Great Elm Group, Inc. (GEG) reported a notable increase in revenue for the three months ended September 30, 2024, achieving $3,992,000, a 21% rise from $3,310,000 in the same period of 2023. This growth was attributed to $616,000 in real estate property sales and a $296,000 increase in management fees, despite a $384,000 decline in incentive fees. The company also recorded a net realized and unrealized gain of $3,778,000, up from $3,284,000 year-over-year.

Net income from continuing operations for the third quarter of 2024 was $2,974,000, compared to $2,758,000 in 2023. However, net income attributable to GEG decreased slightly to $2,639,000 from $2,774,000 in the prior year. The company’s total other income (expense), net, increased to $4,970,000 from $4,208,000, reflecting a 14% growth.

Operating costs and expenses rose by $600,000 compared to the previous year, with non-cash compensation increasing by $200,000 due to additional shares vesting. Other selling, general, and administrative expenses also saw a $500,000 increase, primarily due to higher professional fees. Investment management expenses decreased by $100,000, mainly due to a reduction in bonus expenses.

As of September 30, 2024, GEG's total assets were reported at $55,017,000, a slight increase from $54,514,000 as of June 30, 2024. The company held $44,190,000 in cash, cash equivalents, and restricted cash at the end of the quarter, down from $49,718,000 at the beginning of the period. The net cash used in operating activities was $5,528,000, an improvement from $19,088,000 in the same quarter of the previous year.

In terms of strategic developments, GEG initiated a stock buyback program in May 2024, allowing for the repurchase of up to 3,250,000 shares of common stock. The program is set to continue until the filing of the Company’s Form 10-Q for the fiscal quarter ending September 30, 2024. Additionally, the company made significant investments in Great Elm Strategic Partnership I, LLC, and Prosper Peak Holdings, LLC, acquiring 25% interests in both entities.

The company’s financial position remains stable, with a net consolidated debt to equity ratio of 0.3:1.0, well within the covenant limit of 2:1. As of September 30, 2024, GEG had $35.5 million in outstanding convertible notes, accruing interest at 5.0% per annum.