Great Elm Capital Corp ( (GECC) ) has released its Q3 earnings. Here is a breakdown of the information Great Elm Capital Corp presented to its investors.
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Great Elm Capital Corp. (GECC) is an externally managed business development company focused on generating income and capital appreciation through investments in debt and income-generating equity securities, including specialty finance businesses and collateralized loan obligations (CLOs).
In its third-quarter 2025 financial results, Great Elm Capital Corp. reported a decline in net asset value (NAV) from $12.10 to $10.01 per share, primarily due to losses associated with the bankruptcy of First Brands. The company also experienced a decrease in net investment income (NII) as anticipated, attributed to uneven CLO joint venture distributions and the absence of a preference share dividend.
Key financial metrics for the quarter included a total investment income of $10.6 million, down from $14.3 million in the previous quarter, and net investment income of $2.4 million, or $0.20 per share, compared to $5.9 million, or $0.51 per share, in the prior quarter. The company strengthened its balance sheet by raising $27 million in equity and refinancing its highest-cost debt, which is expected to lower future borrowing costs.
Looking forward, Great Elm Capital Corp. expects a recovery in net investment income in the fourth quarter, driven by normalized interest expenses, increased CLO joint venture distributions, and income from new deployments. The company maintains ample liquidity and leverage consistent with historical levels, positioning it well for future capital deployment into cash-generating investments.