Executive Summary

Q1 FY2026 revenue rose sharply to $10.8M driven by a one-time $7.4M Monomoy BTS property sale; however, GEG reported a net loss of $(7.9)M as unrealized losses in GECC stock and a CoreWeave-related investment outweighed operating progress .
Fee-paying AUM/AUM increased to ~~$594M/~~$785M (pro forma ~~$601M/~~$792M), up 9%/6% YoY (10%/7% pro forma), reflecting capital formation across credit and real estate platforms, including a transformative KLIM partnership and Woodstead investment .
GECC executed significant balance sheet actions (new $57.5M 7.75% 2030 notes; redeemed $40M 8.75% 2028 notes) and raised equity, but NAV was hit by First Branch’s late-September bankruptcy; GEG reiterated confidence in platform scale and future operating leverage .
No formal financial guidance was provided. Management emphasized scaling real estate (integrated BTS/Construction Services) and credit, capitalizing on ~$53.5M of cash and an expanded $25M buyback with ~$14.1M remaining capacity as potential stock catalysts .

What Went Well and What Went Wrong

What Went Well

Real estate monetization and integration: MBTS sold its second BTS property for ~$7.4M (gain ~$0.5M); Monomoy Construction Services contributed ~$0.7M revenue in its second full quarter, supporting a vertically integrated IOS platform .
Capital formation and AUM growth: Nearly $250M of recent capital raised across GEG and managed vehicles; FPAUM/AUM up 9%/6% YoY (10%/7% pro forma), underpinned by KLIM partnership (up to $150M to Monomoy REIT) and Woodstead equity/warrants .
Shareholder alignment and liquidity: Cash and marketable securities of ~$53.5M; buyback expanded to $25M with ~$14.1M remaining; 5.6M shares repurchased for $10.9M at ~$1.93 average price through Nov 11 .
- “We are pleased with the continued momentum of our expanding alternative asset management platform…” — Jason Reese, CEO .

What Went Wrong

Non-operating headwinds drove a GAAP loss: Net loss $(7.9)M vs. $3.0M income prior-year, primarily from unrealized losses in GECC stock and the CoreWeave-related investment despite a $1.6M realized gain on CoreWeave .
GECC portfolio setback: First Branch traded down late quarter and filed for bankruptcy; GECC placed exposures on non-accrual, pressuring NAV and contributing to GEG unrealized losses .
Adjusted EBITDA turned negative: $(0.5)M vs. $1.3M prior-year despite revenue lift from asset sale, reflecting investment losses and higher compensation/operating costs as the platform scales .

Financial Results

Quarterly performance (QoQ trend)

Metric	Q3 FY2025	Q4 FY2025	Q1 FY2026
Revenue ($USD Millions)	$3.209	$5.608	$10.788
Net Income Attributable to Stockholders ($USD Millions)	$(4.497)	$13.573	$(7.030)
Diluted EPS ($)	$(0.17)	$0.37	$(0.24)
Adjusted EBITDA ($USD Millions)	$0.472	$1.484	$(0.463)

Notes: Q1 FY2026 revenue included ~$7.4M from the MBTS property sale; net loss driven by unrealized losses in GECC/CoreWeave .

Year-over-Year (YoY) comparison (Q1 FY2026 vs Q1 FY2025)

Metric	Q1 FY2025	Q1 FY2026
Revenue ($USD Millions)	$3.992	$10.788
Net Income ($USD Millions)	$2.974	$(7.904)
Net Income Attributable to Stockholders ($USD Millions)	$2.639	$(7.030)
Basic EPS ($)	$0.09	$(0.24)
Diluted EPS ($)	$0.08	$(0.24)
Adjusted EBITDA ($USD Millions)	$1.330	$(0.463)

Estimates vs Actuals

Metric	Consensus (S&P Global)	Actual
Revenue ($USD Millions)	N/A — not available via S&P Global coverage	$10.788
Primary EPS ($)	N/A — not available via S&P Global coverage	$(0.24)

Business highlights (selected KPIs and contributors)

Item	Q1 FY2026
FPAUM / AUM	~$594M / ~$785M; +9%/+6% YoY
Pro Forma FPAUM / AUM	~$601M / ~$792M; +10%/+7% YoY
MBTS Property Sale	~$7.4M revenue; gain ~$0.5M
MCS (Construction Services) Revenue	~$0.7M (second full quarter)
Cash & Marketable Securities	~$53.5M (as of 9/30/25)
Share Repurchases	5.6M shares; $10.9M; avg $1.93; ~$14.1M remaining authorization
Book Value per Share (approx.)	~$2.30 (slide reference from call)

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	FY/Q next	None provided	None provided	No formal guidance
Margins/OpEx/Tax/Segments	FY/Q next	None provided	None provided	No formal guidance
Capital Returns (Buyback)	Ongoing	$20M prior	$25M total authorization; ~$14.1M remaining	Increased authorization

Note: The company did not issue quantitative forward financial guidance in the press release or the call .

Earnings Call Themes & Trends

Topic	Q3 FY2025 (Q-2)	Q4 FY2025 (Q-1)	Q1 FY2026 (Current)	Trend
AUM growth & fee scaling	FPAUM/AUM $565M/$768M; revenue +15% YoY; platform build continues	Record fees from GECC; strong FY results; KLIM/Woodstead transactions announced	FPAUM/AUM ~$594M/$785M; pro forma ~$601M/$792M; continued capital formation	Improving
Real estate platform (BTS/MCS)	Launched MCS via acquisition; BTS pipeline advancing	MCS first full quarter; integrated platform emphasized	MBTS sale ~$7.4M; MCS ~$0.7M; vertical integration highlighted	Scaling
Credit (GECC) performance & capital	Strong TII; ATM program launched	Record TII; increased distribution; capital raised	Equity and baby bond issued; revolver upsized; First Branch bankruptcy hit NAV/non-accrual	Mixed (formation up, asset quality event)
Balance sheet & buyback	Cash ~$32M; buyback ongoing	Cash ~$31M; buyback to $25M authorization	Cash ~$53.5M; $14.1M remaining buyback capacity	Strengthening
CoreWeave-related investment	Noted unrealized losses expected to reverse over time	Large unrealized gains drove record Q4 NI	Realized $1.6M gain; unrealized losses contributed to net loss	Volatile but monetizing
Operating leverage	Building fixed-cost base	Record year; set up for scale	“Bulk of fixed costs in place; now about growing for leverage”	Positive setup

Management Commentary

“We are pleased with the continued momentum of our expanding alternative asset management platform, having raised nearly $250 million … and achieving significant year-over-year growth in AUM and fee-paying AUM.” — Jason Reese, CEO .
“With our strong balance sheet and cash position, we continue to make opportunistic investments … and repurchase our shares through our recently increased stock buyback plan.” — Jason Reese .
“We have the bulk of our fixed costs in place, and now the strategy is all about growing … We think we’re in a great spot going forward to leverage.” — Jason Reese (Q&A) .
“Fiscal first quarter revenue was $10.8 million … primarily driven by $7.4 million … sale of our second Monomoy BTS built-to-suit property … We reported a net loss of $7.9 million … due to unrealized losses …” — Keri Davis, CFO .

Q&A Highlights

Operating leverage: Management stated fixed costs are largely built; future growth in AUM/fee revenue should drive earnings leverage without proportional cost growth .
Monomoy REIT transparency and scale: It’s a private IOS-focused REIT (~150+ buildings; key tenants include United Rentals and Sunbelt Rentals). BTS and construction are now integrated; potential to be a public vehicle at greater scale in the future .
GECC portfolio event: First Branch bankruptcy led to non-accruals and NAV pressure; management emphasized capital formation and capacity to redeploy into income-generating opportunities .
Buyback: Reinforced as accretive use of capital, with $14.1M remaining authorization .

Estimates Context

S&P Global consensus for Q1 FY2026 was not available for EPS or revenue for GEG; as a result, we compare reported results only to prior periods. We attempted to retrieve S&P Global consensus but found no data points for EPS and no revenue consensus beyond the actual reported figure [GetEstimates attempted; data unavailable].
Implication: Absent broad Street coverage, estimate revisions are unlikely to be a near-term stock driver; narrative and catalysts (balance sheet actions, monetization of BTS pipeline, GECC credit performance normalization, and buybacks) may be more impactful .

Key Takeaways for Investors

Revenue quality mix mattered: The quarter’s revenue beat prior periods largely due to a one-time $7.4M BTS sale; core fee growth continues but was overshadowed by investment marks—watch sustainability of construction/BTS cadence and fee momentum .
Credit event contained but notable: GECC’s First Branch non-accruals pressured NAV/unrealized marks; however, capital raises/refinancing extended duration and reduced coupon costs—focus on asset quality normalization and deployment pace .
Operating leverage set-up: With fixed-cost infrastructure largely built, incremental FPAUM/AUM growth should flow through—monitor fundraising at Monomoy REIT, BTS development completions, and GECC balance sheet growth .
Balance sheet firepower and buyback: ~$53.5M cash and expanded $25M buyback (with ~~$14.1M capacity) provide downside support and optionality; continued repurchases near book (~~$2.30 per share) could be accretive .
Real estate platform scaling: Vertical integration (MCS + BTS) is driving monetizations and fee opportunities; watch for third BTS completion and further property acquisitions/leasing as near-term catalysts .
CoreWeave-related exposure: Despite unrealized volatility, realized gains and over-100% distributions-to-investment provide cushion; continued mark volatility may impact GAAP, but cash earnings trajectory should hinge on fee/credit execution .
Near-term trading setup: Absent formal guidance and with limited Street coverage, stock moves likely track updates on GECC credit remediation, additional BTS monetizations, and pace of AUM growth; any clarity on a future public path for Monomoy REIT would be a notable re-rating catalyst .

Supporting documents and data:

Q1 FY2026 8-K (press release and financials): revenues, EPS, net income, Adjusted EBITDA, AUM/FPAUM, cash, buyback, BTS/MCS contributions .
Q1 FY2026 earnings call: capital formation, First Branch impact, operating leverage commentary, book value per share reference .
Prior quarters for trend: Q4 FY2025 8-K (record NI from investment marks; fees), Q3 FY2025 8-K (MCS launch, fee growth, BTS pipeline) .
Q1 FY2026 press release (duplicate of 8-K Exhibit): confirms highlights and financial tables .

Great Elm Group, Inc. (GEG)·Q1 2026 Earnings Summary