NMFC New Mountain Finance Corporation

NASDAQ
$7.73

New Mountain Finance Corporation Announces Financial Results for the Quarter Ended June 30, 2026

Monday, August 3, 2026 · 4:15 PM ET Business Wire

Reports Second Quarter Adjusted Net Investment Income1 of $0.26 per Share and Declares a Third Quarter Distribution of $0.25 per Share

NEW YORK--(BUSINESS WIRE)--New Mountain Finance Corporation (NASDAQ: NMFC) (“New Mountain,” “New Mountain Finance” or the “Company”) today announced its financial results for the quarter ended June 30, 2026.

Second Quarter and Recent Highlights2

  • Adjusted net investment income1 of $24.7 million, or $0.26 per weighted average share
  • Net asset value of $10.89 per share compared to $10.92 per share as of March 31, 2026
  • Declared a third quarter 2026 distribution of $0.25 per share, payable on September 30, 2026, to holders of record as of September 16, 2026
  • Non-accruals decreased from 2.6% of fair value in Q1 to 1.5% for Q2; ~88% of the portfolio is rated green on our internal heatmap
  • Extended the maturity date of the NMFC Credit Facility to July 2031

($ in millions, except per share data)

 

Q2 2026

 

Q2 2025

Net Investment Income per Weighted Average Share

 

$

0.26

 

 

$

0.32

 

Non-recurring Adjustments1

 

 

0.00

 

 

 

—

 

Net Adjusted Investment Income1 per Weighted Average Share

 

$

0.26

 

 

$

0.32

 

Regular Dividends Paid per Share in Quarter

 

$

0.25

 

 

$

0.32

 

Annualized Dividend Yield3

 

 

14.5

%

 

 

12.3

%

 

 

June 30, 2026

 

March 31, 2026

Investment Portfolio4

 

$

2,295.5

 

$

2,319.1

NAV per Share

 

$

10.89

 

$

10.92

Statutory Debt/Equity5

 

1.16x

 

1.12x

Statutory Debt/Equity (Net of Available Cash)5

 

1.11x

 

1.08x

Management Comments on Second Quarter Performance

"Our second quarter results reflect stable NAV and solid credit performance across the portfolio," said Steven B. Klinsky, NMFC Chairman and New Mountain Capital CEO. "We believe NMFC remains undervalued, with a dividend yield of 15% based on Friday's closing share price. Our insider ownership now represents 18% of shares outstanding, demonstrating our confidence in the Company’s long-term value."

John R. Kline, NMFC CEO, added: "During the second quarter, NMFC improved its portfolio composition through a reduction in non-accruals. Looking ahead, we remain focused on our strategic priorities which include selling certain equity positions, reducing PIK income and increasing portfolio diversification."

Portfolio and Investment Activity4

As of June 30, 2026, the Company’s NAV2 was $1,028.2 million and its portfolio had a fair value of $2,295.5 million of investments in 113 portfolio companies, with a weighted average YTM at Cost6 of approximately 11.1%. For the three months ended June 30, 2026, the Company originated $73.3 million of investments7, offset by $61.0 million of repayments7 and $43.4 million of sales.

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

Business Services

 

Healthcare

Utility & Data Center Services

7.0

%

 

Healthcare Services

9.1

%

Real Estate Services

4.6

%

 

Healthcare IT & Tech-Enabled Services

6.3

%

Insurance & Benefits Services

4.5

%

 

Healthcare Products

2.2

%

Misc Services

2.3

%

 

Pharma Services

1.7

%

Digital Transformation

1.6

%

 

Total Healthcare

19.3

%

Field Services

1.4

%

 

 

 

 

Data & Information Services

1.4

%

 

Financial Services & Technology

 

Compliance Services

1.4

%

 

Financial Services

3.3

%

Engineering & Consulting Services

0.9

%

 

Integrated Payments

2.3

%

Total Business Services

25.1

%

 

Financial Technology

1.4

%

 

 

 

 

Total Financial Services & Technology

7.0

%

Software

 

 

 

ERP

7.1

%

 

Other Industries

 

IT Infrastructure & Security

4.7

%

 

Consumer Services

7.3

%

Finance & Accounting

4.7

%

 

Education

6.2

%

Human Capital Management

2.3

%

 

Distribution & Logistics

5.2

%

Commerce & Supply Chain

0.8

%

 

Packaging

4.7

%

Governance, Risk & Compliance

0.2

%

 

Other

5.4

%

Total Software

19.8

%

 

Total Other Industries

28.8

%

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 June 30, 2026:

(in millions)

As of June 30, 2026

Risk Rating

 

Cost

 

Percent

 

Fair Value

 

Percent

 

Weighted Average Mark

Green9

 

$

2,090.6

 

83.8

%

 

$

2,010.5

 

87.6

%

 

97.9

%

Yellow4

 

 

308.8

 

12.4

%

 

 

233.9

 

10.2

%

 

68.9

%

Orange

 

 

79.8

 

3.2

%

 

 

49.2

 

2.1

%

 

71.3

%

Red

 

 

15.2

 

0.6

%

 

 

1.9

 

0.1

%

 

12.5

%

Total

 

$

2,494.4

 

100.0

%

 

$

2,295.5

 

100.0

%

 

 

As of June 30, 2026, most of the investments in the Company’s portfolio had a Green Risk Rating, with the exception of thirteen portfolio companies that had a Yellow Risk Rating, seven portfolio companies that had an Orange Risk Rating and one portfolio company had a Red Risk Rating.

The following table shows the Company’s investment portfolio composition as of June 30, 2026:

(in millions)

 

 

 

 

Investment Portfolio Composition

 

June 30, 2026

 

Percent of Total

First Lien

 

$

1,453.6

 

63.3

%

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

 

 

384.8

 

16.8

%

Second Lien

 

 

74.3

 

3.2

%

Subordinated

 

 

98.4

 

4.3

%

Preferred Equity

 

 

155.9

 

6.8

%

Common Equity and Other10

 

 

128.5

 

5.6

%

Total

 

$

2,295.5

 

100.0

%

Liquidity and Capital Resources

As of June 30, 2026, the Company had cash and cash equivalents of $64.8 million and total statutory debt outstanding of $1,192.5 million5. The Company's statutory debt to equity was 1.16x (or 1.11x net of available cash) as of June 30, 2026. Additionally, the Company's wholly-owned SBIC subsidiaries had $169.3 million of SBA-guaranteed debentures outstanding as of June 30, 2026. As of June 30, 2026, the Company had $668.5 million of available capacity on its Holdings Credit Facility, NMFC Credit Facility and Unsecured Management Company Revolver.

Second Quarter 2026 Conference Call

New Mountain Finance Corporation will host an earnings conference call and webcast at 10:30 am Eastern Time on Tuesday, August 4, 2026. 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 (646) 769-9200
  • International: (800) 330-6710
  • Access Code: 1670693
  • Live Audio Webcast

A replay of the conference call will be available for one year following the call. To access the earnings webcast replay please visit the New Mountain Investor Relations website.

For additional details related to the quarter ended June 30, 2026, 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)

Adjusted net investment income for Q2 2026 includes $0.2 million of accelerated deferred financing costs related to the commitment decrease of the Holdings Credit Facility.

(2)

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

(3)

The Q2 2026 dividend yield calculation uses the closing stock price of $6.89 on July 31, 2026 and includes annualized dividends of $0.25 per share, to be paid in Q3 2026. The Q2 2025 dividend yield calculation uses the closing stock price of $10.42 on August 1, 2025 and includes annualized dividends of $0.32 per share, which were paid in Q3 2025.

(4)

Includes claim related to the 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 and claim related to the collateralized agreement to resell.

New Mountain Finance Corporation

Consolidated Statements of Assets and Liabilities

(in thousands, except shares and per share data)

(unaudited)

 

 

June 30, 2026

 

December 31, 2025

Assets

 

 

 

Investments at fair value

 

 

 

Non-controlled/non-affiliated investments (cost of $1,680,189 and $2,060,391, respectively)

$

1,589,609

 

 

$

2,002,306

 

Non-controlled/affiliated investments (cost of $134,340 and $131,221, respectively)

 

69,953

 

 

 

60,702

 

Controlled investments (cost of $649,899 and $720,503, respectively)

 

630,243

 

 

 

679,005

 

Total investments at fair value (cost of $2,464,428 and $2,912,115, respectively)

 

2,289,805

 

 

 

2,742,013

 

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

 

5,700

 

 

 

13,500

 

Cash and cash equivalents

 

64,799

 

 

 

80,718

 

Interest and dividend receivable

 

33,600

 

 

 

38,549

 

Receivable from affiliates

 

182

 

 

 

381

 

Derivative asset at fair value

 

34

 

 

 

5,647

 

Receivable from unsettled securities sold

 

—

 

 

 

4,138

 

Other assets

 

21,333

 

 

 

17,907

 

Total assets

$

2,415,453

 

 

$

2,902,853

 

Liabilities

 

 

 

Borrowings

 

 

 

Unsecured Notes

$

784,045

 

 

$

991,585

 

Holdings Credit Facility

 

378,146

 

 

 

420,063

 

SBA-guaranteed debentures

 

169,255

 

 

 

196,205

 

NMFC Credit Facility

 

30,356

 

 

 

81,074

 

Deferred financing costs (net of accumulated amortization of $48,929 and $45,302, respectively)

 

(15,416

)

 

 

(17,875

)

Net borrowings

 

1,346,386

 

 

 

1,671,052

 

Payable to broker

 

7,490

 

 

 

14,630

 

Management fee payable

 

7,414

 

 

 

9,176

 

Interest payable

 

7,395

 

 

 

11,892

 

Incentive fee payable

 

4,324

 

 

 

3,018

 

Derivative liability at fair value

 

2,968

 

 

 

366

 

Deferred tax liability

 

1,670

 

 

 

1,819

 

Payable for unsettled securities purchased

 

313

 

 

 

463

 

Other liabilities

 

2,678

 

 

 

2,181

 

Total liabilities

 

1,380,638

 

 

 

1,714,597

 

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 107,851,929 shares issued, respectively, and 94,452,390 and 102,638,388 shares outstanding, respectively

 

1,079

 

 

 

1,079

 

Paid in capital in excess of par

 

1,354,726

 

 

 

1,354,726

 

Treasury stock at cost, 13,399,539 and 5,213,541 shares held, respectively

 

(117,515

)

 

 

(51,952

)

Accumulated overdistributed earnings

 

(210,109

)

 

 

(121,676

)

Total net assets of New Mountain Finance Corporation

$

1,028,181

 

 

$

1,182,177

 

Non-controlling interest in New Mountain Net Lease Corporation

 

6,634

 

 

 

6,079

 

Total net assets

$

1,034,815

 

 

$

1,188,256

 

Total liabilities and net assets

$

2,415,453

 

 

$

2,902,853

 

Number of shares outstanding

 

94,452,390

 

 

 

102,638,388

 

Net asset value per share of New Mountain Finance Corporation

$

10.89

 

 

$

11.52

 

New Mountain Finance Corporation

Consolidated Statements of Operations

(in thousands, except shares and per share data)

(unaudited)

 

 

Three Months Ended

 

Six Months Ended

 

June 30, 2026

 

June 30, 2025

 

June 30, 2026

 

June 30, 2025

Investment income

 

 

 

 

 

 

 

From non-controlled/non-affiliated investments:

 

 

 

 

 

 

 

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

$

35,949

 

 

$

53,584

 

 

$

75,198

 

 

$

105,697

 

PIK interest income

 

2,532

 

 

 

2,931

 

 

 

4,895

 

 

 

5,844

 

Dividend income

 

352

 

 

 

506

 

 

 

2,157

 

 

 

1,063

 

Non-cash dividend income

 

835

 

 

 

3,972

 

 

 

2,192

 

 

 

8,406

 

Other income

 

1,673

 

 

 

892

 

 

 

3,019

 

 

 

2,204

 

From non-controlled/affiliated investments:

 

 

 

 

 

 

 

Interest income (excluding PIK interest income)

 

320

 

 

 

336

 

 

 

635

 

 

 

667

 

PIK interest income

 

1,256

 

 

 

1,057

 

 

 

2,444

 

 

 

2,044

 

Non-cash dividend income

 

661

 

 

 

292

 

 

 

1,401

 

 

 

1,975

 

Other income

 

62

 

 

 

62

 

 

 

125

 

 

 

125

 

From controlled investments:

 

 

 

 

 

 

 

Interest income (excluding PIK interest income)

 

1,645

 

 

 

2,022

 

 

 

4,917

 

 

 

3,507

 

PIK interest income

 

1,627

 

 

 

2,900

 

 

 

3,213

 

 

 

6,588

 

Dividend income

 

10,703

 

 

 

12,183

 

 

 

22,614

 

 

 

24,381

 

Non-cash dividend income

 

3,386

 

 

 

2,378

 

 

 

6,610

 

 

 

4,449

 

Other income

 

474

 

 

 

375

 

 

 

849

 

 

 

2,203

 

Total investment income

 

61,475

 

 

 

83,490

 

 

 

130,269

 

 

 

169,153

 

Expenses

 

 

 

 

 

 

 

Interest and other financing expenses

 

22,454

 

 

 

31,138

 

 

 

49,978

 

 

 

62,512

 

Management fee

 

7,414

 

 

 

9,759

 

 

 

15,568

 

 

 

19,992

 

Incentive fee

 

5,766

 

 

 

7,971

 

 

 

11,869

 

 

 

16,218

 

Professional fees

 

1,056

 

 

 

1,100

 

 

 

2,084

 

 

 

2,489

 

Administrative expenses

 

970

 

 

 

1,184

 

 

 

1,965

 

 

 

2,288

 

Other general and administrative expenses

 

616

 

 

 

331

 

 

 

1,074

 

 

 

847

 

Total expenses

 

38,276

 

 

 

51,483

 

 

 

82,538

 

 

 

104,346

 

Less: management and incentive fees waived

 

(1,442

)

 

 

(2,586

)

 

 

(7,545

)

 

 

(4,408

)

Net expenses

 

36,834

 

 

 

48,897

 

 

 

74,993

 

 

 

99,938

 

Net investment income before income taxes

 

24,641

 

 

 

34,593

 

 

 

55,276

 

 

 

69,215

 

Income tax expense (benefit)

 

19

 

 

 

8

 

 

 

23

 

 

 

(11

)

Net investment income

 

24,622

 

 

 

34,585

 

 

 

55,253

 

 

 

69,226

 

Net realized (losses) gains:

 

 

 

 

 

 

 

Non-controlled/non-affiliated investments

 

(32,111

)

 

 

13,390

 

 

 

(58,403

)

 

 

12,316

 

Controlled investments

 

(12,873

)

 

 

(1

)

 

 

(18,591

)

 

 

38,898

 

Net change in unrealized appreciation (depreciation):

 

 

 

 

 

 

 

Non-controlled/non-affiliated investments

 

14,528

 

 

 

(29,012

)

 

 

(31,709

)

 

 

(24,806

)

Non-controlled/affiliated investments

 

2,653

 

 

 

(8,928

)

 

 

6,132

 

 

 

(13,819

)

Controlled investments

 

20,641

 

 

 

(2,590

)

 

 

21,842

 

 

 

(50,982

)

Securities purchased under collateralized agreements to resell

 

—

 

 

 

—

 

 

 

(7,800

)

 

 

—

 

Foreign currency

 

(6

)

 

 

452

 

 

 

(106

)

 

 

602

 

Benefit (provision) for taxes

 

59

 

 

 

(21

)

 

 

146

 

 

 

(43

)

Net realized and unrealized losses

 

(7,109

)

 

 

(26,710

)

 

 

(88,489

)

 

 

(37,834

)

Net increase (decrease) in net assets resulting from operations

 

17,513

 

 

 

7,875

 

 

 

(33,236

)

 

 

31,392

 

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

 

(256

)

 

 

(101

)

 

 

(435

)

 

 

(205

)

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

$

17,257

 

 

$

7,774

 

 

$

(33,671

)

 

$

31,187

 

Basic earnings (loss) per share

$

0.18

 

 

$

0.07

 

 

$

(0.35

)

 

$

0.29

 

Weighted average shares of common stock outstanding - basic

 

94,551,023

 

 

 

107,750,160

 

 

 

97,497,589

 

 

 

107,800,508

 

Diluted earnings (loss) per share

$

0.18

 

 

$

0.07

 

 

$

(0.35

)

 

$

0.29

 

Weighted average shares of common stock outstanding - diluted

 

94,551,023

 

 

 

126,733,459

 

 

 

97,497,589

 

 

 

126,792,855

 

Distributions declared and paid per share

$

0.25

 

 

$

0.32

 

 

$

0.57

 

 

$

0.64

 

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.newmountainfinance.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.

New Mountain Finance Corporation
Investor Relations
Laura C. Holson, Authorized Representative
NMFCIR@newmountaincapital.com
(212) 220-3505

Source: New Mountain Finance Corporation

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