third quarter 2026
Filed Nov 2, 2026Filed under $GECCGreat Elm Capital Corp. reported third-quarter 2026 net investment income of $2.4 million, or $0.17 per share, and NAV of $7.40 per share, while realizing and recognizing unrealized losses of approximately $6.6 million.
Total investment income, net investment income and NAV declined sequentially, while the Company reported a $6.6 million net realized and unrealized loss led by depreciation in controlled investments, including a $3.3 million decrease in the fair value of the CLO Formation JV investment.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total investment income, three months ended September 30, 2026GAAP | $ 8,694 | – | – |
| Total investment income per share, quarter ended September 30, 2026GAAP | $0.63 per share | – | – |
| Total investment income, nine months ended September 30, 2026GAAP | $ 29,134 | – | – |
| Interest income from non-affiliated, non-controlled investments, three months ended September 30, 2026GAAP | $ 3,933 | – | – |
| Interest income from non-affiliated, non-controlled investments (PIK), three months ended September 30, 2026GAAP | $ 571 | – | – |
| Interest income from affiliated investments, three months ended September 30, 2026GAAP | $ 62 | – | – |
| Interest income from affiliated investments (PIK), three months ended September 30, 2026GAAP | $ 13 | – | – |
| Interest income from controlled investments, three months ended September 30, 2026GAAP | $ 970 | – | – |
| Total interest income, three months ended September 30, 2026GAAP | $ 5,549 | – | – |
| Dividend income from non-affiliated, non-controlled investments, three months ended September 30, 2026GAAP | - | – | – |
| Dividend income from controlled investments, three months ended September 30, 2026GAAP | $ 2,647 | – | – |
| Total dividend income, three months ended September 30, 2026GAAP | $ 2,647 | – | – |
| Other income from non-affiliated, non-controlled investments, three months ended September 30, 2026GAAP | $ 315 | – | – |
| Other income from non-affiliated, non-controlled investments (PIK), three months ended September 30, 2026GAAP | $ 183 | – | – |
| Total other income, three months ended September 30, 2026GAAP | $ 498 | – | – |
| Total expenses, three months ended September 30, 2026GAAP | $ 6,528 | – | – |
| Total expenses per share, quarter ended September 30, 2026GAAP | $0.46 per share | – | – |
| Management fees, three months ended September 30, 2026GAAP | $ 974 | – | – |
| Incentive fees, three months ended September 30, 2026GAAP | $ 593 | – | – |
| Interest expense, three months ended September 30, 2026GAAP | $ 3,692 | – | – |
| Net expenses, nine months ended September 30, 2026GAAP | $ 17,308 | – | – |
| Incentive fee waiver, nine months ended September 30, 2026GAAP | ($3,711) | – | – |
| Net investment income, three months ended September 30, 2026GAAP | $ 2,374 | – | – |
| Net investment income per share, quarter ended September 30, 2026GAAP | $0.17 per share | – | – |
| Net investment income, nine months ended September 30, 2026GAAP | $ 11,860 | – | – |
| Excise tax, three months ended September 30, 2026GAAP | ($208) | – | – |
| Net realized and unrealized gains (losses), three months ended September 30, 2026GAAP | ($6,600) | – | – |
| Net realized and unrealized gains (losses) per share, quarter ended September 30, 2026GAAP | ($0.48) per share | – | – |
| Net realized gain (loss), three months ended September 30, 2026GAAP | ($2,214) | – | – |
| Net change in unrealized appreciation (depreciation), three months ended September 30, 2026GAAP | ($4,386) | – | – |
| Net change in unrealized appreciation (depreciation) on controlled investments, three months ended September 30, 2026GAAP | ($4,638) | – | – |
| Net increase (decrease) in net assets resulting from operations, three months ended September 30, 2026GAAP | ($4,226) | – | – |
| Earnings per share (basic and diluted), three months ended September 30, 2026GAAP | ($0.30) | – | – |
| Earnings per share (basic and diluted), nine months ended September 30, 2026GAAP | $0.10 | – | – |
| Weighted average shares outstanding (basic and diluted), three months ended September 30, 2026GAAP | 13,889,750 | – | – |
| Weighted average shares outstanding (basic and diluted), nine months ended September 30, 2026GAAP | 13,921,112 | – | – |
| Net assets, September 30, 2026GAAP | $102.7M | 6.9% quarter-over-quarter decrease | – |
| Net asset value per share, September 30, 2026GAAP | $7.40 per share | – | – |
| Asset coverage ratio, September 30, 2026other | 166.3% | – | – |
| Total investments, September 30, 2026GAAP | $ 251,028 | – | – |
| Total assets, September 30, 2026GAAP | $ 256,706 | – | – |
| Total liabilities, September 30, 2026GAAP | $ 153,987 | – | – |
quarter ending December 31, 2026 outlook
- NoteQuarterly cash distribution of $0.25 per share, to be paid from distributable earnings.
- NoteThe fourth quarter distribution will be payable on December 31, 2026, to stockholders of record as of December 15, 2026.
Capital returns
- The Board of Directors approved a quarterly dividend of $0.25 per share for the fourth quarter of 2026.
- The distribution equates to a 20.2% annualized dividend yield on the Company’s closing market price of $4.95 on October 30, 2026, and a 13.5% annualized dividend yield on the Company’s September 30, 2026, NAV of $7.40 per share.
- From July 1, 2026, through October 30, 2026, the Company repurchased 241,235 shares for $1.2 million, at an average price of $4.95 per share.
- From January 1, 2026, through October 30, 2026, the Company repurchased 349,653 shares for approximately $1.7 million, at an average price of $4.96 per share or a 33% discount to the Company’s NAV on September 30, 2026.
- Approximately $8.3 million of remaining capacity under the $10.0 million repurchase program remained for future repurchases.
- The Company redeemed $6.5 million of GECCI notes due April 2029, retiring a portion of its highest-cost and nearest-term debt.
What drove it
- The quarter-over-quarter decrease in total investment income was primarily driven by a $2.0 million dividend received from the Company's investment in insurance-related preference shares in the prior quarter.
- The decrease in net investment income was primarily driven by lower total investment income and the reinstatement of incentive fee accruals following the waiver of such fees in the prior quarter.
- The 6.9% quarter-over-quarter decrease in net assets was primarily driven by realized and unrealized investment losses, including a $3.3 million decrease in the fair value of the CLO Formation JV investment.
- Distributions from Great Elm Specialty Finance increased meaningfully during the quarter.
- Management cited a growing pipeline of private investment opportunities and further portfolio diversification.
Concerns
- Management described a challenging credit environment and continued pressure on certain portfolio investments, particularly the CLO joint venture.
- Net investment income per share declined to $0.17 from $0.32 in the prior quarter.
- NAV per share declined to $7.40 from $7.95 in the prior quarter.
- The Company recorded ($4,638) of net change in unrealized appreciation (depreciation) on controlled investments during the three months ended September 30, 2026.
- The Company reported ($6,600) of net realized and unrealized gains (losses) during the three months ended September 30, 2026.
What to watch
- Performance and valuation of the CLO Formation JV investment after its $3.3 million fair-value decrease during the quarter.
- Whether the growing private-investment pipeline and portfolio optimization improve net investment income.
- Further distributions from the CoreWeave-related equity investment.
- The pace of repurchases under the approximately $8.3 million remaining authorization.
- The effect of proactive debt reduction and the $44 million of Revolver availability on liquidity and capital deployment.
Balance sheet and cash flow
- As of September 30, 2026, cash and money market fund investments totaled approximately $6 million.
- GECC had $44 million of availability on its revolving line of credit as of September 30, 2026.
- Total debt outstanding (par value) was $154.9 million as of September 30, 2026.
- Total debt outstanding comprised $50.0 million of 8.50% senior notes due April 2029, $41.4 million of 8.125% senior notes due December 2029, $57.5 million of 7.75% senior notes due December 2030, and $6.0 million on the Revolver due June 2029.
- Cash and cash equivalents on the September 30, 2026 statement of assets and liabilities were -.
- Revolving credit facility balance was $ 6,000 as of September 30, 2026, compared with - as of December 31, 2025.
- During the quarter ended September 30, 2026, GECC received $0.8 million of distributions from its CoreWeave-related equity investment, bringing total distributions to date to approximately $10.3 million, compared with its $6.0 million original capital investment.
Analysis
Great Elm Capital reported a weaker third quarter, with total investment income of $8.7 million versus $10.9 million in the prior quarter and net investment income of $2.4 million, or $0.17 per share, versus $4.5 million, or $0.32 per share. Management attributed the income decline primarily to a $2.0 million dividend from insurance-related preference shares that was received in the prior quarter. It also cited the reinstatement of incentive-fee accruals after a prior-quarter waiver as a driver of the NII decline.
The quarter produced net realized and unrealized losses of approximately $6.6 million, or ($0.48) per share, and a net decrease in net assets resulting from operations of ($4,226). The investment loss included ($4,638) of unrealized depreciation in controlled investments. Management specifically identified a $3.3 million decrease in the fair value of the CLO Formation JV investment as part of the decline in net assets, and characterized the environment as challenging for credit and certain portfolio investments.
NAV fell to $7.40 per share at September 30, 2026, from $7.95 at June 30, 2026, while net assets declined 6.9% quarter over quarter to $102.7 million. The asset coverage ratio was effectively unchanged at 166.3%, compared with 166.4% in the preceding quarter. Liquidity consisted of approximately $6 million of cash and money market fund investments, $44 million of Revolver availability and ample liquid assets. Total debt outstanding at par was $154.9 million, and the Company redeemed $6.5 million of GECCI notes due April 2029.
Capital allocation remained active despite the portfolio losses. GECC repurchased 349,653 shares from January 1, 2026 through October 30, 2026 for approximately $1.7 million at an average price of $4.96 per share, stated as a 33% discount to September 30 NAV, with approximately $8.3 million of program capacity remaining. The Board declared a $0.25 per-share fourth-quarter distribution. Management highlighted increased distributions from Great Elm Specialty Finance, $0.8 million of quarterly distributions from the CoreWeave-related equity investment, and a growing private-investment pipeline, while CLO performance and the ability to restore earnings remain central items to monitor.
Management, verbatim
Our third quarter results reflect a challenging credit environment and continued pressure on certain portfolio investments, particularly our CLO joint venture.
Jason Reese, Chairman of the Board of Directors and Chief Executive Officer
Importantly, our underlying credit portfolio remains healthy.
Jason Reese, Chairman of the Board of Directors and Chief Executive Officer
We also saw positive momentum across our specialty finance platform, with distributions from Great Elm Specialty Finance increasing meaningfully during the quarter.
Jason Reese, Chairman of the Board of Directors and Chief Executive Officer
Not in the filing
stated, not guessed- No prior earnings outlook or previous-release outlook was provided, so no actual-versus-prior-guidance comparison is available.
- No revenue guidance was reported.
- No gross margin, gross-margin guidance, operating-expense guidance or tax-rate guidance was reported.
- No operating cash flow or free cash flow was reported.
- No segment revenue or segment operating metrics were reported.
- Prior-quarter values were not reported for most statement-of-operations line items.
- Percentage year-over-year changes were not reported for the financial statement line items.
- Management fees, administration fees, custody fees, directors’ fees, professional services and other expenses were reported in the statements but are not separately itemized in key_metrics due to the absence of comprehensive same-line quarterly comparison data in the release narrative.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.