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Great Elm Group (GEG)
NASDAQ:GEG
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Great Elm Group (GEG) AI Stock Analysis

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GEG

Great Elm Group

(NASDAQ:GEG)

Rating:63Neutral
Price Target:
$3.50
▲(27.27% Upside)
Great Elm Group's overall stock score is driven by strong technical indicators and strategic corporate events, which are offset by financial performance challenges and mixed earnings call results. The stock shows potential for growth, but operational and cash flow improvements are necessary for long-term stability.

Great Elm Group (GEG) vs. SPDR S&P 500 ETF (SPY)

Great Elm Group Business Overview & Revenue Model

Company DescriptionGreat Elm Group, Inc. engages in the durable medical equipment and investment management businesses. The company distributes respiratory care equipment, including positive air pressure equipment and supplies, ventilators and oxygen equipment, and replacement parts, as well as provides sleep study services; and rents medical equipment. It also offers investment management services. The company was formerly known as Great Elm Capital Group, Inc. and changed its name to Great Elm Group, Inc. in December 2020. Great Elm Group, Inc. was founded in 1994 and is headquartered in Waltham, Massachusetts.
How the Company Makes MoneyGreat Elm Group makes money through a combination of its operating subsidiaries and investment activities. In the healthcare sector, the company generates revenue primarily from its durable medical equipment business, which involves the sale or rental of respiratory-related products and services to patients, insurers, and healthcare providers. In addition, GEG earns income through its investment management division by managing assets for third-party clients and collecting management and performance-based fees. The company's diverse revenue streams are supported by strategic acquisitions and partnerships, which enhance its market position and operational capabilities.

Great Elm Group Earnings Call Summary

Earnings Call Date:Sep 02, 2025
(Q3-2025)
|
% Change Since: |
Next Earnings Date:Nov 06, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted significant growth in assets under management, successful strategic initiatives, and a strong liquidity position. However, these positives were offset by reported net losses and decreased adjusted EBITDA due to unrealized investment losses and market volatility.
Q3-2025 Updates
Positive Updates
Growth in Assets Under Management
Fee-paying AUM increased by 15% year-over-year to approximately $565 million, driven by activities including Great Elm Capital Corp.'s capital raises.
Revenue Increase
Total revenue grew by 15% year-over-year to $3.2 million, supported by real estate project management fees and rental income.
Successful Launch of Monomoy Construction Services
Strategic acquisition of Greenfield CRE and launch of Monomoy Construction Services, expanding real estate capabilities and providing revenue and cost synergies.
Significant Buyback Program
Repurchased approximately 4.8 million shares for $8.7 million, representing a 15% discount to book value.
Strong Liquidity Position
Ended the quarter with approximately $32 million in cash, providing flexibility for future growth initiatives.
Negative Updates
Net Loss for the Quarter
Reported a net loss of $4.5 million, primarily driven by unrealized losses related to investments in CoreWeave and GECC shares.
Decrease in Adjusted EBITDA
Adjusted EBITDA decreased to $0.5 million from $1.2 million in the prior year period, impacted by market volatility.
Company Guidance
During Great Elm Group's Fiscal 2025 Third Quarter Conference Call, the company reported significant growth metrics, demonstrating strong year-over-year performance. Notably, fee-paying assets under management (AUM) increased by 15% to approximately $565 million, driven largely by Great Elm Capital Corp.'s (GECC) substantial equity and debt issuances totaling approximately $147 million. Total revenue for the quarter rose by 15% to $3.2 million, while base management fees from GECC grew over 40% to $1.3 million. Great Elm Group ended the quarter with around $32 million in cash, supporting further growth initiatives despite a net loss of $4.5 million, attributed to unrealized losses amid market volatility. Moreover, the acquisition of Greenfield CRE bolstered their real estate platform, contributing to the ongoing expansion and execution of their strategic growth initiatives.

Great Elm Group Financial Statement Overview

Summary
Great Elm Group faces challenges in stabilizing its financial performance. Despite high profitability margins and reduced leverage, the company struggles with revenue growth and cash flow management. Operational inefficiencies and cash flow issues need addressing for future stability.
Income Statement
45
Neutral
Great Elm Group's income statement shows significant volatility. The company has experienced a decline in revenue growth, with a notable drop of 16.87% in the latest year. Although the gross profit margin is high at 93.37%, the net profit margin is also high at 79.01%, indicating profitability. However, the negative EBIT margin suggests operational inefficiencies. The company needs to stabilize its revenue and improve operational efficiency to enhance profitability.
Balance Sheet
50
Neutral
The balance sheet reflects a moderate financial position. The debt-to-equity ratio has improved to 0.89, indicating a decrease in leverage. Return on equity is positive at 18.33%, showing some profitability. However, the equity ratio is not provided, which limits a full assessment of financial stability. The company should focus on maintaining its leverage and improving asset utilization.
Cash Flow
40
Negative
Cash flow analysis reveals challenges, with negative operating and free cash flows. Despite a significant increase in free cash flow growth, the operating cash flow to net income ratio is negative, indicating cash flow issues. The free cash flow to net income ratio is stable at 1.0, suggesting that cash flow generation aligns with net income. The company needs to enhance cash flow management to support operations and growth.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue16.32M16.32M17.83M8.66M4.52M60.85M
Gross Profit-108.00K15.23M977.00K-1.53M4.27M4.61M
EBITDA21.04M21.04M4.60M21.91M-13.15M6.77M
Net Income12.89M12.89M-1.39M27.73M-14.89M-7.54M
Balance Sheet
Total Assets153.94M153.94M140.45M135.89M168.09M161.87M
Cash, Cash Equivalents and Short-Term Investments109.45M109.45M116.50M117.37M72.12M74.92M
Total Debt62.59M62.59M61.18M63.44M101.90M76.42M
Total Liabilities73.27M73.27M70.25M72.05M125.83M97.96M
Stockholders Equity70.32M70.32M62.71M63.84M33.50M43.24M
Cash Flow
Free Cash Flow-7.47M-9.01M-15.55M-2.43M22.73M-25.95M
Operating Cash Flow-7.47M-9.01M-15.55M-2.37M29.28M-18.98M
Investing Cash Flow-1.22M-1.11M2.27M83.96M-40.05M-15.48M
Financing Cash Flow-8.89M-9.00M2.84M-47.62M9.98M18.34M

Great Elm Group Technical Analysis

Technical Analysis Sentiment
Positive
Last Price2.75
Price Trends
50DMA
2.23
Positive
100DMA
2.13
Positive
200DMA
1.99
Positive
Market Momentum
MACD
0.17
Negative
RSI
62.10
Neutral
STOCH
54.24
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GEG, the sentiment is Positive. The current price of 2.75 is above the 20-day moving average (MA) of 2.41, above the 50-day MA of 2.23, and above the 200-day MA of 1.99, indicating a bullish trend. The MACD of 0.17 indicates Negative momentum. The RSI at 62.10 is Neutral, neither overbought nor oversold. The STOCH value of 54.24 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GEG.

Great Elm Group Risk Analysis

Great Elm Group disclosed 23 risk factors in its most recent earnings report. Great Elm Group reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 1 New Risks
1.
The replacement of the London Interbank Offered Rate (LIBOR) with the Secured Overnight Financing Rate (SOFR) may affect the funds we manage and our results of operations and financial results. Q2, 2023

Great Elm Group Peers Comparison

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
68
Neutral
$17.80B11.8710.23%3.74%9.69%1.18%
63
Neutral
$79.74M8.8619.38%-8.51%
50
Neutral
$8.10M-6.45%-22.37%63.14%
47
Neutral
$25.97M6.25-23.21%
44
Neutral
$45.14M24.14-168.22%-25.21%-631.48%
43
Neutral
$434.11M-144.11%-17.10%-2720.40%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GEG
Great Elm Group
2.75
0.85
44.74%
RDGT
Ridgetech
1.38
-0.17
-10.97%
OMI
Owens & Minor
5.62
-8.77
-60.95%
ZYXI
Zynex
1.49
-6.34
-80.97%
SNYR
Synergy CHC
2.32
1.13
94.96%

Great Elm Group Corporate Events

Executive/Board ChangesPrivate Placements and FinancingBusiness Operations and Strategy
Great Elm Group Secures Strategic Investment from Woodstead
Positive
Aug 27, 2025

On August 27, 2025, Great Elm Group, Inc. announced a strategic investment from Woodstead Value Fund, L.P., which purchased 4 million shares of GEG’s common stock for $9 million and received warrants for additional shares, aligning Woodstead with GEG’s shareholders. Additionally, Booker Smith joined GEG’s Board of Directors, bringing expertise in corporate credit and real estate, supporting GEG’s strategic priorities. This transaction provides GEG with growth capital to expand assets under management and enhance profitability, while a separate transaction involving Great Elm Capital Corp. strengthens its balance sheet and reflects investor confidence.

Executive/Board ChangesPrivate Placements and FinancingBusiness Operations and Strategy
Great Elm Group Partners with KLIM for Expansion
Positive
Jul 31, 2025

On July 31, 2025, Great Elm Group entered a strategic partnership with Kennedy Lewis Investment Management (KLIM), involving the sale of 4.9% of its common stock and a $150 million debt investment to expand its industrial real estate platform. This partnership enhances Great Elm’s financial position, allowing for refinancing and new acquisitions, and strengthens its market position by consolidating its real estate assets under Great Elm Real Estate Ventures, LLC. The collaboration also includes board appointments from KLIM, highlighting a long-term commitment to the partnership.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Sep 04, 2025