Great Elm Capital Corp. — Cyborg Score 4/10

Mixed
Business Development Company (BDC) / Specialty Finance

Strategic Profile

The company continues to expand its private credit pipeline, enhance portfolio credit quality, and further diversify the portfolio. Recent leadership changes and incentive fee waivers by Great Elm Capital Management through March 31, 2026 reflect management's commitment to supporting net asset value and shareholder alignment.

Cyborg Score Rationale

The company recently missed earnings expectations with negative Q4 2025 EPS of ($1.74) versus consensus of $0.32, and posted negative revenue of ($39.96) million compared to analyst estimates of $13.16 million. However, Q4 2025 net investment income rose 50% quarter-over-quarter to $4.4 million per share, and management waived approximately $2.3 million of accrued incentive fees to support NAV.

Top Insights

  • GAAP NAV was $8.07 per share and pro forma NAV $8.23 per share as of December 31, 2025.
  • GECC ended 2025 with $5 million of cash, $50 million of undrawn revolver capacity, and about $11 million of liquid exchange-traded assets.
  • Jason Reese was appointed Executive Chairman effective March 2, 2026 to provide seasoned credit investment experience and active management oversight.
  • Current market capitalization is $87.21 million with 52-week range of $6.07 to $11.45.

Named Competitors

  • Senior Secured Debt & Specialty Finance — BDC focused on senior secured debt in specialty finance
  • Middle Market Credit & Income — BDC specializing in debt instruments and income generation

Recent Developments

  • (March 2026) Jason Reese appointed Executive Chairman; investment adviser waives accrued incentive fees through Q1 2026
  • (March 2026) Company calls $20 million of GECCO notes for redemption on March 31, 2026
  • (December 2025) Q4 2025 net investment income rose 50% QoQ to $4.4 million; GAAP NAV at $8.07 per share

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