Great Elm Capital Corp. (NASDAQ: GECC), a business development company, has declared a quarterly dividend of $0.30 per share for the first quarter of 2026. This marks an 18.9% reduction from the prior quarter’s $0.37 payout. The dividend is payable on March 31, 2026, to shareholders of record on March 16, 2026, offering an annualized yield of 19.2% based on the February 27 closing price of $6.26.
Q4 2025 Financial Results
Net investment income rose to $4.4 million, or $0.31 per share, in the fourth quarter of 2025, reflecting over 50% growth from $2.4 million, or $0.20 per share, in the prior quarter. Total investment income increased to $12.6 million from $10.6 million.
However, the company reported net realized and unrealized losses of $26.4 million, or $1.88 per share, primarily from unrealized positions. Net asset value stood at $8.07 per share as of December 31, 2025, down from $10.01 per share at the end of Q3. Pro forma NAV, adjusted for incentive fee waivers, was $8.23 per share.
Asset coverage ratio measured 158.1%, or 166.0% pro forma. The portfolio totaled $298.3 million at fair value, with debt investments comprising 59.7% at a weighted average yield of 11.7%.
Leadership and Strategic Moves
Jason Reese assumed the role of Executive Chairman, succeeding Matthew Drapkin. Reese, also Chairman and CEO of Great Elm Group, Inc., emphasized disciplined credit underwriting and shareholder value.
“GECC has a strong foundation, and I look forward to working closely with the Board and management team to build on that foundation,” Reese stated.
CEO Matt Kaplan highlighted proactive portfolio management amid challenges: “We ended the period with ample liquidity, and less than 1% of investments on nonaccrual.”
The investment adviser waived $2.3 million in accrued incentive fees through Q1 2026. The board authorized a $10 million stock repurchase program. The company also repurchased and called portions of its GECCO notes, strengthening the balance sheet.
Portfolio and Liquidity
Investments include 67 debt positions worth $178.2 million, CLOs at $47.9 million, and stakes in Great Elm Specialty Finance. Non-accruals remain below 1%. Liquidity includes $5 million in cash equivalents, $50 million credit facility availability, and $11 million in liquid assets.
GECC hosted an earnings call on March 3, 2026, to discuss these results.
