Great Elm Capital Corp. Announces Third Quarter 2025 Financial Results

Board Maintains $0.37 Per Share Distribution and Announces $10 Million Share Repurchase Authorization

GECC Strengthened its Balance Sheet Raising $27 Million of Equity and Refinancing Highest Cost Debt

NAV Decline From $12.10 to $10.01 Per Share Primarily Due to Losses on First Brands; NII Lower As Anticipated Due to Uneven CLO JV Distributions and Lack of a Preference Share Dividend

NII Expected to Recover in the Fourth Quarter with Increased CLO JV Distributions, Normalized Interest Expense and Income Generation From New Deployments

PALM BEACH GARDENS, Fla., Nov. 04, 2025 (GLOBE NEWSWIRE) -- Great Elm Capital Corp. (“we,” “our,” the “Company” or “GECC”) (NASDAQ: GECC), a business development company, today announced its financial results for the third quarter ended September 30, 2025.

Management Commentary

“As outlined in our October 7 th press release, GECC was impacted by the First Brands bankruptcy which was the key driver of our NAV decline in the quarter to $10.01 per share as of September 30 th from $12.10 per share at the end of the second quarter,” said Matt Kaplan, GECC's Chief Executive Officer. “In addition, as highlighted on our August conference call, we saw NII step down as anticipated, driven by the uneven cadence of CLO cash flows, the lack of a distribution on preference shares received in the second quarter, and elevated expenses associated with our baby bond refinancing. We currently expect NII to recover in the fourth quarter with normalized interest expense, increased CLO JV distributions and income from new deployments.”

“We continued to strengthen our balance sheet in the third quarter, raising approximately $27 million of equity. Additionally, we successfully refinanced our highest cost debt, the 8.75% GECCZ Notes, with the issuance of our new 7.75% GECCG Notes, and doubled the size of our revolving credit facility while reducing its interest rate, resulting in lower borrowing costs going forward,” added Mr. Kaplan. “Looking ahead, we have ample liquidity and our leverage is consistent with our historical operating levels at approximately 1.5x debt-to-equity. We have begun to realize capital distributions on our non-yielding CoreWeave equity-related investment, and we are well positioned to deploy capital into additional cash-generating investments.”

Shareholder Returns

Third Quarter Operating Highlights

Third Quarter and Other Recent Capital Activity

Financial Highlights – Per Share Data

Portfolio and Investment Activity

As of September 30, 2025, GECC held total investments of $325.1 million at fair value, as follows:

As of September 30, 2025, the weighted average current yield on the Company’s debt portfolio was 11.5% ( 1 ). Floating rate instruments comprised approximately 67% of the fair market value of debt investments and the Company’s fixed rate debt investments had a weighted average maturity of 2.8 years.

During the quarter ended September 30, 2025, the Company deployed approximately $56.6 million into 36 investments ( 2 ) at a weighted average current yield of 10.7%.

During the quarter ended September 30, 2025, the Company monetized, in part or in full, 40 investments for approximately $42.9 million ( 3 ), at a weighted average current yield of 13.3%. Monetizations include $28.2 million of mandatory debt paydowns and redemptions at a weighted average current yield of 14.3%.

Financial Review

Total investment income for the quarter ended September 30, 2025 was $10.6 million, or $0.86 per share. Total expenses for the quarter ended September 30, 2025 were approximately $8.2 million, or $0.67 per share, inclusive of excise tax expense.

Net realized and unrealized losses for the quarter ended September 30, 2025 were approximately $24.4 million, or $1.98 per share.

Liquidity and Capital Resources

As of September 30, 2025, cash and money market fund investments totaled approximately $24.3 million. In addition, GECC had availability of $50.0 million on its revolving line of credit (the “Revolver”) as of September 30, 2025.

As of September 30, 2025, total debt outstanding (par value) was $205.4 million, comprised of 5.875% senior notes due June 2026 (NASDAQ: GECCO), 8.50% senior notes due April 2029 (NASDAQ: GECCI), 8.125% senior notes due December 2029 (NASDAQ: GECCH), and 7.75% senior notes due December 2030 (NASDAQ: GECCG).

Distributions

The Company’s Board of Directors has approved a quarterly cash distribution of $0.37 per share for the quarter ending December 31, 2025 to be paid from distributable earnings. The fourth quarter distribution will be payable on December 31, 2025 to stockholders of record as of December 15, 2025.

The distribution equates to a 19.8% annualized dividend yield on the Company’s closing market price on November 3, 2025 of $7.48 and a 14.8% annualized dividend yield on the Company’s September 30, 2025 NAV of $10.01 per share.

Stock Repurchase Program

The Company’s Board of Directors has authorized a new share repurchase program, whereby the Company may repurchase up to an aggregate of $10 million of its outstanding common shares.

Conference Call and Webcast

GECC will discuss these results in a conference call at 8:30 a.m. ET on November 5, 2025.

Conference Call Details

To access the call, please dial-in approximately five minutes before the start time and, when asked, provide the operator with passcode “GECC”. An accompanying slide presentation will be available in pdf format via the “Events and Presentations” section of Great Elm Capital Corp.’s website here after the issuance of the earnings release.

Webcast

The call and presentation will also be simultaneously webcast over the internet via the “Events and Presentations” section of GECC’s website or by clicking on the webcast link here.

About Great Elm Capital Corp.

GECC is an externally managed business development company that seeks to generate current income and capital appreciation by investing in debt and income generating equity securities, including investments in specialty finance businesses and CLOs. For additional information, please visit http://www.greatelmcc.com.

Cautionary Statement Regarding Forward-Looking Statements

Statements in this communication that are not historical facts are “forward-looking” statements within the meaning of the federal securities laws. These statements include statements regarding our future business plans and expectations. These statements are often, but not always, made through the use of words or phrases such as “expect,” “anticipate,” “should,” “will,” “estimate,” “designed,” “seek,” “continue,” “upside,” “potential” and similar expressions. All such forward-looking statements involve estimates and assumptions that are subject to risks, uncertainties and other factors that could cause actual results to differ materially from the results expressed in the statements. The key factors that could cause actual results to differ materially from those projected in the forward-looking statements include, without limitation: conditions in the credit markets, our expected financings and investments, including interest rate volatility, inflationary pressure, the price of GECC common stock and the performance of GECC’s portfolio and investment manager. Information concerning these and other factors can be found in GECC’s Annual Report on Form 10-K and other reports filed with the Securities and Exchange Commission. GECC assumes no obligation to, and expressly disclaims any duty to, update any forward-looking statements contained in this communication or to conform prior statements to actual results or revised expectations except as required by law. Readers are cautioned not to place undue reliance on these forward-looking statements that speak only as of the date hereof.

This press release does not constitute an offer of any securities for sale.

Endnotes:

Media & Investor Contact:

Investor Relations

investorrelations@greatelmcap.com

GREAT ELM CAPITAL CORP.

CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES (unaudited)

Dollar amounts in thousands (except per share amounts)

GREAT ELM CAPITAL CORP.

CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

Dollar amounts in thousands (except per share amounts)