Revenue: As of FY2026 Q2, the actual value is USD 10.9 M, missing the estimate of USD 11.32 M.

EPS: As of FY2026 Q2, the actual value is USD 0.46.

EBIT: As of FY2026 Q2, the actual value is USD 8.454 M.

Net Investment Income (NII)

Great Elm Capital Corp. reported Net Investment Income (NII) of $4.5 million, or $0.32 per share, for the second quarter ended June 30, 2026, which decreased from $5.0 million, or $0.36 per share, in the prior quarter ended March 31, 2026. Pre-incentive fee NII increased approximately 66% quarter-over-quarter to $4.5 million for Q2 2026, from $2.7 million for Q1 2026. For the six months ended June 30, 2026, NII was $9.486 million, compared to $10.480 million for the same period in 2025.

Net Asset Value (NAV)

Net Asset Value (NAV) per share was $7.95 as of June 30, 2026, representing approximately 3% quarter-over-quarter growth from $7.74 per share as of March 31, 2026. Total net assets were $110.4 million as of June 30, 2026, compared to $107.5 million as of March 31, 2026.

Net Realized and Unrealized Investment Gains/Losses

Net realized and unrealized investment gains for the second quarter ended June 30, 2026, were approximately $1.9 million, or $0.14 per share. For the six months ended June 30, 2026, net realized and unrealized gains were -$3.806 million, compared to $1.716 million for the same period in 2025.

Total Investment Income (TII)

Total investment income for the second quarter ended June 30, 2026, was $10.9 million, or $0.78 per share, an increase from $9.5 million for the quarter ended March 31, 2026. For the six months ended June 30, 2026, Total Investment Income was $20.440 million, compared to $26.772 million for the same period in 2025.

Total Expenses

Total expenses for the second quarter ended June 30, 2026, were $6.4 million, or $0.46 per share, inclusive of excise tax expense. Net expenses for the quarter were $6.310 million, after accounting for an incentive fee waiver of -$0.901 million. For the six months ended June 30, 2026, total expenses were $14.491 million, resulting in net expenses of $10.780 million after a -$3.711 million incentive fee waiver.

Liquidity and Capital Resources

As of June 30, 2026, Great Elm Capital Corp. held approximately $6 million in cash and money market fund investments, with $39 million of availability on its revolving line of credit. Total debt outstanding (par value) was $166.4 million as of June 30, 2026, comprising $56.5 million in 8.50% senior notes due April 2029, $41.4 million in 8.125% senior notes due December 2029, $57.5 million in 7.75% senior notes due December 2030, and $11.0 million on the Revolver due June 2029.

Operational Metrics

• Incentive Fee Waivers: Great Elm Capital Corp.’s investment adviser waived incentive fees totaling $0.9 million, or $0.06 per share, for the quarter ended June 30, 2026, in addition to previously waiving $2.8 million, or $0.20 per share, of accrued incentive fees through March 31, 2026.
• Distributions: The Board of Directors declared a quarterly cash distribution of $0.25 per share for the third quarter of 2026, payable on September 30, 2026. This distribution represents an 18.9% annualized dividend yield on the closing price as of August 4, 2026, and a 12.6% annualized dividend yield on the June 30, 2026, NAV.
• Share Repurchase Program: Between January 1, 2026, and August 4, 2026, the company repurchased approximately 0.1 million shares for $0.5 million, at an average price of $4.98 per share. Approximately $9.5 million of capacity remains under the $10 million stock repurchase program.
• Asset Coverage Ratio: The asset coverage ratio was 166.4% as of June 30, 2026, up from 161.8% as of March 31, 2026.
• Nonaccrual Investments: Less than 1% of investments were on nonaccrual as of quarter-end.
• CoreWeave Investment Performance: During Q2 2026, Great Elm Capital Corp. received $2.6 million in distributions from its CoreWeave-related equity investment, bringing total distributions to approximately $9.5 million, exceeding its original $6.0 million capital investment.

Outlook

Great Elm Capital Corp. is positioned to pursue attractive investment opportunities while maintaining financial flexibility, supported by its disciplined investment process, strong liquidity, and conservative balance sheet. The company aims to continue creating long-term value for its shareholders, despite a competitive market environment.