Great Elm Group, Inc. (GEG) reported its first‑quarter 2026 financial results on November 13, 2025, posting revenue of $10.8 million, a 170% year‑over‑year increase driven largely by a $7.4 million gain from the sale of a Monomoy BTS build‑to‑sell property. The company recorded a net loss of $7.9 million, a swing from a $3 million net income in the same quarter a year earlier, and an adjusted EBITDA loss of $0.5 million versus a $1.3 million gain in Q1 2025.
The earnings miss stems from significant unrealized losses on GEG’s investments in GECC common stock and CoreWeave‑related holdings, which offset the revenue boost. Management noted that these investment write‑downs were the primary driver of the negative earnings, rather than operational cost pressures or revenue shortfalls.
Revenue growth was concentrated in the real‑estate segment, where the property sale contributed the bulk of the increase. Credit‑platform revenue remained flat, while the real‑estate platform continued to expand fee‑paying assets under management (AUM) to $594 million, up 9% year‑over‑year, and total AUM to approximately $785 million. The company also raised nearly $250 million in debt and equity across its credit and real‑estate platforms, underscoring its capital‑raising momentum.
Management emphasized that the capital raise and AUM growth position GEG to scale its alternative‑asset business. CEO Jason Reese highlighted the partnership with Kennedy Lewis Investment Management as a catalyst for growth, while CFO Keri Davis stressed that the revenue spike from the property sale was a one‑time event and that core operating performance remains under pressure due to the investment losses.
Guidance for the remainder of fiscal 2026 was maintained, with management expressing confidence in sustaining revenue growth and improving profitability as the company continues to deploy capital and refine its investment portfolio. The company’s outlook signals a focus on long‑term value creation, even as it navigates short‑term headwinds from unrealized investment losses.
The market’s muted reaction—an unchanged aftermarket price—suggests investors are weighing the company’s strategic capital‑raising and AUM expansion against the immediate earnings miss. The lack of a sharp price move indicates that the market has already priced in the investment‑loss impact while remaining attentive to the company’s long‑term growth trajectory.
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