Great Elm Capital (GECC) investor relations material

Executive summary

• Q3 NII was $2.4M, or $0.17/share; NAV fell 6.9% QoQ to $7.40/share from $7.95, primarily on realized and unrealized investment losses.

• Net assets declined $4.2M from operations in Q3; nine-month operations produced a $1.5M increase, versus a $9.8M decrease in 2025.

• Priorities include NAV stabilization, disciplined underwriting, durable income, portfolio optimization and selective private-credit deployment amid a challenging credit environment.

Financial highlights

• Q3 investment income was $8.7M, down from $10.9M in Q2; Q2 included a non-recurring $2.0M insurance-related preference-share dividend.

• Q3 NII was $2.4M, or $0.17/share, versus $4.5M, or $0.32/share, in Q2; lower income and reinstated incentive-fee accruals drove the decline.

• Q3 net realized and unrealized losses were $6.6M, or $0.48/share; net loss from operations was $4.2M, or $0.30/share.

• Nine-month investment income was $29.1M, NII was $11.9M, and net income was $1.5M; results included a non-recurring $3.7M incentive-fee waiver not subject to recapture.

• Net assets were $102.7M, or $7.40/share, versus $110.4M, or $7.95/share, at June 30; the $6.6M investment loss drove the decline.

Outlook and guidance

• Management views $0.17/share as more sustainable than Q2's $0.32/share, but expects it to be a low point; the $0.25/share quarterly distribution is expected to be sustainable.

• Declared a $0.25/share Q4 distribution, payable December 31, 2026, to holders of record December 15; management cited spillover taxable income and distribution requirements.

• Management expects private-credit opportunities and specialty finance to support more consistent income; deployment depends on market conditions and risk-adjusted returns.