Great Elm Group . 7.25% Notes Due 2027 Stock Earnings Reports

Great Elm Group reported progress on its strategic growth initiatives in Q1 FY2026, highlighting significant capital formation and platform expansion. The company raised nearly $250 million of debt and equity across its credit and real estate platforms, including a transformative partnership with Kennedy Lewis (up to $150 million commitment to Monomoy REIT) and a $9 million equity investment from Woodstead Value Fund. Fee-paying AUM rose 9% year-over-year to ~$594 million (10% pro forma to ~$601 million). Monomoy Real Estate Ventures continued to scale: Monomoy BTS sold a build-to-suit property (recognizing $7.4M of revenue in the quarter), construction capabilities were brought fully in-house, and the REIT deployed over $13M to acquire seven properties and an adjacent land parcel. GECC (the BDC) strengthened its balance sheet—raising ~$28M in equity, doubling revolver capacity to $50M and refinancing expensive notes—despite an operating hit from its exposure to First Brands, which went to nonaccrual after filing for bankruptcy. Great Elm’s private credit strategy generated strong performance (15.2% net CYTD through Sept. 30) and the CoreWeave-related investment has returned over 100% of the initial $5M invested, though unrealized mark-to-market losses on CoreWeave and GECC stock contributed to a reported net loss of $7.9M for the quarter. Adjusted EBITDA was a loss of $0.5M. The company ended the quarter with ~$53.5M cash, a $25M repurchase program ( ~$14.1M remaining), and a book value per share of ~ $2.30. Management emphasized that fixed-cost infrastructure is in place and future growth should drive operating leverage.