million of its outstanding common shares. ThroughMay 1, 2026 , the Company repurchased approximately 0.1 million shares for$0.5 million , at an average price of$4.98 per share or a 36% discount to the Company’s NAV onMarch 31, 2026 , leaving approximately$9.5 million of remaining capacity under the program for future repurchases.
First Quarter and Recent Operating Highlights
- Total investment income (“TII”) for the quarter ended
March 31, 2026 , was$9.5 million , as compared to$12.6 million for the quarter endedDecember 31, 2025 .- GECC received
$2.5 million of cash distributions from theCLO Formation JV, LLC (“CLO JV”) in the quarter endedMarch 31, 2026 , as compared to$4.3 million in the quarter endedDecember 31, 2025 , driven by the uneven cadence of CLO cash flows.
- GECC received
- Net investment income (“NII”) for the quarter ended
March 31, 2026 , was$5.0 million , or$0.36 per share, as compared to$4.4 million , or$0.31 per share, for the quarter endedDecember 31, 2025 .- NII increased, despite lower TII, primarily due to the benefit of the incentive fee waiver.
- Net assets were
$107.5 million , or$7.74 per share, as ofMarch 31, 2026 , as compared to$112.9 million , or$8.07 per share, as ofDecember 31, 2025 .- Unrealized losses, primarily resulting from mark-to-market volatility, drove the change in net assets, partially offset by realized gains and the positive impact of the incentive fee waiver.
- GECC recently called or repurchased all
$57.5 million of GECCO notes, including calling the$18.6 million outstanding balance of the notes for redemption onMay 27, 2026 . - GECC’s asset coverage ratio was 161.8% as of
March 31, 2026 , as compared to 158.1% as ofDecember 31, 2025 . - Subsequent to quarter end, GECC received an additional
$1.2 million distribution from its CoreWeave-related investment, bringing total distributions to date to approximately$8.1 million , well in excess of its$6.0 million original capital investment.
Financial Highlights – Per Share Data
| Q1/2025 | Q2/2025 | Q3/2025 | Q4/2025 | Q1/2026 | ||||||
| Earnings Per Share (“EPS”) | ( | ( | ||||||||
| Net Investment Income (“NII”) Per Share | ||||||||||
| Net Realized and Unrealized Gains / (Losses) Per Share | ( | ( | ( | ( | ||||||
| Net Asset Value Per Share at Period End | ||||||||||
| Distributions Paid / Declared Per Share | ||||||||||
Financial Review
Total investment income for the quarter ended
Net realized and unrealized losses for the quarter ended
Liquidity and Capital Resources
As of
As of
Distributions
The Company’s Board of Directors has approved a quarterly cash distribution of
The distribution equates to an 18.0% annualized dividend yield on the Company’s closing market price of
Stock Repurchase Program
The Company’s Board of Directors authorized a stock repurchase program in
Conference Call and Webcast
GECC will discuss these results in a conference call at
Conference Call Details
| Date/Time: | |
| Participant Dial-In Numbers: | |
| ( | 877-407-0789 |
| (International): | 201-689-8562 |
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.
About
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
STATEMENTS OF ASSETS AND LIABILITIES (unaudited)
Dollar amounts in thousands (except per share amounts)
2026 | 2025 | |||||||
| Assets | ||||||||
| Investments | ||||||||
| Non-affiliated, non-controlled investments, at fair value (amortized cost of | $ | 191,783 | $ | 218,381 | ||||
| Non-affiliated, non-controlled short-term investments, at fair value (amortized cost of | 9,600 | 32,803 | ||||||
| Affiliated investments, at fair value (amortized cost of | - | - | ||||||
| Controlled investments, at fair value (amortized cost of | 75,380 | 79,887 | ||||||
| Total investments | 276,763 | 331,071 | ||||||
| Cash and cash equivalents | - | 1,834 | ||||||
| Receivable for investments sold | 1,442 | 3,215 | ||||||
| Interest receivable | 2,385 | 2,182 | ||||||
| Dividends receivable | 782 | 1,046 | ||||||
| Due from affiliates | 178 | 218 | ||||||
| Deferred financing costs | 211 | 256 | ||||||
| Prepaid expenses and other assets | 1,003 | 953 | ||||||
| Total assets | $ | 282,764 | $ | 340,775 | ||||
| Liabilities | ||||||||
| Notes payable (including unamortized discount of | $ | 169,143 | $ | 189,319 | ||||
| Payable for investments purchased | 3,859 | 33,652 | ||||||
| Interest payable | 73 | 64 | ||||||
| Accrued incentive fees payable | - | 2,267 | ||||||
| Due to affiliates | 1,492 | 1,475 | ||||||
| Accrued expenses and other liabilities | 720 | 1,052 | ||||||
| Total liabilities | $ | 175,287 | $ | 227,829 | ||||
| Commitments and contingencies (Note 7) | ||||||||
| Net Assets | ||||||||
| Common stock, par value | $ | 139 | $ | 140 | ||||
| Additional paid-in capital | 358,251 | 358,778 | ||||||
| Accumulated losses | (250,913 | ) | (245,972 | ) | ||||
| Total net assets | $ | 107,477 | $ | 112,946 | ||||
| Total liabilities and net assets | $ | 282,764 | $ | 340,775 | ||||
| Net asset value per share | $ | 7.74 | $ | 8.07 | ||||
STATEMENTS OF OPERATIONS (unaudited)
Dollar amounts in thousands (except per share amounts)
| For the Three Months Ended | ||||||||
| 2026 | 2025 | |||||||
| Investment Income: | ||||||||
| Interest income from: | ||||||||
| Non-affiliated, non-controlled investments | $ | 5,089 | $ | 6,402 | ||||
| Non-affiliated, non-controlled investments (PIK) | 819 | 611 | ||||||
| Controlled investments | 812 | 953 | ||||||
| Total interest income | 6,720 | 7,966 | ||||||
| Dividend income from: | ||||||||
| Non-affiliated, non-controlled investments | 159 | 236 | ||||||
| Controlled investments | 2,546 | 3,376 | ||||||
| Total dividend income | 2,705 | 3,612 | ||||||
| Other income from: | ||||||||
| Non-affiliated, non-controlled investments | 119 | 743 | ||||||
| Non-affiliated, non-controlled investments (PIK) | - | 174 | ||||||
| Total other income | 119 | 917 | ||||||
| Total investment income | $ | 9,544 | $ | 12,495 | ||||
| Expenses: | ||||||||
| Management fees | $ | 1,072 | $ | 1,272 | ||||
| Incentive fees | 543 | 1,150 | ||||||
| Administration fees | 510 | 355 | ||||||
| Custody fees | 35 | 38 | ||||||
| Directors’ fees | 54 | 53 | ||||||
| Professional services | 514 | 424 | ||||||
| Interest expense | 4,256 | 4,251 | ||||||
| Other expenses | 296 | 308 | ||||||
| Total expenses | $ | 7,280 | $ | 7,851 | ||||
| Incentive fee waiver | (2,810 | ) | - | |||||
| Net expenses | $ | 4,470 | $ | 7,851 | ||||
| Net investment income before taxes | $ | 5,074 | $ | 4,644 | ||||
| Excise tax | $ | 91 | $ | 68 | ||||
| Net investment income | $ | 4,983 | $ | 4,576 | ||||
| Net realized and unrealized gains (losses): | ||||||||
| Net realized gain (loss) on investment transactions from: | ||||||||
| Non-affiliated, non-controlled investments | $ | 2,632 | $ | 264 | ||||
| Realized loss on repurchase of debt | (2 | ) | - | |||||
| Total net realized gain (loss) | 2,630 | 264 | ||||||
| Net change in unrealized appreciation (depreciation) on investment transactions from: | ||||||||
| Non-affiliated, non-controlled investments | (3,851 | ) | (2,066 | ) | ||||
| Controlled investments | (4,507 | ) | (2,321 | ) | ||||
| Total net change in unrealized appreciation (depreciation) | (8,358 | ) | (4,387 | ) | ||||
| Net realized and unrealized gains (losses) | $ | (5,728 | ) | $ | (4,123 | ) | ||
| Net increase (decrease) in net assets resulting from operations | $ | (745 | ) | $ | 453 | |||
| Earnings per share (basic and diluted): | $ | (0.05 | ) | $ | 0.04 | |||
| Weighted average shares outstanding (basic and diluted): | 13,984,828 | 11,544,415 | ||||||
