Revenue experienced a sequential decline from $8.0 million in 2025Q2 to $6.7 million in 2026Q1, while net margins remained volatile, fluctuating between a trough of 35.2% and a high of 75.5% over the last five quarters.
| Net Interest Income | -18.41M | -18.41M | -14.88M | 18.79M |
| NII Growth % | -0.12% | -23.67% | -179.22% | - |
| Net Interest Margin % | -6.51% | -19.08% | -30.24% | 7.61% |
| Interest Income | 0 | 0 | 0 | 28.9M |
| Interest Expense | 18.41M | 18.41M | 14.88M | 10.12M |
| Loan Loss Provision | -16.3M | -16.38M | -13.07M | 0 |
| Non-Interest Income | 29.76M | 31.01M | 31.54M | 13.04M |
| Non-Interest Income % | 100% | 100% | 100% | 31.1% |
| Total Revenue | 29.76M | 31.01M | 31.54M | 41.95M |
| Revenue Growth % | -15.64% | -1.69% | -24.8% | - |
| Non-Interest Expense | 1.77M | 1.62M | 1.38M | 6.5M |
| Efficiency Ratio | 5.96% | 5.22% | 4.36% | 15.49% |
| Operating Income | 25.87M | 27.36M | 28.35M | 25.33M |
| Operating Margin % | 86.94% | 88.25% | 89.88% | 60.4% |
| Operating Income Growth % | - | -3.47% | 11.91% | - |
| Pretax Income | 18.33M | 17.9M | 12.8M | 25.62M |
| Pretax Margin % | 61.58% | 57.72% | 40.59% | 61.08% |
| Income Tax | 0 | 0 | 0 | 287K |
| Effective Tax Rate % | 0% | 0% | 0% | 1.12% |
| Net Income | 18.33M | 17.9M | 12.8M | 25.33M |
| Net Margin % | 61.58% | 57.72% | 40.59% | 60.4% |
| Net Income Growth % | - | 39.82% | -49.47% | - |
| Net Income (Continuing) | 18.33M | 17.9M | 12.8M | 25.33M |
| EPS (Diluted) | 1.31 | -2.57 | 0.36 | 3.33 |
| EPS Growth % | - | -813.89% | -89.19% | - |
| EPS (Basic) | - | -2.57 | 0.36 | 3.33 |
| Diluted Shares Outstanding | 13.98M | 12.36M | 9.84M | 9.84M |
Portfolio Concentration and Credit Risk
As indicated by the quarterly financial data, GECCI experienced a sequential revenue decline from $8.0 million in 2025Q2 to $6.7 million by 2026Q1, reflecting a challenging environment for its micro-cap lending mandate and suggesting potential portfolio attrition or a strategic shift toward lower-yielding assets.
The downward trend in top-line performance appears to signal difficulty in maintaining deal flow within the sub-$75 million revenue segment. Investors should monitor whether this contraction is a temporary result of selective underwriting or a more permanent erosion of the firm's competitive position in the middle-market credit space.
Based on reported figures, the firm's net margin fluctuated significantly, dropping from 74.9% in 2025Q2 to 75.5% in 2026Q1, with a notable trough of 35.2% in 2025Q3, highlighting the inherent volatility of its equity-heavy investment portfolio and the impact of non-operating valuation adjustments.
While gross margins remain consistently high at approximately 92-94%, the wide gap between gross and net profitability suggests that non-cash valuation adjustments and portfolio write-downs are heavily influencing the bottom line. This volatility implies that the firm's earnings quality is highly sensitive to the mark-to-market performance of its Level 3 assets.
According to the income statement, operating margins have remained relatively resilient, hovering between 84.8% and 90.2% over the last five quarters, despite the underlying revenue decline, which suggests that management has maintained a disciplined approach to controlling fixed operating expenses during this period of portfolio contraction.
The ability to sustain high operating margins despite lower revenue indicates that the firm's cost structure is largely fixed, which provides some protection against further top-line weakness. However, this efficiency does not fully insulate the firm from the impact of interest expenses and potential credit losses that occur further down the income statement.
As reported in recent filings, the firm's reliance on $3 million to $10 million equity stakes in small-cap borrowers creates a binary risk profile where the failure of a single investment could disproportionately impact the net income and overall capital base of the organization.
Short-sellers may focus on the potential for non-accruals within the media and telecom sectors, which are prone to rapid technological obsolescence. The current income statement may be masking underlying credit deterioration through the use of PIK interest, which warrants further investigation into the actual cash-earning power of the portfolio.
Quick answers to the most common questions about buying GECCI stock.
Great Elm Capital Corp. 8.50% Notes DUE 2029 (GECCI) is profitable, generating $17.9M in net income for the fiscal year ending 2025 with a net profit margin of 57.7%.
Great Elm Capital Corp. 8.50% Notes DUE 2029 (GECCI) reported an operating income of $27.4M, resulting in an operating profit margin of 88.3%. This margin reflects the operational efficiency of the business before interest and taxes.
Great Elm Capital Corp. 8.50% Notes DUE 2029 (GECCI) generated $29.0M in gross profit for the year, representing a gross profit margin of 93.5%. This demonstrates the company's core pricing power and production efficiency.