Great Elm Capital Corp ( (GECC) ) has released its Q2 earnings. Here is a breakdown of the information Great Elm Capital Corp presented to its investors.
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Great Elm Capital Corp. (GECC) is an externally managed business development company focused on generating current income and capital appreciation through investments in debt and income-generating equity securities, including specialty finance businesses and collateralized loan obligations (CLOs).
In its latest earnings report for the second quarter of 2025, Great Elm Capital Corp. announced record total investment income of $14.3 million, marking the highest cash generative quarter in the company’s history. The company also reported a net investment income of $5.9 million, or $0.51 per share, up from $4.6 million, or $0.40 per share, in the previous quarter.
Key financial highlights include a significant increase in net asset value to $140.0 million, or $12.10 per share, driven by unrealized gains on a CoreWeave-related investment and net investment income exceeding the quarterly distribution by 38%. The company’s asset coverage ratio improved to 169.5%, and it received $4.3 million in cash distributions from its CLO joint venture. The Board of Directors approved a quarterly dividend of $0.37 per share, equating to a 13.5% annualized yield.
Looking ahead, GECC’s management remains optimistic, although they anticipate a step down in net investment income for the third quarter due to the uneven cash flow cadence from their CLO joint venture. The company plans to continue monitoring the macro environment and aims to invest in opportunities offering compelling risk-adjusted returns, focusing on delivering lasting value to shareholders.