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Introduction & Market Context
Great Elm Group Inc (NASDAQ:GEG) presented its fiscal fourth quarter and full-year 2025 results on September 3, 2025, highlighting record performance and strategic partnerships that have strengthened its position in the alternative asset management space. The company’s stock closed at $2.41 on September 2, 2025, up 6.22% and trading near its 52-week high of $2.57, reflecting positive market sentiment ahead of the presentation.
The company’s fiscal Q4 results mark a significant turnaround from its more challenging fiscal Q1 2025 performance, where it reported a net loss of $4.5 million and missed EPS forecasts. This contrast underscores the volatility in GEG’s performance as it continues to expand its alternative asset management platform.
Quarterly Performance Highlights
Great Elm Group reported its strongest operating quarter and fiscal year to date, with significant improvements in profitability metrics. The company’s fourth quarter saw net income from continuing operations reach $15.7 million, compared to a net loss of $0.6 million in the prior-year period, primarily driven by unrealized investment gains, particularly from its CoreWeave-related investments.
As shown in the following detailed income statement, the company’s dramatic improvement in profitability is evident despite revenue challenges:
Revenue for the fiscal fourth quarter was $5.6 million, compared to $8.9 million in the prior-year period. However, the company noted that excluding certain sales, revenue growth over the prior-year period exceeded 140%. Adjusted EBITDA for the quarter improved to $1.5 million, compared to $1.2 million in the same period last year.
The company’s assets under management (AUM) showed steady growth, increasing 4% year-over-year to $759 million, while fee-paying AUM (FPAUM) grew by 5% to $553 million as of June 30, 2025. This growth trajectory is illustrated in the following chart:
Strategic Initiatives & Partnerships
A significant focus of Great Elm Group’s presentation was on recent strategic transactions that have bolstered its capital position and growth potential. In July 2025, the company announced a strategic partnership with Kennedy Lewis Investment Management (KLIM), which delivered up to $150 million in leverageable capital. As part of this transaction, KLIM purchased 4.9% of GEG common stock at $2.11 per share and appointed board representatives at both Great Elm and Monomoy REIT.
The following month, in August 2025, GEG secured additional strategic investments from Woodstead Value Fund, which purchased 4 million shares at $2.25 per share for gross proceeds of $9 million. This transaction included the appointment of Booker Smith to the GEG Board and 10-year warrants for additional shares. Concurrently, GECC sold 1.3 million shares to an affiliate of Booker Smith at $11.65 per share, generating $15 million in proceeds.
These key strategic highlights are summarized in the following slide:
The company has also expanded its business lines, launching Monomoy Construction Services (MCS) in February 2025, which has already contributed new construction fee revenue of $0.5 million and $0.9 million for the quarter and year ended June 30, 2025, respectively. The real estate segment has shown steady growth, with Monomoy CRE generating stable fee revenue of $0.8 million for the quarter and $3.3 million for the year.
Detailed Financial Analysis
Great Elm Group ended fiscal 2025 with a robust balance sheet, reporting a book value per share of $2.65, representing a 24% increase from the prior year. The company maintained a strong cash position of approximately $31 million, providing capital to deploy across its growing alternative asset management platform.
The company’s detailed balance sheet as of June 30, 2025, reveals a total asset base of $153.9 million, with significant investments at fair value of $60.6 million:
For the full fiscal year 2025, Great Elm Group reported revenue of $16.3 million, compared to $17.8 million in the prior year. However, excluding certain sales, the company achieved 35% revenue growth year-over-year. Net income from continuing operations for fiscal 2025 was $15.6 million, while Adjusted EBITDA was $4.3 million, compared to $4.8 million in fiscal 2024.
The quarterly progression of key financial metrics throughout fiscal 2025 demonstrates the company’s improving performance trajectory:
In the alternative credit segment, Great Elm Capital Corp. (GECC) delivered record investment income for the quarter ended June 30, 2025, and recently increased its quarterly distribution by approximately 6% to $0.37 per share. This equates to a 13.2% annualized yield based on its August 29, 2025, closing price of $11.25. Meanwhile, Great Elm Credit Income Fund (GECIF) posted impressive 21.0% net returns in the first half of calendar 2025, following 12.1% net returns in calendar 2024.
Forward-Looking Statements
Great Elm Group’s presentation indicates a focus on continued growth through its diversified alternative asset management platform. The company aims to expand its fee-paying assets under management, leveraging its recent strategic partnerships and capital infusions to accelerate growth.
However, investors should note the contrast between the strong Q4 2025 results presented and the subsequent challenges reported in Q1 2025, where the company posted a net loss of $4.5 million and missed EPS forecasts. This volatility suggests that while the company has made significant strategic progress, it continues to face operational challenges in maintaining consistent profitability.
The company’s share repurchase program, with an additional $5 million authorization bringing the total to $25 million, signals management’s confidence in GEG’s long-term prospects. To date, the company has repurchased 5.1 million shares for $9.3 million at an average price of $1.85 per share, with approximately $15.7 million in remaining capacity.
With its strengthened balance sheet, strategic partnerships, and diversified business model across alternative credit, real estate, and other alternative strategies, Great Elm Group appears positioned to pursue growth opportunities while navigating market volatility. Investors will likely focus on whether the company can translate its strategic initiatives and capital infusions into consistent profitability and AUM growth in the coming quarters.
Full presentation:
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