Great Elm Group Inc. (GEG) — RQD Stock Rating Cockpit

Per the Roarable RQD rating, GEG scores 41 out of 100, a letter grade of D-, with the verdict label "Roarable Sell — Vulnerable Balance Sheet & Flow." Across the five pillars:

• Fundamental Cash Engine (4 / 20): The weakest pillar. The rating cites ROIC of -35% and an FCF yield of -13.48%. For an investor, this indicates the business is currently not converting capital into cash returns, so valuation rests on expectations of a future turnaround rather than present cash generation.
• Whale 13F Flow (8 / 20): Scored for institutional accumulation and options positioning. The score is low, so the source data does not support a strong institutional-demand narrative.
• Insider Conviction (7 / 20): Scored on SEC Form 4 and Congressional PTR cluster flow. The low score means insider and congressional activity does not provide a strong confidence signal.
• Macro Regime Fit (9 / 20): Reflects beta of 1.0 and sector sensitivity. A beta of 1.0 implies market-level sensitivity; the score suggests the stock's regime positioning is modest rather than favorable.
• Forensic Balance Sheet (13 / 20): The strongest pillar, citing Altman Z of 2.5, Piotroski F of 4/9, and Debt/Equity of 0.5. This is a mid-range result; the balance sheet is not the primary weakness, but Piotroski F of 4/9 indicates only moderate financial-quality signals.

Taken together, the rating characterizes GEG as weak on cash generation and flow, with a middling balance sheet. The upside case relies on a low headline valuation (P/E TTM of 5.2) and a balance sheet that is not rated as distressed; the downside case is the negative ROIC and FCF yield, which the rating treats as the dominant issue. Valuation multiples alone do not offset the cash-generation weakness in this framework.

Great Elm Group Inc. (GEG) is a NASDAQ-listed issuer classified in the Technology sector, Computer Software: Prepackaged Software industry, per the profile section. The profile describes the company with a market capitalization of $0.1B. Source data does not specify the company's products, customers, or revenue model beyond its sector and industry classification.

Per the SEC financials, operating income was negative in each of the three reported periods, while reported net income was positive in FY 2025 and FY 2023 and negative in FY 2024. Per the market data section, operating margin is -49.1%, gross margin is 93.4%, and net margin is 68%. ROIC is -35%. Per the Roarable RQD rating, the Altman Z-Score is 2.5, the Piotroski F-Score is 4/9, and Debt/Equity is 0.5. Cash is reported at $51.2M for FY 2025, up from $44.3M for FY 2024.

• Board composition: A Stock Titan report states the board is set to shrink from eight to seven at the annual meeting (MARKET WIRE, YELLOW).
• Director departure: TradingView and Investing.com Canada reports state director Eric Scheyer will not seek re-election or will step down after the annual meeting (MARKET WIRE, YELLOW).
• Price action: A MarketBeat report headlined a 0.5% decline (RISK WATCH, RED), followed by a later MarketBeat report of a 0.5% climb (MARKET WIRE, YELLOW). Per the market data, the day's change is 0.47%.
• Market coverage: A Yahoo Finance item referencing institutional positioning and fundamental catalysts (MARKET WIRE, YELLOW), whose headline names a different ticker (GECC), should be treated with caution.
• Proprietary signals: The Butterfly Supply-Chain Graph reports no proprietary signals and no butterfly links.

Per the Butterfly Supply-Chain Graph, supply chain is listed as NONE, with no butterfly links and no proprietary signals. Upstream and downstream dependencies, sector correlations, and second-order bottlenecks cannot be mapped from the source data. An investor should note that the absence of mapped links means no supply-chain ripple effects can be verified here.

• What drove the FY 2025 net income of $12.9M given operating income of $-8.0M, and is it recurring?
• Why is EPS reported as N/A for each period, and what is the share count?
• What are GEG's debt levels, since the debt field is N/A for all periods while Debt/Equity is cited at 0.5?
• Does the EV/EBITDA gap reflect missing data, and what does enterprise value look like?
• What is the business model behind the 93.4% gross margin given the negative operating margin?