Great Elm Capital (GECC) investor relations material

Executive summary

• Net asset value (NAV) increased to $110.4 million ($7.95/share) as of June 30, 2026, up 3% quarter-over-quarter, driven by realized and unrealized gains, especially from CoreWeave-related equity investment.

• Net investment income (NII) for Q2 2026 was $4.5 million ($0.32/share), fully covering the quarterly distribution, though down from $5 million ($0.36/share) in Q1 due to a smaller incentive fee waiver.

• Portfolio quality improved, with less than 1% of assets on nonaccrual and continued focus on risk management.

• All three Great Elm Specialty Finance (GESF) verticals were profitable and generated cash distributions.

• Strong liquidity with $6 million in cash and equivalents and $39 million available under the revolving credit facility.

Financial highlights

• Total investment income for Q2 2026 was $10.9 million, up from $9.5 million in Q1, driven by a $2 million insurance-related dividend.

• Pre-incentive fee NII rose 66% to $4.5 million from $2.7 million quarter-over-quarter.

• NAV per share increased to $7.95 from $7.74 quarter-over-quarter.

• Asset coverage ratio improved to 166.4% from 161.8%; debt-to-equity ratio improved to 1.51x from 1.62x.

• Quarterly distribution of $0.25/share declared, yielding 12.6% on NAV and 18.9% on the closing stock price.

Outlook and guidance

• Focus remains on disciplined execution, prudent capital allocation, and maintaining dividend coverage on an annual basis despite quarter-to-quarter variability.

• Private credit is expected to be a larger portion of new originations, with a strong backlog and better risk-return profiles than broadly syndicated loans.

• Dividend policy is set to ensure coverage over a four-quarter period, not just individual quarters.

• Portfolio performance and NAV growth expected to support future distributions.

• Management remains focused on disciplined capital deployment and risk management.