Revenue volatility remains extreme, with the firm reporting a net loss of $22.0M in 2025Q4 and a net margin of -33.8% in 2026Q1, reflecting the severe impact of unrealized asset depreciation.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Jun'16 | Jun'15 | Jun'14 | Jun'13 | Jun'12 | Jun'11 |
|---|
| Net Interest Income | 14.18M | 31.58M | 16.66M | 18.79M | 9.31M | 10.99M | 11.24M | 17.38M | 22.25M | 26.08M | 0 | 10.37M | 12.65M | 8.46M | 8.64M | 8.09M | 6.48M |
| NII Growth % | -22.49% | 89.59% | -11.32% | 101.87% | -15.32% | -2.2% | -35.33% | -21.89% | -14.7% | - | -100% | -18.04% | 49.56% | -2.08% | 6.75% | 24.95% | - |
| Net Interest Margin % | 5.02% | 9.27% | 4.87% | 7.61% | 3% | 2.58% | 3.97% | 5.97% | 7.9% | 10.87% | 0% | 8.95% | 7.87% | 5.44% | 7.64% | 8.14% | 7.32% |
| Interest Income | 29.76M | 49.99M | 31.54M | 28.9M | 18.68M | 19.92M | 19.21M | 24.2M | 27.33M | 28.92M | 630K | 14.17M | 16.96M | 11.15M | 10.49M | 8.98M | 7M |
| Interest Expense | 15.58M | 18.41M | 14.88M | 10.12M | 9.38M | 8.93M | 7.97M | 6.82M | 5.09M | 2.84M | 0 | 3.8M | 4.31M | 2.69M | 1.85M | 889.05K | 525.98K |
| Loan Loss Provision | 0 | -7.92M | -1.5M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1.41M | 0 | 0 | 0 | 0 | 0 | 0 |
| Non-Interest Income | -41.36M | -5.51M | 7.78M | 6.92M | 5.75M | 5.34M | 3.69M | 2.84M | 420K | 804K | 8.12M | -16.96M | 794.25K | 2.67M | 1.55M | -3.69M | -2.59M |
| Non-Interest Income % | 356.6% | -12.38% | 19.79% | 19.33% | 23.52% | 21.13% | 16.1% | 10.5% | 1.51% | 2.7% | 92.8% | 608.18% | 4.47% | 19.33% | 12.9% | -69.86% | -58.85% |
| Total Revenue | -11.6M | 44.48M | 39.32M | 35.83M | 24.43M | 25.25M | 22.9M | 27.04M | 27.75M | 29.73M | 8.75M | -2.79M | 17.75M | 13.82M | 12.05M | 5.29M | 4.41M |
| Revenue Growth % | -484.24% | 13.12% | 9.76% | 46.65% | -3.27% | 10.29% | -15.32% | -2.58% | -6.64% | 239.88% | 413.72% | -115.71% | 28.4% | 14.76% | 127.83% | 19.95% | - |
| Non-Interest Expense | 5.81M | 46.8M | 6.45M | 6.5M | 820K | 5.18M | 4.24M | 3.59M | 4.21M | 2.55M | 34.8M | 3.11M | 752.65K | 1.96M | 2.04M | 1.72M | 999.55K |
| Efficiency Ratio | -50.09% | 105.22% | 16.4% | 18.14% | 3.36% | 20.52% | 18.54% | 13.29% | 15.18% | 8.57% | 397.82% | -111.63% | 4.24% | 14.15% | 16.93% | 32.53% | 22.68% |
| Operating Income | -32.99M | -12.8M | 3.55M | 25.33M | -15.58M | -10.28M | -31.96M | -7.55M | -9.01M | -2.75M | 5.98M | -9.7M | -5.2M | -7.62M | 3.8M | 2.68M | 2.88M |
| Operating Margin % | 284.42% | -28.79% | 9.04% | 70.71% | -63.79% | -40.69% | -139.56% | -27.91% | -32.45% | -9.26% | 68.32% | 347.93% | -29.3% | -55.14% | 31.56% | 50.65% | 65.39% |
| Operating Income Growth % | - | -460.4% | -85.97% | 262.57% | -51.66% | 67.85% | -323.43% | 16.19% | -226.98% | -146.08% | 161.61% | -86.52% | 31.77% | -300.53% | 41.93% | -7.08% | - |
| Pretax Income | -32.99M | -31.21M | 3.55M | 25.62M | -15.33M | -10.28M | -31.96M | -7.55M | -9.01M | -2.75M | -17.37M | -9.7M | -5.2M | -7.62M | 3.8M | 2.68M | 2.88M |
| Pretax Margin % | 284.42% | -70.16% | 9.04% | 71.51% | -62.76% | -40.69% | -139.56% | -27.91% | -32.45% | -9.26% | -198.55% | 347.93% | -29.3% | -55.14% | 31.56% | 50.65% | 65.39% |
| Income Tax | 0 | 579K | 0 | 287K | 252K | 48K | 17K | 209K | 180K | 124K | -17.37M | 0 | 0 | 0 | 0 | 0 | 0 |
| Effective Tax Rate % | 0% | -1.86% | 0% | 1.12% | -1.64% | -0.47% | -0.05% | -2.77% | -2% | -4.5% | 100% | 0% | 0% | 0% | 0% | 0% | 0% |
| Net Income | -32.99M | -31.79M | 3.55M | 25.33M | -15.58M | -10.28M | -31.96M | -7.55M | -9.01M | -2.75M | -17.79M | -9.7M | -5.2M | -7.62M | 3.8M | 2.68M | 2.88M |
| Net Margin % | 284.42% | -71.47% | 9.04% | 70.71% | -63.79% | -40.69% | -139.56% | -27.91% | -32.45% | -9.26% | -203.35% | 347.93% | -29.3% | -55.14% | 31.56% | 50.65% | 65.39% |
| Net Income Growth % | -838.96% | -994.71% | -85.97% | 262.57% | -51.66% | 67.85% | -323.43% | 16.19% | -226.98% | 84.52% | -83.36% | -86.52% | 31.77% | -300.53% | 41.93% | -7.08% | - |
| Net Income (Continuing) | -32.99M | -31.79M | 3.55M | 25.33M | -15.58M | -10.28M | -31.96M | -7.55M | -9.01M | -2.75M | -17.87M | -9.7M | -5.2M | -7.62M | 3.8M | 2.68M | 2.88M |
| EPS (Diluted) | -2.36 | -2.57 | 0.36 | 3.33 | -2.49 | -2.52 | -14.41 | -4.42 | -5.07 | -1.42 | -6.08 | -2.57 | -2.11 | -5.26 | 3.25 | 2.48 | 3.23 |
| EPS Growth % | -750.05% | -813.89% | -89.19% | 233.73% | 1.19% | 82.51% | -226.02% | 12.82% | -257.04% | 76.64% | -136.58% | -21.8% | 59.89% | -261.85% | 31.05% | -23.22% | - |
| EPS (Basic) | - | -2.57 | 0.36 | 3.33 | -2.49 | -2.52 | -14.41 | -4.42 | -5.07 | -1.42 | -6.33 | -2.57 | -2.11 | -5.26 | 3.25 | 2.48 | 3.23 |
| Diluted Shares Outstanding | 13.98M | 12.36M | 9.84M | 7.6M | 6.25M | 4.07M | 2.22M | 1.71M | 1.78M | 1.94M | 2.93M | 3.78M | 2.47M | 1.45M | 1.17M | 1.08M | 891.79K |
Portfolio credit impairment risk
As indicated by the quarterly income statement data, GECC's revenue trajectory remains highly volatile, swinging from a peak of $17.4M in 2025Q2 to negative figures in late 2025, suggesting that the firm's top-line performance is heavily influenced by non-recurring valuation adjustments rather than consistent interest income generation.
The extreme variance in quarterly revenue suggests that the company's core interest-earning assets are subject to significant fair-value volatility. Investors should interpret these fluctuations as a potential indicator of underlying portfolio instability rather than a reflection of organic growth in the loan book.
Based on the provided financial statements, GECC's gross margins have exhibited extreme instability, oscillating from a low of 2.0% in 2024Q2 to over 120% in late 2025, which highlights the severe impact of unrealized asset depreciation on the firm's reported profitability metrics.
The lack of consistent margin performance suggests that the company's cost of capital and investment income are not currently aligned to produce stable returns. This volatility implies that the firm's profitability is highly sensitive to the mark-to-market valuation of its Level 3 assets, which warrants caution.
According to the reported income statement figures, GECC's operating leverage appears severely compromised, as SG&A expenses have remained relatively sticky near $1.2M per quarter while operating income has collapsed into negative territory, indicating an inability to scale the business effectively during periods of portfolio stress.
The persistence of fixed SG&A costs in the face of declining operating income suggests that the firm lacks the operational flexibility to adjust its cost structure during downturns. This fixed-cost burden may continue to weigh on net results until the asset base can be significantly expanded.
As evidenced by the recent quarterly data, GECC's net income is characterized by extreme swings, with the firm reporting a net loss of $22.0M in 2025Q4, which suggests that reported EPS is currently a poor proxy for the company's underlying cash-generating capability.
The disconnect between headline earnings and operational performance implies that non-operating items and valuation adjustments are the primary drivers of the bottom line. Analysts should monitor the extent to which these losses represent permanent capital impairment versus temporary market-driven fluctuations in the portfolio.
Based on the reported figures, the most significant challenge to the current narrative is the recurring negative net margin, which suggests that the firm's investment strategy may be failing to cover its own operating costs and interest obligations in the current high-rate environment.
Short-term observers may point to the recent revenue volatility as a sign of structural weakness that could lead to further NAV erosion. The inability to maintain positive net margins over consecutive periods raises questions about the long-term viability of the current underwriting and fee structure.
Quick answers to the most common questions about buying GECC stock.
Great Elm Capital Corp. (GECC) reported a net loss of $31.8M for the fiscal year ending 2025.
Great Elm Capital Corp. (GECC) reported an operating income of $-12.8M, resulting in an operating profit margin of -28.8%. This margin reflects the operational efficiency of the business before interest and taxes.
Great Elm Capital Corp. (GECC) generated $34.0M in gross profit for the year, representing a gross profit margin of 76.4%. This demonstrates the company's core pricing power and production efficiency.