Great Elm Capital Q2 NII up 28% YoY to $5.9mln, TII hits record $14.3mln.

• Great Elm Capital Corp. reports Q2 2025 financial results. • Total investment income reached a record $14.3 million. • Highest cash generative quarter in GECC's history. • Net investment income was $5.9 million, or $0.51 per share. • Compared to $4.6 million, or $0.40 per share in Q2 2024.

Great Elm Capital Corp. (GECC) has announced its financial results for the second quarter ended June 30, 2025. The business development company reported total investment income (TII) of $14.3 million, marking a record high for the company. This represents the highest cash generative quarter in GECC's history, with cash income comprising over 90% of TII [1].

Net investment income (NII) for the quarter was $5.9 million, or $0.51 per share, compared to $4.6 million, or $0.40 per share, in the same period last year. The increase in NII was primarily driven by a distribution on preference shares in an insurance-related investment and higher income from collateralized loan obligations (CLOs) investments. GECC received $4.3 million in cash distributions from the CLO joint venture (JV) during the quarter, compared to $3.8 million in the previous quarter [1].

The company's net assets increased to $140.0 million, or $12.10 per share, as of June 30, 2025, up from $132.3 million, or $11.46 per share, at the end of March 2025. The increase in net asset value (NAV) was primarily due to unrealized gains on a CoreWeave-related investment and NII exceeding the quarterly distribution by 38%, or $0.14 per share [1].

GECC's asset coverage ratio improved to 169.5% as of June 30, 2025, compared to 163.8% at the end of March 2025. The company's Board of Directors approved a quarterly dividend of $0.37 per share for the third quarter of 2025, equating to a 13.5% annualized yield on the August 1, 2025, closing price of $10.98 [1].

GECC's Chief Executive Officer, Matt Kaplan, commented, "We continued our strong momentum in 2025 with a standout second quarter, generating record total investment income and NII that exceeded our recently increased quarterly distribution. Our substantial NII this quarter was driven by robust cash generation, including a strong distribution from preference shares in an insurance-related investment and continued solid performance from our CLO JV. NAV also improved meaningfully in the quarter, benefiting from unrealized gains on our CoreWeave-related investment. Looking ahead, while we expect third quarter NII will step down due to the uneven cadence of cash flows from our CLO JV, we remain well-positioned for our NII to exceed our distribution for the full year. We will continue to closely monitor the macro environment and seek to deploy capital into opportunities offering compelling risk-adjusted returns, with a focus on driving lasting value for our shareholders" [1].

References:
[1] https://www.globenewswire.com/news-release/2025/08/04/3126894/0/en/Great-Elm-Capital-Corp-Announces-Second-Quarter-2025-Financial-Results.html