New Mountain Finance : Announces Financial Results for the Quarter Ended March 31, 2026 chevron right

Published: 2026-05-04 17:09:56 ET NMFC

Published on 05/04/2026 at 05:09 pm EDT

May 4, 2026

Reports First Quarter Adjusted Net Investment Income1 of $0.32 per Share and Declares a Second 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 March 31, 2026.

2026, to holders of record as of June 16, 2026

($ in millions, except per share data)

Q1 2026

Q1 2025

Net Investment Income per Weighted Average Share

$ 0.30

$ 0.32

Non-recurring Adjustments1

0.02

-

Net Adjusted Investment Income1 per Weighted Average Share

$ 0.32

$ 0.32

Regular Dividends Paid per Share in Quarter

$ 0.32

$ 0.32

Annualized Dividend Yield3

11.6%

12.8%

March 31,

2026

December 31,

2025

Investment Portfolio4

$ 2,319.1

$ 2,755.5

NAV per Share

$ 10.92

$ 11.52

Statutory Debt/Equity5

1.12x

1.26x

Statutory Debt/Equity (Net of Available Cash)5

1.08x

1.21x

"In the first quarter, NMFC delivered stable earnings and completed the ~$470 million portfolio sale," said Steven B. Klinsky, NMFC's Chairman and New Mountain Capital CEO. "We are using the proceeds from the sale to de-lever the balance sheet, buy back stock at a significant discount to book value and reinvest into attractive new investments in the primary and secondary market."

John R. Kline, NMFC CEO, added: "NMFC continued to enhance the portfolio quality in the first quarter, materially reducing PIK exposure and improving diversification and asset mix. Excluding the impact from the portfolio sale, NMFC's book value declined modestly in the quarter, primarily reflecting broader market movements in software and technology-oriented loans impacting the BDC sector. We remain focused on further portfolio enhancements throughout the balance of the year."

As of March 31, 2026, the Company's NAV2 was $1,043.5 million and its portfolio had a fair value of $2,319.1 million of investments in 115 portfolio companies, with a weighted average YTM at Cost6 of approximately 11.1%. For the three months ended March 31, 2026, the

Company originated $117.1 million of investments7, offset by $47.1 million of repayments7 and $444.9 million of sales (primarily related to the Secondary Sale).

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.

Business Services

Healthcare

Utility & Data Center Services

6.8%

Healthcare

Services

9.0%

Real Estate Services

4.5%

Healthcare

IT & Tech-Enabled Services

6.5%

Insurance & Benefits Services

3.7%

Healthcare

Products

3.2%

Misc Services

2.3%

Pharma Services 1.8%

Compliance Services

1.8%

Total Healthcare 20.5%

Digital Transformation

1.7%

Data & Information Services

1.4%

Financial Services & Technology

Field Services

1.3%

Financial Services

3.7%

Engineering & Consulting Services

0.9%

Integrated Payments

2.0%

Total Business Services 24.4% Financial Technology 1.4%

Software

ERP 7.1% Other Industries

IT Infrastructure & Security

4.7%

Consumer Services

7.2%

Finance & Accounting

4.4%

Education

6.1%

Human Capital Management

2.3%

Distribution & Logistics

5.4%

Commerce & Supply Chain

0.7%

Packaging

4.2%

Governance, Risk & Compliance 0.2% Other 5.7%

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 March 31, 2026:

Green9

$ 2,217.7

86.8%

$ 2,117.0

91.4%

96.2%

Yellow4

177.0

6.9%

119.5

5.1%

67.6%

Orange

145.5

5.7%

72.5

3.1%

57.5%

Red

15.4

0.6%

10.1

0.4%

65.1%

Total

$ 2,555.6

100.0%

$ 2,319.1

100.0%

As of March 31, 2026, nearly all investments in the Company's portfolio had a Green Risk Rating, with the exception of eight portfolio companies that had a Yellow Risk Rating, nine 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 March 31, 2026:

(in millions)

Investment Portfolio Composition

March 31, 2026

Percent of Total

First Lien

$ 1,498.7

64.7%

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

385.8

16.6%

Second Lien4

86.6

3.7%

Subordinated

93.4

4.0%

Preferred Equity

153.4

6.6%

Common Equity and Other10 101.1 4.4%

Total

$

2,319.1

100.0%

As of March 31, 2026, the Company had cash and cash equivalents of $51.1 million and total statutory debt outstanding of $1,172.7 million5. The Company's statutory debt to equity was 1.12x (or 1.08x net of available cash) as of March 31, 2026. Additionally, the

Company's wholly-owned SBIC subsidiaries had $169.3 million of SBA-guaranteed

debentures outstanding as of March 31, 2026. As of March 31, 2026, the Company had

$692.1 million of available capacity on its Holdings Credit Facility, NMFC Credit Facility and Unsecured Management Company Revolver.

New Mountain Finance Corporation will host an earnings conference call and webcast at 10:00 am Eastern Time on Tuesday, May 5, 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.

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 March 31, 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.

Adjusted net investment income for Q1 2026 includes $1.6 million of accelerated deferred financing costs related to the commitment decrease of the Holdings Credit Facility and the partial repayment of the SBIC II SBA-guaranteed debentures for

$1.5 million and $0.1 million, respectively.

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

The Q1 2026 dividend yield calculation uses the closing stock price of $8.60 on May 1, 2026 and includes annualized dividends of

$0.25 per share, to be paid in Q2 2026. The Q1 2025 dividend yield calculation uses the closing stock price of $9.97 on May 2, 2025 and includes annualized dividends of $0.32 per share, which were paid in Q2 2025.

Includes collateral for securities purchased under collateralized agreements to resell.

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

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.

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

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

Includes investments held in NMNLC.

Includes investments classified as structured finance obligations.

On March 10, 2026, the Company completed the previously announced sale of approximately $470.0 million of assets at 94% of the fair value of such assets as of December 31, 2025.

Disclaimer

New Mountain Finance Corporation published this content on May 04, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 04, 2026 at 21:01 UTC.