1. GEG raised nearly $250 million this quarter for growth initiatives. 2. Fee-paying AUM and total AUM grew 10% and 7% year-over-year. 3. Significant revenue increase driven by real estate property sales. 4. GEG's first-quarter net loss was $(7.9) million, down from previous income. 5. Cash and marketable securities now total approximately $53.5 million.
The substantial capital raise and growth in AUM indicate a positive momentum, suggesting potential stock price appreciation. Historical trends show that similar financial restructuring and capital influx have previously led to increased valuations for GEG.
The article emphasizes financial stability and meaningful capital growth, vital for investor confidence and company strategy, thus likely impacting stock price. Positive sentiment around expansion and successful partnerships further supports a strong importance score.
While immediate revenues see a loss, the capital raised can fund growth initiatives and acquisitions, typically benefiting the company in the long run. Past instances of new capital leading to project success imply a favorable outlook over time.
– Nearly $250 Million of Recent Capital Raises at GEG and its Credit and Real Estate Vehicles Position Company to Drive Continued Growth –
– Pro Forma Fee-Paying AUM and AUM Grew 10% and 7% Year-Over-Year, Respectively, at September 30, 2025 1,2 –
– Monomoy BTS Sells Second Build-to-Suit Development Property for $7.4 Million –
Company to Host Conference Call at 8:30 a.m. ET on November 13, 2025
PALM BEACH GARDENS, Fla., Nov. 12, 2025 (GLOBE NEWSWIRE) -- Great Elm Group, Inc. ("we," "our," "GEG," "Great Elm," or "the Company"), (NASDAQ:GEG), an alternative asset manager, today announced financial results for its fiscal first quarter ended September 30, 2025.
Management Commentary
Jason Reese, Chief Executive Officer of the Company stated, "We are pleased with the continued momentum of our expanding alternative asset management platform, having raised nearly $250 million in the quarter for GEG and the funds under its management, including our KLIM partnership and Woodstead strategic investment, and achieving significant year-over-year growth in AUM and fee-paying AUM.
Great Elm Real Estate Ventures, our comprehensive, vertically integrated platform underpinning our competitive differentiation in industrial outdoor storage ("IOS"), continues to scale, supported by growing construction management revenue and the successful sale of our second Monomoy build-to-suit property in September. With our strong balance sheet and cash position, we continue to make opportunistic investments sourced through our sophisticated network and repurchase our shares through our recently increased stock buyback plan.
GECC, our BDC, remains on strong footing, despite a challenging end to the quarter. Recent record cash income generation combined with meaningful capital raises at NAV place us in a strategic position to capitalize upon attractive investment opportunities. Looking ahead, we remain committed to scaling our key verticals and leveraging our balance sheet as we seek to continue growing our assets under management and fee revenue, and deliver sustained, long-term value for our shareholders."
Fiscal First Quarter 2026 and Recent Highlights
GEG Business Highlights
Alternative Credit
Real Estate
Strategic Partnership with Kennedy Lewis Investment Management
In July 2025, Great Elm announced a transformational strategic partnership with KLIM, an institutional alternative investment firm with over $30 billion in assets under management, including a publicly traded REIT focused on land banking (Millrose Properties, Inc.). Under the terms of the transaction, KLIM purchased approximately 1.4 million shares of Great Elm's common stock at a price of $2.11 per share and is providing up to $150 million in leverageable capital to Monomoy REIT that will support continued growth across Great Elm's real estate platform. KLIM appointed Lloyd Nathan to the Board of Great Elm and Ludwig Schrittenloher to the Board of Monomoy REIT and holds a 15% profits interest (which may be increased to 20% under certain circumstances) in the newly formed Real Estate Ventures.
Strategic Investments and New GEG Board Member
In August 2025, Great Elm announced a $9.0 million strategic investment from Woodstead. The fund purchased 4.0 million newly issued shares of GEG common stock at a price of $2.25 per share and received long-term warrants for up to 2.0 million additional shares, aligning its interests with shareholders. Concurrently, Booker Smith, a seasoned investor in credit and real estate, joined the Company's Board of Directors.
In a separate transaction, GECC issued 1.3 million shares to an affiliate of Booker Smith at $11.65 per share for $15.0 million of equity capital.
Fiscal 2026 First Quarter Conference Call & Webcast Information
| When: | Thursday, November 13, 2025, 8:30 a.m. Eastern Time (ET) |
| Call: | All interested parties are invited to participate in the conference call by dialing +1 (877) 407-0752; international callers should dial +1 (201) 389-0912. Participants should enter the Conference ID 13750804 if asked. |
| Webcast: | The conference call will be webcast simultaneously and can be accessed here. A copy of the slide presentation accompanying the conference call, can be found here. |
About Great Elm Group, Inc.
Great Elm Group, Inc. (NASDAQ:GEG) is a publicly-traded, alternative asset manager focused on growing a scalable and diversified portfolio of long-duration and permanent capital vehicles across credit, real estate, specialty finance, and other alternative strategies. Great Elm Group, Inc. and its subsidiaries currently manage Great Elm Capital Corp., a publicly-traded business development company, and Monomoy Properties REIT, LLC, an industrial outdoor storage ("IOS") focused real estate investment trust, in addition to other investments. Great Elm Group, Inc.'s website can be found at www.greatelmgroup.com.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
Statements in this press release that are "forward-looking" statements, including statements regarding expected growth, profitability, acquisition opportunities and outlook involve risks and uncertainties that may individually or collectively impact the matters described herein. Investors are cautioned not to place undue reliance on any such forward-looking statements, which speak only as of the date they are made and represent Great Elm's assumptions and expectations in light of currently available information. These statements involve risks, variables and uncertainties, and Great Elm's actual performance results may differ from those projected, and any such differences may be material. For information on certain factors that could cause actual events or results to differ materially from Great Elm's expectations, please see Great Elm's filings with the Securities and Exchange Commission ("SEC"), including its most recent annual report on Form 10-K and subsequent reports on Forms 10-Q and 8-K. Additional information relating to Great Elm's financial position and results of operations is also contained in Great Elm's annual and quarterly reports filed with the SEC and available for download at its website www.greatelmgroup.com or at the SEC website www.sec.gov.
Non-GAAP Financial Measures
The SEC has adopted rules to regulate the use in filings with the SEC, and in public disclosures, of financial measures that are not in accordance with US GAAP, such as adjusted earnings before interest, taxes, depreciation and amortization ("Adjusted EBITDA"). Adjusted EBITDA is derived from methodologies other than in accordance with US GAAP. Great Elm believes that Adjusted EBITDA is an important measure for investors to use in evaluating Great Elm's businesses. In addition, Great Elm's management reviews Adjusted EBITDA as they evaluate acquisition opportunities.
Adjusted EBITDA has limitations as an analytical tool, and you should not consider it either in isolation from, or as a substitute for, analyzing Great Elm's results as reported under US GAAP. Non-GAAP financial measures reported by Great Elm may not be comparable to similarly titled amounts reported by other companies.
Included in the financial tables below is a reconciliation of Adjusted EBITDA to the most directly comparable US GAAP financial measure, net income from continuing operations.
Endnotes
1 For the prior year period, Pro Forma AUM and FPAUM reflect amounts as of September 30, 2024, including the impact of the settlement of GECCH greenshoe, assuming proceeds are fully invested, and redemption of the GECCM bonds in October 2024.
2 Pro Forma AUM and FPAUM reflect amounts as of September 30, 2025, including net proceeds of $7.3 million from the settlement of the GECCG greenshoe in October, assuming proceeds are fully invested.
3 Performance results should not be regarded as final until audited financial statements are issued covering the period shown. Past performance is no guarantee of future results. This press release does not constitute an offer to sell or a solicitation of an offer to buy interests 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.
Media & Investor Contact:
Investor Relations
geginvestorrelations@greatelmcap.com
| Great Elm Group, Inc. Condensed Consolidated Balance Sheets Dollar amounts in thousands (except per share data) | ||||||||
| ASSETS | September 30, 2025 | June 30, 2025 | ||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 53,470 | $ | 30,603 | ||||
| Receivables from managed funds | 4,935 | 8,331 | ||||||
| Investments, at fair value | 55,445 | 60,614 | ||||||
| Prepaid and other current assets | 4,127 | 2,803 | ||||||
| Real estate assets, net | 4,543 | 9,085 | ||||||
| Related party loan receivable | - | 8,000 | ||||||
| Assets of Consolidated Funds: | ||||||||
| Cash and cash equivalents | 5,038 | 3,907 | ||||||
| Investments, at fair value | 11,865 | 14,327 | ||||||
| Other assets | 167 | 227 | ||||||
| Total current assets | 139,590 | 137,897 | ||||||
| Identifiable intangible assets, net | 11,722 | 12,009 | ||||||
| Goodwill | 440 | 440 | ||||||
| Right-of-use assets | 1,514 | 1,603 | ||||||
| Other assets | 1,744 | 1,988 | ||||||
| Total assets | $ | 155,010 | $ | 153,937 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| Current liabilities | ||||||||
| Accounts payable | $ | 1,254 | $ | 1,026 | ||||
| Accrued expenses and other current liabilities | 5,890 | 7,707 | ||||||
| Current portion of related party payables | 186 | 258 | ||||||
| Current portion of lease liabilities | 364 | 355 | ||||||
| Liabilities of Consolidated Funds: | ||||||||
| Payable for securities purchased | 565 | 96 | ||||||
| Accrued expenses and other liabilities | 111 | 172 | ||||||
| Total current liabilities | 8,370 | 9,614 | ||||||
| Lease liabilities, net of current portion | 1,166 | 1,260 | ||||||
| Long-term debt (face value $26,945) | 26,444 | 26,373 | ||||||
| Convertible notes (face value $35,063 and $35,063, including $16,993 and $16,993 held by related parties, respectively) | 34,626 | 34,602 | ||||||
| Other liabilities | 1,261 | 1,422 | ||||||
| Total liabilities | 71,867 | 73,271 | ||||||
| Commitments and contingencies | ||||||||
| Stockholders' equity | ||||||||
| Preferred stock, $0.001 par value; 5,000,000 authorized and zero outstanding | - | - | ||||||
| Common stock, $0.001 par value; 350,000,000 shares authorized and 33,348,987 shares issued and 32,084,664 outstanding at September 30, 2025; and 27,630,305 shares issued and 26,552,948 outstanding at June 30, 2025 | 30 | 25 | ||||||
| Additional paid-in-capital | 3,320,845 | 3,310,356 | ||||||
| Accumulated deficit | (3,247,093 | ) | (3,240,063 | ) | ||||
| Total Great Elm Group, Inc. stockholders' equity | 73,782 | 70,318 | ||||||
| Redeemable non-controlling interest in Consolidated Funds | 9,361 | 10,348 | ||||||
| Total stockholders' equity | 83,143 | 80,666 | ||||||
| Total liabilities and stockholders' equity | $ | 155,010 | $ | 153,937 | ||||
| Great Elm Group, Inc. Condensed Consolidated Statements of Operations Amounts in thousands (except per share data) | ||||||||
| For the three months ended September 30, | ||||||||
| 2025 | 2024 | |||||||
| Revenues | $ | 10,788 | $ | 3,992 | ||||
| Cost of revenues | 6,748 | 635 | ||||||
| Operating costs and expenses: | ||||||||
| Compensation and benefits | 5,237 | 3,563 | ||||||
| Selling, general and administrative | 2,166 | 1,501 | ||||||
| Depreciation and amortization | 342 | 273 | ||||||
| Expenses of Consolidated Funds | 21 | 16 | ||||||
| Total operating costs and expenses | 7,766 | 5,353 | ||||||
| Operating loss | (3,726 | ) | (1,996 | ) | ||||
| Dividends and interest income | 1,238 | 1,558 | ||||||
| Interest expense | (1,028 | ) | (1,028 | ) | ||||
| Net realized and unrealized (loss) gain | (2,861 | ) | 3,778 | |||||
| Net realized and unrealized (loss) gain on investments of Consolidated Funds | (1,808 | ) | 278 | |||||
| Interest and other income of Consolidated Funds | 352 | 384 | ||||||
| (Loss) income before income taxes | (7,833 | ) | 2,974 | |||||
| Income tax expense | (71 | ) | - | |||||
| Net (loss) income | $ | (7,904 | ) | $ | 2,974 | |||
| Less: net (loss) income attributable to non-controlling interest in Consolidated Funds | (874 | ) | 335 | |||||
| Net (loss) income attributable to Great Elm Group, Inc. stockholders | $ | (7,030 | ) | $ | 2,639 | |||
| Net (loss) income attributable to stockholders per share | ||||||||
| Basic | $ | (0.24 | ) | $ | 0.09 | |||
| Diluted | (0.24 | ) | 0.08 | |||||
| Weighted average shares outstanding | ||||||||
| Basic | 28,972 | 29,079 | ||||||
| Diluted | 28,972 | 40,469 | ||||||
| Great Elm Group, Inc. Reconciliation from Net (Loss) Income to Adjusted EBITDA Dollar amounts in thousands | |||||||||
| Three months ended September 30, | |||||||||
| (in thousands) | 2025 | 2024 | |||||||
| Net (loss) income – GAAP | $ | (7,904 | ) | $ | 2,974 | ||||
| Interest expense | 1,028 | 1,028 | |||||||
| Income tax expense | 71 | - | |||||||
| Depreciation and amortization | 342 | 273 | |||||||
| Non-cash compensation | 1,331 | 1,117 | |||||||
| Loss (gain) on investments | 4,669 | (4,056 | ) | ||||||
| Change in contingent consideration | - | (6 | ) | ||||||
| Adjusted EBITDA | $ | (463 | ) | $ | 1,330 | ||||
