10-Q · May 6, 2026
Great Elm Group reported Q3 2026 results with total revenue of $3.4 million, a 7% increase from $3.2 million in the prior year, although it fell short of estimates. The net loss expanded to $(13.5) million,…
Earnings analysis · 10-K
GEG earnings analysis
Filed August 26, 2026 · Our reading of the company's report
The latest report
GEG is repositioning around a diversified alternative-asset platform, with Real Estate and construction activities driving revenue growth and AUM reaching approximately $770.6 million. However, the improvement in…
Read full summary
GEG is repositioning around a diversified alternative-asset platform, with Real Estate and construction activities driving revenue growth and AUM reaching approximately $770.6 million. However, the improvement in operating cash flow was more than offset by a $35.444 million loss attributable to stockholders, driven largely by $22.244 million of net realized and unrealized investment losses and weaker Alternative Credit fees. Liquidity remains meaningful at $53.474 million of unrestricted cash, but recurring earnings quality, investment valuation volatility, upcoming 2027 debt maturity and potential convertible-note dilution remain significant concerns.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $-1.17
What stood out
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Diversification Strategy Reaches $770.6M AUM
GEG describes a strategy centered on building a scalable, diversified portfolio of long-duration and permanent-capital vehicles across credit, real estate, specialty finance and other alternative strategies. Combined assets under management were approximately $770.6 million at June 30, 2026.
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Real Estate Drove Revenue Growth
Revenue increased 70% to $27.776 million from $16.316 million, primarily because of Real Estate property sales in September 2025 and June 2026. Real Estate revenue reached $21.705 million, including $14.743 million from property sales.
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Construction Platform Expanded
The Greenfield CRE acquisition supported expansion of an integrated construction platform. Real Estate construction revenue increased to $2.191 million from $0.9 million, while fiscal-year development spending rose to $6.5 million from $3.4 million.
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Cash Generation and Liquidity Improved
Liquidity improved materially: operating cash flow was $15.675 million versus $(9.006) million in the prior year, and unrestricted cash was $53.474 million at June 30, 2026. Investing cash flow was also positive at $12.568 million, driven by investment sales and settlement of an $8.0 million related-party loan.
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Equity Financing Funded Capital Actions
GEG issued $11.862 million of common stock and repurchased $6.800 million of shares during the year. It also reduced redeemable non-controlling interests in consolidated funds by $10.348 million to zero.
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Two-Segment Alternative Asset Platform
The company maintains a substantial strategic footprint in managed vehicles, including GECC and Monomoy UpREIT, and reports two operating segments: Alternative Credit focused on income generation and capital preservation, and Real Estate focused on IOS properties and turnkey execution.
What to watch
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Severe Investment Valuation Losses
Net loss attributable to GEG stockholders swung to $(35.444) million from $12.891 million of income, while diluted EPS declined to $(1.17) from $0.38. Net realized and unrealized investment results changed to a $(22.244) million loss from a $16.854 million gain, including a $12.577 million unrealized loss on three Level 3 special-purpose-vehicle investments.
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Incentive-Fee Revenue Was Eliminated
Alternative Credit revenue fell 41% to $6.071 million from $10.323 million because incentive-fee revenue declined to zero from $4.069 million. GECM waived all accrued and unpaid GECC incentive fees through June 30, 2026, weakening near-term recurring fee economics.
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Debt Maturity and Dilution Pressure
GEG had $26.945 million of GEGGL Notes outstanding due June 30, 2027 and $36.838 million of Convertible Notes outstanding at June 30, 2026. The Convertible Notes had $1.8 million of additional principal issued as payment-in-kind interest during the year, and conversion of outstanding notes could materially dilute equity holders.
Management's outlook
The 10-K provides no quantitative revenue or EPS guidance; annual outlook appears deferred to the earnings press release or call.
Earlier filings 4
10-K · September 2, 2025
Great Elm Group positions itself as a diversified alternative asset manager focused on long-duration, permanent-capital vehicles across credit, real estate, specialty finance and related strategies, with combined assets…
10-K · August 29, 2024
Great Elm Group positions itself as an alternative asset manager focused on building a scalable, diversified platform of long-duration and permanent capital vehicles across credit, real estate, specialty finance and…
10-Q · May 8, 2024
Great Elm Group reported quarterly revenues of $2,787,000 (three months ended March 31, 2024), up from $1,898,000 a year earlier, but posted a continuing-operations net loss and diluted EPS of $(0.10). Operating loss…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.