Great Elm Group, Inc.

Fiscal third quarter revenue was $3.4 million, up 7% from $3.2 million a year ago, driven primarily by growth in MCS construction management fees. The company reported a net loss of $13.5 million versus a net loss of $4.5 million in the prior-year period, including $9.8 million of unrealized losses; adjusted EBITDA was negative $1.6 million versus positive $0.5 million last year. Estimated fee-paying AUM was $528 million and AUM was $744 million as of March 31, 2026, down 7% and 3% year over year, respectively. Cash and cash equivalents were approximately $45.5 million. For forward-looking commentary, management said it expects to keep focusing on growing fee-paying AUM, scaling alternative credit and real estate businesses, and sourcing new investment opportunities; no formal next-quarter or full-year financial guidance was provided.

Jason Reese said the quarter reflected progress on strategic initiatives despite a challenging BDC backdrop and emphasized that the company is reprioritizing to protect and grow NAV first, with income secondarily. He highlighted balance-sheet strengthening, portfolio rotation into predominantly senior secured assets, and a disciplined approach to underwriting and diversification. His tone was constructive and execution-focused, with repeated references to flexibility, accountability, and long-term success.

Keri Davis focused on the reported financials: $3.4 million of revenue, a $13.5 million net loss, and negative $1.6 million adjusted EBITDA. She attributed the loss primarily to $9.8 million of unrealized losses tied mostly to GECC common stock and related SPVs, and noted that cash and cash equivalents were approximately $45.5 million at quarter-end. She also provided AUM figures of $528 million in fee-paying AUM and $744 million in AUM, both down year over year.

There were no analyst questions on the call, so there was no Q&A discussion of concerns or follow-ups. Management instead used closing remarks to reiterate confidence in the strategic direction, saying the credit and real estate platforms continue to execute and that the balance sheet supports disciplined actions.