Great Elm Loss Narrows as Investment Losses Recede

The Tip Desk · November 11, 2026 · 3 min read

The alternative asset manager posted a $4.1 million net loss in the fiscal first quarter ended September 30, 2026, versus a $7.0 million loss a year earlier.

Great Elm Group, Inc. (GEG), an alternative asset manager, reported a net loss of $4.1 million attributable to stockholders for the fiscal first quarter ended September 30, 2026, compared with a $7.0 million loss in the year-ago period. The company said the narrower loss primarily reflected lower net realized and unrealized losses on its investments.

Total revenue was $3.3 million. The company said prior-year revenue of $10.8 million included about $7.4 million from the sale of a build-to-suit property. Adjusted EBITDA was a $0.9 million loss, versus a $0.5 million loss a year earlier.

Chief Executive Officer Jason Reese said first-quarter results reflected the uneven cadence of certain real estate investment sales and headwinds in alternative credit. He said Great Elm remained confident in its ability to execute on strategic priorities.

Fee-paying assets under management totaled about $564 million and AUM about $760 million as of September 30, 2026, down 5% and 3% from the year-ago period. Those levels were below $590 million of FPAUM and $771 million of AUM at June 30, 2026.

In Alternative Credit, Great Elm received $1.0 million of management fees from Great Elm Capital Corp. (GECC) in the quarter. GECC paid a $0.25 a share quarterly cash dividend and redeemed $6.5 million of GECCI notes, which the company said retired a portion of its highest-cost debt. GECC’s net asset value was $7.40 a share at September 30, 2026, down $0.55 from $7.95 at June 30, 2026, including $0.24 a share of loss attributable to its CLO formation JV investment. Net realized and unrealized losses on Great Elm’s investments in GECC common stock and related SPVs totaled $0.5 million.

Reese said GECC remained focused on sustainable investment performance, preserving liquidity, and rebuilding net asset value, and that the company was prioritizing portfolio diversification, credit quality, and disciplined underwriting over incremental yield.

The Real Estate business showed more activity. Monomoy REIT acquired four properties in the quarter, deploying about $8.11 million of capital, after a record $34 million of committed capital across six acquisitions in the fiscal fourth quarter ended June 30, 2026. The company said Monomoy built its largest acquisition pipeline to date, representing nearly $90 million of potential investments.

Monomoy CRE received investment and property management fees of about $1.1 million, up about 18% from the year-ago period. Monomoy BTS is nearing completion of its fourth build-to-suit project and acquired two development properties for about $4.0 million; after quarter-end it acquired a third for about $5.0 million. Monomoy Construction Services completed its sixth full quarter of operations and generated $0.7 million of revenue. Great Elm Real Estate Ventures was formed to consolidate those three subsidiaries under a single entity in connection with the KLIM partnership.

Great Elm received $0.7 million of distributions from its CoreWeave-related equity investment in the quarter, bringing cumulative distributions to about $8.6 million against the original $5.0 million investment.

Cash and cash equivalents were $43.2 million at September 30, 2026, down from $53.5 million at June 30, 2026. The company repurchased about 266,000 shares for $0.6 million in the quarter at an average $2.20 a share, the twelfth consecutive quarter of buybacks. Through October 30, 2026, it had repurchased about 8.4 million shares for $16.8 million, leaving about $23.2 million of capacity under the $40 million program.

Reese said priorities remain centered on disciplined capital allocation, growing AUM and recurring fee revenue, and delivering sustainable long-term value for shareholders.