Great Elm Capital Corp. (GECC) AI Stock Analysis

Great Elm Capital Corp. operates as a business development company focusing on strategic investments in the middle market. Specializing in loan and mezzanine financing, it targets debt instruments of middle market companies across various sectors, including media, commercial services and supplies, healthcare, telecommunication services, and communications equipment. Typically, the company makes equity investments ranging from $3 million to $10 million in firms with annual revenues spanning from $3 million to $75 million. It has also begun exploring opportunities within the cryptocurrency sector to diversify its portfolio, leverage blockchain technology, and enhance liquidity options.

Revenue moved from -$6.6M in FY2021 and -$16.1M in FY2022 to $41.9M in FY2023, before falling 44.2% to $23.4M in FY2024. In FY2025, revenue grew 90.2% to $44.5M, though net income was -$31.8M and operating margin was -28.8%. For the trailing twelve months ended June 30, 2026, revenue stood at $43.7M with an operating margin of 77.6% and a profit margin of -87.7%. In the latest quarter ended June 30, 2026, quarterly revenue fell 23.7% year-over-year while quarterly earnings declined 54.5%.

As of June 30, 2026, Great Elm Capital Corp. held $1.7M in cash and short-term investments alongside total debt of $161.9M, leaving net debt at $160.2M. Shareholders' equity was $110.4M against total assets of $280.0M, resulting in a debt-to-equity ratio of 1.47 and a current ratio of 1.46. In FY2025, operating cash flow and free cash flow both stood at -$2.8M. The company paid $19.2M in dividends in FY2025, while its share count expanded 157.2% over 5 years.

GECC closed at $4.97 on October 16, 2026, valuing the company at a market cap of $69.0M and enterprise value of $229.2M. The stock trades at a forward P/E of 6.2x, below the median of 10.8x for its US-listed Financial Services peers. Its price-to-sales ratio is 1.6x compared to the peer median of 3.2x, and its price-to-book ratio is 0.7x. Over the past year, GECC returned -17.7%, trailing the 16.8% return for the S&P 500 (SPY). Over 5 years, the stock returned -48.2% versus 83.0% for the S&P 500.

Great Elm Capital Corp. pays an annual forward dividend of $1.00 per share, distributed quarterly, yielding 20.12% as of October 16, 2026. The company has paid dividends for 11 consecutive years, though its 5-year annualized dividend growth is -6.2%. Its payout ratio stands at 91.7%, and the last ex-dividend date was September 15, 2026.

Two analysts cover GECC, both rating the stock a Hold with 0 Buy and 0 Sell ratings. The mean price target is $6.50, representing an upside of 30.8% over the last close of $4.97. For the fiscal year ending December 31, 2026, consensus estimates project EPS of $1.07 and revenue of $39.9M. For the next fiscal year, 2 analysts project revenue of $42.1M and EPS of $1.00. The company recorded 0 EPS beats over the last 4 quarters, with the next earnings date scheduled for November 3, 2026.

This page is an AI-written research summary of Great Elm Capital Corp. (GECC). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

Related: GECC income statement, GECC balance sheet, GECC key metrics, GECC analyst forecast, GECC chart. See the GECC stock overview for the latest quote and news.