Great Elm Capital Corp (GECC)
NASDAQ:GECC
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Great Elm Capital
(NASDAQ:GECC)
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Rating:57Neutral
Price Target:
$6.50
▲(21.50% Upside)
Action:Reiterated
Date:06/09/26
The score is driven mainly by mixed financial performance—strong recent cash flow but weak/unstable profitability and elevated leverage. Technicals are modestly supportive with improving momentum, while valuation is tempered by losses despite a very high yield. Earnings call commentary adds a positive tilt due to deleveraging, fee waivers, and reduced near-term refinancing risk, but NAV decline and reliance on waivers keep risk elevated.
Positive Factors
Reduced near-term refinancing risk
Retiring near‑term notes materially lowers immediate refinancing pressure and interest rollover risk, improving liquidity runway. This durable change gives management time to rebuild NAV, allocate capital to investments or buybacks, and reduces short‑term funding fragility over the next 2–6 months.
Negative Factors
Elevated leverage
Persistently high debt/equity amplifies NAV and earnings sensitivity to credit marks and interest rates. With leverage near historical peaks, credit losses or mark‑to‑market swings could erode equity quickly, constraining discretionary actions and increasing refinancing and covenant risk over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Reduced near-term refinancing risk
Retiring near‑term notes materially lowers immediate refinancing pressure and interest rollover risk, improving liquidity runway. This durable change gives management time to rebuild NAV, allocate capital to investments or buybacks, and reduces short‑term funding fragility over the next 2–6 months.
Read all positive factors
Great Elm Capital (GECC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$75.99M
Dividend Yield22.43%
Average Volume (3M)119.34K
Price to Earnings (P/E)―
Beta (1Y)0.60
Revenue Growth2.83%
EPS Growth-679.99%
CountryUS
Employees12
SectorFinancial
Sector Strength70
IndustryAsset Management
Share Statistics
EPS (TTM)-2.66
Shares Outstanding13,892,045
10 Day Avg. Volume129,043
30 Day Avg. Volume119,343
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)0.77
Price to Sales (P/S)1.96
P/FCF Ratio-30.96
Enterprise Value/Market Cap3.05
Enterprise Value/Revenue-19.98
Enterprise Value/Gross Profit-8.53
Enterprise Value/Ebitda-7.03
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)1.16
Revenue Forecast (FY)$43.07M
Great Elm Capital Business Overview & Revenue Model
Company Description
Great Elm Capital Corp. functions as a business development company (BDC) primarily specializing in providing capital to mid-market enterprises. The firm's investment strategy focuses on acquiring debt instruments, including loans and mezzanine fi...
How the Company Makes Money
GECC primarily makes money by earning interest income and fee income from its investment portfolio. The largest and most recurring revenue stream is interest (and, where applicable, payment-in-kind interest) received on loans and debt securities i...
Great Elm Capital Earnings Call Summary
Earnings Call Date:May 04, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 30, 2026
Earnings Call Sentiment Positive
The call conveyed a constructive operational response to recent headwinds: management has prioritized protecting and rebuilding NAV through decisive actions — fee waivers, targeted deleveraging, a shift toward first‑lien secured positions, opportunistic share repurchases, and improved coverage/leverage metrics. These positives are counterbalanced by a quarter‑over‑quarter NAV decline driven by unrealized CLO and one private investment loss, CLO market volatility, and an underlying earnings run‑rate that benefits materially from incentive fee waivers. On balance, the company has strengthened its liquidity and capital structure and put in place measures to stabilize and rebuild NAV, but near‑term valuation and mark volatility remain risks.Positive Updates
Net Investment Income (NII) Growth
NII was $5.0M or $0.36 per share in Q1 2026 versus $4.4M or $0.31 per share in Q4 2025, a ~13% quarter‑over‑quarter increase (partially driven by the incentive fee waiver).
Negative Updates
Quarterly NAV Decline
Net assets were $107.5M or $7.74 per share as of March 31, 2026 versus $112.9M or $8.07 per share as of December 31, 2025 — a decline of ~4.8% in total net assets and ~4.1% on a per‑share NAV basis, driven primarily by unrealized losses.
Read all updates
Q1-2026 Updates
Positive
Negative
Net Investment Income (NII) Growth
NII was $5.0M or $0.36 per share in Q1 2026 versus $4.4M or $0.31 per share in Q4 2025, a ~13% quarter‑over‑quarter increase (partially driven by the incentive fee waiver).
Read all positive updates
Company Guidance
Management's guidance is to prioritize protecting and rebuilding NAV first and creating income second, and they outlined several concrete actions and metrics to support that: GECM has waived all accrued/unpaid incentive fees through June 30, 2026 (≈$2.8M or $0.20/share), NII was $5.0M ($0.36/share) in Q1 2026 (≈13% QoQ growth vs $4.4M/$0.31 in Q4 2025, largely driven by the ~$0.20/share waiver), NAV was $107.5M ($7.74/share) as of 3/31/26 (down from $112.9M/$8.07), asset coverage was 161.8% (vs 158.1%), debt/equity improved to 1.62x (from 1.72x) with total debt $174M and no revolver borrowings, cash ≈$10M plus $4M in liquid exchange‑traded assets and full availability on a $50M revolver, the company called/repurchased $57.5M of GECCO notes eliminating near‑term maturities so there are no funded debt maturities until 2029, Q1 deployments were ≈$22M across 12 investments (including ≈$15M across 3 institutional partnership deals) while first‑lien exposure rose to nearly 75% of the corporate portfolio, less than 1% of fair value was on nonaccrual, CLO equity cashflows of roughly $2.5M were received this quarter (expected to continue quarterly though variable), the board approved a $0.25/share Q2 dividend (an 18% annualized yield on the $5.56 close on 5/1/26), and the $10M buyback program has repurchased ~1% of shares at an average 36% discount to 3/31 NAV with ≈$9.5M of capacity remaining.Great Elm Capital Financial Statement Overview
Summary
Income Statement
28
Negative
Balance Sheet
44
Neutral
Cash Flow
62
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | -11.60M | 44.48M | 39.32M | 35.83M | 24.43M | 25.25M |
| Gross Profit | -27.18M | 34.00M | 10.00M | 31.83M | -14.76M | -5.09M |
| EBITDA | -32.99M | -12.80M | 5.05M | 25.33M | -15.58M | -10.28M |
| Net Income | -32.99M | -31.79M | 3.55M | 25.33M | -15.58M | -10.28M |
Balance Sheet | ||||||
| Total Assets | 282.76M | 340.77M | 342.03M | 246.82M | 310.11M | 426.31M |
| Cash, Cash Equivalents and Short-Term Investments | 0.00 | 1.83M | 8.45M | 953.00K | 587.00K | 9.13M |
| Total Debt | 169.14M | 189.32M | 189.69M | 140.21M | 153.15M | 142.00M |
| Total Liabilities | 175.29M | 227.83M | 205.91M | 148.09M | 225.30M | 351.76M |
| Stockholders Equity | 107.48M | 112.95M | 136.11M | 98.74M | 84.81M | 74.56M |
Cash Flow | ||||||
| Free Cash Flow | 50.42M | -2.81M | -82.67M | 15.39M | -41.76M | -58.49M |
| Operating Cash Flow | 50.42M | -2.81M | -82.67M | 15.39M | -41.76M | -58.49M |
| Investing Cash Flow | -67.75M | 0.00 | 0.00 | 14.77M | -36.47M | -56.88M |
| Financing Cash Flow | -27.82M | 4.65M | 81.72M | -25.32M | 33.20M | 14.45M |
Great Elm Capital Technical Analysis
Negative
5.35
Price Trends
5.51
Negative
5.48
Negative
6.31
Negative
Market Momentum
<0.01
Positive
44.22
Neutral
4.86
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GECC, the sentiment is Negative. The current price of 5.35 is below the 20-day moving average (MA) of 5.77, below the 50-day MA of 5.51, and below the 200-day MA of 6.31, indicating a bearish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 44.22 is Neutral, neither overbought nor oversold. The STOCH value of 4.86 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GECC.
Great Elm Capital Risk Analysis
Great Elm Capital disclosed 65 risk factors in its most recent earnings report. Great Elm Capital reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Great Elm Capital Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $139.39M | 15.23 | 3.58% | 21.24% | -58.30% | 2.72% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
57 Neutral | $75.99M | -2.32 | -26.36% | 22.43% | 2.83% | -679.99% | |
48 Neutral | $48.77M | ― | -29.04% | 25.87% | -21.68% | -223.80% | |
43 Neutral | $125.33M | -3.27 | -24.71% | 24.14% | ― | -10500.00% |
* Financial Sector Average
GECC
Great Elm Capital
5.47
-3.14
-36.49%
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WHF
WhiteHorse
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OFS
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NXDT
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Great Elm Capital Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Great Elm Capital Extends Revolving Credit Facility Maturity
Positive
Jun 8, 2026
On June 8, 2026, Great Elm Capital Corp. amended its Loan, Guarantee and Security Agreement with City National Bank to extend the maturity date for borrowings under its revolving credit facility. The revised terms set the maturity as the earlier o...
Executive/Board ChangesShareholder Meetings
Great Elm Capital Shareholders Reelect Directors, Ratify Auditor
Positive
Jun 1, 2026
On May 29, 2026, Great Elm Capital Corp. held its 2026 annual meeting of stockholders, where shareholders voted on the election of directors and the ratification of the company’s independent auditor. Stockholders re-elected directors Mark Ku...
Business Operations and Strategy
Great Elm Capital Redeems 5.875% Notes Due 2026
Neutral
Apr 27, 2026
On April 27, 2026, Great Elm Capital Corp. announced that it has exercised its option to redeem in full its 5.875% Notes due 2026, which trade on Nasdaq under the symbol GECCO. The company will redeem all issued and outstanding notes on May 27, 20...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.