Great Elm Capital Responds to Inquiries Regarding First Brands Investment
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Oct 07 2025
0mins
Should l Buy GECC?
GECC's Exposure to First Brands: GECC has investments in First Brands, which filed for bankruptcy, including a $9.3 million First Lien Loan and a $16.2 million Second Lien Loan, both placed on non-accrual status.
Impact on Net Asset Value: The fair market value of the First Lien Loan is expected to drop to approximately $1.7 million, and the Second Lien Loan to about $0.9 million, leading to an estimated total adverse impact of $16.5 million on GECC's net asset value for the quarter ending September 30, 2025.
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Analyst Views on GECC
Wall Street analysts forecast GECC stock price to rise
2 Analyst Rating
1 Buy
1 Hold
0 Sell
Moderate Buy
Current: 6.230
Low
8.50
Averages
9.25
High
10.00
Current: 6.230
Low
8.50
Averages
9.25
High
10.00
About GECC
Great Elm Capital Corp. operates as a closed-end, externally managed, non-diversified management investment company. The Company’s objective seeks to generate current income and capital appreciation through debt and income-generating equity investments, including investments in specialty finance businesses. It invests in secured and senior secured debt instruments of middle market companies, as well as income-generating equity investments in specialty finance companies. In addition, it invests in collateralized loan obligations (CLOs) and related warehouse facilities. It also makes investments throughout other portions of a company’s capital structure, including subordinated debt, mezzanine debt, and equity or equity-linked securities. The Company is managed by Great Elm Capital Management, LLC.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
GREAT ELM CAPITAL CORP. Reports Q4 EPS of USD -1.57
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- Financial Performance: The earnings indicate a strong financial performance for the quarter.
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- Net Asset Value Changes: As of December 31, 2025, the company's net assets were $112.9 million or $8.07 per share, down from $140.1 million or $10.01 per share in the previous quarter, reflecting market volatility amid active portfolio repositioning.
- Dividend Announcement: CFO Keri Davis announced a quarterly dividend of $0.30 per share for Q1 2025, equating to a 19.2% annualized yield, demonstrating the company's commitment to returning value to shareholders while maintaining cash flow.
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- Fee Waiver: The investment adviser of Great Elm Capital waived all accrued incentive fees as of December 31, 2025, totaling approximately $2.3 million, or $0.16 per share, which will directly enhance the company's net asset value.
- Financial Performance: For the fourth quarter of 2025, the company reported net investment income of $4.4 million, or $0.31 per share, reflecting over 50% growth quarter-over-quarter, demonstrating resilience and profitability in a challenging market environment.
- Dividend Distribution: The board declared a distribution of $0.30 per share for the first quarter of 2026, resulting in an annualized yield of 19.2%, highlighting the company's commitment to shareholder returns and effective cash flow management.
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- Increased Cash Distributions: The company received $4.3 million in cash distributions from CLO Formation JV in Q4, a substantial increase from $1.5 million in the previous quarter, reflecting improved investment returns that may support future cash flows.
- Declining Net Assets: As of December 31, 2025, GECC's net assets were $112.9 million, down from $140.1 million as of September 30, 2025, primarily due to unrealized losses comprising over half of the change, highlighting vulnerabilities in the balance sheet.
See More
GREAT ELM CAPITAL CORP. REVEALS 2025 FOURTH QUARTER AND ANNUAL FINANCIAL RESULTS ALONG WITH APPOINTMENT OF NEW EXECUTIVE CHAIRMAN OF THE BOARD
Fourth Quarter Financial Results: Great Elm Capital Corp. has announced its financial results for the fourth quarter of 2025.
Full Year Financial Results: The company also released its financial results for the entire year of 2025.
New Executive Chairman: A new Executive Chairman of the Board has been appointed as part of the announcement.
Corporate Updates: The announcements include significant updates regarding the company's leadership and financial performance.
See More
Great Elm Capital to Release 2025 Financial Results
- Earnings Release Schedule: Great Elm Capital Corp. will release its financial results for Q4 and the full year 2025 after market close on March 2, 2026, which is expected to significantly impact investor sentiment.
- Conference Call Timing: The company will hold a conference call on March 3, 2026, at 8:30 a.m. ET to discuss the financial results, providing specific dial-in numbers to ensure timely access for investors.
- Webcast Support: The conference call will also be webcast via the 'Events and Presentations' section of the company's website, allowing global investors to participate in real-time and enhancing transparency around the earnings release.
- Company Background: Great Elm Capital Corp. is an externally managed business development company focused on generating current income and capital appreciation through investments in debt and income-generating equity securities, indicating its strategic positioning in specialty finance and CLO investments.
See More
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- Earnings Report: Great Elm Capital Corp reported a Q4 EPS of $1.57.
- Financial Performance: The earnings indicate a strong financial performance for the quarter.
See More
Great Elm Capital Corporation Q4 2025 Earnings Call Insights
- Management Changes: Newly appointed Executive Chairman Jason Reese emphasized the Board's decision to enhance direct engagement with management to navigate a more demanding credit environment, which is expected to improve governance and shareholder value.
- Investment Income Growth: CEO Matt Kaplan reported that net investment income increased over 50% quarter-over-quarter to $0.31 per share, primarily due to higher cash income and stronger CLO joint venture distributions, indicating positive performance in revenue growth.
- Net Asset Value Changes: As of December 31, 2025, the company's net assets were $112.9 million or $8.07 per share, down from $140.1 million or $10.01 per share in the previous quarter, reflecting market volatility amid active portfolio repositioning.
- Dividend Announcement: CFO Keri Davis announced a quarterly dividend of $0.30 per share for Q1 2025, equating to a 19.2% annualized yield, demonstrating the company's commitment to returning value to shareholders while maintaining cash flow.
See More
Great Elm Capital Appoints New Executive Chairman
- Board Changes: Jason Reese has been appointed as Executive Chairman of Great Elm Capital, succeeding Matthew Drapkin, who will remain as Vice Chairman, ensuring continuity and stability in corporate governance.
- Fee Waiver: The investment adviser of Great Elm Capital waived all accrued incentive fees as of December 31, 2025, totaling approximately $2.3 million, or $0.16 per share, which will directly enhance the company's net asset value.
- Financial Performance: For the fourth quarter of 2025, the company reported net investment income of $4.4 million, or $0.31 per share, reflecting over 50% growth quarter-over-quarter, demonstrating resilience and profitability in a challenging market environment.
- Dividend Distribution: The board declared a distribution of $0.30 per share for the first quarter of 2026, resulting in an annualized yield of 19.2%, highlighting the company's commitment to shareholder returns and effective cash flow management.
See More
Great Elm Capital Reports Q4 Earnings Miss
- Earnings Miss: Great Elm Capital reported a Q4 GAAP EPS of -$1.57, missing estimates by $1.91, indicating significant challenges in profitability that could undermine investor confidence.
- Investment Income Growth: Total investment income for the quarter ended December 31, 2025, was $12.6 million, up from $10.6 million for the quarter ended September 30, 2025, suggesting improvements in portfolio management despite overall earnings falling short.
- Increased Cash Distributions: The company received $4.3 million in cash distributions from CLO Formation JV in Q4, a substantial increase from $1.5 million in the previous quarter, reflecting improved investment returns that may support future cash flows.
- Declining Net Assets: As of December 31, 2025, GECC's net assets were $112.9 million, down from $140.1 million as of September 30, 2025, primarily due to unrealized losses comprising over half of the change, highlighting vulnerabilities in the balance sheet.
See More
GREAT ELM CAPITAL CORP. REVEALS 2025 FOURTH QUARTER AND ANNUAL FINANCIAL RESULTS ALONG WITH APPOINTMENT OF NEW EXECUTIVE CHAIRMAN OF THE BOARD
Fourth Quarter Financial Results: Great Elm Capital Corp. has announced its financial results for the fourth quarter of 2025.
Full Year Financial Results: The company also released its financial results for the entire year of 2025.
New Executive Chairman: A new Executive Chairman of the Board has been appointed as part of the announcement.
Corporate Updates: The announcements include significant updates regarding the company's leadership and financial performance.
See More
Great Elm Capital to Release 2025 Financial Results
- Earnings Release Schedule: Great Elm Capital Corp. will release its financial results for Q4 and the full year 2025 after market close on March 2, 2026, which is expected to significantly impact investor sentiment.
- Conference Call Timing: The company will hold a conference call on March 3, 2026, at 8:30 a.m. ET to discuss the financial results, providing specific dial-in numbers to ensure timely access for investors.
- Webcast Support: The conference call will also be webcast via the 'Events and Presentations' section of the company's website, allowing global investors to participate in real-time and enhancing transparency around the earnings release.
- Company Background: Great Elm Capital Corp. is an externally managed business development company focused on generating current income and capital appreciation through investments in debt and income-generating equity securities, indicating its strategic positioning in specialty finance and CLO investments.
See More
