Great Elm Group, Inc. Q1 FY2026 earnings call

• Advanced strategic initiatives including raising nearly $250 million of debt and equity capital across credit and real estate platforms.
• Established partnership with Kennedy Lewis Investment Management, which invested in GEG and Monomoy REIT.
• Woodstead Value Fund purchased shares of GEG common stock, and Great Elm issued warrants to Woodstead.
• Monomoy BTS, Construction Services, and CRE had progress; GECC had capital raises and balance sheet strength; private credit strategy performed well; CoreWeave investment had strong distributions but volatility; stock repurchase program expanded and shares repurchased.

Fiscal first quarter revenue was $10.8 million compared to $4 million in the prior year period. Fee-paying assets under management grew 9% year-over-year to approximately $594 million or 10% on a pro forma basis to approximately $601 million. In real estate, Monomoy BTS sold its second build-to-suit development property for over $7 million, generating a gain of over $0.5 million; Monomoy Construction Services contributed approximately $700,000 in revenue; Monomoy CRE had investment management and property management fees increase 12% over the prior year period. In credit, GECC raised approximately $28 million in equity proceeds but was impacted by First Brands' bankruptcy; Great Elm private credit strategy returned 15.2% net calendar year-to-date through September 30. CoreWeave-related investment had over 100% of initial $5 million investment in distributions but had unrealized losses.

• Focus on growing fee-paying AUM, scaling credit and real estate platforms.
• Partnership with Kennedy Lewis is a growth catalyst.
• Continued capital raising and execution of growth strategies to create sustained financial performance for shareholders.

• Unrealized losses from volatility in CoreWeave stock price.
• Impact of First Brands bankruptcy on GECC's NAV and operating results.
• Dependence on successful execution of strategic initiatives for growth.

Q: Interested in growth picture, overhead, and when operating leverage will kick in A: Jason Reese said they've built back office infrastructure, fixed costs in place, focusing on growing, with major growth moves on real estate and BDC, expecting to leverage without growing costs significantly Q: In-depth on Monomoy REIT A: Jason Reese explained Monomoy REIT is a private REIT focusing on industrial outside storage, has over 150 buildings, largest tenant is United Rentals, built BTS business, brought construction in-house, could be public in future, and offered to set up separate call for more details