-- Record Fourth Quarter Net Income from Continuing Operations of $15.7 Million --
-- Book Value Per Share of $2.65(1) as of June 30, 2025, Up 24% from Prior-Year End --
-- Over $100 Million of Recent Capital Raises in our Credit and Real Estate Products Position Company to Drive Continued Growth --
Company to Host Conference Call at 8:30 a.m. ET on September 3, 2025
PALM BEACH GARDENS, Fla., Sept. 02, 2025 (GLOBE NEWSWIRE) -- Great Elm Group, Inc. ("we," "our," "GEG," "Great Elm," or "the Company"), $(GEG)$, an alternative asset manager, today announced financial results for its fiscal fourth quarter and year ended June 30, 2025.
Management Commentary
Jason Reese, Chief Executive Officer of the Company stated, "Fiscal 2025 was the strongest operating year in our history, with outstanding performance across all areas of our business. We meaningfully increased fee revenue, driven by substantial growth in both management and incentive fees from GECC. GECC delivered exceptional performance, resulting in an increased quarterly distribution and significant growth in Fee-Paying Assets Under Management. In our real estate business, the February launch of Monomoy Construction Services added an accretive, new revenue stream and rounded out our fully integrated real estate platform. Additionally, our CoreWeave-related investment generated strong year-to-date returns, underscoring our ability to leverage our balance sheet and strategic relationships to source unique, high-value investment opportunities."
"In July, we announced a transformational partnership with Kennedy Lewis Investment Management, a leading institutional alternative investment firm with over $30 billion in assets under management, including a public REIT. Kennedy Lewis's investment in both Great Elm common stock and Monomoy REIT reflects deep alignment with our strategy, confidence in our growth trajectory, and a shared conviction in the value we are creating for shareholders. This transaction provides up to $150 million of leverageable capital to Monomoy REIT, accelerating the expansion of our real estate platform. It marks a major milestone for us, enabling us to grow our end-to-end real estate solutions from acquisition through development and management.
"Finally, we recently announced another milestone investment from Woodstead and the appointment of Booker Smith to our Board of Directors. This transaction not only strengthens our balance sheet with $9 million of new growth capital, but also aligns us with another highly regarded institutional partner whose expertise spans our core verticals. Combined with the $15 million equity investment from Booker Smith in GECC, these transactions reinforce investor confidence in our platform and expand our resources to grow assets under management and fee revenue. Looking ahead, we are well-positioned to capitalize on attractive opportunities across all of our businesses and deliver sustained, long-term value for our shareholders."
Fiscal Fourth Quarter 2025 and Recent Highlights
-- Net income from continuing operations was $15.7 million for the fourth
quarter, compared to net loss of ($0.6) million in the prior-year period.
-- Increase in net income was primarily driven by unrealized gains
attributable to GEG's CoreWeave-related investment, sourced via a
strategic relationship, and GECC stock price appreciation.
-- Operationally, net income increased due to growth in FPAUM as well
as record management and incentive fees paid by GECC.
-- Adjusted EBITDA for the fourth quarter was $1.5 million, compared to $1.2
million in the prior-year period.
-- Total revenue for the fourth quarter was $5.6 million, compared to $8.9
million for the prior-year period.
-- The prior-year period included $6.6 million in revenue recognized
from the sale of the first Monomoy BTS, Corp. ("MBTS")
build-to-suit development property.
-- Excluding this transaction, revenue growth over the prior-year
period was over 140%, primarily driven by:
-- Record management and incentive fees paid by Great Elm
Capital Corp. ("GECC") totaling $3.8 million, up
approximately 253% from $1.1 million in the prior-year
period, due to growth in fee-paying assets under management
("FPAUM") and strong GECC investment performance.
-- Construction fee revenue of $0.5 million contributed from
Monomoy Construction Services, LLC ("MCS"), our new
construction subsidiary launched in February 2025.
-- As of June 30, 2025, GEG had approximately $31 million of cash and
marketable securities on its balance sheet to support growth initiatives
across its alternative asset management platform.
-- GEG's Board of Directors authorized an additional $5 million of stock
repurchases in July 2025, bringing the total stock repurchase program to
$25 million with remaining capacity of approximately $15.7 million.
-- Through September 1, 2025, Great Elm has repurchased approximately
5.1 million shares for $9.3 million, at an average price of $1.85
per share, through its share repurchase program.
-- Book value per share was $2.651 as of June 30, 2025, up 24% from
prior year end.
-- In July 2025, Great Elm announced a transformative strategic partnership
with Kennedy Lewis Investment Management ("KLIM") to accelerate our
industrial outdoor storage ("IOS") focused real estate platform
expansion. As part of the transaction, KLIM:
-- Purchased 4.9% of GEG outstanding common stock at a market price
of $2.11 per share;
-- Provided up to $150 million in term loans to Monomoy REIT, with
$100 million drawn at closing, as part of strategic financing to
accelerate growth across the Monomoy industrial real estate
platform subsidiaries, now consolidated under Great Elm Real
Estate Ventures, LLC ("Real Estate Ventures"); and
-- Appointed Board representatives to both Great Elm and Monomoy
Properties REIT, LLC ("Monomoy REIT"), demonstrating its
commitment as a long-term partner.
-- In August 2025, Great Elm announced two strategic investments and a new
Board member, providing new growth capital to GEG and GECC along with
expertise across our core alternative credit and real estate verticals.
Highlights of the transactions include:
-- Woodstead Value Fund, L.P. ("Woodstead") purchased 4.0 million
shares of newly issued common stock of GEG at a price of $2.25 per
share for gross proceeds of $9.0 million.
-- Booker Smith appointed to the GEG Board, bringing deep credit and
real estate expertise.
-- Separately, GECC sold 1.3 million newly-issued shares of its
common stock to an affiliate of Booker Smith, representing 9.9% of
GECC's outstanding common stock, at $11.65 per share for gross
proceeds of $15.0 million.
Full Fiscal Year 2025 Highlights
-- Total revenue for fiscal 2025 was $16.3 million, compared to $17.8
million for fiscal 2024.
-- Fiscal 2024 included $6.6 million in revenue recognized from the
sale of an MBTS development property as compared to $1.2 million
in fiscal 2025.
-- Excluding the sale, total revenue grew 35% over the prior-year
period, from $11.2 million to $15.1 million, primarily due to the
following:
-- Including property management fees, management fee revenue
grew 17% year-over-year, from $7.2 million in the
prior-year period to $8.4 million in fiscal 2025, due to an
increase in FPAUM from GECC capital raises.
-- Increase in incentive fees collected by Great Elm, totaling
approximately $4.1 million for the fiscal year ended June
30, 2025, representing a 52% increase from the prior-year
period due to record performance from GECC.
-- Construction fees represented a new revenue stream in
fiscal 2025, adding $0.9 million in revenue from MCS.
-- GEG's FPAUM and assets under management ("AUM"), as of June 30, 2025,
totaled approximately $553 million and $759 million, respectively.
-- FPAUM and AUM grew 5% and 4%, respectively, compared to June 30,
2024, due to GECC capital raises.
-- GECC raised approximately $76.6 million of new capital, including
$13.2 million of equity at Net Asset Value ("NAV"), during the
fiscal year ended June 30, 2025, and launched a $100 million
At-the-Market equity program, providing additional capital
flexibility.
-- Net income from continuing operations for the fiscal year was $15.6
million, compared to net loss from continuing operations of ($0.9)
million in the prior-year period.
-- Increase in net income primarily driven by unrealized gains on
GEG's CoreWeave-related investment and appreciation related to our
investments in special purpose vehicles ("SPVs").
-- Adjusted EBITDA of $4.3 million for the fiscal year ended June 30, 2025,
compared to $4.8 million in fiscal 2024.
-- In February 2025, Great Elm acquired the assets of Greenfield CRE and
formed MCS, combining the assets of Greenfield CRE and the assets of
Monomoy BTS Construction Management. With the launch of MCS, Great Elm
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