Great Elm 2026 Q1 Earnings Net Loss Widens 365.8% Amid Strategic Growth

Great Elm Group (GEG) reported fiscal 2026 Q1 earnings on Nov 13, 2025, with revenue surging 170.2% year-over-year but net income turning to a loss. The results missed expectations, driven by unrealized investment losses and operational challenges, while the company emphasized strategic capital raises and platform expansion.

Revenue

Total revenue rose to $10.79 million in Q1 2026, a 170.2% increase from $3.99 million in the prior year. Management fees led with $1.88 million, while administration and service fees contributed $458,000. Property management fees added $309,000, and real estate property sales surged to $7.37 million. Project management fees totaled $712,000, and real estate rental income amounted to $63,000.

Earnings/Net Income

The company swung to a net loss of $7.90 million, or $0.24 per share, a 365.8% deterioration from $2.97 million net income in 2025 Q1. The EPS miss of 160% highlighted operational challenges despite revenue growth.

Post-Earnings Price Action Review

The strategy of purchasing GEG shares following a quarterly revenue drop and holding for 30 days showed favorable performance over the past three years, with a cumulative return of 24.8% as of Q3 2025. This approach capitalized on short-term market overreactions, creating buying opportunities. The 30-day holding period aligned with typical post-earnings rebounds, while broader market conditions and GEG’s capital raises influenced returns. Annualized returns averaged 10%, peaking at 15% in Q2 2024 after a significant revenue decline.

CEO Commentary

CEO Jason Reese highlighted 9% growth in fee-paying AUM to $594 million and $250 million in capital raises across credit and real estate platforms. Challenges included GECC’s exposure to First Brands’ bankruptcy, but the company emphasized $53.5 million in cash and a $25 million stock repurchase program.

Guidance

Qualitative expectations focused on scaling fee-paying AUM, credit and real estate platforms, and disciplined capital deployment. GECC’s $50 million revolver and Monomoy’s BTS pipeline signaled long-term confidence.

Additional News

Great Elm secured a $150 million partnership with Kennedy Lewis to accelerate real estate growth, alongside a $9 million investment from Woodstead. The board expanded its $25 million stock repurchase program, reflecting confidence in long-term value. Monomoy REIT’s second BTS property sale generated $7.4 million, underscoring the company’s vertical integration strategy.