PALM BEACH GARDENS, Fla., May 07, 2025 (GLOBE NEWSWIRE) -- Great Elm Group, Inc. (“we,” “our,” “GEG,” “Great Elm,” or “the Company”), (NASDAQ: GEG), an alternative asset manager, today announced financial results for its fiscal third quarter ended March 31, 2025.
Fiscal Third Quarter 2025 and Recent Highlights
Management Commentary
Jason Reese, Chief Executive Officer of the Company stated, “We achieved a solid fiscal third quarter 2025, continuing our positive momentum by expanding our assets under management and maintaining performance across our credit and real estate businesses. Notably, GECC delivered record total investment income in the first calendar quarter of 2025 and continues to drive significant growth in our fee-paying assets under management. GECC is also well positioned to pay meaningful incentive fees to GEG in the coming quarters.”
“In real estate, our launch of Monomoy Construction Services in February through our acquisition of Greenfield CRE adds specialized construction experience to our expanding real estate platform and has been well received by Monomoy’s tenants. As the integration of MCS progresses, we remain focused on our robust project and property pipeline. At Monomoy BTS, we closed on a land purchase for our third development property during the quarter and expect to complete the project during the calendar year. Finally, during the quarter, we continued to repurchase our shares at an attractive discount to book value. Looking ahead, we remain committed to growing our core businesses and pursuing compelling investment opportunities to maximize long-term shareholder value.”
GEG Managed Vehicle Highlights
Discussion of Financial Results for the Fiscal Third Quarter Ended March 31, 2025
GEG reported total revenue of $3.2 million, up 15% from $2.8 million in the prior-year period.
GEG recorded net loss from continuing operations of ($4.5) million, compared to net loss from continuing operations of ($2.9) million in the prior-year period. The net loss this quarter was primarily driven by unrealized losses related to certain investment positions marked down at quarter-end, which the Company expects to reverse over time, assuming market conditions stabilize.
GEG recorded Adjusted EBITDA of $0.5 million, compared to $1.2 million in the prior-year period.
Acquisition of Assets of Greenfield CRE
In February 2025, Great Elm acquired the assets of Greenfield CRE, a leading construction management company, and longstanding partner of Monomoy CRE, LLC, our real estate investment manager. In connection with the acquisition, Great Elm formed MCS and combined the assets of Greenfield CRE with the assets of MCM to launch an integrated, full-service construction business. With MCS, Monomoy will offer a full service, in-house suite of project management, procurement, construction management, asset management, market analysis and feasibility services for its industrial real estate tenants.
Stock Repurchase Program
In fiscal first quarter 2025, GEG’s Board of Directors approved an incremental stock repurchase program under which GEG is authorized to repurchase up to $20 million in the aggregate of its outstanding common stock in the open market. As of May 6, 2025, the Company has repurchased approximately 4.8 million shares for $8.7 million under this program.
Fiscal 2025 Third Quarter Conference Call & Webcast Information
| When: | Thursday, May 8, 2025, 8:30 a.m. Eastern Time (ET) |
| Call: | All interested parties are invited to participate in the conference call by dialing +1 (877) 407-0752; international callers should dial +1 (201) 389-0912. Participants should enter the Conference ID 13746971 if asked. |
| Webcast: | The conference call will be webcast simultaneously and can be accessed here. A copy of the slide presentation accompanying the conference call, can be found here. |
About Great Elm Group, Inc.
Great Elm Group, Inc. (NASDAQ: GEG) is a publicly-traded, alternative asset manager focused on growing a scalable and diversified portfolio of long-duration and permanent capital vehicles across credit, real estate, specialty finance, and other alternative strategies. Great Elm Group, Inc. and its subsidiaries currently manage Great Elm Capital Corp., a publicly-traded business development company, and Monomoy Properties REIT, LLC, an industrial-focused real estate investment trust, in addition to other investments. Great Elm Group, Inc.’s website can be found at www.greatelmgroup.com.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
Statements in this press release that are “forward-looking” statements, including statements regarding expected growth, profitability, acquisition opportunities and outlook involve risks and uncertainties that may individually or collectively impact the matters described herein. Investors are cautioned not to place undue reliance on any such forward-looking statements, which speak only as of the date they are made and represent Great Elm’s assumptions and expectations in light of currently available information. These statements involve risks, variables and uncertainties, and Great Elm’s actual performance results may differ from those projected, and any such differences may be material. For information on certain factors that could cause actual events or results to differ materially from Great Elm’s expectations, please see Great Elm’s filings with the Securities and Exchange Commission (“SEC”), including its most recent annual report on Form 10-K and subsequent reports on Forms 10-Q and 8-K. Additional information relating to Great Elm’s financial position and results of operations is also contained in Great Elm’s annual and quarterly reports filed with the SEC and available for download at its website www.greatelmgroup.com or at the SEC website www.sec.gov.
Non-GAAP Financial Measures
The SEC has adopted rules to regulate the use in filings with the SEC, and in public disclosures, of financial measures that are not in accordance with US GAAP, such as adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”). Adjusted EBITDA is derived from methodologies other than in accordance with US GAAP. Great Elm believes that Adjusted EBITDA is an important measure for investors to use in evaluating Great Elm’s businesses. In addition, Great Elm’s management reviews Adjusted EBITDA as they evaluate acquisition opportunities.
Adjusted EBITDA has limitations as an analytical tool, and you should not consider it either in isolation from, or as a substitute for, analyzing Great Elm’s results as reported under US GAAP. Non-GAAP financial measures reported by Great Elm may not be comparable to similarly titled amounts reported by other companies.
Included in the financial tables below is a reconciliation of Adjusted EBITDA to the most directly comparable US GAAP financial measure, net income from continuing operations.
Endnotes
1 Assumes invested at inception on November 1, 2023, and remained invested throughout the succeeding seventeen months ended March 31, 2025, with distributions reinvested, net of founder’s class fees and expenses. Performance results should not be regarded as final until audited financial statements are issued covering the period shown. Past performance is no guarantee of future results. This press release does not constitute an offer to sell or a solicitation of an offer to buy interests in any investment vehicle managed by Great Elm or its affiliates. Any such offer or solicitation will only be made pursuant to the applicable offering documents for such investment vehicle.
Media & Investor Contact:
Investor Relations
This email address is being protected from spambots. You need JavaScript enabled to view it.
Great Elm Group, Inc.
Condensed Consolidated Balance Sheets (unaudited)
Dollar amounts in thousands (except per share data)
| ASSETS | March 31, 2025 | June 30, 2024 | ||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 31,528 | $ | 48,147 | ||||
| Restricted cash | - | 1,571 | ||||||
| Receivables from managed funds | 8,244 | 2,259 | ||||||
| Investments in marketable securities | - | 9,929 | ||||||
| Investments, at fair value | 47,955 | 44,585 | ||||||
| Prepaid and other current assets | 3,048 | 1,215 | ||||||
| Real estate assets, net | 7,981 | 5,769 | ||||||
| Related party loan receivable | 7,500 | - | ||||||
| Assets of Consolidated Funds: | ||||||||
| Cash and cash equivalents | 3,221 | 2,371 | ||||||
| Investments, at fair value | 11,345 | 11,471 | ||||||
| Other assets | 236 | 253 | ||||||
| Total current assets | 121,058 | 127,570 | ||||||
| Identifiable intangible assets, net | 12,245 | 11,037 | ||||||
| Goodwill | 470 | - | ||||||
| Right-of-use assets | 1,690 | 225 | ||||||
| Other assets | 1,727 | 1,614 | ||||||
| Total assets | $ | 137,190 | $ | 140,446 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| Current liabilities | ||||||||
| Accounts payable | $ | 2,030 | $ | 317 | ||||
| Accrued expenses and other current liabilities | 4,463 | 7,009 | ||||||
| Current portion of related party payables | 254 | 634 | ||||||
| Current portion of lease liabilities | 346 | 137 | ||||||
| Liabilities of Consolidated Funds: | ||||||||
| Payable for securities purchased | 204 | 100 | ||||||
| Accrued expenses and other liabilities | 171 | 162 | ||||||
| Total current liabilities | 7,468 | 8,359 | ||||||
| Lease liabilities, net of current portion | 1,352 | 57 | ||||||
| Long-term debt (face value $26,945) | 26,302 | 26,090 | ||||||
| Convertible notes (face value $36,380 and $35,494, including $16,578 and $16,174 held by related parties, respectively) | 35,864 | 34,900 | ||||||
| Other liabilities | 889 | 845 | ||||||
| Total liabilities | 71,875 | 70,251 | ||||||
| Commitments and contingencies | ||||||||
| Stockholders' equity | ||||||||
| Preferred stock, $0.001 par value; 5,000,000 authorized and zero outstanding | - | - | ||||||
| Common stock, $0.001 par value; 350,000,000 shares authorized and 28,687,736 shares issued and 26,687,301 outstanding at March 31, 2025; and 31,875,285 shares issued and 30,494,448 outstanding at June 30, 2024 | 25 | 30 | ||||||
| Additional paid-in-capital | 3,310,838 | 3,315,638 | ||||||
| Accumulated deficit | (3,253,636 | ) | (3,252,954 | ) | ||||
| Total Great Elm Group, Inc. stockholders' equity | 57,227 | 62,714 | ||||||
| Non-controlling interests | 8,088 | 7,481 | ||||||
| Total stockholders' equity | 65,315 | 70,195 | ||||||
| Total liabilities and stockholders' equity | $ | 137,190 | $ | 140,446 | ||||
Great Elm Group, Inc.
Condensed Consolidated Statements of Operations (unaudited)
Amounts in thousands (except per share data)
| For the three months ended March 31, | For the nine months ended March 31, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Revenues | $ | 3,209 | $ | 2,787 | $ | 10,708 | $ | 8,916 | ||||||||
| Cost of revenues | (11 | ) | - | 1,082 | - | |||||||||||
| Operating costs and expenses: | ||||||||||||||||
| Investment management expenses | 4,033 | 2,733 | 10,522 | 8,334 | ||||||||||||
| Depreciation and amortization | 361 | 271 | 918 | 837 | ||||||||||||
| Selling, general and administrative | 1,362 | 1,630 | 4,674 | 5,738 | ||||||||||||
| Expenses of Consolidated Funds | 19 | 22 | 40 | 22 | ||||||||||||
| Total operating costs and expenses | 5,775 | 4,656 | 16,154 | 14,931 | ||||||||||||
| Operating loss | (2,555 | ) | (1,869 | ) | (6,528 | ) | (6,015 | ) | ||||||||
| Dividends and interest income | 1,481 | 2,359 | 4,606 | 6,417 | ||||||||||||
| Net realized and unrealized gain (loss) | (2,439 | ) | (2,753 | ) | 3,767 | 1,735 | ||||||||||
| Net realized and unrealized gain (loss) on investments of Consolidated Funds | (338 | ) | 131 | (89 | ) | 245 | ||||||||||
| Interest and other income of Consolidated Funds | 389 | 323 | 1,168 | 451 | ||||||||||||
| Interest expense | (1,039 | ) | (1,074 | ) | (3,097 | ) | (3,197 | ) | ||||||||
| (Loss) income before income taxes from continuing operations | (4,501 | ) | (2,883 | ) | (173 | ) | (364 | ) | ||||||||
| Income tax benefit (expense) | - | - | - | - | ||||||||||||
| Net (loss) income from continuing operations | (4,501 | ) | (2,883 | ) | (173 | ) | (364 | ) | ||||||||
| Discontinued operations: | ||||||||||||||||
| Net income from discontinued operations | - | - | - | 16 | ||||||||||||
| Net (loss) income | $ | (4,501 | ) | $ | (2,883 | ) | $ | (173 | ) | $ | (348 | ) | ||||
| Less: net (loss) income attributable to non-controlling interest, continuing operations | (4 | ) | 217 | 509 | 328 | |||||||||||
| Net (loss) income attributable to Great Elm Group, Inc. | $ | (4,497 | ) | $ | (3,100 | ) | $ | (682 | ) | $ | (676 | ) | ||||
| Net (loss) income attributable to shareholders per share | ||||||||||||||||
| Basic | $ | (0.17 | ) | $ | (0.10 | ) | $ | (0.02 | ) | $ | (0.02 | ) | ||||
| Diluted | (0.17 | ) | (0.10 | ) | (0.02 | ) | (0.02 | ) | ||||||||
| Weighted average shares outstanding | ||||||||||||||||
| Basic | 26,915 | 30,066 | 28,000 | 29,844 | ||||||||||||
| Diluted | 26,915 | 30,066 | 28,000 | 29,844 | ||||||||||||
Great Elm Group, Inc.
Reconciliation from Net Income (loss) from Continuing Operations to Adjusted EBITDA
Dollar amounts in thousands
| Three months ended March 31, | Nine months ended March 31, | |||||||||||||||
| (in thousands) | 2025 | 2024 | 2025 | 2024 | ||||||||||||
| Net income (loss) from continuing operations - GAAP | $ | (4,501 | ) | $ | (2,883 | ) | $ | (173 | ) | $ | (364 | ) | ||||
| Interest expense | 1,039 | 1,074 | 3,097 | 3,197 | ||||||||||||
| Income tax expense (benefit) | - | - | - | - | ||||||||||||
| Depreciation and amortization | 361 | 271 | 918 | 837 | ||||||||||||
| Non-cash compensation | 796 | 698 | 2,668 | 2,426 | ||||||||||||
| (Gain) loss on investments | 2,777 | 2,622 | (3,678 | ) | (1,980 | ) | ||||||||||
| Change in contingent consideration | - | (554 | ) | (6 | ) | (518 | ) | |||||||||
| Adjusted EBITDA | $ | 472 | $ | 1,228 | $ | 2,826 | $ | 3,598 | ||||||||
| Last Trade: | US$2.09 |
| Daily Volume: | 1,266 |
| Market Cap: | US$61.130M |
February 05, 2025 November 11, 2024 February 13, 2024 | |
Compass Therapeutics is a clinical-stage, oncology-focused biopharmaceutical company developing proprietary antibody-based therapeutics to treat multiple human diseases. The company's scientific focus is on the relationship between angiogenesis, the immune system, and tumor growth...
CLICK TO LEARN MORE
Immix Biopharma is a clinical-stage biopharmaceutical company pioneering a novel class of CAR-T cell therapies and Tissue-Specific Therapeutics targeting oncology and immuno-dysregulated diseases with >75 patients treated to-date. Our lead cell therapy asset is NXC-201...
CLICK TO LEARN MORE
