How did GEG's revenue and expenses shift in Q2 2025?

**Great Elm Capital Corp. (GEG) experienced a significant increase in revenue and a slight rise in expenses in Q2 2025, driven by strategic portfolio enhancements and new investments.**

1. **Revenue Shift**:
- **Record Investment Income**: GEG achieved the highest total investment income in its history, reaching $12.5 million in Q2 2025, marking a 37% increase from the previous quarter.
- **Net Investment Income (NII)**: NII per share doubled to $0.40 from $0.20 in the prior quarter, reaching $4.6 million.
- **CLO Joint Venture Contribution**: The CLO joint venture significantly contributed to income, with cash distributions increasing from $0.5 million in Q4 2024 to $3.8 million in Q1 2025.
2. **Expense Shift**:
- **Total Expenses**: The company’s total expenses for the quarter ended March 31, 2025, were approximately $7.9 million, or $0.69 per share.
- **Net Realized and Unrealized Losses**: There were approximately $4.1 million in net realized and unrealized losses for the quarter ended March 31, 2025, or $0.36 per share.
3. **Financial Position**:
- **Net Asset Value (NAV)**: The NAV per share decreased from $11.79 at year-end 2024 to $11.46 as of March 31, 2025, due to unrealized losses on portfolio investments.
- **Asset Coverage Ratio**: The asset coverage ratio stood at 163.8% as of March 31, 2025, indicating a strong position to manage liabilities.
- **Debt and Liquidity**: GEG had approximately $207 million in total debt outstanding and $1.3 million in cash.
4. **Dividend Distribution**: The company increased its quarterly distribution by 5.7%, from $0.35 to $0.37 per share, reflecting a commitment to returning value to shareholders.

In conclusion, GEG's revenue saw a substantial boost due to strategic enhancements and new investments, while expenses remained manageable with a slight increase in net realized and unrealized losses. The company's financial position remains robust, supported by a strong asset coverage ratio and a record investment income.