Great Elm Group Inc. (NASDAQ:GEG) shares surged 51.50% to $3.88 in after-hours trading on Tuesday following the alternative asset manager’s announcement of record fourth-quarter net income from continuing operations of $15.7 million and major strategic partnerships.
Check out the current price of GEG stock here.
Record Financial Performance Drives Investor Confidence
The Floridan company had its best year ever in 2025. In the fourth quarter alone, it made $15.7 million in profit from its main business, compared to a $0.6 million loss during the same time last year. The value of each share in the company went up by 24%, reaching $2.65 as of June 30, 2025.
Total revenue for the fourth quarter was $5.6 million compared to $8.9 million in the prior year. Excluding a $6.6 million property sale from the prior year. Management and incentive fees from Great Elm Capital Corp. (GECC) added up to $3.8 million, which is a 253% increase from $1.1 million the year before.
Jason Reese, Chief Executive Officer of Great Elm Group, stated, "We are well-positioned to capitalize on attractive opportunities across all of our businesses and deliver sustained, long-term value for our shareholders."
Strategic Capital Raises Position Company for Growth
Great Elm announced transformational partnerships with Kennedy Lewis Investment Management and Woodstead, raising over $100 million in recent capital. Kennedy Lewis purchased 4.9% of GEG’s common stock at $2.11 per share and provided up to $150 million in leverageable capital to Monomoy REIT.
In August, Woodstead invested $9.0 million for 4.0 million newly issued shares at $2.25 per share. Additionally, GECC raised $15.0 million through a separate transaction with Booker Smith, who joined GEG’s Board of Directors.
CoreWeave Investment and Operational Expansion
The stock surge was partly driven by unrealized gains from GEG’s CoreWeave Inc. (NASDAQ:CRWV)-related investment, sourced through strategic relationships. CoreWeave stock has shot up 133.35% since the year began. The company also launched Monomoy Construction Services in February, adding $0.9 million in construction fee revenue for the fiscal year.
Fee-Paying Assets Under Management totaled approximately $553 million as of June 30, while total AUM reached $759 million. The company also maintains nearly $31 million in cash and marketable securities to support growth initiatives across its alternative asset management platform.
Great Elm Group traded between $1.70 and $2.56 over the past year, with a market capitalization of $85.23 million and an average volume of 9,000 shares.
Price Action: According to the Benzinga Pro data, the investment manager closed at $2.56 on Tuesday, up 19.07%.
Benzinga’s Edge Stock Rankings highlight GEG has a Growth score of 99.67. Track the performance of other players in this segment.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
