Great Elm Group Swings to $36.9M FY2026 Loss on Investment Write-Downs
GEG sits 19% above its 52-week low of $1.801 on light trading volume (0.2× avg).
Summary
Great Elm Group swung to a $36.9M FY2026 net loss on investment write-downs, with stockholders' equity nearly halving to $40.8M. The company retains $53.5M in cash and a low debt ratio, but faces significant potential dilution from convertible notes and warrants.
Key Events · Earnings and Guidance · GEG
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FY2026 Net Loss of $36.9M
Net loss attributable to stockholders was $36.9M for FY2026, versus a $12.9M profit in FY2025. The swing was driven by $22.2M in net realized and unrealized investment losses.
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Level 3 Investment Write-Down
The company recognized a $12.6M unrealized depreciation on three special purpose vehicle equity investments, reducing their fair value to $797K from $13.4M a year earlier.
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Stockholders' Equity Nearly Halved
Total stockholders' equity fell to $40.8M at June 30, 2026, from $80.7M at June 30, 2025, reflecting the net loss and $6.8M in stock repurchases.
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Convertible Notes and Warrants Overhang
$36.8M of convertible notes are convertible into approximately 10.4M shares at $3.4722 per share. Additionally, 2M warrants are exercisable at $3.50 and $5.00 per share, with Series A exercisable beginning August 27, 2026.
Analysis · GEG · Technology
A sharp reversal from the $12.9 million profit in FY2025, Great Elm Group reported a full-year net loss of $36.9 million attributable to stockholders. The loss was driven by $22.2 million in net realized and unrealized losses on investments, including a $12.6 million write-down of Level 3 equity investments in three special purpose vehicles. Stockholders' equity fell to $40.8 million from $80.7 million a year earlier. The company maintains $53.5 million in unrestricted cash and a conservative 0.25:1 net debt-to-equity ratio, providing runway despite the losses. The filing also discloses significant potential dilution: $36.8 million of convertible notes convertible into approximately 10.4 million shares at $3.4722 per share, plus 2 million warrants exercisable at $3.50 and $5.00 per share. Against 29.8 million shares outstanding, these instruments represent substantial overhang if exercised.
How filings like this one have moved
In the 30 days to Sep 10, 2026, 30% of the 1963 measured filings Wiseek scored 7 moved their stock by 5% or more by the next session's close. The median move was -0.14%. These are measured outcomes after filings of this importance, not a forecast for this one.
Measured one observation per ticker per day, after exclusions. Current figures: Filing Impact Tracker · open dataset
At the time of this filing, GEG was trading at $2.15 on NASDAQ in the Technology sector, with a market capitalization of approximately $67.4M. The 52-week trading range was $1.80 to $3.51. This filing was assessed with negative market sentiment and an importance score of 7 out of 10.