Great Elm Group, Inc. (GEG) · Nov 4, 2026 · Earnings
Miss — Revenue $3.3M vs $10.8M prior year; adjusted EBITDA -$0.9M vs -$0.5M
Great Elm’s earnings show Monomoy expanding, but revenue fell sharply, fee-paying AUM declined, and GECC’s NAV weakened in fiscal Q1.
Great Elm is trying to turn itself from a volatile investment vehicle into a recurring-fee alternative asset manager, with GECC providing the credit platform and Monomoy building an industrial outdoor-storage real-estate franchise. At fiscal 2026 year-end, management was emphasizing nearly $400 million of capital raised, expanding fee-paying AUM, and record Monomoy acquisition activity, so the standing story entering this quarter was operational growth despite weak mark-to-market results.
| Q1 FY2027 | Q1 FY2026 | June 30, 2026 | |
|---|---|---|---|
| Revenue (Statements of Operations) | $3.338M (-69.1%) | $10.788M | |
| Net loss to GEG stockholders (Statements of Operations) | $(4.146)M | $(7.030)M | |
| Adjusted EBITDA (EBITDA reconciliation) | $(0.898)M | $(0.463)M | |
| Fee-paying AUM (Financial Highlights) | $564M (-5%) | ~$594M | |
| AUM (Financial Highlights) | $760M (-3%) | ~$784M | ~$771M |
| GECC NAV per share (Alternative Credit) | $7.40 (-$0.55) | $7.95 | |
| Cash and equivalents (Balance Sheet) | $43.204M | $53.474M |
The quarter was weaker operationally than the headline loss improvement suggests. Revenue fell to $3.3 million from $10.8 million, largely because the prior-year quarter included approximately $7.4 million from a build-to-suit property sale; however, adjusted EBITDA also deteriorated to negative $0.9 million from negative $0.5 million, indicating that the underlying fee platform did not yet offset the lost transaction revenue. 〔0〕
The recurring-growth story lost some momentum. Fee-paying AUM declined 5% year over year to $564 million and total AUM fell 3% to $760 million, moving against the prior quarter’s message of expanding fee-paying assets. That matters more than the narrower net loss because AUM is the base from which Great Elm expects to generate recurring management fees.
Real estate is the clearest bright spot, but it has not yet become large enough to carry the group. Monomoy REIT acquired four properties and deployed about $8.1 million while building a nearly $90 million pipeline; MCRE’s investment and property-management fees also grew 18% year over year. Those are genuine execution gains, but they remain partly future-facing: the pipeline is potential investment, not booked revenue, and the quarter still showed weaker consolidated EBITDA.
Credit and liquidity remain the main offsets. GECC’s NAV fell to $7.40 per share from $7.95, including a $0.24 per-share loss from its CLO formation joint venture, while Great Elm’s cash balance declined by roughly $10.3 million from June 30 and $26.9 million of debt moved into current liabilities. The company still has meaningful cash and says GECC redeemed $6.5 million of high-cost notes, but the quarter did not show a clean improvement in the credit engine.
Bottom line: Great Elm’s real-estate platform is advancing, but the recurring-fee base slipped, credit NAV weakened, and adjusted EBITDA moved backward. The narrower net loss is mostly a comparison benefit from last year’s investment losses and does not outweigh the softer operating trajectory, making this a modest earnings miss rather than a change in the company’s broader story.
Fiscal Q1 conference call, November 5, 2026
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