Great Elm Group, Inc. · NASDAQ:GEG
Great Elm — Q2 2025 Earnings Presentation
18 slides from Great Elm's earnings presentation, Feb 6, 2025
Slide 1: Fiscal Second Quarter Ended December 31, 2024
February 6, 2025 Fiscal Second Quarter Ended December 31, 2024 NASDAQ: GEG
Slide 2: GEG Highlights
GEG Highlights • Great Elm Capital Corp. (“GECC”) raised an additional $13.2 million of equity at Net Asset Value (“NAV”) in December 2024, bringing total capital raised in calendar 2024 to $147mm • On February 4, 2025, the Company acquired the assets of Greenfield CRE, LLC (“Greenfield”), a leading
Slide 3: GECC: $147mm of Equity & Debt Issued
GECC: $147mm of Equity & Debt Issued GECC issued $49mm of equity and $98mm of debt in the last year In February 2024, issued 1.85 million shares at $12.97 (then current NAV) for $24 million • GEG participated in $6 million of the $24 million; a strategic institutional investor participated in $49 mi
Slide 4: About GEG
About GEG Great Elm Group, Inc. (GEG) is a publicly-traded, alternative asset manager focused on: • Growing a scalable and diversified portfolio of long-duration and permanent capital vehicles • Investing in credit, real estate, specialty finance and other alternative strategies Alternative Credit •
Slide 5: Our Goals
Our Goals • Debt and equity capital raises at GECC expected to drive growth of future recurring fee revenue streams with high contribution margins Improve • GEG’s $12.3 million of investments in the GECC equity capital raises facilitated an increase Profitability greater than 40% in FPAUM at GECC •
Slide 6: GEG Managed Vehicles
GEG Managed Vehicles ALTERNATIVE CREDIT REAL ESTATE GECC Private Funds Monomoy REIT Monomoy BTS • Public BDC with • Great Elm Credit Income • Private Industrial REIT with • Build-to-Suit entity $330+ million AUM Fund focuses on direct $400+ million AUM develops properties to • ~12% of common stock l
Slide 7: Summary Financial Position
Summary Financial Position1 GEG December 31, 2024 condensed balance sheet, excluding Consolidated Funds $ Million 12/31/2024 Cash $ 44.3 Current Liabilities $ 3.6 Investments 56.4 Long-Term Debt 26.2 Other Current and Long-Term Assets 29.6 Convertible Notes 35.8 Other Liabilities 2.3 Total Liabiliti
Slide 8: GECC & Monomoy Highlights
GECC & Monomoy Highlights • Raised $13.2 million of equity at Net Asset Value (“NAV”) • Monomoy BTS sold its first property and completed construction on through the issuance of approximately 1.1 million shares at its second property, while maintaining a strong project pipeline NAV to Summit Grove P
Slide 9: GEG Launches Monomoy Construction Services (MCS)
GEG Launches Monomoy Construction Services (MCS) • On February 4, 2025, Great Elm acquired Greenfield CRE, LLC Monomoy (“Greenfield”), a leading construction management company and Construction Monomoy CRE longstanding partner of Monomoy CRE, LLC (“MCRE”), our real Services estate investment manager
Slide 10: Fiscal 2025 Second Quarter Highlights
Fiscal 2025 Second Quarter Highlights February 6, 2025 10
Slide 11: Fiscal 2Q25 Financial Highlights
Fiscal 2Q25 Financial Highlights Revenue Net Income Adjusted EBITDA1 • Fiscal 2Q25 revenue grew 24% • Net income from continuing • Fiscal 2Q25 Adjusted EBITDA to $3.5 million compared to operations of $1.4 million for of $1.0 million, compared to $2.8 million in the prior-year Fiscal 2Q25, compared
Slide 12: Assets Under Management
Assets Under Management $mm AUM $mm FPAUM $800 $751 $600 $538 $700 $657 $500 $462 $600 $400 $500 +14% +17% $400 $300 $300 $200 $200 $100 $100 $0 $0 12/31/2023 12/31/2024 12/31/2023 12/31/2024 $751 million of Assets Under Management (“AUM”) as of $538 million of Fee-Paying AUM (“FPAUM”) as of Decembe
Slide 13: Financial Review: Fiscal 2Q25 Balance Sheet
Financial Review: Fiscal 2Q25 Balance Sheet (in thousands) December 31, 2024 June 30, 2024 ASSETS Cash and cash equivalents $ 44,288 $ 48,147 Restricted cash - 1,571 Receivables from managed funds 3,725 2,259 Investments in marketable securities - 9,929 Investments at fair value 49,918 44,585 Prepai
Slide 14: Financial Review: Fiscal 2Q25 Income Statement
Financial Review: Fiscal 2Q25 Income Statement Three months ended December 31, Six months ended December 31, (In thousands) 2024 2023 2024 2023 Revenues $ 3,507 $ 2,819 $ 7,499 $ 6,129 Cost of Revenues 458 - 1,093 - Operating costs and expenses: Investment management expenses 3,431 2,839 6,489 5,601
Slide 15: Results By Quarter
Results By Quarter Three Months Ended December 31, September 30, June 30, March 31, December 31, (in thousands) 2024 2024 2024 2024 2023 NON-GAAP RECONCILIATION Net income (loss) from continuing operations - GAAP $ 1,354 $ 2,974 $ (578) $ (2,883) $ (239) Interest expense 1,030 1,028 1,137 1,074 1,06
Slide 16: Results Year-Over-Year
Results Year-Over-Year Three months ended December 31, Six months ended December 31, (in thousands) 2024 2023 2024 2023 NON-GAAP RECONCILIATION Net income (loss) from continuing operations - GAAP $ 1,354 $ (239) $ 4,328 $ 2,519 Interest expense 1,030 1,061 2,058 2,123 Income tax expense (benefit) -
Slide 17: Contact Information
Contact Information Investor Relations Contact geginvestorrelations@greatelmcap.com February 6, 2025 17
Slide 18: Disclaimer
Disclaimer Statements in this presentation 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