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GECC

Great Elm Capital Corp.

GECC

Great Elm Capital Corp. • NASDAQ
$7.72 ▲ 0.52% (+0.04)
Market Cap $89.02 M
52w High $11.46
52w Low $7.18
Dividend Yield 1.51%
P/E -11.88
Volume 39.11K
Outstanding Shares 11.53M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q3-2025 $10.594M ▼ $2.876M ▲ $-22.012M ▼ -207.778% ▼ $-1.79 ▼ $-22.012M ▼
Q2-2025 $14.277M ▲ $1.73M ▲ $11.743M ▲ 82.251% ▲ $1.02 ▲ $11.743M ▲
Q1-2025 $12.495M ▲ $1.664M ▼ $453K ▼ 3.625% ▼ $0.039 ▼ $453K ▼
Q4-2024 $9.231M ▼ $1.861M ▲ $1.863M ▼ 20.182% ▼ $0.18 ▼ $1.863M ▼
Q3-2024 $11.707M $1.617M $3.474M 29.675% $0.33 $3.474M

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q3-2025 $88.698M ▲ $420.049M ▲ $279.951M ▲ $140.098M ▲
Q2-2025 $960K ▼ $409.326M ▲ $269.294M ▲ $140.032M ▲
Q1-2025 $1.273M ▼ $350.83M ▲ $218.535M ▲ $132.295M ▼
Q4-2024 $8.448M ▲ $342.028M ▼ $205.915M ▼ $136.113M ▲
Q3-2024 $305K $427.026M $301.2M $125.826M

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q3-2025 $-22.012M ▼ $-1.36M ▼ $-67.747M ▼ $24.272M ▲ $-960K ▼ $-1.36M ▼
Q2-2025 $-453K ▼ $9.693M ▲ $0 ▲ $-10.006M ▼ $-313K ▼ $9.693M ▲
Q1-2025 $453K ▼ $3.887M ▼ $-18.204M ▼ $7.142M ▲ $1.273M ▲ $3.887M ▼
Q4-2024 $1.863M ▼ $31.431M ▲ $0 ▼ $-31.736M ▼ $-305K ▲ $31.431M ▲
Q3-2024 $3.474M $4.916M $5.735M $52.131M $-2.27M $4.916M

Five-Year Company Overview

Income Statement

Income Statement GECC’s income statement shows a story of volatility gradually moving toward stability. A few years ago, the business was posting clear losses, driven by weak or negative investment income and write‑downs. More recently, results have swung to modest profitability, with investment income and operating profit turning positive, but the latest year looks close to breakeven again. Earnings per share have been especially jumpy, moving from deep losses to a strong rebound and then easing back, which suggests results are quite sensitive to credit conditions, portfolio marks, and financing costs. Overall, profitability has improved versus the past, but it still looks fragile and not yet firmly established.

Balance Sheet

Balance Sheet The balance sheet is lean and fairly simple, as you’d expect for a business development company. Total assets have come down from earlier highs, suggesting some portfolio reshaping or de‑leveraging over time. Equity has been rebuilding steadily, which is a positive sign for balance‑sheet strength, though it remains modest relative to the asset base. Debt sits at a meaningful but not extreme level, typical for this type of lender, which depends on leverage to earn returns. The most notable weak spot is very low cash on hand, which increases reliance on credit facilities and ongoing portfolio cash flows to meet obligations and fund new investments.

Cash Flow

Cash Flow Cash generation has been inconsistent. Some years the company produced positive cash from operations, but other years, including the most recent one, show noticeable cash outflows. Because there is essentially no traditional capital spending, free cash flow closely tracks operating cash flow, which means swings in portfolio activity, interest receipts, and funding costs flow straight through. The recent move back into cash outflow suggests that accounting profits do not always translate into cash in the near term, and that the timing of investments, repayments, and financing is important to understand. For a lender like GECC, this kind of lumpiness is not unusual, but it does add to risk if it coincides with tight capital markets.

Competitive Edge

Competitive Edge GECC occupies a focused niche in the middle‑market and specialty finance space rather than trying to compete head‑to‑head with large banks. Its strengths include a specialized platform spanning factoring, asset‑backed lending, and healthcare lending, plus the ability to invest across different layers of the capital structure. The externally managed team brings deep experience in leveraged finance and credit, and the firm leans heavily on proprietary deal sourcing and strategic partnerships, such as its healthcare lending collaboration. This allows GECC to target more complex or smaller transactions that big institutions often overlook, potentially securing better terms. On the other hand, its relatively small scale, concentration in specific niches, and dependence on credit cycles leave it more exposed to market downturns and borrower‑specific issues than a more diversified financial institution.

Innovation and R&D

Innovation and R&D In a financial company like GECC, innovation is about product design, deal sourcing, and underwriting rather than traditional R&D labs. The firm’s main “innovation engine” is its specialty finance platform, which combines factoring, asset‑backed lending, and healthcare‑focused structures into tailored solutions for underserved borrowers. Recent steps, such as acquiring a majority stake in a commercial finance company to strengthen its asset‑backed lending, show a push to deepen capabilities rather than reinvent the model. GECC is also working to expand the share of its portfolio in these specialty finance areas, aiming to build a more differentiated and recurring income stream. Future innovation will likely be measured by how successfully it broadens this platform, diversifies its borrower base, and refines its risk management, rather than by adopting cutting‑edge technology.

Summary

Overall, GECC has transitioned from a period of persistent losses to one of modest but still fragile profitability, with earnings that can swing meaningfully from year to year. The balance sheet is straightforward and gradually strengthening in terms of equity, but the combination of modest capital, meaningful leverage, and very low cash reserves heightens the importance of steady portfolio performance and access to funding. Cash flows are choppy, reflecting the nature of its lending activities and the timing of repayments and new deployments, and do not always line up neatly with reported earnings. Strategically, the firm’s niche focus in specialty finance and middle‑market credit, supported by an experienced external manager and targeted partnerships, gives it a differentiated position but also ties its fortunes closely to credit conditions and execution quality. Key things to watch going forward include the consistency of net investment income, the resilience of cash flows, leverage and liquidity management, and the pace and quality of growth in its specialty finance platform.

NEWS

November 4, 2025 · 4:15 PM UTC

Great Elm Capital Corp. Announces Third Quarter 2025 Financial Results

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October 31, 2025 · 8:00 AM UTC

Great Elm Capital Corp. (“GECC”) Schedules Third Quarter 2025 Earnings Release and Conference Call

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October 7, 2025 · 8:30 AM UTC

Great Elm Capital Corp. (“GECC”) Addresses Investor Questions with Respect to its First Brands Investments

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September 4, 2025 · 5:36 PM UTC

Great Elm Capital Corp. Prices Public Offering of $50 Million of 7.75% Notes Due 2030

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September 4, 2025 · 7:59 AM UTC

Great Elm Capital Corp. Announces Public Offering of Unsecured Notes

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