Great Elm Group Reports Fiscal 2025 Second Quarter Financial Results
Great Elm Group (GEG) reported strong financial results for its fiscal Q2 2025. Total revenue grew 24% to $3.5 million, with net income from continuing operations of $1.4 million, compared to a net loss of $0.2 million in the prior year. The company's fee-paying assets under management reached $538 million, showing 17% growth year-over-year.
Key highlights include Great Elm Capital Corp. raising $13.2 million through equity issuance, and the acquisition of Greenfield CRE to form Monomoy Construction Services. The company maintained strong liquidity with $44 million in cash and continued its share repurchase program, buying back 4.1 million shares at an average price of $1.83. Book value per share stood at $2.30 as of December 31, 2024.
Great Elm Group (GEG) ha riportato risultati finanziari solidi per il secondo trimestre fiscale del 2025. I ricavi totali sono cresciuti del 24% raggiungendo i 3,5 milioni di dollari, con un utile netto dalle operazioni continuative di 1,4 milioni di dollari, rispetto a una perdita netta di 0,2 milioni di dollari nell'anno precedente. Gli attivi a pagamento gestiti dall'azienda hanno raggiunto i 538 milioni di dollari, mostrando una crescita del 17% su base annua.
I punti salienti includono la raccolta di 13,2 milioni di dollari da parte di Great Elm Capital Corp. attraverso l'emissione di azioni e l'acquisizione di Greenfield CRE per formare Monomoy Construction Services. L'azienda ha mantenuto una forte liquidità con 44 milioni di dollari in cassa e ha proseguito il suo programma di riacquisto di azioni, riacquistando 4,1 milioni di azioni a un prezzo medio di 1,83 dollari. Il valore contabile per azione era di 2,30 dollari al 31 dicembre 2024.
Great Elm Group (GEG) informó resultados financieros sólidos para su segundo trimestre fiscal de 2025. Los ingresos totales crecieron un 24% alcanzando los 3,5 millones de dólares, con una ganancia neta de operaciones continuas de 1,4 millones de dólares, en comparación con una pérdida neta de 0,2 millones de dólares en el año anterior. Los activos que generan comisiones bajo gestión de la compañía alcanzaron los 538 millones de dólares, mostrando un crecimiento del 17% interanual.
Los aspectos más destacados incluyen la recaudación de 13,2 millones de dólares por parte de Great Elm Capital Corp. a través de la emisión de acciones, y la adquisición de Greenfield CRE para formar Monomoy Construction Services. La compañía mantuvo una sólida liquidez con 44 millones de dólares en efectivo y continuó su programa de recompra de acciones, recomprando 4,1 millones de acciones a un precio promedio de 1,83 dólares. El valor contable por acción se situó en 2,30 dólares al 31 de diciembre de 2024.
그레이트 엘름 그룹 (GEG)는 2025 회계 연도 2분기 강력한 재무 결과를 보고했습니다. 총 수익은 24% 증가하여 350만 달러에 달하며, 지속적인 운영에서의 순이익은 140만 달러로, 지난해의 순손실 20만 달러와 비교됩니다. 회사의 관리 하 자산(수수료 지불 자산)은 5억 3800만 달러에 달하며, 지난해 대비 17% 성장했습니다.
주요 하이라이트로는 그레이트 엘름 캐피털 공사가 주식 발행을 통해 1320만 달러를 유치한 것과, 그린필드 CRE를 인수하여 모노모이 건설 서비스가 된 것입니다. 회사는 4400만 달러의 현금을 보유하며 강력한 유동성을 유지했으며, 주식 재매입 프로그램을 지속하여 평균 1.83달러의 가격으로 410만 주를 재매입했습니다. 2024년 12월 31일 기준 주당 장부 가치는 2.30달러였습니다.
Great Elm Group (GEG) a annoncé des résultats financiers solides pour son deuxième trimestre fiscal 2025. Le revenu total a augmenté de 24% pour atteindre 3,5 millions de dollars, avec un revenu net des opérations continues de 1,4 million de dollars, par rapport à une perte nette de 0,2 million de dollars l'année précédente. Les actifs sous gestion générant des frais de l'entreprise ont atteint 538 millions de dollars, affichant une croissance de 17% d'une année sur l'autre.
Les moments forts comprennent la levée de 13,2 millions de dollars par Great Elm Capital Corp. grâce à une émission d'actions, et l'acquisition de Greenfield CRE pour former Monomoy Construction Services. L'entreprise a maintenu une forte liquidité avec 44 millions de dollars en espèces et a poursuivi son programme de rachat d'actions, rachetant 4,1 millions d'actions à un prix moyen de 1,83 dollar. La valeur comptable par action s'élevait à 2,30 dollars au 31 décembre 2024.
Great Elm Group (GEG) hat für das zweite Quartal des Geschäftsjahres 2025 starke Finanzergebnisse gemeldet. Der Gesamterlös wuchs um 24% auf 3,5 Millionen Dollar, während das Nettoergebnis aus fortgeführten Betrieben 1,4 Millionen Dollar betrug, im Vergleich zu einem Nettoverlust von 0,2 Millionen Dollar im Vorjahr. Die gebührenpflichtigen verwalteten Vermögenswerte des Unternehmens erreichten 538 Millionen Dollar und zeigten ein Wachstum von 17% im Jahresvergleich.
Zu den wichtigsten Highlights gehören die Kapitalbeschaffung von 13,2 Millionen Dollar durch die Great Elm Capital Corp. durch Aktienemission sowie die Übernahme von Greenfield CRE zur Gründung von Monomoy Construction Services. Das Unternehmen erhielt eine starke Liquidität mit 44 Millionen Dollar in bar und setzte sein Aktienrückkaufprogramm fort, bei dem 4,1 Millionen Aktien zu einem Durchschnittspreis von 1,83 Dollar zurückgekauft wurden. Der Buchwert pro Aktie betrug zum 31. Dezember 2024 2,30 Dollar.
- Revenue growth of 24% to $3.5 million
- Net income improvement to $1.4 million from -$0.2 million YoY
- 17% growth in fee-paying AUM to $538 million
- Strong liquidity position with $44 million cash on balance sheet
- Successful $13.2 million equity raise at NAV
- Strategic acquisition of Greenfield CRE to expand services
- None.
Insights
Great Elm Group's Q2 FY2025 results demonstrate robust operational execution and strategic expansion of its alternative asset management platform. The 24% revenue growth to
Three key developments warrant attention: First, the 17% FPAUM growth to
The company's robust
The transformation into a full-service real estate platform through MCS positions GEG to capture more value across the real estate value chain, potentially leading to higher margins and more stable revenue streams. This vertical integration strategy, combined with strong execution in both credit and real estate segments, suggests potential for continued growth in AUM and profitability.
Company to Host Conference Call at 8:30 a.m. ET on February 6, 2025
PALM BEACH GARDENS, Fla., Feb. 05, 2025 (GLOBE NEWSWIRE) -- Great Elm Group, Inc. (“we,” “our,” “GEG,” “Great Elm,” or “the Company”), (NASDAQ: GEG), an alternative asset manager, today announced financial results for its fiscal second quarter ended December 31, 2024.
Fiscal Second Quarter 2025 and Recent Highlights
- Great Elm Capital Corp. (NASDAQ: GECC) raised an additional
$13.2 million of equity at NAV in December 2024, through the issuance of approximately 1.1 million shares of GECC common stock to Summit Grove Partners (“SGP”). - On February 4, 2025, the Company acquired the assets of Greenfield CRE, a leading construction management company and longstanding partner of Monomoy.
- In connection with the acquisition, Great Elm formed Monomoy Construction Services, LLC (“MCS”) and combined Greenfield with Monomoy BTS Construction Management to launch an integrated, full-service construction business.
- MCS will be dedicated to serving Great Elm’s various real estate verticals, as well as expanding its existing third-party consulting business.
- GEG’s fee-paying assets under management (“FPAUM”) and assets under management (“AUM”) totaled approximately
$538 million and$751 million , respectively.- FPAUM and AUM growth of
17% and14% , respectively, compared to the prior-year period.
- FPAUM and AUM growth of
- Total revenue for the second quarter grew
24% to$3.5 million , compared to$2.8 million for the prior-year period.- Growth in revenue was primarily driven by increased revenue from Monomoy BTS, Corporation and increased GECC management fees, due to growth in FPAUM.
- Great Elm collected incentive fees from GECC totaling
$0.5 million for the three months ended December 31, 2024.
- Net income from continuing operations for the second quarter was
$1.4 million , compared to a net loss from continuing operations of ($0.2) million in the prior-year period. - Adjusted EBITDA for the second quarter was
$1.0 million , compared to$0.6 million in the prior-year period. - Through February 4, 2025, Great Elm has repurchased approximately 4.1 million shares for
$7.4 million , at an average price of$1.83 per share, through its share repurchase program.- Book value per share was
$2.30 as of December 31, 2024, excluding Consolidated Funds.
- Book value per share was
- As of December 31, 2024, GEG had approximately
$44 million of cash on its balance sheet to support growth initiatives across its alternative asset management platform.
Management Commentary
Jason Reese, Chief Executive Officer of the Company, stated, “We delivered a solid fiscal second quarter 2025, continuing our positive momentum by expanding our assets under management, growing revenue across our credit and real estate businesses and generating strong returns on our investments. Our BDC closed another successful capital raise at NAV, increased its first quarter dividend to 37 cents per share and announced a special dividend in December of 5 cents per share. Additionally, the Great Elm Credit Income Fund (“GECIF”) continued to perform very well, closing December with net inception-to-date returns of approximately
“In Real Estate, we were thrilled to announce the acquisition of Greenfield CRE into our newly formed Monomoy Construction Services business. We expect this transaction to enhance our construction management expertise, expand our scope of services, and fortify our overall real estate value proposition to our investors and tenants. Our long-standing relationship with Greenfield will allow us to quickly benefit from the launch of our fully integrated, full-service real estate platform. Importantly, we maintained our commitment to the GEG share repurchase program, continuing to buy back shares at an attractive discount to book value. Looking ahead, we remain focused on executing on our strategic priorities: growing our core credit and real estate businesses, pursuing compelling investment opportunities across our platform and leveraging our strong balance sheet to maximize shareholder value.”
GEG Managed Vehicle Highlights
- GECC demonstrated continued strong performance, raised meaningful capital and increased its quarterly base distribution.
- GECC raised
$13.2 million of equity at Net Asset Value (“NAV”) through the issuance of approximately 1.1 million shares of GECC common stock to SGP. - GEG demonstrated its commitment to growing its credit platform through a
$3.3 million investment in SGP. - GECC announced a
5.7% increase on its quarterly base distribution to$0.37 per share for the first quarter of 2025 (compared to the prior$0.35 per share) and paid a special cash distribution of$0.05 per share in January 2025.
- GECC raised
- Monomoy BTS and Monomoy REIT continued to execute on their strategic priorities.
- Monomoy BTS completed construction of its second build-to-suit property in Mississippi and made meaningful progress on its third project in Florida.
- Monomoy REIT closed on three property purchases for approximately
$3.8 million and maintains a strong pipeline of transaction opportunities and open requirements from our tenants.
- GECIF delivered a strong return on invested capital of approximately
13.9% , net of fees, for the period from its inception through December 31, 2024.¹
Discussion of Financial Results for the Fiscal Second Quarter Ended December 31, 2024
GEG reported total revenue of
GEG recorded net income from continuing operations of
GEG recorded Adjusted EBITDA of
Monomoy CRE, LLC Acquisition
On February 4, 2025, Great Elm acquired the assets of Greenfield, a leading construction management company and longstanding partner of MCRE, our real estate investment manager. In connection with the acquisition, Great Elm formed Monomoy Construction Services, LLC and combined the assets of Greenfield with the assets of Monomoy BTS Construction Management to launch an integrated, full-service construction business. With MCS, Monomoy will offer a full-service, in-house suite of project management, procurement, construction management, asset management, market analysis and feasibility services for its industrial real estate tenants.
Stock Repurchase Program
In the fiscal first quarter 2025, GEG’s Board of Directors approved an incremental stock repurchase program under which GEG is authorized to repurchase up to
| Fiscal 2025 Second Quarter Conference Call & Webcast Information | ||
| When: | Thursday, February 6, 2025, 8:30 a.m. Eastern Time (ET) | |
| Call: | All interested parties are invited to participate in the conference call by dialing +1 (877) 407-0752; international callers should dial +1 (201) 389-0912. Participants should enter the Conference ID 13746970 if asked. | |
| Webcast: | The conference call will be webcast simultaneously and can be accessed here. A copy of the slide presentation accompanying the conference call, can be found here. | |
About Great Elm Group, Inc.
Great Elm Group, Inc. (NASDAQ: GEG) is a publicly-traded, alternative asset manager focused on growing a scalable and diversified portfolio of long-duration and permanent capital vehicles across credit, real estate, specialty finance, and other alternative strategies. Great Elm Group, Inc. and its subsidiaries currently manage Great Elm Capital Corp., a publicly-traded business development company, and Monomoy Properties REIT, LLC, an industrial-focused real estate investment trust, in addition to other investments. Great Elm Group, Inc.’s website can be found at www.greatelmgroup.com.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
Statements in this press release that are “forward-looking” statements, including statements regarding expected growth, profitability, acquisition opportunities and outlook involve risks and uncertainties that may individually or collectively impact the matters described herein. Investors are cautioned not to place undue reliance on any such forward-looking statements, which speak only as of the date they are made and represent Great Elm’s assumptions and expectations in light of currently available information. These statements involve risks, variables and uncertainties, and Great Elm’s actual performance results may differ from those projected, and any such differences may be material. For information on certain factors that could cause actual events or results to differ materially from Great Elm’s expectations, please see Great Elm’s filings with the Securities and Exchange Commission (“SEC”), including its most recent annual report on Form 10-K and subsequent reports on Forms 10-Q and 8-K. Additional information relating to Great Elm’s financial position and results of operations is also contained in Great Elm’s annual and quarterly reports filed with the SEC and available for download at its website www.greatelmgroup.com or at the SEC website www.sec.gov.
Non-GAAP Financial Measures
The SEC has adopted rules to regulate the use in filings with the SEC, and in public disclosures, of financial measures that are not in accordance with US GAAP, such as adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”). Adjusted EBITDA is derived from methodologies other than in accordance with US GAAP. Great Elm believes that Adjusted EBITDA is an important measure for investors to use in evaluating Great Elm’s businesses. In addition, Great Elm’s management reviews Adjusted EBITDA as they evaluate acquisition opportunities.
Adjusted EBITDA has limitations as an analytical tool, and you should not consider it either in isolation from, or as a substitute for, analyzing Great Elm’s results as reported under US GAAP. Non-GAAP financial measures reported by Great Elm may not be comparable to similarly titled amounts reported by other companies.
Included in the financial tables below is a reconciliation of Adjusted EBITDA to the most directly comparable US GAAP financial measure, net income from continuing operations.
Endnotes
¹Assumes invested at inception on November 1, 2023, and remained invested throughout the succeeding fourteen months ended December 31, 2024, with distributions reinvested, net of founder’s class fees and expenses. Performance results should not be regarded as final until audited financial statements are issued covering the period shown. Past performance is no guarantee of future results. This press release does not constitute an offer to sell or a solicitation of an offer to buy interests in any investment vehicle managed by Great Elm or its affiliates. Any such offer or solicitation will only be made pursuant to the applicable offering documents for such investment vehicle.
Media & Investor Contact:
Investor Relations
geginvestorrelations@greatelmcap.com
Great Elm Group, Inc.
Condensed Consolidated Balance Sheets (unaudited)
Dollar amounts in thousands (except per share data)
| ASSETS | December 31, 2024 | June 30, 2024 | ||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 44,288 | $ | 48,147 | ||||
| Restricted cash | - | 1,571 | ||||||
| Receivables from managed funds | 3,725 | 2,259 | ||||||
| Investments in marketable securities | - | 9,929 | ||||||
| Investments, at fair value | 49,918 | 44,585 | ||||||
| Prepaid and other current assets | 5,275 | 1,215 | ||||||
| Real estate assets, net | 6,524 | 5,769 | ||||||
| Assets of Consolidated Funds: | ||||||||
| Cash and cash equivalents | 2,568 | 2,371 | ||||||
| Investments, at fair value | 11,902 | 11,471 | ||||||
| Other assets | 223 | 253 | ||||||
| Total current assets | 124,423 | 127,570 | ||||||
| Identifiable intangible assets, net | 10,510 | 11,037 | ||||||
| Right-of-use assets | 1,784 | 225 | ||||||
| Other assets | 1,770 | 1,614 | ||||||
| Total assets | $ | 138,487 | $ | 140,446 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| Current liabilities | ||||||||
| Accounts payable | $ | 185 | $ | 317 | ||||
| Payable for securities purchased | 19 | - | ||||||
| Accrued expenses and other current liabilities | 2,817 | 7,009 | ||||||
| Current portion of related party payables | 254 | 634 | ||||||
| Current portion of lease liabilities | 335 | 137 | ||||||
| Liabilities of Consolidated Funds: | ||||||||
| Payable for securities purchased | 340 | 100 | ||||||
| Accrued expenses and other liabilities | 151 | 162 | ||||||
| Total current liabilities | 4,101 | 8,359 | ||||||
| Lease liabilities, net of current portion | 1,442 | 57 | ||||||
| Long-term debt (face value | 26,231 | 26,090 | ||||||
| Related party payables, net of current portion | - | - | ||||||
| Convertible notes (face value | 35,838 | 34,900 | ||||||
| Other liabilities | 817 | 845 | ||||||
| Total liabilities | 68,429 | 70,251 | ||||||
| Commitments and contingencies | ||||||||
| Stockholders' equity | ||||||||
| Preferred stock, | - | - | ||||||
| Common stock, | 26 | 30 | ||||||
| Additional paid-in-capital | 3,311,447 | 3,315,638 | ||||||
| Accumulated deficit | (3,249,139 | ) | (3,252,954 | ) | ||||
| Total Great Elm Group, Inc. stockholders' equity | 62,334 | 62,714 | ||||||
| Non-controlling interests | 7,724 | 7,481 | ||||||
| Total stockholders' equity | 70,058 | 70,195 | ||||||
| Total liabilities and stockholders' equity | $ | 138,487 | $ | 140,446 | ||||
Great Elm Group, Inc.
Condensed Consolidated Statements of Operations (unaudited)
Amounts in thousands (except per share data)
| For the three months ended December 31, | For the six months ended December 31, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Revenues | $ | 3,507 | $ | 2,819 | $ | 7,499 | $ | 6,129 | ||||||||
| Cost of revenues | 458 | - | 1,093 | - | ||||||||||||
| Operating costs and expenses: | ||||||||||||||||
| Investment management expenses | 3,431 | 2,839 | 6,489 | 5,601 | ||||||||||||
| Depreciation and amortization | 284 | 283 | 557 | 566 | ||||||||||||
| Selling, general and administrative | 1,306 | 2,393 | 3,312 | 4,108 | ||||||||||||
| Expenses of Consolidated Funds | 5 | - | 21 | - | ||||||||||||
| Total operating costs and expenses | 5,026 | 5,515 | 10,379 | 10,275 | ||||||||||||
| Operating loss | (1,977 | ) | (2,696 | ) | (3,973 | ) | (4,146 | ) | ||||||||
| Dividends and interest income | 1,567 | 2,072 | 3,125 | 4,058 | ||||||||||||
| Net realized and unrealized gain | 2,428 | 1,204 | 6,206 | 4,488 | ||||||||||||
| Net realized and unrealized gain (loss) on investments of Consolidated Funds | (29 | ) | 114 | 249 | 114 | |||||||||||
| Interest and other income of Consolidated Funds | 395 | 128 | 779 | 128 | ||||||||||||
| Interest expense | (1,030 | ) | (1,061 | ) | (2,058 | ) | (2,123 | ) | ||||||||
| (Loss) income before income taxes from continuing operations | 1,354 | (239 | ) | 4,328 | 2,519 | |||||||||||
| Income tax benefit (expense) | - | - | - | - | ||||||||||||
| Net (loss) income from continuing operations | 1,354 | (239 | ) | 4,328 | 2,519 | |||||||||||
| Discontinued operations: | ||||||||||||||||
| Net income from discontinued operations | - | - | - | 16 | ||||||||||||
| Net (loss) income | $ | 1,354 | $ | (239 | ) | $ | 4,328 | $ | 2,535 | |||||||
| Less: net income attributable to non-controlling interest, continuing operations | 178 | 111 | 513 | 111 | ||||||||||||
| Net (loss) income attributable to Great Elm Group, Inc. | $ | 1,176 | $ | (350 | ) | $ | 3,815 | $ | 2,424 | |||||||
| Net (loss) income attributable to shareholders per share | ||||||||||||||||
| Basic | $ | 0.04 | $ | (0.01 | ) | $ | 0.13 | $ | 0.08 | |||||||
| Diluted | $ | 0.04 | $ | (0.01 | ) | 0.12 | 0.08 | |||||||||
| Weighted average shares outstanding | ||||||||||||||||
| Basic | 27,983 | 29,889 | 28,531 | 29,734 | ||||||||||||
| Diluted | 28,767 | 29,889 | 39,793 | 30,916 | ||||||||||||
Great Elm Group, Inc.
Reconciliation from Net Income (loss) from Continuing Operations to Adjusted EBITDA
Dollar amounts in thousands
| Three months ended December 31, | Six months ended December 31, | |||||||||||||||
| (in thousands) | 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Net income (loss) from continuing operations - GAAP | $ | 1,354 | $ | (239 | ) | $ | 4,328 | $ | 2,519 | |||||||
| Interest expense | 1,030 | 1,061 | 2,058 | 2,123 | ||||||||||||
| Income tax expense (benefit) | - | - | - | - | ||||||||||||
| Depreciation and amortization | 284 | 283 | 557 | 566 | ||||||||||||
| Non-cash compensation | 755 | 839 | 1,872 | 1,726 | ||||||||||||
| (Gain) loss on investments | (2,399 | ) | (1,318 | ) | (6,455 | ) | (4,602 | ) | ||||||||
| Change in contingent consideration | - | 18 | (6 | ) | 36 | |||||||||||
| Adjusted EBITDA | $ | 1,024 | $ | 644 | $ | 2,354 | $ | 2,368 | ||||||||
FAQ
What was GEG's revenue growth in Q2 2025?
How much has GEG spent on share repurchases as of February 2025?
What is GEG's current assets under management (AUM)?
What strategic acquisition did GEG complete in February 2025?
What is GEG's book value per share as of December 31, 2024?
