Great Elm Group Inc Stock price
Is Great Elm Group Inc a Top Scorer Stock based on the Dividend, High-Growth-Investing or Leverman Strategy?
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Key metrics
📘 Market Capitalization
📈 What is it?
Market capitalization shows how much a company is currently worth on the stock market.
🧮 How is it calculated?
🏛️ Why is it important?
It helps classify companies by size (Large, Mid, Small Cap) and indicates their market presence and relative stability.
🧮 Calculation
🎯 What does this mean for investors?
- Large-cap companies tend to be more stable, often pay dividends, but may grow more slowly.
- Smaller firms may offer higher growth potential but come with more volatility.
- Market capitalization is a useful indicator of company size — but not a measure of whether a stock is undervalued or overvalued.
📘 Enterprise Value (EV)
📈 What is it?
Enterprise Value represents the total cost to acquire a company — including its debt and excluding its cash reserves.
🧮 How is it calculated?
(= Market Cap + Net Debt)
🏛️ Why is it important?
EV gives a more complete picture of a company's value than market cap alone and is used in key valuation ratios like EV/FCF or EV/Sales.
🧮 Calculation
🎯 What does this mean for investors?
- Enterprise Value shows the true cost of buying a company, including all financial obligations.
- It is more accurate than just looking at market cap, especially when comparing companies with different levels of debt or cash.
- Professional investors prefer EV-based multiples because they better reflect the company’s full financial footprint.
📘 Net Debt
📈 What is it?
Net Debt shows how much debt remains after subtracting a company’s available cash reserves.
🧮 How is it calculated?
🏛️ Why is it important?
It indicates how dependent a company is on borrowed money and how easily it can service its debt in the short term.
🧮 Calculation
🎯 What does this mean for investors?
- Low or negative net debt signals financial strength and flexibility.
- Companies with strong cash positions are better positioned in crises.
- High net debt increases financial risk — especially in environments with rising interest rates or economic downturns.
📘 Cash
📈 What is it?
Cash represents all liquid assets a company can access immediately — including cash, bank deposits, and short-term investments.
🧮 How is it calculated?
🏛️ Why is it important?
It reflects a company’s financial flexibility and resilience — enabling investments, buybacks, or buffer in downturns.
🧮 Calculation
🎯 What does this mean for investors?
- A strong cash position means greater room for maneuver and crisis resistance.
- Cash-rich companies can invest, pay down debt, or repurchase shares.
- But excess idle cash might indicate a lack of growth opportunities.
📘 Shares Outstanding
📈 What is it?
Shares outstanding represent the total number of a company’s shares currently held by investors — excluding treasury stock.
🧮 How is it calculated?
🏛️ Why is it important?
It’s the basis for key metrics like Earnings Per Share (EPS), Market Capitalization, or the Price/Earnings ratio (P/E).
🧮 Calculation
🎯 What does this mean for investors?
- Fewer shares in circulation typically increase earnings per share — making each share more valuable.
- Share buybacks reduce the number of shares and boost per-share metrics.
- Issuing new shares does the opposite — diluting shareholder value and lowering per-share figures.
📘 Price-to-Earnings Ratio (P/E)
📈 What is it?
The P/E ratio shows how many times a company's earnings per share are reflected in its current share price — in other words, how "expensive" the stock appears relative to its profits.
🧮 How is it calculated?
🏛️ Why is it important?
The P/E ratio is one of the most widely used valuation metrics. It helps investors assess whether a stock appears cheap or expensive compared to its earnings power.
🧮 Calculation
📊 P/E (TTM) = Based on earnings from the last 12 months (Trailing Twelve Months):🎯 What does this mean for investors?
- A low P/E may indicate undervaluation — or signal underlying issues.
- A high P/E may reflect strong growth expectations — or an overvalued stock.
📘 Price-to-Sales Ratio (P/S)
📈 What is it?
The P/S ratio shows how much investors are paying for $1 of the company’s revenue – regardless of profitability.
🧮 How is it calculated?
🏛️ Why is it important?
P/S is especially useful for evaluating growth companies or businesses not yet profitable. It reflects how the market values the company’s sales.
🧮 Calculation
Market Cap = $67.16m | Revenue (TTM) = $27.78m
🎯 What does this mean for investors?
- A low P/S may indicate undervaluation — or low profitability.
- A high P/S can reflect strong growth expectations — or excessive optimism.
- Especially helpful when evaluating companies where profits are low, volatile, or negative.
📘 Enterprise Value to Sales (EV/Sales)
📈 What is it?
EV/Sales shows how much investors are paying for $1 of revenue — considering not just equity, but also debt and cash. It’s the capital structure–adjusted version of the P/S ratio.
🧮 How is it calculated?
🏛️ Why is it important?
It’s ideal for comparing companies with different levels of debt. It reflects a company's true cost relative to its revenue.
🧮 Calculation
Enterprise Value = $38.98m | Revenue (TTM) = $27.78m
🎯 What does this mean for investors?
- EV/Sales allows for capital structure–neutral company comparisons.
- A lower ratio may indicate undervaluation; a higher one may signal strong growth expectations or overvaluation.
- Especially helpful when evaluating high-growth companies with low or negative earnings.
📘 Enterprise Value to Free Cash Flow (EV/FCF) | ex SBC
📈 What is it?
EV/FCF compares a company’s enterprise value with its free cash flow. The metric therefore shows the multiple of current free cash flow at which a company is valued. EV/FCF ex SBC additionally accounts for stock-based compensation (SBC). While SBC does not represent a direct cash outflow, issuing shares as compensation can dilute existing shareholders. Therefore, SBC is deducted from free cash flow in this adjusted version.
🧮 How is it calculated?
EV/FCF ex SBC = Enterprise Value ÷ (Free Cash Flow (TTM) − SBC)
🏛️ Why is it important?
EV/FCF provides a valuation based on free cash flow and therefore complements earnings-based valuation metrics such as the P/E ratio. The ex SBC version additionally accounts for the economic impact of stock-based compensation and provides a more conservative view from a shareholder perspective.
🧮 Calculation
🎯 What does this mean for investors?
- A low EV/FCF means that enterprise value is low relative to current free cash flow. The reasons should always be considered in the context of the company and its industry.
- A high EV/FCF means that enterprise value is high relative to current free cash flow. This can, for example, reflect high growth expectations or temporarily weak cash generation.
- When SBC is positive and adjusted free cash flow remains positive, EV/FCF ex SBC is generally higher than the standard EV/FCF.
- The metric is particularly useful for companies with relatively stable and predictable cash flows.
- If free cash flow is negative or very low, EV/FCF has limited usefulness and should not be interpreted like a standard valuation multiple.
📘 Price-to-Book Ratio (P/B)
📈 What is it?
The P/B ratio compares a company’s market value to its book value — showing how much investors are paying for each dollar of net assets.
🧮 How is it calculated?
🏛️ Why is it important?
P/B is commonly used for asset-heavy industries like banks or industrials. It helps assess whether a stock is trading above or below its net asset value.
🧮 Calculation
🎯 What does this mean for investors?
- A P/B below 1 may signal undervaluation — or weak profitability.
- A P/B above 1 implies the market expects future value creation (e.g., brand, IP, growth).
- Best used for companies with tangible assets and strong balance sheets.
📘 Equity Ratio
📈 What is it?
The equity ratio indicates what portion of a company’s total assets is financed by shareholders’ equity – in other words, how much it relies on its own capital.
🧮 How is it calculated?
🏛️ Why is it important?
A high equity ratio reflects financial strength and stability, especially during downturns. It’s a key indicator of a company’s solvency and long-term risk profile.
🧮 Calculation
🎯 What does this mean for investors?
- Companies with high equity ratios are generally more resilient and less dependent on external debt.
- Low equity ratios can signal higher risk or aggressive financial strategies.
- Important: Always assess the equity ratio in combination with the return on equity (ROE). This shows not just how stable the company is – but also how efficiently it uses shareholder capital.
📘 Return on Equity (ROE)
📈 What is it?
Return on equity (ROE) shows how efficiently a company uses its shareholders’ equity to generate profit. In other words: how much net income is earned per dollar of equity.
🧮 How is it calculated?
🏛️ Why is it important?
ROE is a core profitability metric. It helps investors understand whether a company delivers attractive returns on the capital provided by its shareholders.
🧮 Calculation
🎯 What does this mean for investors?
- A high ROE indicates that the company is using its capital efficiently and profitably.
- It’s especially meaningful for capital-intensive businesses or firms with high equity bases.
- Important: A very high ROE can also result from high debt levels – always interpret it alongside the equity ratio to assess financial health.
📘 Return on Capital Employed (ROCE)
📈 What is it?
ROCE measures how efficiently a company generates profits from its total capital – including both equity and interest-bearing debt.
🧮 How is it calculated?
It evaluates the return on all capital employed, regardless of how it’s financed.
🏛️ Why is it important?
ROCE is ideal for comparing companies with different financing structures. It shows how well management uses capital to create value for both shareholders and creditors.
🧮 Calculation
🎯 What does this mean for investors?
- A high ROCE means the company uses its capital efficiently – regardless of whether it's funded by debt or equity.
- The higher the ROCE compared to peers, the more value the company creates with its invested capital.
- Especially relevant for capital-intensive sectors like industrials, energy, or infrastructure.
📘 Return on Invested Capital (ROIC)
📈 What is it?
ROIC measures how efficiently a company generates returns from the capital invested in its core operations – regardless of whether the capital comes from equity or debt.
🧮 How is it calculated?
- NOPAT = Net Operating Profit After Taxes
- Invested Capital = Operating assets minus non-interest-bearing liabilities
🏛️ Why is it important?
ROIC is one of the most accurate indicators of capital efficiency. Unlike return on equity, it is not distorted by leverage and shows how much value is created for all capital providers.
🧮 Calculation
🎯 What does this mean for investors?
- A high ROIC shows how effectively a company uses the capital that is truly invested in its core operations.
- Unlike ROCE, ROIC focuses only on the capital that is actively used to run the business – and that requires a return (i.e. interest-bearing).
- Especially useful when comparing companies with large amounts of excess cash or non-interest-bearing liabilities – giving a more realistic picture of capital efficiency.
📘 Leverage Ratio (Debt-to-Equity)
📈 What is it?
The leverage ratio indicates how much a company relies on interest-bearing debt (such as loans and bonds) relative to its shareholders’ equity.
🧮 How is it calculated?
🏛️ Why is it important?
This ratio helps assess a company’s financial structure and risk profile. High leverage can enhance returns – but also increases exposure to interest rate changes and financial stress.
🧮 Calculation
🎯 What does this mean for investors?
- A low leverage ratio signals financial strength and independence.
- A higher ratio can improve returns in good times but increases risk during downturns or rising interest rate periods.
- 👉 Always interpret in the context of industry, capital intensity, and interest rate environment.
📘 SBC | in % Revenue
📈 What is it?
SBC (Stock-Based Compensation) refers to equity-based compensation granted by a company to its employees and executives. The percentage shows SBC relative to revenue.
🧮 How is it calculated?
SBC as % of Revenue = (SBC ÷ Revenue) × 100
🏛️ Why is it important?
Stock-based compensation is a real cost factor for shareholders. It can increase the number of shares outstanding and therefore dilute existing shareholders. The percentage of revenue shows how heavily a company relies on equity-based compensation and how significant this form of compensation is relative to the size of the business.
🧮 Calculation
🎯 What does this mean for investors?
- A lower figure is generally positive: Stock-based compensation is relatively small compared with the company's revenue.
- A high figure can indicate greater reliance on stock-based compensation and a higher potential risk of dilution. However, it is also important to consider whether the company offsets dilution through share buybacks.
- The trend over time should also be considered. A high but declining percentage presents a different picture from a persistently high or increasing percentage.
- A single-digit SBC-to-revenue ratio is not unusual among many growth-oriented and technology companies.
📘 SBC as % of FCF
📈 What is it?
SBC (Stock-Based Compensation) refers to equity-based compensation granted by a company to its employees and executives. The percentage shows SBC relative to free cash flow (FCF).
🧮 How is it calculated?
SBC as % of FCF = (SBC ÷ Free Cash Flow) × 100
🏛️ Why is it important?
Stock-based compensation is a real cost factor for shareholders. It can increase the number of shares outstanding and therefore dilute existing shareholders. The percentage of free cash flow shows how significant SBC is relative to the cash generated by the company. Since SBC is non-cash compensation, it is typically not deducted as a cash outflow when calculating FCF.
🧮 Calculation
🎯 What does this mean for investors?
- A lower value is generally favorable. Stock-based compensation is relatively small compared with the company's cash generation.
- A high value means that SBC represents a significant portion of the company's reported free cash flow, even though SBC itself is non-cash.
- The higher the value, the more significant SBC can be as an economic cost to shareholders, particularly when it results in share dilution.
📘 SBC Growth 1Y
📈 What is it?
SBC Growth 1Y shows how much a company's stock-based compensation has changed compared to the previous year.
🧮 How is it calculated?
🏛️ Why is it important?
SBC Growth shows whether stock-based compensation is becoming more or less significant for shareholders. If SBC increases significantly, it can lead to greater shareholder dilution over time. At the same time, SBC is a non-cash expense that reduces earnings on the income statement but is added back in the cash flow statement.
🧮 Calculation
🎯 What does this mean for investors?
- A high positive value is generally negative, as rising SBC can increase the burden on shareholders, particularly through potential dilution.
- What matters is whether the development of SBC is sustainable over the long term. Some level of SBC is common among many growth and technology companies.
📘 Share Count Growth 1Y
📈 What is it?
Share Count Growth 1Y shows how much the number of shares outstanding has increased or decreased over a one-year period.
🧮 How is it calculated?
🏛️ Why is it important?
The number of shares determines how many shares the company's earnings and assets are distributed across. If the share count decreases, existing shareholders' relative ownership increases. If it increases, existing shareholders are diluted. The metric therefore makes dilution and share buybacks directly visible.
🧮 Calculation
🎯 What does this mean for investors?
- A negative value is generally positive, as the number of shares outstanding is decreasing.
- A positive value indicates dilution of existing shareholders.
- A declining share count is not automatically positive: It also matters at what price the shares are repurchased and how the buybacks are financed.
📘 Shareholder Yield
📈 What is it?
Shareholder Yield measures how much capital a company returns to shareholders or uses to reduce debt relative to its market capitalization. It goes beyond dividend yield by also including share buybacks and debt reduction.
🧮 How is it calculated?
🏛️ Why is it important?
Dividend yield only tells part of the story. Companies can also return capital through share buybacks, while reducing debt can strengthen the balance sheet. Shareholder Yield combines all three components into one metric, giving investors a broader view of how a company uses its capital.
🧮 Calculation
🎯 What does this mean for investors?
- A higher Shareholder Yield generally indicates more capital being returned to shareholders or used to reduce debt.
- The mix matters: dividends, buybacks, and debt reduction can affect shareholders in different ways.
- Share buybacks are most beneficial when shares are repurchased at attractive valuations.
- Investors should also consider whether dividends, buybacks, and debt reduction are sustainable over time.
📘 Revenue
📈 What is it?
Revenue shows how much a company earns in total from selling its products and services – the gross income before any costs are deducted.
🧮 How is it calculated?
🏛️ Why is it important?
Revenue is one of the key figures to assess a company’s size, market position, and growth potential.
🧮 Calculation
🎯 What does this mean for investors?
- Growing revenue indicates rising demand and can be an early signal of future earnings growth.
- Comparing actual and expected revenue reveals trends in the market environment and analyst sentiment.
- Note: Strong revenue alone isn’t enough – margins and profitability matter just as much.
📘 EBITDA
📈 What is it?
EBITDA stands for “Earnings Before Interest, Taxes, Depreciation, and Amortization.” It reflects a company’s operating profit before the effects of financing, taxes, and accounting depreciation.
🧮 How is it calculated?
🏛️ Why is it important?
EBITDA is widely used to evaluate a company’s operating performance – especially across capital-intensive sectors or international comparisons.
🧮 Calculation
🎯 What does this mean for investors?
- A high or growing EBITDA indicates strong operational profitability – independent of taxes, interest, or accounting methods.
- It’s especially useful for comparing companies across sectors or geographies.
- Important: EBITDA is not a net income figure – it excludes key costs like depreciation and interest.
📘 EBIT
📈 What is it?
EBIT stands for “Earnings Before Interest and Taxes.” It reflects a company’s operating profit after depreciation, but before interest and tax expenses.
🧮 How is it calculated?
🏛️ Why is it important?
EBIT is a core profitability metric that shows how well the company performs in its main business operations – independent of capital structure and tax environment.
🧮 Calculation
🎯 What does this mean for investors?
- A high EBIT indicates strong profitability from the company’s core business – before financial and tax effects.
- It allows better comparison between companies with different debt levels or tax structures.
- Compared to EBITDA, EBIT already accounts for depreciation and reflects capital intensity more clearly.
📘 Net Income
📈 What is it?
Net income is the company’s total profit – the amount left after all expenses, taxes, interest, and depreciation have been deducted.
🧮 How is it calculated?
🏛️ Why is it important?
Net income is the most comprehensive measure of a company’s profitability – showing how much actual profit remains after all business and financing costs.
🧮 Calculation
🎯 What does this mean for investors?
- Growing net income indicates that the company is managing all of its costs efficiently.
- It directly influences valuation metrics like P/E ratio and the company’s dividend capacity.
- Over time, net income trends reveal how resilient and profitable the business model really is.
📘 Free Cash Flow (FCF) | ex SBC
📈 What is it?
Free cash flow shows how much cash remains after a company has covered its operating and capital expenditures. FCF ex SBC additionally deducts stock-based compensation (SBC) to adjust the cash flow for the effect of non-cash SBC.
🧮 How is it calculated?
Free Cash Flow ex SBC = Operating Cash Flow − SBC − Capital Expenditures (CAPEX)
🏛️ Why is it important?
FCF reflects a company’s actual financial strength – independent of reported accounting earnings. It shows how much flexibility a company has for dividends, share buybacks, or debt reduction. FCF ex SBC also deducts stock-based compensation and shows how much cash generation remains after SBC.
🧮 Calculation
🎯 What does this mean for investors?
- High free cash flow indicates that a company has strong financial strength – independent of reported earnings.
- It is often a solid basis for sustainable dividends and share buybacks.
- Declining FCF can be a warning sign, even if reported earnings remain stable.
📘 Revenue Growth
📈 What is it?
Revenue growth shows how much a company’s sales have changed compared to the previous year – both on a trailing basis (TTM) and based on forward projections.
🧮 How is it calculated?
Forward = (Expected revenue ÷ Revenue in prior year − 1) × 100
Forward growth is based on analyst estimates for the current fiscal year.
🏛️ Why is it important?
Rising revenue signals growing demand, business expansion, and market share gains – especially important for growth-oriented companies.
🧮 Calculation
🎯 What does this mean for investors?
- Growth is the engine of long-term value creation – especially in tech and growth sectors.
- What matters is not just current growth, but its sustainability.
- Forward projections reflect whether analysts expect continued momentum – or a slowdown.
📘 EBITDA Growth
📈 What is it?
EBITDA growth shows how much a company’s operating profit (before interest, taxes, depreciation, and amortization) has increased or decreased compared to the previous year.
🧮 How is it calculated?
Forward = (Expected EBITDA ÷ EBITDA from prior year − 1) × 100
The forward estimate is based on analyst projections for the current fiscal year.
🏛️ Why is it important?
Growing EBITDA indicates improving operational profitability – regardless of financing or accounting effects.
🧮 Calculation
🎯 What does this mean for investors?
- Strong EBITDA growth signals operational efficiency and scalability – especially during growth phases.
- EBITDA growth can be an early indicator of margin and earnings expansion – but should be assessed alongside revenue and EBIT.
📘 EBIT Growth
📈 What is it?
EBIT growth shows how much a company’s operating profit (after depreciation, but before interest and taxes) has increased compared to the previous year.
🧮 How is it calculated?
Forward = (Expected EBIT ÷ EBIT from prior year − 1) × 100
The forward estimate is based on analyst projections for the current fiscal year.
🏛️ Why is it important?
EBIT growth is a direct indicator of a company’s business performance – taking into account capital intensity through depreciation.
🧮 Calculation
🎯 What does this mean for investors?
- Rising EBIT signals improving operating profitability – even after accounting for depreciation.
- It’s especially important for evaluating companies with significant capital expenditures.
- Combined with revenue and EBITDA growth, EBIT growth provides a well-rounded view of operational progress.
📘 Net Income Growth
📈 What is it?
Net income growth shows how much a company’s bottom-line profit has increased or decreased compared to the previous year – both on a trailing basis (TTM) and based on analyst projections.
🧮 How is it calculated?
Forward = (Expected net income ÷ Net income from prior year − 1) × 100
The forward estimate reflects analysts’ expectations for the current fiscal year.
🏛️ Why is it important?
Net income is the ultimate measure of profitability. Growing net income signals stronger efficiency, cost control, and sustainable earnings power.
🧮 Calculation
🎯 What does this mean for investors?
- Stronger net income boosts valuation, dividend potential, and investor confidence.
- If profits stall while revenue grows, it may signal margin pressure.
📘 Free Cash Flow Growth
📈 What is it?
Free cash flow (FCF) growth shows how a company’s available cash – after covering operating expenses and capital expenditures – has changed compared to the previous year.
🧮 How is it calculated?
🏛️ Why is it important?
Free cash flow reflects real financial strength. Growing FCF indicates more flexibility for dividends, share buybacks, and reinvestment.
🧮 Calculation
🎯 What does this mean for investors?
- Declining FCF may point to rising investments, increasing costs, or weaker operating performance.
- Especially for dividend investors, FCF growth is critical – since dividends are paid from actual available cash.
- A negative trend isn't always bad, but it deserves closer attention.
📘 Gross Margin
📈 What is it?
Gross margin shows how much of a company’s revenue remains after deducting the direct costs of goods sold (like materials and production). It represents the company’s “raw profit” before fixed costs, taxes, and interest.
🧮 How is it calculated?
Or simply: Gross Margin = Gross Profit ÷ Revenue × 100
🏛️ Why is it important?
Gross margin indicates how efficiently a company can produce or procure what it sells. It is a key measure of product-level profitability and pricing power.
🧮 Calculation
🎯 What does this mean for investors?
- A high gross margin suggests strong pricing power and efficient production.
- Falling margins may signal rising input costs or competitive pressure.
- Compared to peers, gross margin offers insights into the quality of a business model.
📘 EBITDA Margin
📈 What is it?
The EBITDA margin shows how much of a company’s revenue remains as operating profit before interest, taxes, depreciation, and amortization.It reflects operating efficiency without being distorted by financing or accounting factors.
🧮 How is it calculated?
🏛️ Why is it important?
The EBITDA margin reveals how much operating income a company generates per dollar of revenue – independent of capital structure and tax effects.
🧮 Calculation
🎯 What does this mean for investors?
- A high EBITDA margin reflects strong core profitability – before accounting distortions.
- It allows for effective comparisons across companies and sectors.
- A stable or growing margin signals efficient cost control and business scalability.
📘 EBIT Margin
📈 What is it?
The EBIT margin shows what percentage of revenue remains as operating profit after depreciation but before interest and taxes.
🧮 How is it calculated?
🏛️ Why is it important?
The EBIT margin reflects a company’s core profitability while accounting for capital intensity (e.g. machinery, infrastructure). It’s especially useful for comparing businesses with different levels of depreciation.
🧮 Calculation
🎯 What does this mean for investors?
- A high EBIT margin shows that the company remains efficient even after factoring in depreciation.
- It’s especially relevant for capital-intensive industries.
- Stable or rising EBIT margins over time are a strong indicator of pricing power and business quality.
📘 Net Margin
📈 What is it?
Net margin shows how much of a company’s revenue remains as bottom-line profit after deducting all costs, interest, taxes, and depreciation.
🧮 How is it calculated?
🏛️ Why is it important?
Net margin reflects a company’s overall efficiency – across operations, financing, and taxation. It shows how much actual profit is generated from each dollar of revenue.
🧮 Calculation
🎯 What does this mean for investors?
- A high net margin means the company is not only strong operationally but also manages financing and taxes efficiently.
- Peer comparisons reveal business quality and competitiveness.
- Declining margins despite revenue growth can be a red flag for rising costs or inefficiencies.
📘 Free Cash Flow Margin | ex SBC
📈 What is it?
The Free Cash Flow Margin shows how much free cash flow a company generates relative to its revenue. In simplified terms, free cash flow is calculated as operating cash flow minus capital expenditures. The Free Cash Flow Margin ex SBC additionally accounts for stock-based compensation (SBC). While SBC does not represent a direct cash outflow, issuing shares as compensation can dilute existing shareholders. Therefore, SBC is deducted from free cash flow in this adjusted metric.
🧮 How is it calculated?
Free Cash Flow Margin ex SBC = (Free Cash Flow − SBC) ÷ Revenue × 100
🏛️ Why is it important?
The Free Cash Flow Margin shows how efficiently a company converts its revenue into free cash flow. Strong free cash flow can provide financial flexibility for dividends, share buybacks, debt repayment, or further investments. The ex SBC version additionally accounts for the economic impact of stock-based compensation and therefore provides a more conservative view of cash generation from a shareholder perspective.
🧮 Calculation
🎯 What does this mean for investors?
- A high Free Cash Flow Margin shows that a company converts a high proportion of its revenue into free cash flow.
- This can provide greater financial flexibility for dividends, share buybacks, debt repayment, or investments.
- The Free Cash Flow Margin ex SBC additionally accounts for potential shareholder dilution from stock-based compensation.
- The long-term trend is particularly important. Declining margins can, for example, result from higher investments, changes in working capital, or weaker operating performance.
📘 Earnings per share (EPS)
📈 What is it?
Earnings per Share (EPS) shows how much profit is attributable to a single share – and is one of the most important metrics for evaluating a company's performance.
🧮 How is it calculated?
The diluted share count reflects potential new shares that could be issued through options, convertible bonds, or other rights.
🏛️ Why is it important?
EPS is the basis for many key valuation metrics like P/E ratio, PEG ratio, or payout ratio. It enables comparisons of profitability across companies, regardless of their size.
🧮 Calculation
🎯 What does this mean for investors?
- EPS captures per-share profitability and is especially useful for comparisons over time or with analyst estimates.
- Rising EPS may signal consistent growth or share buybacks.
- Important: Always use diluted EPS for more realistic valuations – especially in companies with stock-based compensation.
📘 Free cash flow per share (FCF per share)
📈 What is it?
Free Cash Flow per Share shows how much free cash flow a company generates per outstanding share – after investments, but before dividends or debt repayments.
🧮 How is it calculated?
Free cash flow is calculated as operating cash flow minus capital expenditures (CapEx).
🏛️ Why is it important?
FCF per Share reveals how much real cash is available per share – useful for dividends, buybacks, or reducing debt. Unlike net income, free cash flow is harder to manipulate and often seen as a more reliable metric.
🧮 Calculation
🎯 What does this mean for investors?
- High FCF per share signals strong financial flexibility.
- It shows how much capital the company can effectively reinvest or return to shareholders.
- Particularly relevant for dividend payers and capital-efficient businesses.
📘 Short interest
📈 What is it?
Short interest indicates how many shares of a company are currently sold short – that is, borrowed and sold by investors who expect the price to decline.
🧮 How is it calculated?
It reflects the percentage of a company’s shares that are being shorted relative to the total shares available.
🏛️ Why is it important?
Short interest serves as a sentiment indicator: A high value may signal skepticism or bearish expectations – but also increases the potential for a short squeeze if prices rise unexpectedly.
🧮 Calculation
🎯 What does this mean for investors?
- Low short interest usually indicates market confidence in the company.
- High short interest can be a warning sign – or an opportunity if sentiment shifts.
- Especially relevant in volatile markets or ahead of key earnings releases.
📘 Employees
📈 What is it?
The employee count shows how many people a company employs worldwide – offering insights into its size, structure, and business model.
🧮 How is it calculated?
🏛️ Why is it important?
It helps assess operational scale, labor intensity, and cost structure. Combined with revenue and profit, it enables key metrics like revenue per employee or productivity.
🧮 Calculation
🎯 What does this mean for investors?
- A high headcount can signal operational complexity – but also significant growth capacity.
- Revenue per employee is a key indicator of efficiency.
- Especially useful for comparing tech, industrial, or service-heavy companies.
📘 Revenue per employee
📈 What is it?
Revenue per employee indicates how much revenue a company generates on average per employee – a key measure of efficiency and productivity.
🧮 How is it calculated?
The employee count is typically taken from the most recent annual report.
🏛️ Why is it important?
This metric helps compare business models – especially between labor-intensive and technology-driven companies. A high value suggests automation, operational efficiency, or strong value creation per head.
🧮 Calculation
🎯 What does this mean for investors?
- A high revenue per employee indicates a scalable and margin-strong business model.
- A low figure may reflect labor-intensive operations or lower value-add.
- Especially helpful when comparing tech companies to industrial or service sectors.
Great Elm Group Inc Stock Analysis
Analyst Opinions
8 Analysts have issued a Great Elm Group Inc forecast:
Analyst Opinions
8 Analysts have issued a Great Elm Group Inc forecast:
Great Elm Group Inc Events
Past Events
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AUG
27
Q4 2026 Earnings Call
about one month ago
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MAY
7
Q3 2026 Earnings Call
5 months ago
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FEB
5
Q2 2026 Earnings Call
8 months ago
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NOV
13
Q1 2026 Earnings Call
11 months ago
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SEP
3
Q4 2025 Earnings Call
about one year ago
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StocksGuide Free
Great Elm Group Inc — Q4 2026 Earnings Call
1. Management Discussion
Greetings. Welcome to the Great Elm Group Fiscal 2026 Fourth Quarter and Full Year Conference Call. [Operator Instructions] Please note, this conference is being recorded.
I will now turn the conference over to Adam Yates, Managing Director. Thank you. You may begin.
Good morning, everyone. Thank you for joining us for Great Elm Group's Fiscal Fourth Quarter and Full Year 2026 Earnings Conference Call. As a reminder, this conference call is being recorded on Thursday, August 27, 2026. If you would like to be added to our distribution list, you can e-mail [email protected] or sign up for alerts directly on our website at www.greatelmgroup.com. The slide presentation accompanying today's conference call and webcast can be found on our website under Events and Presentations. A link to the webcast is also available on our website as well as in the press release announcing our results.
Today's conference call includes forward-looking statements, and we ask that you refer to Great Elm Group's filings with the SEC for important factors that could cause actual results to differ materially from these statements. Great Elm Group does not undertake to update its forward-looking statements unless required by law. In addition, during today's call, management will refer to certain non-GAAP financial measures. Reconciliations to the most comparable financial measures are included in our earnings release. To obtain copies of our SEC filings, please visit Great Elm Group's website under Financial Information and select SEC filings. Today's comments do not constitute an offer to sell or a solicitation of an offer to buy interest in any investment vehicle managed by Great Elm or its affiliates. Any such offer solicitation will only be made pursuant to the applicable offering documents for such investment vehicle.
On the call today, we have Jason Reese, CEO; Adam Kleinman, President and General Counsel; Nichole Milz, COO; and Keri Davis, CFO.
I will now turn the call over to Jason Reese, CEO.
Good morning, and thank you for joining us today. Fiscal 2026 was a year of meaningful progress across Great Elm's platform, although that progress was overshadowed by significant mark-to-market losses, primarily associated with our investments in GECC and GECC-related vehicles. Over the course of the year, GECC stock price declined from $10.67 to $5.45, a decrease of nearly 50%. Over the same period, the stock's discount to NAV widened from approximately 12% to approximately 31%. GECC's NAV at June 30, 2026, was $7.95 per share. These losses had a significant impact on our reported financial results, and we are not satisfied with the resulting fiscal year loss. At the same time, we made substantial progress building the underlying earnings power and scale of Great Elm.
During fiscal '26, GEG and its managed vehicles raised nearly $400 million of gross capital. Fee-paying AUM increased 7% to approximately $590 million, and we exited the year with improving momentum across both our real estate and alternative credit businesses.
I'll start with alternative credit. During the second half of the fiscal year, I assumed a more active leadership role at GECC, becoming Executive Chairman of GECC's Board on March 2 and CEO on May 4. My priorities at GECC remain straightforward. First, protect and grow NAV; second, generate sustainable income and throughout the process, maintain disciplined capital allocation, rigorous underwriting and clear accountability.
We saw tangible progress against those objectives during the fourth quarter. GECC's net assets increased approximately 3% sequentially. Portfolio performance improved and less than 1% of investments were on nonaccrual at quarter end. We also sourced and selectively deployed capital into new private investments that we believe offer attractive risk-adjusted returns. We also took important steps to strengthen GECC's capital structure and liquidity. During the year, GECC retired all $18.6 million of its notes maturing in 2026 and extended the maturity of its revolving credit facility, leaving no debt maturities until 2029.
Subsequent to the quarter end, GECC called an additional $6.5 million of its highest cost debt. At June 30, GECC also maintained substantial liquidity, including approximately $39 million of availability under its revolving credit facility. These actions are part of a broader effort to reposition GECC for more consistent long-term performance. We believe a strong portfolio, improved capital structure and disciplined investment approach should ultimately benefit both GECC shareholders and Great Elm through the value of our investments and fee-related earnings generated by our asset management business. We are exploring opportunities to expand our investment strategy and enhance the value proposition for GECC shareholders.
Importantly, our interests remain aligned with GECC shareholders. Great Elm Capital Management waived approximately $0.9 million of incentive fees in the fourth quarter. Bringing total incentive fees waived during fiscal 2026 to approximately $3.7 million or $0.26 per GECC share.
Turning to real estate. This was a particular area of strength during fiscal '26. Our partnership with Kennedy Lewis provided substantial growth capital and helped accelerate the expansion of the Monomoy platform. Across Monomoy REIT, Monomoy CRE, Monomoy BTS and Monomoy Construction Services, we are building an integrated real estate platform spanning acquisitions and asset management, development and construction.
Monomoy REIT had a record fourth quarter for capital deployments, completing 6 acquisitions, representing approximately $34 million of committed capital, including estimated future capital expenditures and tenant improvement commitments. We also continued value-add construction across the existing portfolio. Our focus remains on disciplined acquisitions where we believe active asset management can generate attractive risk-adjusted returns.
During the fourth quarter, we drew the remaining $50 million under our $150 million strategic financing with Kennedy Lewis, providing additional capital to fund the REIT's record acquisition activity and future growth. Combined with additional property level financings completed during the year, we believe Monomoy REIT is well positioned to continue scaling its IOS portfolio while maintaining a disciplined approach to capital deployment.
Monomoy CRE continued to benefit from that growth, generating approximately $1.1 million of investment and property management fees during the fourth quarter, up approximately 29% from the prior year period. For the full fiscal year, those fees totaled approximately $3.9 million, an increase of 19%. We're actively pursuing additional institutional capital to support continued growth and scale of the platform.
Our build-to-suit business also continued to demonstrate its ability to create value. Monomoy BTS sold its third development property in June for approximately $0.9 million gain following the profitable sale of its second project earlier in the fiscal year. During the fourth quarter, we commenced development on our fourth project in Texas and subsequent to year-end, acquired our fifth property for approximately $3 million.
Monomoy Construction Services had a slower ramp than we initially anticipated, generating approximately $0.4 million of revenue during the fourth quarter. However, we are encouraged by its developing pipeline with core tenants, IOS prospects and expanding consulting and predevelopment relationships.
Taken together, we believe these businesses provide Great Elm with a differentiated, fully integrated real estate platform and substantial opportunity for additional scale. Beyond our core operating businesses, our CoreWeave-related investment continued to create value during the quarter. Since April 1, we received approximately $3 million of distributions, bringing cumulative distributions since inception to approximately $8.6 million compared with our original $5 million investment. We also recognized approximately $2.1 million net gain on the investment during the fourth quarter and continue to retain meaningful upside potential.
Capital allocation remains another key priority. We repurchased shares for the 11th consecutive quarter, reflecting our view that our shares continue to represent an attractive use of capital at current valuation levels. During the fourth quarter, we repurchased approximately 265,000 shares at an average price of $2.18 per share, representing roughly 1% of the shares outstanding at June 30. Since the inception of the repurchase program in 2023 through August 24, we have repurchased approximately 8.1 million shares for $16.1 million at an average price of approximately $2 per share. Our Board has authorized up to $40 million of total repurchases, leaving nearly $24 million of remaining capacity. We intend to continue evaluating repurchases alongside our other investment opportunities based on where we believe we can generate the best risk-adjusted return for shareholders.
As we enter fiscal 2027, Great Elm has growing fee-paying assets, improving operating momentum and substantial financial flexibility. We ended June with approximately $53.5 million of cash and equivalents, providing meaningful capacity to invest in our existing businesses, pursue new opportunities and continue disciplined capital allocation.
Our priorities for fiscal '27 are clear: continue growing AUM and fee-related earnings, scale our real estate and alternative credit platforms, improve the performance and value of our existing investments and selectively pursue new opportunities where our capital, relationships and operating capabilities provide an advantage.
Fiscal '26 demonstrated both the volatility that can result from our balance sheet investments and the progress occurring across our underlying businesses. Our focus is squarely on converting the operational progress into stronger, more consistent financial performance and long-term value for Great Elm shareholders.
With that, I'll turn the call over to Keri for a review of our financial results.
Thank you, Jason. I'll provide a brief overview of the fourth quarter and of course, welcome all of you to review our filings for additional detail or reach out to our team with any questions.
Fiscal fourth quarter revenue was $10.6 million compared to $5.6 million in the prior year period, representing an 88% increase year-over-year. For the fourth quarter, net income was approximately $1.1 million compared to net income of $13.6 million in the prior year period. The change in net income primarily reflected lower net unrealized gains on the company's investments compared with the prior year period. Adjusted EBITDA for the quarter was approximately $0.3 million compared to $1.5 million in the prior year period. Fee-paying AUM and AUM were approximately $590 million and $771 million, respectively, as of June 30, 2026, representing an increase of 7% and 2% from the prior year period. We ended the fiscal year with approximately $53.5 million of cash and cash equivalents. This strong liquidity position provides substantial financial flexibility to support growth initiatives across our platform.
Please refer to the earnings release, accompanying investor presentation and our Form 10-K for a more detailed summary of our financial position.
This concludes my financial review. With that, we will turn the call over to the operator to open the line for questions.
[Operator Instructions] At this time, there are no questions. I would like to turn the floor back over to Jason Reese for closing comments.
Thank you again for joining us today. Before we conclude, I wanted to reiterate that fiscal '26 included challenges and our reported results were not where we would like them to be. We enter fiscal '27 from a position of strength. We have growing fee-paying assets under management, substantial liquidity, improving momentum across both real estate and alternative credit and significant capacity to invest in our businesses and repurchase shares when we believe doing so creates attractive value for shareholders.
Our focus is execution. We intend to continue scaling our existing platforms, growing fee-related earnings, improving the performance and value of our investments and selectively deploying our capital into opportunities where we believe our relationships and capabilities provide a differentiated advantage.
Ultimately, our objective is straightforward, translate the progress we have made across the platform into stronger and more consistent financial performance and long-term value for Great Elm shareholders.
We look forward to keeping you updated on our progress. Thank you for your time and continued support.
Thank you. Ladies and gentlemen, thank you for your participation. This does conclude today's teleconference. Please disconnect your lines, and have a great day.
Great Elm Group Inc — Q3 2026 Earnings Call
1. Management Discussion
Greetings, and welcome to Great Elm Group Fiscal 2026 Third Quarter Conference Call. [Operator Instructions] As a reminder, this conference is being recorded.
I would now like to turn the conference over to your host, Adam Yates, Managing Director. Thank you. You may begin.
Good morning, everyone. Thank you for joining us for Great Elm Group's Fiscal 2026 Third Quarter Earnings Conference Call. As a reminder, this conference call is being recorded on Thursday, May 7, 2026. If you would like to be added to our distribution list, you can e-mail [email protected] or you can sign up for alerts directly on our website, www.greatelmgroup.com.
The slide presentation accompanying today's conference call and webcast can be found on our website under Events and Presentations. A link to the webcast is also available on our website as well as in the press release that was disseminated to announce the quarterly results.
Today's conference call includes forward-looking statements, and we ask that you refer to Great Elm Group's filings with the SEC for important factors that could cause actual results to differ materially from these statements. Great Elm Group does not undertake to update its forward-looking statements unless required by law.
In addition, during today's call, management will refer to certain non-GAAP financial measures. Reconciliations to the most comparable financial measures are included in our earnings release. To obtain copies of our SEC filings, please visit Great Elm Group's website under Financial Information and select SEC filings.
Today's comments do not constitute an offer to sell or a solicitation of an offer to buy interest in any investment vehicle managed by Great Elm or its affiliates. Any such offer or solicitation will only be made pursuant to the applicable offering documents for such investment vehicle.
On the call today, we have Jason Reese, CEO; Adam Kleinman, President and General Counsel; Nichole Milz, COO; and Keri Davis, CFO.
I will now turn the call over to Jason Reese, CEO.
Thank you, Adam. Good morning, and thank you for joining us today. This quarter, Great Elm made meaningful progress advancing our strategic initiatives, while operating against a challenging backdrop.
Fiscal third quarter 2026 was marked by heightened volatility across the BDC sector, driven by broader concerns around private credit quality. GECC, our public BDC, was not insulated from that volatility. Our reported results reflect approximately $9.8 million of unrealized losses primarily related to our holdings in GECC common stock and related SPVs. Despite these noncash mark-to-market losses, our balance sheet remains strong with over $45 million of cash and equivalents. This liquidity provides us with significant flexibility to support our growth initiatives and pursue attractive opportunities as we move forward.
In this environment, we continue to build momentum across our alternative asset management platform. In March, I assumed the role of Executive Chairman of GECC at an important inflection point for the company. On May 4, I was appointed CEO. The company was established to create income and protect and grow NAV.
In the near term, I'm reprioritizing. We will protect and grow NAV first and secondarily create income. We will accomplish this by strengthening oversight, protecting shareholder value and reinforcing accountability across the platform. We are already making tangible progress across each of these efforts.
At GECC, we took decisive steps during the quarter to strengthen the balance sheet and improve overall portfolio quality. We substantially delevered the capital structure by calling and repurchasing all near-term funded debt, and GECC will soon have no debt maturities until 2029. This eliminates near-term refinancing risk and enhances our ability to deploy capital in a disciplined and opportunistic manner.
We also advanced our portfolio rotation strategy, exiting select investments and increasing portfolio quality by redeploying capital into predominantly senior secured positions. As a result, first lien investments now comprise nearly 75% of GECC's corporate credit portfolio, the highest level in recent history.
Additionally, we are expanding our proprietary sourcing effort. During the quarter, we closed 3 transactions sourced through institutional partners. We closed another proprietary private investment in April and expect to close on an additional investment in the near future. Our focus remains on rigorous underwriting, enhanced portfolio diversification and increasing cash-generative secured credit investments. We believe these actions position GECC for an improved trajectory with durable performance.
Within our private credit strategy, the Great Elm Credit Income Fund, which we launched in November '23, began an orderly wind down last quarter. We offered third-party investors an early redemption option and all have since exited the fund, leaving Great Elm Group's approximately $7 million investment at quarter end. The fund generated a net return of over 20% from inception through March 31, '26.
In real estate, Great Elm Real Estate Ventures delivered another strong quarter driven by continued execution across the Monomoy platform. Monomoy CRE generated approximately $1 million of investment and property management fees in the quarter, growing more than 20% from the prior year period. Monomoy REIT closed on 5 acquisitions in the quarter, deploying approximately $28 million and surpassing its full year 2025 acquisition activity.
Monomoy BTS delivered a third development property in Florida to an investment-grade tenant with rent commencing in March. During the quarter, the team also advanced its fourth design-build project in Texas following the land acquisition. The real estate platform continues to build a robust pipeline of additional build-to-suit opportunities, spurred by its strong execution track record and high tenant satisfaction. Lastly, Monomoy Construction Services completed its fourth full quarter of operations, adding $0.7 million in total revenue.
Outside of our core platform, our CoreWeave-related investment continues to perform well with cumulative distributions of $6.8 million to date, exceeding our initial $5 million investment. We continue to see upside potential based on current trading levels, and we are encouraged by CoreWeave's recent stock price rebound and successful capital raises.
Turning to capital allocation. We believe our shares remain materially undervalued and continue to prioritize share repurchases accordingly. Our Board recently approved a $15 million increase in our stock repurchase program, bringing the total authorization to $40 million. This marks our 10th consecutive quarter of share repurchases, underscoring both our conviction in the business and our commitment to enhancing shareholder value.
During the quarter, we repurchased approximately 1.4 million shares or over 4% of shares outstanding at an average price of $2.04 per share. Through May 4, we have repurchased approximately 7.8 million shares at an average price of $2 per share, representing $15.6 million deployed since inception. This leaves approximately $24.4 million of remaining capacity, and we intend to remain active under the program at current valuation levels.
As we enter the fourth quarter of our fiscal year, we remain focused on growing fee-paying AUM, scaling our alternative credit and real estate businesses and sourcing new investment opportunities.
Looking ahead, we seek to expand our platform and add accretive differentiated investment solutions with attractive risk-adjusted return profiles.
With that, I'll now turn the call over to our CFO, Keri Davis.
Thank you, Jason. I'll provide a brief overview of the quarter and, of course, welcome all of you to review our filings for additional detail or reach out to our team with any questions.
Fiscal third quarter revenue was $3.4 million compared to $3.2 million in the prior year period, a 7% increase, driven primarily by growth in MCS construction management fees. Estimated fee-paying AUM and AUM were $528 million and $744 million, respectively, as of March 31, 2026. These figures represent a decrease of 7% and 3%, respectively, compared to the prior year period.
We reported a net loss of $13.5 million for the quarter compared to a net loss of $4.5 million a year ago. The change was primarily driven by $9.8 million of unrealized losses, including consolidated funds, the majority of which were associated with the company's investments in GECC common stock and related SPVs.
Adjusted EBITDA for the quarter was negative $1.6 million compared to positive $0.5 million in the prior year period. As of March 31, 2026, we held approximately $45.5 million of cash and cash equivalents on our balance sheet to deploy across our growing alternative asset management platform.
Please refer to the earnings release and our Form 10-Q for a more detailed summary of our financial position.
This concludes my financial review of the quarter. With that, we will turn the call over to the operator to open for questions.
[Operator Instructions]
There are no questions at this time. At this point, I'd like to turn the call back over to Jason Reese for closing comments.
Thank you again for joining us today. We remain confident in the strategic direction of our business. Our credit and real estate platforms continue to execute, and with the strength of our balance sheet. We are taking disciplined actions to position the platform for long-term success. We look forward to keeping you updated on our progress. Thank you for your time and continued support.
This concludes today's conference. You may disconnect your lines at this time, and we thank you for your participation.
Great Elm Group Inc — Q3 2026 Earnings Call
Great Elm Group Inc — Q2 2026 Earnings Call
1. Management Discussion
Greetings, and welcome to the Great Elm Group Fiscal 2026 Second Quarter Conference Call. [Operator Instructions] As a reminder, this conference is being recorded.
It is now my pleasure to introduce your host, Adam Yates, Managing Director. Thank you, sir. You may begin.
Good morning, everyone. Thank you for joining us for Great Elm Group's Fiscal 2026 Second Quarter Earnings Conference Call. As a reminder, this conference call is being recorded on Thursday, February 5, 2026. If you would like to be added to our distribution list, you can e-mail [email protected], where you can sign up for alerts directly on our website, www.greatelmgroup.com.
The slide presentation accompanying today's conference call and webcast can be found on our website under Events and Presentations. A link to the webcast is also available on our website as well as in the press release that was disseminated to announce the quarterly results.
Today's conference call includes forward-looking statements, and we ask that you refer to Great Elm Group's filings with the SEC for important factors that could cause actual results to differ materially from these statements. Great Elm Group does not undertake to update its forward-looking statements, unless required by law. In addition, during today's call, management will refer to certain non-GAAP financial measures. Reconciliations to the most comparable financial measures are included in our earnings release. To obtain copies of our SEC filings, please visit Great Elm Group's website under Financial Information and select SEC filings.
Today's comments do not constitute an offer to sell or a solicitation of an offer to buy interest in any investment vehicle managed by Great Elm or its affiliate. Any such offer or solicitation will only be made pursuant to the applicable offering documents for such investment vehicle.
On the call today, we have Jason Reese, CEO; Adam Kleinman, President and General Counsel; Nichole Milz, COO; and Keri Davis, CFO. I will now turn the call over to Jason Reese, CEO.
Good morning, and thank you for joining us today. While Great Elm made meaningful progress during the quarter to advance our strategic goals, I want to acknowledge the reality of the environment we operated in during the quarter.
Fiscal second quarter '26 unfolded against a challenging backdrop for BDCs, marked by heightened volatility, meaningful pressure on public valuations and concerns over private credit quality deterioration. As a result, we recorded significant unrealized losses during the quarter, particularly related to our investment in GECC common stock, investments in special purpose vehicles related to GECC common stock and our CoreWeave-related investment. While these valuation changes materially impacted our reported results for the quarter, it's important to emphasize that they were primarily noncash in nature and driven by market-based movements.
Liquidity across the platform remains strong and our balance sheets at the holding company and both of our primary investment vehicles are well positioned to grow our platform and invest opportunistically as we move forward. Against that backdrop, Great Elm has executed operationally. We continue to advance our alternative asset management platform, expanding both our real estate and credit businesses, and grew fee-paying assets under management on a year-over-year basis. At the end of December, estimated assets under management stood at $740 million, while estimated fee-paying assets under management grew 4% year-over-year to approximately $561 million.
Great Elm Real Estate Ventures had another strong quarter, marked by continued execution across the Monomoy platform. Monomoy BTS completed its third design build property located in Florida and has begun actively marketing the property for sale, with an expected exit in the second half of fiscal 2026. We are also engaged with a high-quality tenant on a fourth design build project and continue to see a robust and expanding pipeline of development opportunities supported by a broader tenant base.
Monomoy Construction Services completed its third full quarter of operations, contributing approximately $400,000 in revenue. With construction capabilities now fully integrated in-house, we are able to deliver comprehensive turnkey solutions for tenants, capture additional value across the property life cycle and support disciplined execution as our project pipeline continues to scale.
At Monomoy CRE, total investment management and property management fees increased over 15% from the prior year period, driven by the growth in fee-paying AUM and higher gross rents. During the quarter, Monomoy REIT acquired 3 properties at attractive cap rates for approximately $8.9 million, including development costs, while continuing renovations and design build initiatives further enhanced by the capabilities of MCS.
Turning to our alternative credit business, it's important to acknowledge that the BDC experienced a challenging finish to calendar '25, driven largely by CoreWeave stocks declining nearly 50% in the quarter, CLO equity underperforming the broader credit markets in the quarter and continued dispersion in leveraged credit, including first grant impacts. GECC plans to report earnings in early March, and we'll provide additional details at that time. That said, we believe we have taken actions to position the platform for success as we move into '26. We fortified the team in September by hiring a new head of research with over 25 years of credit analysis experience.
During the quarter, the investment team reunderwrote the entire portfolio and continue to work deliberately to further diversify our investments, with a particular focus on senior secured opportunities. The team worked to optimize the portfolio to improve overall credit quality, trimming or exiting high-risk positions. These steps were taken with a long-term mindset, and position the BDC with a stronger foundation from which to rebuild in 2026.
While syndicated credit spreads remain near historic tights, we have redoubled our effort to shift the portfolio towards private transactions that offer stronger lender protections, tighter covenants and reduce the risk of liability management transactions. We believe this approach is increasingly important given the lender and lender violence and structural erosion we continue to see in broadly syndicated markets.
The BDC maintained significant liquidity, providing ample flexibility as opportunities arise. As a reminder, in the prior quarter, GECC materially lowered its cost of capital through the refinancing of its highest cost debt. Taken together, these initiatives leave GECC in a position of strength with a healthy balance sheet, meaningful deployable cash and additional capacity to invest in attractive income-generating opportunities.
In our private credit strategy, the Great Elm Credit Income Fund launched in November '23, began an orderly wind down in response to recent portfolio events and market conditions. As the fund had not yet reached scale, we decided to begin monetizing investments in a disciplined manner. The fund recorded a net return of over 20% for the 26 months from inception through December 31, 2025.
Outside of our core business, our CoreWeave-related investment continues to be a compelling success despite significant market volatility during the quarter. From September 30 to December 31, CoreWeave's common stock declined nearly 50%, resulting in market-based valuation movements that generated a $6.7 million of unrealized losses in our investment, offset by $2.2 million of realized gains from distributions. Notwithstanding this volatility, we have received distributions totaling approximately 115% of our original $5 million investment to date, and we continue to believe there is meaningful upside potential based on current trading levels. Since December 31, CoreWeave stock price has rebounded significantly, reinforcing our conviction in the long-term value of the investment.
In addition, we recorded net unrealized mark-to-market losses of $4 million and $3 million in our GECC common stock and related SPV investments, respectively. These valuation changes echo broader market trading levels for BDCs, and we expect recovery in time as GECC rebuilds its NAV.
We also continue to deploy capital in a disciplined manner to enhance shareholder value. Our share repurchase program has been highly effective since inception, underscoring our conviction in the intrinsic value of the business and our long-term outlook. During the quarter, we repurchased approximately 1.1 million shares of GEG stock at an average price of $2.47 per share. From inception of the program through February 3, Great Elm has repurchased approximately 6.4 million shares at an average price of $1.99 per share, representing a total capital deployment of $12.7 million. In aggregate, these repurchases equate to nearly 20% of our shares outstanding, materially enhancing per share value for shareholders.
As we enter the second half of fiscal 2026, Great Elm is well positioned with $51.2 million in cash, providing us with ample flexibility to support our growth initiatives and take advantage of attractive opportunities sourced via our sophisticated network. We remain focused on growing fee-paying AUM, scaling our alternative credit and real estate businesses and sourcing new investment opportunities. Looking ahead, we seek to expand our platform and add accretive differentiated product offerings with attractive risk-adjusted return profiles.
With that, I'll now turn the call over to our CFO, Keri Davis.
Thank you, Jason. I will provide a brief overview of the quarter, and of course, welcome all of you to review our filings in greater detail or reach out to our team with any questions.
Fiscal second quarter revenue was $3 million compared to $3.5 million for the prior year period. The decrease was primarily driven by $0.6 million in property sales and $0.5 million of incentive fees in the prior year period that were not recognized in the current quarter, offset by $0.4 million in new construction management revenue from MCS acquired in February 2025. Estimated AUM and fee-paying AUM totaled approximately $740 million and $561 million, respectively, with fee-paying AUM up 4% from the prior year quarter end.
We reported a net loss of $16.5 million for the quarter versus net income of $1.4 million a year ago. Our loss for the quarter was primarily driven by unrealized losses of $14.4 million and realized gains of $2.2 million from GEG's investments, including the company's investments in consolidated funds. This compares to an unrealized gain from the company's investments in the prior year period of $2.4 million, including its investments in consolidated funds. The unrealized losses from GEG's investments in the recent quarter were largely attributable to market-based valuation movements, including $4 million related to GECC common stock, $3 million related to special purpose vehicles invested in GECC common stock and $6.7 million related to our CoreWeave-related investments.
Adjusted EBITDA for the quarter was a loss of $1.6 million compared to a gain of $1 million in the prior year period. As of December 31, 2025, we held approximately $51.2 million of cash on our balance sheet to deploy across our growing alternative asset management platform.
Please refer to Slide 6 for a summary of our financial position and book value per share of approximately $1.79.
This concludes my financial review of the quarter. With that, we will turn the call over to the operator to open for questions.
[Operator Instructions] There are no questions at the moment. I would like to turn it back to management for closing comments.
Thank you again for joining us today. We remain confident in the strategic direction of our business. We continue to advance our credit and real estate platforms, strengthen our balance sheet and deliver sustained value for our shareholders over time. We look forward to keeping you updated on our progress. Thank you for your time and continued support.
This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation, and have a great day.
Great Elm Group Inc — Q2 2026 Earnings Call
Great Elm Group Inc — Q1 2026 Earnings Call
1. Management Discussion
Greetings, and welcome to the Great Elm Group Fiscal 2026 First Quarter Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Adam Yates, Managing Director. Thank you. You may begin.
Good morning, everyone. Thank you for joining us for Great Elm Group's Fiscal 2026 First Quarter Earnings Conference Call. As a reminder, this conference call is being recorded on Thursday, November 13, 2025. If you would like to be added to our distribution list, you can e-mail [email protected] or you can sign up for alerts directly on our website, www.greatelmgroup.com.
The slide presentation accompanying today's conference call and webcast can be found on our website under Events and Presentations. A link to the webcast is also available on our website as well as in the press release that was disseminated to announce the quarterly results.
Today's conference call includes forward-looking statements, and we ask that you refer to Great Elm Group's filings with the SEC for important factors that could cause actual results to differ materially from these statements. Great Elm Group does not undertake to update its forward-looking statements unless required by law.
In addition, during today's call, management will refer to certain non-GAAP financial measures. Reconciliations to the most comparable financial measures are included in our earnings release. To obtain copies of our SEC filings, please visit Great Elm Group's website under Financial Information and select SEC filings.
Today's comments do not constitute an offer to sell or a solicitation of an offer to buy interest in any investment vehicle managed by Great Elm or its affiliates. Any such offer, solicitation will only be made pursuant to the applicable offering documents for such investment vehicle.
On the call today, we have Jason Reese, CEO; Adam Kleinman, President and General Counsel; Nicole Milz, COO; and Keri Davis, CFO.
I will now turn the call over to Jason Reese, CEO.
Good morning, and thank you for joining us today. Great Elm made significant progress across our strategic initiatives in the fiscal first quarter, building on the momentum from our record year in fiscal '25. During the quarter, we advanced our goals to expand our platform, grow assets under management and enhance our profitability. Notably, we raised nearly $250 million of debt and equity capital across our credit and real estate platforms through both private investments from strategic partners and public raises through GECC's at-the-market equity program and a new baby bond.
Fee-paying assets under management grew 9% year-over-year to approximately $594 million or 10% on a pro forma basis to approximately $601 million. As I have reviewed on prior calls, in July, we established a transformative partnership with Kennedy Lewis Investment Management, which invested in both GEG and Monomoy REIT, committing up to $150 million in leverageable capital to Monomoy REIT to accelerate our real estate platform expansion and purchasing 1.3 million shares of GEG common stock.
This partnership is a true catalyst for growth, bringing not only capital but also deep institutional expertise in scaling real estate platforms. As part of this partnership, Lloyd Nathan joined the Board of GEG and Ludwig Schrittenloher joined the Board of Monomoy REIT.
In August, Woodstead Value Fund purchased 4 million newly issued shares of GEG common stock at $2.25 per share, raising approximately $9 million in equity capital. Alongside the investment, Booker Smith joined our Board to help advance and expand our key verticals.
Great Elm also issued 10-year warrants to Woodstead for an additional 2 million shares of GEG common stock, 1 million struck at $3.50 and 1 million at $5, further aligning their interest with those of all shareholders. Great Elm Real Estate Ventures continued to ramp during the quarter. Monomoy BTS sold its second build-to-suit development property in Canton, Mississippi for over $7 million, generating a gain of over $0.5 million.
Construction on the third BTS property is nearing completion with a robust pipeline of development opportunities behind it. Monomoy Construction Services completed its second full quarter since inception, contributing approximately $700,000 in revenue. With construction capabilities fully integrated in-house, we can offer tenants comprehensive turnkey solutions, capture more value through the property life cycle and execute on our growing project pipeline.
At Monomoy CRE, investment management and property management fees increased 12% over the prior year period, driven by the growth in fee-paying AUM and growing rental income. The REIT deployed over $13 million to acquire 7 new properties at attractive cap rates and acquired a land parcel adjacent to an existing asset to accommodate a tenant expansion under a new 10-year lease. This transaction demonstrates our ability to meet tenants' needs while enhancing portfolio value.
In our alternative credit business, GECC delivered a strong quarter in terms of capital formation and balance sheet optimization. GECC raised approximately $28 million in equity proceeds, including a $15 million private placement and a $13 million through its at-the-market equity program. In August, GECC doubled the borrowing capacity under its revolver to $50 million from $25 million, reducing the revolver interest rate by 50 basis points and has the ability to further expand the facility to $90 million under certain circumstances.
In September, GECC refinanced its highest cost debt, the $40 million of 8.75% notes due in September '28 with a $57.5 million of 7.75% notes due in December '30, reducing annual cash interest expense by 100 basis points and extending its debt maturity profile.
GECC's operating results for the quarter were impacted by First Brands, which traded down sharply in late September before filing for bankruptcy at the end of the quarter. GECC held exposure to First Brands through syndicated loans. Consequently, NAV was negatively affected and GECC placed its First Brands investments on nonaccrual at the end of September. Despite this operating setback, the capital initiatives executed in the quarter leave GECC in a position of strength with a strong balance sheet, ample deployable cash and capacity to invest in income-generating opportunities in the coming quarters.
Meanwhile, our Great Elm private credit strategy continued with strong performance, returning 15.2% net calendar year-to-date through September 30. Since inception, we have made income distributions exceeding 15% of original invested capital to investors in the strategy, highlighting disciplined deployment and a focus on value preservation.
Outside of our core business, our CoreWeave-related investment remains a significant success story. We have already received over 100% of our initial $5 million investment in distributions to date, and we continue to see meaningful upside potential despite recent volatility in CoreWeave stock price that contributed to unrealized losses in this investment and GEG's net loss for the quarter.
Shifting back to Great Elm. Our balance sheet also remains solid, ending the quarter with approximately $53.5 million in cash, providing us with ample flexibility to support our growth initiatives and take advantage of attractive opportunities as they arise. In July, our Board expanded our stock repurchase program by $5 million to $25 million in total.
Through November 11, we have repurchased 5.6 million shares for $10.9 million at an average price of $1.93 per share, leaving $14.1 million in remaining program capacity. These repurchases reflect our continued confidence in the company's long-term value and are a highly accretive use of capital.
As we move through fiscal '26, we remain focused on growing fee-paying AUM, scaling our credit and real estate platforms and translating our strategic progress into sustained financial performance as we seek to create enduring value for our shareholders.
With that, I'll hand it over to Keri.
Thank you, Jason. I will provide a brief overview of the quarter and of course, welcome all of you to review our filings in greater detail or reach out to our team with any questions. Fiscal first quarter revenue was $10.8 million compared to $4 million for the prior year period. The increase was primarily driven by $7.4 million in revenue recognized from the sale of our second Monomoy BTS build-to-suit property. AUM and fee paying AUM totaled approximately $785 million and $594 million, respectively, with fee paying AUM up 9% from the prior year quarter end.
On a pro forma basis, AUM and fee-paying AUM totaled approximately $792 million and $601 million, up 7% and 10% from the prior year period, respectively. These figures incorporate the pro forma impact of GECC financing activities. We reported a net loss of $7.9 million for the quarter versus net income of $3 million a year ago, primarily due to unrealized losses on GEG's investments in GECC common stock and our CoreWeave-related related investment.
Adjusted EBITDA for the quarter was a loss of $0.5 million compared to a gain of $1.3 million in the prior year period. As of September 30, 2025, we held approximately $53.5 million of cash on our balance sheet to deploy across our growing alternative asset management platform. Please refer to Slide 6 for a summary of our financial position and book value per share of approximately $2.30.
This concludes my financial review of the quarter. With that, we will turn the call over to the operator to open for questions.
[Operator Instructions]
We have a question from Nat Stewart of N.A.S. Capital.
2. Question Answer
I've been following Great Elm Group for quite a while, and I'm pretty interested in the evolution the business has had lately. I was just trying to figure out kind of where you are in the growth picture. And obviously, with the asset management businesses, if you manage to keep the fixed costs at least relatively flat and grow AUM and revenue, it's going to create a lot of earnings growth.
So I was just curious what you guys think about your current overhead and expense structure and kind of like just as a -- from a financial point of view, like where are you on this growth trajectory in terms of growing the REIT, growing the BDC, other opportunities? Kind of what clues can you give us about where you see this going and when we're going to really see some operating leverage kick in?
Thanks, Nat. It's Jason Reese. I think best to say, we have spent a lot of time and effort building all the back office infrastructure. As you know, as you stated, this business is a high fixed cost and then low marginal cost going forward. I think we have the bulk of our fixed costs in place, and now the strategy is all about growing. As I think you've seen this past quarter, we made a major growth move on the real estate side. We're now putting that capital to work as we look to raise additional capital for the REIT.
And on the BDC, kind of the same thing. We've done quite a bit of capital raising over the last 15 months. We hope to accelerate that. We do not think we need to come anywhere near growing the costs that we have in the past. So we think we're in a great spot going forward to leverage.
Okay. Just like a little follow-up question. Obviously, there's a lot of public information on the BDC. The strategy there looks very good with that setback you had this quarter. I know I listened to that call, they talked about they need to diversify and maybe reduce some of the position sizes, which makes a lot of sense.
On the Monomoy REIT side, I could be wrong, perhaps I just am not seeing it, but I'd be interested in just learning more about that business. Like it doesn't seem to have a lot of a public-facing information about it. Am I just missing it or not seeing it? Or is that kind of -- how do we learn more about that and what's going on there? Just a little more in-depth understanding of that.
Well, let me give you a minute or 2, but I'd be happy to get on a call separately with you and get Chris [ Massey ], who is the head of that business on the call. But it is a private REIT. So there's not a lot of public information about it. But it focuses on the industrial outside storage space. The REIT has been operating for approximately 11 years. We have over 150 million -- 150 buildings that are -- we own in that REIT and growing. A lot of our focus is on the equipment rental space. Our largest tenant in this space is United Rentals, which the second largest tenant is Sunbelt Rentals in that space.
And we've taken the time to build. We're not just an asset manager there. We have built our BTS business or build-to-suit where we're building our own properties for -- that will then go in the REIT or get sold to third parties, but for servicing the tenants. And we've also -- if you remember, in January, we purchased a construction business that we were using from the outside, so that we brought all of that in-house to have the capabilities to do everything from kind of cradle to grave with properties.
We think it's a great business. We think it could be a public vehicle at some point in time. We're probably not quite at the scale I would want it to be before we took it public. But that is a possibility in the future. At that point, there would be the ultimate disclosure about it, obviously. But I'd be happy, Nat, if you want to e-mail me after the call, to set up a separate call and go in depth with you on Monomoy, if you'd like to know more.
Okay. Yes. Is that -- what -- if I just e-mail the IR, will that -- IR e-mail, will that get through?
It will get through...
At this time, there are no further questions. And I would like to turn the floor back over to Jason Reese for closing remarks.
Thank you again for joining us today. We remain confident in the strategic direction of our business. We continue to raise significant capital, advance our credit and real estate platforms and strengthen our balance sheet. We are committed to executing on our growth strategy, scaling fee-paying assets under management and delivering sustained value for our shareholders over time. We look forward to keeping you updated on our progress. Thank you for your time and continued support.
That concludes today's conference. Thank you for joining us. You may now disconnect your lines.
Great Elm Group Inc — Q1 2026 Earnings Call
Great Elm Group Inc — Q4 2025 Earnings Call
1. Management Discussion
Greetings, and welcome to the Great Elm Group Fiscal 2025 Earnings and Strategic Investment Call. [Operator Instructions] I'd now like to turn the conference over to your host, Adam Yates, Managing Director. Thank you. You may begin.
Good morning, everyone. Thank you for joining us for Great Elm Group's Fiscal 2025 Earnings and Strategic Investment Conference Call. As a reminder, this conference call is being recorded on Wednesday, September 3, 2025. If you would like to be added to our distribution list, you can e-mail [email protected] or you can sign up for alerts directly on our website, www.greatelmgroup.com. The slide presentation accompanying today's conference call and webcast can be found on our website under Events and Presentations. A link to the webcast is also available on our website as well as in the press release that was disseminated to announce the quarterly results.
Today's conference call includes forward-looking statements, and we ask that you refer to Great Elm Group's filings with the SEC for important factors that could cause actual results to differ materially from these statements. Great Elm Group does not undertake to update its forward-looking statements unless required by law. In addition, during today's call, management will refer to certain non-GAAP financial measures. Reconciliations to the most comparable financial measures are included in our earnings release. To obtain copies of our SEC filings, please visit Great Elm Group's website under Financial Information and select SEC filings.
Today's comments do not constitute an offer to sell or a solicitation of an offer to buy interest in any investment vehicle managed by Great Elm or its affiliates. Any such offer solicitation will only be made pursuant to the applicable offering documents for such investment vehicle. On the call today, we have Jason Reese, CEO; Adam Kleinman, President and General Counsel; Nicole Milz, COO; and Keri Davis, CFO. I will now turn the call over to Jason Reese, CEO.
Good morning, and thank you for joining us. Fiscal '25 was a record year for Great Elm, the strongest in our history. We delivered a record $15.7 million of net income from continuing operations in the final quarter and increased book value per share 24% year-over-year, driving momentum into fiscal '26 with over $100 million of capital raises completed in July and August across our credit and real estate platforms. In credit, GECC generated record investment income and incentive fees, raised over $75 million of new capital, upsized and reduced the cost of its revolving credit facility and increased its dividend, highlighting the sustainability of its performance.
Our Great Elm Credit Income Fund also delivered top-tier returns. In real estate, we launched Monomoy Construction Services, rounding out our fully integrated platform. MCS is already contributing meaningful revenue, expanding its pipeline and positioning us to scale rapidly while serving our industrial outside storage tenants and customers. Finally, just after year-end, we executed on 3 value-creating initiatives. First, in July, we entered a strategic partnership with Kennedy Lewis Investment Management, who invested in both GEG and Monomoy REIT, committing up to $150 million to accelerate our real estate platform growth. And in August, we completed 2 significant capital raises at GEG and GECC that provide meaningful new growth capital and expertise across our core businesses.
We believe fiscal '25 was an inflection point, as we delivered record results, scaled both credit and real estate and secured new capital and partnerships to fuel our next phase of growth. With momentum in both businesses and the strongest foundation in our history, we are well positioned to drive meaningful growth and create lasting value for our shareholders. Let me now walk through the details of our performance and strategy. Net income from continuing operations was $15.7 million in the fourth quarter, a significant improvement over last year. Excluding onetime property sales, revenue in the quarter grew over 140% over the prior year period, led by record management and incentive fees at GECC and new contributions from Monomoy Construction Services.
Book value per share rose approximately 24% year-over-year to $2.65 as of June 30. Book value as of June 30, pro forma for the 2 GEG issuances in July and August remained solid at $2.58 per share. We also closed the year with strong balance sheet, including $31 million of cash to support our expanding businesses or over $40 million on a pro forma basis after the 2 issuances. In addition, our Board expanded our stock purchase program by $5 million in July, bringing the total program size to $25 million. Through August, we have repurchased 5.1 million shares for $9.3 million at an average of $1.85 per share, leaving $15.7 million in remaining program capacity.
Repurchasing shares at a discount to book value has been directly accretive, contributing to the step-up in book value we delivered over the past year. We view these repurchases as an attractive use of capital, underscoring our confidence in long-term shareholder value. A key driver of profitability this year was the unrealized gains from our CoreWeave-related investment, which added more than $11 million to earnings. This $5 million investment made in May '24, sourced through a strategic relationship is a notable example of how we can use Great Elm's balance sheet and extensive network to capture unique opportunities that are not broadly available in the market.
Our returns in CoreWeave have translated to significant gains for our shareholders. And while these are currently unrealized gains, they highlight our ability to create value by selectively deploying capital into high-conviction investments. Importantly, we view these types of investments as complementary to our recurring fee revenue business in credit and real estate. Strategic, high conviction opportunities such as the CoreWeave investment, not only enhance our return profile, but also give us a differentiated engine of growth and value creation for shareholders.
Turning now to credit. This business was our biggest driver of growth in '25. GECC delivered the best year in its history, generating record management and incentive fees for GEG as well as its highest ever total investment income with more than 90% coming from cash income. Net investment income exceeded its quarterly distribution, supporting a 6% increase in GECC's dividend to $0.37 per share. Over the fiscal year, GECC also completed 4 capital raises totaling over $75 million and launched a $100 million at-the-market equity program, providing capital for growth.
Just after year-end, GECC upsized its revolving credit facility from $25 million to $50 million with room to expand further, while also reducing its borrowing cost by 50 basis points. These capital raises, combined with enhancing financial flexibility and record performance, position us to drive fee revenue growth from GECC, scale our credit platform and increase contributions to Great Elm's overall earnings trajectory. Meanwhile, our Great Elm Credit Income Fund continued its outstanding performance, posting net returns of 21% for the 6 months ended June 30, driven by unrealized appreciation in its core REIT-related investments following 12% net returns in calendar '24.
Taken together, our credit business is scaling rapidly, generating recurring cash flow, enhancing profitability and positioning Great Elm for sustained long-term fee growth. Now to real estate, where we achieved a major milestone this year with the launch of Monomoy Construction Services, or MCS, in February. We created MCS by acquiring our long-term partner, Greenfield CRE and combining it with our existing construction management business. The launch of MCS added in-house construction and predevelopment capabilities to our existing asset management and development businesses to complete a fully integrated end-to-end real estate platform to serve our IOS tenants and customers.
The integration brings 3 clear advantages: accelerating development time lines, capturing construction margins in-house and providing turnkey solutions that deepen tenant relationships. In its first few months, MCS contributed nearly $1 million in revenue and has already grown its project pipeline by more than 50%. Looking ahead, we expect MCS to more than double its revenue in fiscal '26, and we believe it will be a central driver of our long-term goal of scaling real estate revenues. Beyond MCS growth, our broader Monomoy platform advanced significantly during the quarter.
Monomoy CRE delivered stable fee revenue, contributing approximately $800,000 for the fourth quarter. Monomoy REIT executed on both acquisitions and dispositions, acquiring a $1.3 million property at an attractive cap rate and realizing on a $15.3 million sale versus a $9.2 million purchase price. We also strengthened the REIT's capital position by expanding its warehouse facility from $25 million to $50 million at an improved interest rate. Meanwhile, Monomoy BTS advanced its development pipeline, placing a second property under contract for sale, continuing construction on a third, gathering specifications on a fourth and capturing new tenant-driven opportunities nationwide.
Finally, I would like to provide a detailed overview of the important strategic capital raises and partnerships we closed over the last few weeks. Our partnership with Kennedy Lewis Investment Management and our August transactions with Woodstead Value Fund and Booker Smith. In July 25, we entered a strategic partnership with Kennedy Lewis, an institutional alternative investment firm managing over $30 billion in assets. As part of the partnership, Kennedy Lewis purchased 4.9% of Great Elm's common stock and will invest up to $150 million in Monomoy Properties REIT to accelerate the expansion of our real estate platform under the Monomoy brand.
In addition to these investments, Kennedy Lewis appointed representatives to the Boards of both GEG and Monomoy REIT. The structure of this transaction included a $100 million term loan to Monomoy Properties REIT with an option for an additional $50 million in the future, a 15% profits interest with the potential to increase up to 20% based on additional capital investment in our newly formed Great Elm Real Estate Venture subsidiary, which now houses Monomoy CRE, our investment manager; Monomoy BTS, our developer and Monomoy Construction Services, our construction manager and as mentioned, a strategic equity investment in Great Elm itself.
This partnership is a game changer. Kennedy Lewis brings not only capital, but also a proven track record of scaling institutional real estate platforms. Their success with the launch and IPO of Millrose Properties, a $5 billion REIT spun out from Lennar Corporation serves as a powerful example of their ability to transform institutional platforms into market-leading public companies. With their support and the current favorable economic backdrop, we are well positioned to supercharge Monomoy REIT growth toward our target of $1 billion in assets and a potential future IPO as well as to accelerate the expansion of our broader real estate platform under the Monomoy brand.
In August 25, we announced 2 additional strategic investments, providing a significant new growth capital to expand our assets under management and improve profitability. At GEG, Woodstead Value Fund purchased 4 million newly issued shares of GEG common stock at $2.25 per share, raising $9 million in equity capital. Alongside the investment, Booker Smith, a seasoned credit and real estate investor, joined the Great Elm Board to support our core verticals. Great Elm also issued Woodstead 10-year warrants for an additional 1 million shares of GEG common stock struck at $3.50 and 1 million shares of GEG common stock struck at $5.
These warrants serve to further align Woodstead with GEG's shareholders. In a separate transaction, GECC sold 9.9% of its outstanding common stock or 1.3 million newly issued shares at $11.65 per share to an affiliate of Booker Smith. This issuance provides GECC with $15 million of equity capital to be levered to pursue attractive investment opportunities. The fresh capital investments from Woodstead and Booker Smith not only strengthen our balance sheet but also position us to scale our credit and real estate platforms. The addition of Booker Smith as a GEG Director further deepens the experience and strategic relationships of our Board.
In summary, fiscal '25 was transformative. We delivered record financial results, scaled both our credit and real estate platforms and further strengthened our balance sheet. We also launched Monomoy Construction Services and forged strategic partnerships that position us for continued growth. We enter fiscal '26 with strong momentum, a solid balance sheet and confidence in our ability to deliver sustained long-term value to our shareholders. With that, I'll turn it over to Keri.
Thank you, Jason. I will provide a brief overview of the quarter and of course, welcome all of you to review our filings in greater detail or reach out to our team with any questions. Fiscal fourth quarter revenue was $5.6 million compared to $8.9 million for the prior year period. Revenue in the prior year period benefited from Monomoy BTS' first build-to-suit property sale, which generated approximately $6.6 million. Excluding this sale, revenue growth over the prior year period was over 140% or $3.3 million, primarily driven by record management incentive fees paid by GECC and revenue contributed from MCS launched in February of this year.
AUM and fee-paying AUM totaled approximately $759 million and $553 million, up 4% and 5%, respectively, from the prior year quarter end. Great Elm Group generated net income from continuing operations of $15.7 million for the quarter as compared to net loss from continuing operations of $0.6 million for the prior year period. The increase in net income was primarily driven by the unrealized gains on GEG's CoreWeave-related investment that Jason previously reviewed as well as strong GECC investment performance. Adjusted EBITDA for the quarter was $1.5 million compared to $1.2 million in the prior year period.
As of June 30, we had approximately $31 million of cash on our balance sheet to deploy across our growing alternative asset management platform. Please refer to Slide 6 that provides an overview of our financial position and highlights our book value per share of approximately $2.65, more than a 24% increase from March 31, 2025. As Jason mentioned previously, incorporating the 2 share issuances in July and August, book value per share as of June 30 is $2.58 per share and cash exceeds $40 million on a pro forma basis. This concludes my financial review of the quarter. With that, we will turn the call over to the operator to open for questions.
[Operator Instructions] Mr. Reese, there are no questions at this time. I'll turn the floor back to you for any final comments.
Thank you again for joining us today. Fiscal '25 was a landmark year for Great Elm with continued growth across all facets of our businesses, and we have positioned the company to drive growth in fiscal '26 and beyond. We look forward to keeping you updated on our progress. Thank you for your time and continued support.
Thank you. This concludes today's conference call. You may disconnect your lines at this time. Thank you for your participation.
Financial data from Great Elm Group Inc
Revenue
Revenue is the sum of all sales generated by a company, e.g. for its products or services.
Revenue (TTM) metric explainedDirect Costs
Direct costs are the costs incurred directly in connection with the manufacture of the product or service.
Gross Profit
Gross Profit indicates how much of the revenue remains in the company after deducting direct production costs. If the percentage share of sales is calculated, this is referred to as the gross margin.
Gross Profit metric explainedSelling and Administrative Expenses
Selling, general and administrative expenses (SG&A) include all expenses for marketing and sales as well as the general administration of the company.
Research and Development Expense
Research and development costs (R&D) provide information on how much the company invests in the research and development of its products. The costs are particularly interesting as a percentage of revenue and in comparison to direct competitors.
EBITDA
EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) is the company's earnings before interest, taxes, depreciation and amortization. The EBITDA margin is calculated as a percentage of sales.
Depreciation and Amortization
Depreciation represents reductions in the value of the company's assets (e.g. due to wear and tear on machinery).
EBIT (Operating Income)
EBIT (Earnings Before Interest and Taxes) is the company's profit before interest and taxes, also known as the operating income. The EBIT Margin is calculated as a percentage of sales at
.
Net Profit
Net Profit represents the profit or loss after deduction of all costs.
Net Profit metric explainedStocksGuide Premium
| Jun '26 |
+/-
%
|
||
| Revenue | 28 28 |
70%
70%
100%
|
|
| - Direct Costs | 13 13 |
19%
19%
48%
|
|
| Gross Profit | 15 15 |
13,309%
13,309%
52%
|
|
| - Selling and Administrative Expenses | 27 27 |
310%
310%
98%
|
|
| - Research and Development Expense | - - |
-
-
|
|
| EBITDA | -13 -13 |
88%
88%
-46%
|
|
| - Depreciation and Amortization | 1.30 1.30 |
4%
4%
5%
|
|
| EBIT (Operating Income) EBIT | -14 -14 |
75%
75%
-50%
|
|
| Net Profit | -35 -35 |
375%
375%
-128%
|
|
In millions USD.
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Great Elm Group Inc Stock News
Company Profile
Great Elm Group, Inc. operates as a holding company which provides investment management and real estate management services. The company is headquartered in Waltham, MA.
StocksGuide Premium
| Head office | United States |
| CEO | Mr. Reese |
| Employees | 50 |
| Founded | 1994 |
| Website | www.greatelmgroup.com |
