Great Elm Group soars after record quarterly earnings beat

Published 02/09/2025, 21:52
Great Elm Group soars after record quarterly earnings beat

Investing.com -- Great Elm Group, Inc. (NASDAQ:GEG), an alternative asset manager, saw its shares surge 62% after reporting fourth-quarter earnings that significantly exceeded analyst expectations, driven by strong performance across its business segments and substantial gains from strategic investments.

The company reported fourth-quarter earnings per share of $0.51, beating analyst estimates of $0.40 by $0.11. Revenue for the quarter came in at $5.61 million, compared to $8.9 million in the same period last year. However, excluding a $6.6 million property sale in the prior-year period, revenue grew over 140% YoY, primarily due to record management and incentive fees from Great Elm Capital Corp. (GECC) totaling $3.8 million, up approximately 253% from $1.1 million in the prior-year period.

Net income from continuing operations reached $15.7 million for the fourth quarter, compared to a net loss of -$0.6 million in the prior-year period, primarily driven by unrealized gains from the company’s CoreWeave-related investment and GECC stock price appreciation.

"Fiscal 2025 was the strongest operating year in our history, with outstanding performance across all areas of our business," said Jason Reese, Chief Executive Officer of Great Elm. "We meaningfully increased fee revenue, driven by substantial growth in both management and incentive fees from GECC."

The company’s adjusted EBITDA for the fourth quarter was $1.5 million, compared to $1.2 million in the prior-year period. As of June 30, 2025, Great Elm had approximately $31 million of cash and marketable securities on its balance sheet to support growth initiatives.

In July 2025, Great Elm announced a strategic partnership with Kennedy Lewis Investment Management, providing up to $150 million in term loans to accelerate the expansion of its real estate platform. Additionally, in August 2025, the company secured a $9 million investment from Woodstead Value Fund at $2.25 per share.

Great Elm’s book value per share increased 24% from the prior year to $2.65 as of June 30, 2025, reflecting the company’s strong financial performance and strategic growth initiatives.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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