The company exhibits structural margin instability, evidenced by a negative gross margin of -55.3% in 2026Q3 and persistent operating losses.
| Metric | TTM | Jun'25 | Jun'24 | Jun'23 | Jun'22 | Jun'21 | Jun'20 | Jun'19 | Jun'18 | Jun'17 | Jun'16 | Jun'15 | Jun'14 | Jun'13 |
|---|
| Net Interest Income | -582K | -1.55M | 4.55M | -4.21M | -5.19M | -4.94M | -4.52M | -6.12M | 0 | 0 | 0 | 0 | 0 | 0 |
| NII Growth % | -35.67% | -134.01% | 208.02% | 18.87% | -5.14% | -9.29% | 26.1% | - | - | - | - | - | - | - |
| Net Interest Margin % | -0.52% | -1.01% | 3.24% | -3.1% | -3.09% | -3.05% | -2.31% | -3.35% | 0% | 0% | 0% | 0% | 0% | 0% |
| Interest Income | 1.5M | 2.61M | 4.55M | 1.86M | 352K | 9K | 56K | 134K | 1.51M | 5.01M | 4.94M | 4.26M | 3.58M | 155K |
| Interest Expense | 2.08M | 4.16M | 0 | 6.07M | 5.55M | 4.95M | 4.58M | 6.25M | 0 | 0 | 0 | 0 | 0 | 0 |
| Loan Loss Provision | 15.47M | 12.27M | 16.86M | 4.12M | 1.07M | 22.37M | 45.05M | 39.73M | 9.71M | 5.12M | 63K | 31.07M | 23.01M | 16.28M |
| Non-Interest Income | 21.33M | 13.71M | 13.28M | 6.8M | 4.16M | 60.84M | 58.94M | 51.05M | 4.43M | -88K | -4.94M | 245K | 32.82M | -34K |
| Non-Interest Income % | 93.45% | 84.01% | 74.48% | 78.53% | 92.21% | 99.99% | 99.91% | 99.74% | 74.59% | -1.79% | - | 5.44% | 90.17% | -28.1% |
| Total Revenue | 22.82M | 16.32M | 17.83M | 8.66M | 4.52M | 60.85M | 58.99M | 51.18M | 5.93M | 4.93M | 0 | 4.5M | 36.4M | 121K |
| Revenue Growth % | 125.49% | -8.51% | 105.86% | 91.83% | -92.58% | 3.15% | 15.27% | 762.34% | 20.46% | - | -100% | -87.62% | 29979.34% | - |
| Non-Interest Expense | 18.68M | 7.89M | 8.81M | 9.68M | 6.64M | 37.27M | 5.6M | 7.37M | 9.41M | 13.5M | 9.77M | 7.77M | 5.08M | 23.63M |
| Efficiency Ratio | 81.86% | 48.39% | 49.43% | 111.72% | 147.05% | 61.24% | 9.5% | 14.4% | 158.6% | 273.94% | - | 172.52% | 13.97% | 19530.58% |
| Operating Income | -13.4M | -8M | -7.84M | -11.21M | -8.74M | -3.74M | 3.76M | -2.17M | -10.47M | -4.61M | -9.84M | -8.04M | -5.71M | -34.62M |
| Operating Margin % | -58.73% | -49.05% | -43.95% | -129.41% | -193.56% | -6.14% | 6.38% | -4.24% | -176.39% | -93.46% | - | -178.47% | -15.69% | -28611.57% |
| Operating Income Growth % | - | -2.11% | 30.09% | -28.26% | -133.9% | -199.36% | 273.24% | 79.26% | -127.34% | 53.18% | -22.33% | -40.83% | 83.51% | - |
| Pretax Income | -22.06M | 15.64M | -841K | 14.68M | -19.22M | -6.84M | -13.3M | -9.05M | -11.67M | -18.65M | -14.54M | -12.03M | -8.66M | -39.64M |
| Pretax Margin % | -96.64% | 95.83% | -4.72% | 169.44% | -425.64% | -11.25% | -22.55% | -17.68% | -196.63% | -378.53% | - | -267.08% | -23.79% | -32757.85% |
| Income Tax | 16K | 86K | 101K | 200K | 83K | 1.68M | 44K | -2.18M | -329K | -1.21M | -5.1M | 164K | -3.07M | 42K |
| Effective Tax Rate % | -0.07% | 0.55% | -12.01% | 1.36% | -0.43% | -24.47% | -0.33% | 24.11% | 2.82% | 6.49% | 35.09% | -1.36% | 35.43% | -0.11% |
| Net Income | -22.93M | 12.89M | -1.39M | 27.73M | -14.89M | -7.28M | -12.97M | -6.64M | -11.07M | -15.21M | -15.27M | -12.2M | -5.59M | -39.68M |
| Net Margin % | -100.48% | 79.01% | -7.78% | 320.1% | -329.78% | -11.96% | -21.99% | -12.98% | -186.47% | -308.65% | - | -270.72% | -15.36% | -32792.56% |
| Net Income Growth % | -1545.27% | 1028.75% | -105.01% | 286.19% | -104.71% | 43.93% | -95.29% | 39.97% | 27.22% | 0.41% | -25.2% | -118.1% | 85.91% | - |
| Net Income (Continuing) | -22.45M | 15.55M | -942K | 14.48M | -19.3M | -8.52M | -13.35M | -6.87M | -11.34M | -17.44M | -9.44M | -12.2M | -5.59M | -39.68M |
| EPS (Diluted) | -0.75 | 0.33 | -0.05 | 0.40 | -0.75 | -0.31 | -0.51 | -0.26 | -0.46 | -0.93 | -1.62 | -1.31 | -0.62 | -6.27 |
| EPS Growth % | -1223.76% | 803.62% | -111.73% | 153.33% | -141.94% | 39.22% | -96.15% | 43.48% | 50.54% | 42.59% | -23.66% | -111.29% | 90.11% | - |
| EPS (Basic) | - | 0.47 | -0.05 | 0.50 | -0.75 | -0.31 | -0.51 | -0.26 | -0.46 | -0.93 | -1.62 | -1.31 | -0.62 | -6.27 |
| Diluted Shares Outstanding | 30.76M | 38.82M | 29.96M | 29.27M | 26.78M | 25.72M | 25.42M | 25.21M | 24.28M | 23.22M | 9.41M | 9.33M | 9.06M | 7.57M |
Persistent negative operating margins
As evidenced by the quarterly data, Great Elm Group's top-line performance remains highly erratic, with revenue fluctuating between $2.8M and $10.8M over the last ten quarters, suggesting that the firm's reliance on investment-linked income streams prevents the establishment of a predictable, durable growth trajectory for the business.
The lack of consistent revenue growth indicates that the company's fee-generating assets are not scaling effectively. Investors should monitor whether the current revenue base is sufficient to support the firm's overhead, as the absence of a clear upward trend in management fees suggests limited success in expanding its permanent capital vehicles.
According to the provided financial statements, the company has experienced multiple periods of negative gross margins, including a -55.3% reading in 2026Q3, which implies that the direct costs associated with managing its investment vehicles currently exceed the revenue generated from those same activities.
This unusual margin profile suggests that the firm's unit economics are fundamentally challenged at current scale levels. It appears that the costs of maintaining these investment structures are not being adequately offset by management fees, raising questions about the viability of the current business model without significant AUM growth.
Based on reported figures, Great Elm Group consistently records negative operating income, with losses reaching $4.0M in 2026Q3, demonstrating that the company has failed to achieve the necessary operating leverage to cover its corporate overhead through its core asset management and investment activities.
The persistent gap between gross profit and operating income highlights a high fixed-cost structure that is not scaling with the business. This suggests that management may need to significantly increase the size of its managed assets to reach a break-even point, as current operations remain deeply unprofitable.
As reported in financial statements, the company's net income frequently diverges from its operating performance, such as the $13.6M net profit in 2025Q4 despite a $1.5M operating loss, indicating that bottom-line results are driven by non-operating items rather than the core fee-generating business.
This reliance on non-operating gains suggests that the quality of earnings is low and potentially unsustainable. Investors should exercise caution, as the reported net income may not reflect the underlying health of the management platform, but rather the volatility of the firm's own balance sheet investments.
While the company positions itself as an alternative asset manager, the data suggests that the business is currently burning cash, with operating losses appearing in every quarter of the provided dataset, which challenges the narrative that the firm is a self-sustaining, high-margin management platform.
Short-term observers may focus on the persistent inability to generate positive operating cash flow, which could indicate that the firm is essentially a holding company for illiquid assets rather than a scalable manager. The lack of consistent profitability warrants further investigation into the long-term viability of its fee structure.
Quick answers to the most common questions about buying GEGGL stock.
Great Elm Group, Inc. 7.25% Notes due 2027 (GEGGL) is profitable, generating $12.9M in net income for the fiscal year ending 2025 with a net profit margin of 79.0%.
Great Elm Group, Inc. 7.25% Notes due 2027 (GEGGL) reported an operating income of $-8.0M, resulting in an operating profit margin of -49.0%. This margin reflects the operational efficiency of the business before interest and taxes.
Great Elm Group, Inc. 7.25% Notes due 2027 (GEGGL) generated $-0.1M in gross profit for the year, representing a gross profit margin of -0.7%. This demonstrates the company's core pricing power and production efficiency.