Great Elm Group, Inc. reported a significant decline in its financial performance for the second quarter of fiscal 2026, ending December 31, 2025. The company generated revenues of $3.0 million, a decrease of 14% compared to $3.5 million in the same quarter of the previous year. For the six-month period, revenues increased to $13.8 million, up 84% from $7.5 million year-over-year, primarily driven by a notable property sale in September 2025. However, the company recorded a net loss of $16.5 million for the quarter, compared to a net income of $1.4 million in the prior year, reflecting a substantial shift in profitability.
The company's operating costs also rose, with total operating expenses reaching $7.2 million for the quarter, up from $5.0 million a year earlier. This increase was largely attributed to higher compensation and benefits expenses, which surged by 44% to $4.9 million, driven by personnel additions following the acquisition of Greenfield CRE. Selling, general, and administrative expenses also increased by 51% to $2.0 million, reflecting the costs associated with the integration of the new business.
In terms of strategic developments, Great Elm Group completed the acquisition of Greenfield CRE on February 4, 2025, for approximately $2.5 million. This acquisition is expected to enhance the company's real estate capabilities and expand its construction management services. The company has also realigned its reporting segments into two categories: Alternative Credit and Real Estate, to better reflect its operational focus and investment strategies.
Operationally, Great Elm Group's assets under management totaled approximately $740 million as of December 31, 2025. The company reported a cash balance of $51.2 million, a significant increase from $30.6 million at the end of the previous fiscal year. The company’s employee headcount has also increased due to the Greenfield acquisition, contributing to the rise in compensation expenses. Looking ahead, Great Elm Group remains focused on exploring additional investment management opportunities while managing its existing portfolio to navigate market conditions effectively.
About Great Elm Group, Inc.
Great Elm Group, Inc. is an asset management company specializing in diversified long-term capital vehicles across credit, real estate, and alternative strategies. It manages funds like GECC and Monomoy UpREIT, earning management and performance fees. The company invests in real estate, including land and build-to-suit projects, and recently expanded into construction management. Its core value lies in generating recurring cash flows through strategic investments and asset management.
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