Great Elm Capital Corp. Q4 FY2025 earnings call

• Gradome Capital Management waived all accrued and unpaid incentive fees through March 31, 2026, benefiting shareholders by ~$2.3 million or 16 cents per share. • Strengthened investment platform with addition of Chris Croteau as head of credit research. • Deliberate portfolio repositioning: ended year with minimal non-accrual investments, expanded diversification, reduced high-risk exposure, enhanced liquidity. • In fourth quarter, improved credit quality, strengthened balance sheet, exited year with ample liquidity, enhanced capital structure by repurchasing GECCO notes. • Great Elm Specialty Finance delivered solid fourth quarter, with Great Elm Commercial Finance scaling, Great Elm Healthcare Finance positioned for profitability, Prestige invoice financing performing well. • Investment framework built on three core pillars: downside protection, portfolio granularity, durable underwriting edge. • In fourth quarter, sold or reduced 18 credit positions, added 12 new broadly syndicated credit positions, closed one private credit transaction

For corporate credit portfolio: Ended the year with minimal non-accrual investments, significantly expanded diversification, reduced exposure to higher risk investments, and ended the quarter with non-recruits at less than 1% of portfolio fair value. Software-based business investments in corporate credit portfolio comprise less than 4% as of end of February. CLO investments generated positive return in 2025, outperformed broader CLO equity market, and continued to produce meaningful cash flows. Great Elm Specialty Finance: Great Elm Commercial Finance scales platform with asset-based lending, Great Elm Healthcare Finance positioned for sustained profitability, Prestige invoice financing business performs exceptionally well. Fourth quarter: GECC generated NII of $4.4 million, or $0.31 per share, net assets as of December 31, 2025, were $112.9 million, or $8.07 per share, balance sheet strong and liquid with asset coverage ratio 158.1% on December 31, 2025, board approved quarterly dividend of $0.30 per share for first quarter of 2026

• Selectively closed compelling cash generative investments in late 2025 and first quarter of 2026 to support sustainable NII growth. • Board approved quarterly dividend of $0.30 per share for first quarter of 2026. • Expect to be patient but decisive in deploying capital when compelling cash-generative opportunities emerge through proprietary sourcing network

• Challenging credit and broader market environment led to losses reducing NAV. • Volatility in Coral Weave's stock price and spread tightening of CLO's assets coupled with credit market dispersion impacted NAV. • Realized and unrealized losses associated with restructurings and LMEs affected NAV. • Certain sectors and idiosyncratic credits experienced significant price declines in fourth quarter

Q: Regarding portfolio repositioning, are actions complete or more to come?

A: Took many actions in quarter to exit names with more downside risk and rotate into higher quality credits, software component reduced from ~7% to less than 4%, portfolio on corporate credit side is very clean but dynamic market may lead to further actions.

Q: View on pipeline and best risk-adjusted opportunities?

A: Continue to evaluate private credit opportunities selectively with aligned incentives, evaluate average loan market opportunities with focus on downside protection, ample liquidity to manage maturities and take advantage of opportunities.

Q: Weighing new investments vs stock buyback?

A: Constantly evaluate, factors include portfolio, market opportunities, board discussions, actively monitor stock price and market opportunities.

Q: CLO investment contribution variability?

A: Still some variability in cash flow payments but expected to be less lumpy than before.

Q: Stock buyback program?

A: Board taking it very seriously, looking at it daily to create shareholder value.

Q: Alan Demser's urge on stock buyback?

A: Board taking it very seriously and looking at it every day