Great Elm Capital Corp. (GECC) announced its financial results for the third quarter ended September 30, 2026, reporting a decrease in net investment income and net asset value compared to the prior quarter. The company reported total investment income of $8.7 million for the quarter, down from $10.9 million in the second quarter of 2026. Net investment income (NII) fell to $2.4 million, or $0.17 per share, compared to $4.5 million, or $0.32 per share, in the previous quarter. The decline was attributed to lower total investment income and the reinstatement of incentive fee accruals following a waiver in the prior period.
Net assets decreased to $102.7 million, or $7.40 per share, as of September 30, 2026, a 6.9% drop from $110.4 million, or $7.95 per share, at the end of June 2026. The decrease was driven by realized and unrealized investment losses, including a $3.3 million decline in the fair value of the CLO Formation JV investment. Despite the quarterly decline, the company noted that its underlying credit portfolio remains healthy. Additionally, GECC received $0.8 million in distributions from its CoreWeave-related equity investment, bringing total distributions to approximately $10.3 million, exceeding its original $6.0 million capital investment.
On the balance sheet, cash and money market fund investments totaled approximately $6 million as of September 30, 2026. The company also had $44 million of availability on its revolving credit facility. Total debt outstanding was $154.9 million, comprised of senior notes with various maturity dates ranging from 2029 to 2030. The asset coverage ratio remained stable at 166.3% as of September 30, 2026.
GECC’s Board of Directors approved a quarterly cash distribution of $0.25 per share for the fourth quarter of 2026, payable on December 31, 2026, to stockholders of record as of December 15, 2026. This equates to a 20.2% annualized dividend yield based on the company's closing market price of $4.95 on October 30, 2026. The company also repurchased shares during the period; from July 1, 2026, through October 30, 2026, it repurchased 241,235 shares for approximately $1.2 million at an average price of $4.95 per share.
