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    New Mountain Finance Corporation Announces Financial Results for the Quarter Ended September 30, 2025

    11/3/25 4:38:00 PM ET
    $NMFC
    Finance/Investors Services
    Finance
    Get the next $NMFC alert in real time by email

    Reports Third Quarter Net Investment Income of $0.32 per Share and Declares a Fourth Quarter Distribution of $0.32 per Share

    New Mountain Finance Corporation (NASDAQ:NMFC) ("New Mountain," "New Mountain Finance" or the "Company") today announced its financial results for the quarter ended September 30, 2025.

    Third Quarter and Recent Highlights1

    • Net investment income of $33.9 million, or $0.32 per weighted average share
    • Net asset value of $12.06 per share compared to $12.21 per share as of June 30, 2025
    • ~95% of the portfolio is rated green on our internal heatmap
    • Increased senior oriented asset mix to 80%, compared to 75% as of September 30, 2024
    • Utilized the full amount of the original $50 million stock repurchase plan
    • Established a new stock repurchase plan authorizing the repurchase of up to $100 million worth of common shares, which reflects a doubling in capacity compared to the original stock repurchase plan
    • Exploring a secondary portfolio sale of up to $500 million of assets to further NMFC's strategic initiatives around reducing PIK income, diversifying the portfolio and enhancing financial flexibility
    • Declared a fourth quarter 2025 distribution of $0.32 per share, payable on December 31, 2025, to holders of record as of December 17, 2025

    ($ in millions, except per share data)

     

    Q3 2025

     

    Q3 2024

    Net Investment Income per Weighted Average Share

     

    $

    0.32

     

     

    $

    0.33

     

    Non-recurring Adjustments2

     

     

    —

     

     

     

    0.01

     

    Net Adjusted Investment Income2 per Weighted Average Share

     

    $

    0.32

     

     

    $

    0.34

     

    Regular & Supplemental Dividends Paid per Share in Quarter

     

    $

    0.32

     

     

    $

    0.34

     

    Annualized Dividend Yield3

     

     

    13.2

    %

     

     

    11.9

    %

     

     

    September 30, 2025

     

    June 30, 2025

    Investment Portfolio4

     

    $

    2,957.1

     

    $

    3,014.2

    NAV per Share

     

    $

    12.06

     

    $

    12.21

    Statutory Debt/Equity5

     

    1.26x

     

    1.17x

    Statutory Debt/Equity (Net of Available Cash)5

     

    1.23x

     

    1.13x

    Management Comments on Third Quarter Performance

    "In Q3, NMFC once again covered its dividend, despite tight credit spreads in the market generally," said Steven B. Klinsky, NMFC Chairman and New Mountain Capital CEO. "We are major shareholders personally as well as managers, and we remain committed to maintaining credit discipline and serving our fellow share owners."

    John R. Kline, NMFC CEO, added: "NMFC maintained consistent credit performance in Q3, with approximately 95% of the portfolio rated green. Looking ahead, we remain confident in NMFC's ability to deliver consistent enhanced yield with a strong margin of safety. We continue to believe in the fundamentals of our portfolio and long-term strategy, as demonstrated by our repurchase of $27.6 million of shares in the quarter."

    Portfolio and Investment Activity4

    As of September 30, 2025, the Company's NAV1 was $1,256.6 million and its portfolio had a fair value of $2,957.1 million of investments in 127 portfolio companies, with a weighted average YTM at Cost6 of approximately 10.4%. For the three months ended September 30, 2025, the Company originated $127.3 million of investments7, offset by $177.1 million of repayments7.

    Portfolio and Asset Quality

    NMFC's mandate is to primarily target businesses in the middle market that, consistent with New Mountain's private equity platform, are high quality, defensive growth companies in industries that are well-researched by New Mountain. The Company's focus is on defensive growth businesses that generally exhibit the following characteristics: (i) acyclicality, (ii) sustainable secular growth drivers, (iii) niche market dominance and high barriers to competitive entry, (iv) recurring revenue and strong free cash flow, (v) flexible cost structures and (vi) seasoned management teams.

    Portfolio Industry Composition based on Fair Value8

    Software

     

    Business Services

    ERP

    9.0

    %

     

    Misc Services

    4.2

    %

    Human Capital Management

    5.2

    %

     

    Real Estate Services

    4.1

    %

    Finance & Accounting

    4.6

    %

     

    Engineering & Consulting Services

    3.9

    %

    Governance, Risk & Compliance

    4.1

    %

     

    Insurance & Benefits Services

    2.8

    %

    Ecommerce & Logistics

    3.8

    %

     

    Digital Transformation

    2.4

    %

    IT Infrastructure & Security

    3.7

    %

     

    Utility Services

    1.6

    %

    Integrated Payments

    1.6

    %

     

    Data & Information Services

    1.1

    %

     

     

     

    MRO Services

    0.8

    %

    Total Software

    32.0

    %

     

    Total Business Services

    20.9

    %

     

     

     

     

     

    Healthcare

     

    Other Industries

     

    Healthcare Services

    11.1

    %

     

    Consumer Services

    7.3

    %

    Healthcare Software

    2.9

    %

     

    Education

    5.9

    %

    Pharma Services

    1.8

    %

     

    Distribution & Logistics

    4.6

    %

    Tech-Enabled Healthcare

    0.8

    %

     

    Financial Services

    4.2

    %

    Healthcare Products

    0.2

    %

     

    Packaging

    2.8

    %

     

     

     

    Other

    5.5

    %

    Total Healthcare

    16.8

    %

     

    Total Other Industries

    30.3

    %

    The Company monitors the performance and financial trends of its portfolio companies on at least a quarterly basis. The Company attempts to identify any developments within the portfolio company, the industry, or the macroeconomic environment that may alter any material element of the Company's original investment strategy. As described more fully in the Company's Quarterly Report on Form 10-Q filed with the U.S. Securities and Exchange Commission, the portfolio monitoring procedures are designed to provide a simple, yet comprehensive analysis of the Company's portfolio companies based on their operating performance and underlying business characteristics, which in turn forms the basis of its Risk Rating. The Risk Rating is expressed in categories of Green, Yellow, Orange and Red with Green reflecting an investment that is in-line with or above expectations and Red reflecting an investment performing materially below expectations.

    The following table shows the Risk Rating of the Company's portfolio companies as of September 30, 2025:

    (in millions)

    As of September 30, 2025

    Risk Rating

     

    Cost

     

    Percent

     

    Fair Value

     

    Percent

     

    Weighted Average Mark

    Green9

     

    $

    2,843.0

     

    92.0

    %

     

    $

    2,796.6

     

    94.5

    %

     

    98.6

    %

    Yellow4

     

     

    83.9

     

    2.7

    %

     

     

    55.1

     

    1.9

    %

     

    65.6

    %

    Orange

     

     

    143.6

     

    4.6

    %

     

     

    91.7

     

    3.1

    %

     

    71.7

    %

    Red

     

     

    21.8

     

    0.7

    %

     

     

    13.7

     

    0.5

    %

     

    62.6

    %

    Total

     

    $

    3,092.3

     

    100.0

    %

     

    $

    2,957.1

     

    100.0

    %

     

     

    As of September 30, 2025, nearly all investments in the Company's portfolio had a Green Risk Rating, with the exception of five portfolio companies that had a Yellow Risk Rating, nine portfolio companies that had an Orange Risk Rating and one portfolio company that had a Red Risk Rating.

    The following table shows the Company's investment portfolio composition as of September 30, 2025:

    (in millions)

     

     

     

     

    Investment Portfolio Composition

     

    September 30, 2025

     

    Percent of Total

    First Lien

     

    $

    1,989.3

     

    67.3

    %

    Senior Loan Funds (SLP III & SLP IV) & NMNLC

     

     

    387.3

     

    13.1

    %

    Second Lien4

     

     

    111.6

     

    3.8

    %

    Subordinated

     

     

    111.0

     

    3.8

    %

    Preferred Equity

     

     

    229.0

     

    7.7

    %

    Common Equity and Other10

     

     

    128.9

     

    4.3

    %

    Total

     

    $

    2,957.1

     

    100.0

    %

    Liquidity and Capital Resources

    As of September 30, 2025, the Company had cash and cash equivalents of $63.7 million and total statutory debt outstanding of $1,588.9 million5. The Company's statutory debt to equity was 1.26x (or 1.23x net of available cash) as of September 30, 2025. Additionally, the Company had $196.2 million of SBA-guaranteed debentures outstanding as of September 30, 2025. As of September 30, 2025, the Company had $1,018.0 million of available capacity on its Holdings Credit Facility, NMFC Credit Facility and Unsecured Management Company Revolver. Subsequent to quarter-end, the Company repaid the 2022 Convertible Notes at maturity.

    Third Quarter 2025 Conference Call

    New Mountain Finance Corporation will host an earnings conference call and webcast at 10:00 am Eastern Time on Tuesday, November 4, 2025. To participate in the live earning conference call, please use the following dial-in numbers or visit the audio webcast link. To avoid any delays, please join at least fifteen minutes prior to the start of the call.

    • United States: +1 (877) 443-9109
    • International: +1 (412) 317-1082
    • Live Audio Webcast

    A replay of the conference call can be accessed one hour after the end of the conference call through February 4, 2026. The full webcast replay will be available through November 4, 2026. To access the earnings webcast replay please visit the New Mountain Investor Relations website.

    • United States: +1 (877) 344-7529
    • International: +1 (412) 317-0088
    • Access Code: 1651694

    For additional details related to the quarter ended September 30, 2025, please refer to the New Mountain Finance Corporation Quarterly Report on Form 10-Q filed with the SEC and the supplemental investor presentation which can be found on the Company's website at http://www.newmountainfinance.com.

    ____________________________________

    (1)

    Excludes non-controlling interest in New Mountain Net Lease Corporation ("NMNLC").

    (2)

    Adjusted net investment income for Q3 2024 includes $1.2 million of net accelerated deferred financing costs related to the termination of the DB Credit Facility and a corresponding incentive fee adjustment.

    (3)

    Dividend yield calculation uses the closing stock price of $9.67 on October 31, 2025 and $11.44 on October 28, 2024 and includes regular dividends for Q3 2025 and regular and supplemental dividends for Q3 2024.

    (4)

    Includes collateral for securities purchased under collateralized agreements to resell.

    (5)

    Excludes the Company's United States Small Business Administration ("SBA") guaranteed debentures.

    (6)

    References to "YTM at Cost" assume the accruing investments, including secured collateralized agreements, in the Company's portfolio as of a certain date, the ‘‘Portfolio Date'', are purchased at cost on that date and held until their respective maturities with no prepayments or losses and are exited at par at maturity. This calculation excludes the impact of existing leverage. YTM at Cost uses the Sterling Overnight Interbank Average Rate ("SONIA"), Euro Interbank Offered Rate ("EURIBOR") and Secured Overnight Financing Rate ("SOFR") curves at each quarter's respective end date. The actual yield to maturity may be higher or lower due to the future selection of SONIA, EURIBOR and SOFR contracts by the individual companies in the Company's portfolio or other factors.

    (7)

    Originations exclude payment-in-kind ("PIK"); originations, repayments, and sales exclude revolvers, unfunded commitments, bridges, return of capital, and realized gains / losses.

    (8)

    Excludes NMFC Senior Loan Program III LLC ("SLP III"), NMFC Senior Loan Program IV LLC ("SLP IV") and NMNLC.

    (9)

    Includes investments held in NMNLC.

    (10)

    Includes investments classified as structured finance obligations.

    New Mountain Finance Corporation

    Consolidated Statements of Assets and Liabilities

    (in thousands, except shares and per share data)

    (unaudited)

     

     

    September 30, 2025

     

    December 31, 2024

    Assets

     

     

     

    Investments at fair value

     

     

     

    Non-controlled/non-affiliated investments (cost of $2,224,517 and $2,298,083, respectively)

    $

    2,173,373

     

     

    $

    2,277,352

     

    Non-controlled/affiliated investments (cost of $129,720 and $124,254, respectively)

     

    94,686

     

     

     

    112,776

     

    Controlled investments (cost of $708,084 and $679,587, respectively)

     

    675,560

     

     

     

    700,896

     

    Total investments at fair value (cost of $3,062,321 and $3,101,924, respectively)

     

    2,943,619

     

     

     

    3,091,024

     

    Securities purchased under collateralized agreements to resell (cost of $30,000 and $30,000, respectively)

     

    13,500

     

     

     

    13,500

     

    Cash and cash equivalents

     

    63,684

     

     

     

    80,320

     

    Interest and dividend receivable

     

    44,169

     

     

     

    42,379

     

    Derivative asset at fair value

     

    5,834

     

     

     

    —

     

    Receivable from affiliates

     

    334

     

     

     

    213

     

    Other assets

     

    17,769

     

     

     

    19,265

     

    Total assets

    $

    3,088,909

     

     

    $

    3,246,701

     

    Liabilities

     

     

     

    Borrowings

     

     

     

    Unsecured Notes

    $

    990,999

     

     

    $

    978,503

     

    Holdings Credit Facility

     

    308,063

     

     

     

    294,363

     

    2022 Convertible Notes

     

    258,782

     

     

     

    260,091

     

    SBA-guaranteed debentures

     

    196,205

     

     

     

    300,000

     

    NMFC Credit Facility

     

    31,032

     

     

     

    27,944

     

    Deferred financing costs (net of accumulated amortization of $48,017 and $63,971, respectively)

     

    (19,698

    )

     

     

    (24,191

    )

    Net borrowings

     

    1,765,383

     

     

     

    1,836,710

     

    Interest payable

     

    18,072

     

     

     

    17,109

     

    Payable to broker

     

    13,460

     

     

     

    3,230

     

    Payable for unsettled securities purchased

     

    10,412

     

     

     

    —

     

    Management fee payable

     

    9,619

     

     

     

    10,467

     

    Incentive fee payable

     

    2,801

     

     

     

    8,625

     

    Deferred tax liability

     

    1,478

     

     

     

    1,410

     

    Derivative liability at fair value

     

    821

     

     

     

    7,423

     

    Other liabilities

     

    4,197

     

     

     

    2,436

     

    Total liabilities

     

    1,826,243

     

     

     

    1,887,410

     

    Commitments and contingencies

     

     

     

    Net assets

     

     

     

    Preferred stock, par value $0.01 per share, 2,000,000 shares authorized, none issued

     

    —

     

     

     

    —

     

    Common stock, par value $0.01 per share, 200,000,000 shares authorized, 107,851,929 and 107,851,415 shares issued, respectively, and 104,189,336 and 107,851,415 shares outstanding, respectively

     

    1,079

     

     

     

    1,079

     

    Paid in capital in excess of par

     

    1,365,849

     

     

     

    1,365,852

     

    Treasury stock at cost, 3,662,593 and 0 shares held, respectively

     

    (37,253

    )

     

     

    —

     

    Accumulated undistributed earnings

     

    (73,049

    )

     

     

    (13,592

    )

    Total net assets of New Mountain Finance Corporation

    $

    1,256,626

     

     

    $

    1,353,339

     

    Non-controlling interest in New Mountain Net Lease Corporation

     

    6,040

     

     

     

    5,952

     

    Total net assets

    $

    1,262,666

     

     

    $

    1,359,291

     

    Total liabilities and net assets

    $

    3,088,909

     

     

    $

    3,246,701

     

    Number of shares outstanding

     

    104,189,336

     

     

     

    107,851,415

     

    Net asset value per share of New Mountain Finance Corporation

    $

    12.06

     

     

    $

    12.55

     

    New Mountain Finance Corporation

    Consolidated Statements of Operations

    (in thousands, except shares and per share data)

    (unaudited)

     

     

    Three Months Ended

    Nine Months Ended

     

    September 30, 2025

     

    September 30, 2024

     

    September 30, 2025

     

    September 30, 2024

    Investment income

     

     

     

     

     

     

     

    From non-controlled/non-affiliated investments:

     

     

     

     

     

     

     

    Interest income (excluding Payment-in-kind ("PIK") interest income)

    $

    49,811

     

     

    $

    61,788

     

     

    $

    155,508

     

     

    $

    175,608

     

    PIK interest income

     

    2,968

     

     

     

    4,340

     

     

     

    8,812

     

     

     

    13,460

     

    Dividend income

     

    179

     

     

     

    185

     

     

     

    1,242

     

     

     

    2,762

     

    Non-cash dividend income

     

    4,026

     

     

     

    5,077

     

     

     

    12,432

     

     

     

    14,558

     

    Other income

     

    1,436

     

     

     

    1,454

     

     

     

    3,640

     

     

     

    6,345

     

    From non-controlled/affiliated investments:

     

     

     

     

     

     

     

    Interest income (excluding PIK interest income)

     

    322

     

     

     

    349

     

     

     

    989

     

     

     

    1,093

     

    PIK interest income

     

    1,132

     

     

     

    971

     

     

     

    3,176

     

     

     

    2,680

     

    Non-cash dividend income

     

    304

     

     

     

    1,593

     

     

     

    2,279

     

     

     

    4,211

     

    Other income

     

    63

     

     

     

    63

     

     

     

    188

     

     

     

    188

     

    From controlled investments:

     

     

     

     

     

     

     

    Interest income (excluding PIK interest income)

     

    1,665

     

     

     

    1,651

     

     

     

    5,172

     

     

     

    4,395

     

    PIK interest income

     

    3,505

     

     

     

    3,739

     

     

     

    10,093

     

     

     

    11,595

     

    Dividend income

     

    11,818

     

     

     

    11,789

     

     

     

    36,199

     

     

     

    36,812

     

    Non-cash dividend income

     

    2,925

     

     

     

    1,649

     

     

     

    7,374

     

     

     

    4,715

     

    Other income

     

    375

     

     

     

    679

     

     

     

    2,578

     

     

     

    2,049

     

    Total investment income

     

    80,529

     

     

     

    95,327

     

     

     

    249,682

     

     

     

    280,471

     

    Expenses

     

     

     

     

     

     

     

    Interest and other financing expenses

     

    31,720

     

     

     

    37,661

     

     

     

    94,232

     

     

     

    101,790

     

    Management fee

     

    9,619

     

     

     

    11,700

     

     

     

    29,611

     

     

     

    34,048

     

    Incentive fee

     

    7,345

     

     

     

    8,821

     

     

     

    23,563

     

     

     

    27,760

     

    Professional fees

     

    924

     

     

     

    1,019

     

     

     

    3,413

     

     

     

    3,213

     

    Administrative expenses

     

    916

     

     

     

    1,059

     

     

     

    3,204

     

     

     

    3,135

     

    Other general and administrative expenses

     

    478

     

     

     

    531

     

     

     

    1,325

     

     

     

    1,523

     

    Total expenses

     

    51,002

     

     

     

    60,791

     

     

     

    155,348

     

     

     

    171,469

     

    Less: management and incentive fees waived

     

    (4,544

    )

     

     

    (970

    )

     

     

    (8,952

    )

     

     

    (2,732

    )

    Net expenses

     

    46,458

     

     

     

    59,821

     

     

     

    146,396

     

     

     

    168,737

     

    Net investment income before income taxes

     

    34,071

     

     

     

    35,506

     

     

     

    103,286

     

     

     

    111,734

     

    Income tax expense

     

    29

     

     

     

    118

     

     

     

    18

     

     

     

    353

     

    Net investment income

     

    34,042

     

     

     

    35,388

     

     

     

    103,268

     

     

     

    111,381

     

    Net realized (losses) gains:

     

     

     

     

     

     

     

    Non-controlled/non-affiliated investments

     

    8

     

     

     

    (75

    )

     

     

    12,324

     

     

     

    (46,899

    )

    Controlled investments

     

    1

     

     

     

    (456

    )

     

     

    38,899

     

     

     

    3,375

     

    Foreign currency

     

    —

     

     

     

    (1,455

    )

     

     

    —

     

     

     

    (1,455

    )

    Net change in unrealized appreciation (depreciation):

     

     

     

     

     

     

     

    Non-controlled/non-affiliated investments

     

    (8,977

    )

     

     

    419

     

     

     

    (33,783

    )

     

     

    56,474

     

    Non-controlled/affiliated investments

     

    (9,736

    )

     

     

    (7,853

    )

     

     

    (23,555

    )

     

     

    (34,396

    )

    Controlled investments

     

    (2,851

    )

     

     

    (4,260

    )

     

     

    (53,833

    )

     

     

    (243

    )

    Securities purchased under collateralized

     

    —

     

     

     

    —

     

     

     

    —

     

     

     

    (3,000

    )

    New Mountain Net Lease Corporation

     

    —

     

     

     

    1,533

     

     

     

    —

     

     

     

    1,533

     

    Foreign currency

     

    (120

    )

     

     

    1,690

     

     

     

    482

     

     

     

    1,796

     

    Provision for taxes

     

    (25

    )

     

     

    (1,037

    )

     

     

    (68

    )

     

     

    (1,804

    )

    Net realized and unrealized losses

     

    (21,700

    )

     

     

    (11,494

    )

     

     

    (59,534

    )

     

     

    (24,619

    )

    Net increase in net assets resulting from operations

     

    12,342

     

     

     

    23,894

     

     

     

    43,734

     

     

     

    86,762

     

    Less: Net increase in net assets resulting from operations related to non-controlling interest in New Mountain Net Lease Corporation

     

    (153

    )

     

     

    (5

    )

     

     

    (358

    )

     

     

    (994

    )

    Net increase in net assets resulting from operations related to New Mountain Finance Corporation

    $

    12,189

     

     

    $

    23,889

     

     

    $

    43,376

     

     

    $

    85,768

     

    Basic earnings per share

    $

    0.11

     

     

    $

    0.22

     

     

    $

    0.40

     

     

    $

    0.81

     

    Weighted average shares of common stock outstanding - basic

     

    106,016,542

     

     

     

    107,851,415

     

     

     

    107,199,318

     

     

     

    106,140,789

     

    Diluted earnings per share

    $

    0.11

     

     

    $

    0.22

     

     

    $

    0.40

     

     

    $

    0.78

     

    Weighted average shares of common stock outstanding - diluted

     

    125,036,696

     

     

     

    126,779,819

     

     

     

    126,201,036

     

     

     

    125,000,872

     

    Distributions declared and paid per share

    $

    0.32

     

     

    $

    0.34

     

     

    $

    0.96

     

     

    $

    1.04

     

    ABOUT NEW MOUNTAIN FINANCE CORPORATION

    New Mountain Finance Corporation (NASDAQ:NMFC) is focused on providing direct lending solutions to U.S. upper middle market companies backed by top private equity sponsors. Our investment objective is to generate current income and capital appreciation through the sourcing and origination of senior secured loans and select junior capital positions, to growing businesses in defensive industries that offer attractive risk-adjusted returns. Our differentiated investment approach leverages the deep sector knowledge and operating resources of New Mountain Capital, a global investment firm with approximately $60 billion of assets under management.

    ABOUT NEW MOUNTAIN CAPITAL

    New Mountain Capital ("NMC") is a New York-based investment firm that emphasizes business building and growth, rather than debt, as it pursues long-term capital appreciation. The firm currently manages private equity, credit and net lease investment strategies with approximately $60 billion in assets under management. New Mountain seeks out what it believes to be the highest quality growth leaders in carefully selected industry sectors and then works intensively with management to build the value of these companies. For more information on New Mountain Capital, please visit http://www.newmountaincapital.com.

    FORWARD-LOOKING STATEMENTS

    Statements included herein may contain "forward-looking statements", which relate to our future operations, future performance or our financial condition. Forward-looking statements are not guarantees of future performance, condition or results and involve a number of risks and uncertainties, including changes in base interest rates and significant volatility on our business, portfolio companies, our industry and the global economy. Actual results and outcomes may differ materially from those anticipated in the forward-looking statements as a result of a variety of factors, including those described from time to time in our filings with the Securities and Exchange Commission or factors that are beyond our control. New Mountain Finance Corporation undertakes no obligation to publicly update or revise any forward-looking statements made herein, except as may be required by law. All forward-looking statements speak only as of the time of this press release.

    View source version on businesswire.com: https://www.businesswire.com/news/home/20251103154120/en/

    New Mountain Finance Corporation

    Investor Relations

    Laura C. Holson, Authorized Representative

    [email protected]

    (212) 220-3505

    Get the next $NMFC alert in real time by email

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