Great Elm Capital Corp

GECC

Market cap $110M

Great Elm Capital Corporation holds assets near $420 million and a market cap of about $108 million. GECC's portfolio spans 85 investments in 58 companies across 27 industries, with technology comprising 17.5%. GECC common stock trades at approximately $15, reflecting a 10.7% premium to net asset value.

The article highlights four major risks facing the private credit market - the four horsemen of the BDC Apocalypse. This includes lending to non-prime borrowers and receivables financing. AI-driven disruption in software companies and growing competition in private credit. So far these risks have not materialized in actual BDC results; however, they are worth considering when allocating to the sector. We remain bullish on BDCs overall.

Great Elm Capital Corporation ( GECC ) Q3 2025 Earnings Call November 5, 2025 8:30 AM EST Company Participants Adam Yates - Portfolio Manager Matt Kaplan - CEO & President Keri Davis - CFO & Treasurer Michael Keller - President - Specialty Finance Business, Great Elm Capital Corp. Conference Call Participants Erik Zwick - Lucid Capital Markets, LLC, Research Division Presentation Operator Good day, and welcome to the Great Elm Capital Corp. Third Quarter 2020 Financial Results Conference Call. [Operator Instructions] Please note this event is being recorded.

Great Elm Capital (GECC) came out with quarterly earnings of $0.2 per share, missing the Zacks Consensus Estimate of $0.24 per share. This compares to earnings of $0.39 per share a year ago.

Board Maintains $0.37 Per Share Distribution and Announces $10 Million Share Repurchase Authorization GECC Strengthened its Balance Sheet Raising $27 Million of Equity and Refinancing Highest Cost Debt NAV Decline From $12.10 to $10.01 Per Share Primarily Due to Losses on First Brands; NII Lower As Anticipated Due to Uneven CLO JV Distributions and Lack of a Preference Share Dividend  NII Expected to Recover in the Fourth Quarter with Increased CLO JV Distributions, Normalized Interest Expense and Income Generation From New Deployments PALM BEACH GARDENS, Fla., Nov. 04, 2025 (GLOBE NEWSWIRE) -- Great Elm Capital Corp. (“we,” “our,” the “Company” or “GECC”) (NASDAQ: GECC), a business development company, today announced its financial results for the third quarter ended September 30, 2025.

Conference Call Scheduled for Wednesday, November 5, 2025 at 8:30 a.m. ET Conference Call Scheduled for Wednesday, November 5, 2025 at 8:30 a.m. ET

Great Elm Capital faces some headwinds from its 10.7% portfolio exposure to First Brands Group and pending Fed rate cuts. GECC's dividend yield has surged to 19.6% as shares have dropped 31% year-to-date, with a dividend history marked by volatility. Despite record quarterly investment income, GECC's high yield is not a clear buy, but the market has likely overreacted.

Business development companies (BDCs) are selling off. Recent bankruptcies are sparking fears across private credit. I review the best BDC opportunities following the sell-off.

Great Elm Capital is upgraded to a buy, driven by a deep 33% discount to NAV and an 18.8% dividend yield. GECC's portfolio remains diversified, with 47% in first lien loans and 73% floating rate assets, benefiting from higher interest rates. The recent share price decline is seen as overdone, with non-accruals at ~3% and limited impact from portfolio bankruptcies like First Brands.

Great Elm Capital (GECC) was a big mover last session on higher-than-average trading volume. The latest trend in earnings estimate revisions might not help the stock continue moving higher in the near term.