Key Highlights

• Great Elm Capital's $0.25 quarterly distribution trades with a September 15, 2026 record date, payable September 30.

• Net asset value increased 2.8% sequentially to $110.4 million, or $7.95 per share, driven by realized and unrealized gains including the company's CoreWeave-related Equity position.

• Net Investment income was $4.5 million, or $0.32 per share, down from $5.0 million, or $0.36 per share, in the prior quarter due to a smaller incentive-fee waiver.

• The investment manager waived approximately $0.9 million of incentive fees during the quarter, the third consecutive quarter of waivers, bringing cumulative waivers to $0.26 per share since inception.

Great Elm Capital's (NASDAQ:GECC) $0.25 quarterly distribution trades with a September 15 Record Date and September 30 payment date. CFO Keri Davis said net Assets increased to $110.4 million, or $7.95 per share, from $107.5 million, or $7.74 per share, "driven primarily by realized and unrealized investment gains, including gains on CoreWeave-related equity investments."

Dividend Program and Shareholder Returns

Great Elm Capital declared a $0.25 per share quarterly distribution for the quarter ending September 30, 2026, payable September 30 to shareholders of record September 15, to be paid from distributable earnings. The distribution equates to an 18.9% annualized Yield on the company's August 4 closing Market Price of $5.29, and a 12.6% annualized yield on the June 30 NAV of $7.95 per share, a gap reflecting the stock's discount to book value. The rate has held at $0.25 since new CEO Jason Reese's appointment earlier in 2026, alongside a $10 million share-repurchase authorization the board approved in October 2025 to complement the distribution.

About the Company

Great Elm Capital is a Business Development Company investing primarily in middle-market Debt and equity securities, including senior secured loans, subordinated debt, equity investments and specialty-finance assets, externally managed by Great Elm Capital Management.

Financial Performance Behind the Payout

Great Elm Capital reported total investment income of $10.9 million for the second quarter, up from $9.5 million in the first quarter, which CFO Keri Davis said was primarily driven by a $2 million Dividend from the company's investment in insurance-related preference shares. Net investment income was $4.5 million, or $0.32 per share, compared with $5.0 million, or $0.36 per share, in the prior quarter; management attributed the sequential decline to a larger incentive-fee Waiver in the first quarter, noting that pre-incentive-fee NII actually rose approximately 66% to $4.5 million from $2.7 million. Net asset value increased 2.8% sequentially to $110.4 million, or $7.95 per share. Debt-to-equity improved to 1.51x from 1.62x, and asset coverage improved to 166.4% from 161.8%.

Balance Sheet and Portfolio Actions

The investment manager waived approximately $0.9 million of incentive fees during the quarter, the third consecutive quarter of waivers, with cumulative waivers since the program's inception contributing $0.26 per share to NAV. The company deployed approximately $30 million across 14 investments, including $12 million in three private-credit transactions, and received $2.6 million in distributions from its CoreWeave-related equity investment, bringing cumulative distributions from that position to approximately $9.5 million.

Outlook

Pre-incentive-fee NII rising 66% sequentially, even as reported NII fell on a smaller waiver, is the detail to carry into next quarter's results. Whether fee waivers continue a fourth straight quarter would signal the manager's ongoing view of underlying Earnings capacity.