Great Elm Capital Corp. Announces Second Quarter 2025 Financial Results

About this update from Great Elm Capital Corp.

Company to Host Conference Call and Webcast at 8:30 AM ET on August 5, 2025 PALM BEACH GARDENS, Fla., Aug. 04, 2025 (GLOBE NEWSWIRE) -- Great Elm Capital Corp. (“we,” “our,” the “Company” or “GECC”) (NASDAQ: GECC), a business development company, today announced its financial results for the second quarter ended June 30, 2025.    Second Quarter and Other Recent Highlights Management Commentary “We continued our strong momentum in 2025 with a standout second quarter, generating record total investment income and NII that exceeded our recently increased quarterly distribution. Our substantial NII this quarter was driven by robust cash generation, including a strong distribution from preference shares in an insurance related investment and continued solid performance from our CLO JV,” said Matt Kaplan, GECC’s Chief Executive Officer. “NAV also improved meaningfully in the quarter, benefitting from unrealized gains on our CoreWeave related investment. Looking ahead, while we expect third quarter NII will step down due to the uneven cadence of cash flows from our CLO JV, we remain well-positioned for our NII to exceed our distribution for the full year. We will continue to closely monitor the macro environment and seek to deploy capital into opportunities offering compelling risk-adjusted returns, with a focus on driving lasting value for our shareholders.” Financial Highlights – Per Share Data Portfolio and Investment Activity As of June 30, 2025, GECC held total investments of $335.1 million at fair value, as follows: As of June 30, 2025, the weighted average current yield on the Company’s debt portfolio was 12.5% ( 1 ) . Floating rate instruments comprised approximately 73% of the fair market value of debt investments (comparable to last quarter) and the Company’s fixed rate debt investments had a weighted average maturity of 2.8 years. During the quarter ended June 30, 2025, we deployed approximately $22.6 million into 26 investments ( 2 ) at a weighted average current yield of 14.1%. During the quarter ended June 30, 2025, we monetized, in part or in full, 38 investments for approximately $35.0 million ( 3 ) , at a weighted average current yield of 11.1%. Monetizations include $21.5 million of mandatory debt paydowns and redemptions at a weighted average current yield of 11.4%.    Financial Review Total investment income for the quarter ended June 30, 2025 was $14.3 million, or $1.24 per share. Total expenses for the quarter ended June 30, 2025 were approximately $8.4 million, or $0.72 per share, inclusive of excise tax expense. Net realized and unrealized gains for the quarter ended June 30, 2025 were approximately $5.8 million, or $0.51 per share. Liquidity and Capital Resources As of June 30, 2025, cash and money market fund investments totaled approximately $4.4 million. In addition, GECC had availability of $19.0 million under its $25.0 million revolving line of credit (the “Revolver”) with $6.0 million drawn as of June 30, 2025. As of June 30, 2025, total debt outstanding (par value) was $201.4 million, comprised of 5.875% senior notes due June 2026 (NASDAQ: GECCO), 8.75% senior notes due September 2028 (NASDAQ: GECCZ), 8.50% senior notes due April 2029 (NASDAQ: GECCI), 8.125% senior notes due December 2029 (NASDAQ: GECCH), and $6.0 million outstanding on the $25.0 million Revolver. Distributions The Company’s Board of Directors has approved a quarterly cash distribution of $0.37 per share for the quarter ending September 30, 2025. The third quarter distribution will be payable on September 30, 2025 to stockholders of record as of September 15, 2025. The distribution equates to a 13.5% annualized dividend yield on the Company’s closing market price on August 1, 2025 of $10.98 and a 12.2% annualized dividend yield on the Company’s June 30, 2025 NAV of $12.10 per share. Conference Call and Webcast GECC will discuss these results in a conference at 8:30 a.m. ET on August 5, 2025. To access the call, please dial-in approximately five minutes before the start time and, when asked, provide the operator with passcode “GECC”. An accompanying slide presentation will be available in pdf format via the “Events and Presentations” section of Great Elm Capital Corp.’s website here after the issuance of the earnings release. Webcast The call and presentation will also be simultaneously webcast over the internet via the “Events and Presentations” section of GECC’s website or by clicking on the webcast link here . About Great Elm Capital Corp. GECC is an externally managed business development company that seeks to generate current income and capital appreciation by investing in debt and income generating equity securities, including investments in specialty finance businesses and CLOs. For additional information, please visit http://www.greatelmcc.com . Cautionary Statement Regarding Forward-Looking Statements Statements in this communication that are not historical facts are “forward-looking” statements within the meaning of the federal securities laws. These statements include statements regarding our future business plans and expectations. These statements are often, but not always, made through the use of words or phrases such as “expect,” “anticipate,” “should,” “will,” “estimate,” “designed,” “seek,” “continue,” “upside,” “potential” and similar expressions. All such forward-looking statements involve estimates and assumptions that are subject to risks, uncertainties and other factors that could cause actual results to differ materially from the results expressed in the statements. The key factors that could cause actual results to differ materially from those projected in the forward-looking statements include, without limitation: conditions in the credit markets, our expected financings and investments, including interest rate volatility, inflationary pressure, the price of GECC common stock and the performance of GECC’s portfolio and investment manager. Information concerning these and other factors can be found in GECC’s Annual Report on Form 10-K and other reports filed with the Securities and Exchange Commission. GECC assumes no obligation to, and expressly disclaims any duty to, update any forward-looking statements contained in this communication or to conform prior statements to actual results or revised expectations except as required by law. Readers are cautioned not to place undue reliance on these forward-looking statements that speak only as of the date hereof. This press release does not constitute an offer of any securities for sale. Endnotes: Media & Investor Contact: Investor Relations         [email protected] GREAT ELM CAPITAL CORP. CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES (unaudited) Dollar amounts in thousands (except per share amounts) GREAT ELM CAPITAL CORP. CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) Dollar amounts in thousands (except per share amounts)

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