Financial Data and Key Metrics Changes - Adjusted net investment income for Q4 2025 was $0.32 per share, covering the $0.32 per share dividend paid on December 31 [4][5] - Net asset value (NAV) declined to $11.52 per share from $12.06 per share, primarily due to lower valuation on Edmentum [5][25] - Total investment income for the quarter was $77 million, a 4% decrease compared to the prior quarter [34] Business Line Data and Key Metrics Changes - Approximately 95% of the loan portfolio is ranked green, with no positions rated red [8][24] - PIK income is expected to decrease by 20%-25% as cash proceeds from the asset sale are redeployed [20] - The top five positions now account for 14% of NMFC's portfolio value, down from a higher concentration [19] Market Data and Key Metrics Changes - The company sold approximately $477 million of assets at a price of 94% of the 12/31/2025 marks, which is considered essentially par [12][13] - The secondary sale is expected to improve diversification, with senior-oriented assets now representing 81% of the portfolio, up from 75% [19][32] Company Strategy and Development Direction - The company plans to utilize the full Dividend Protection Program, reducing the performance fee from 20% to 15% until the end of 2026, and intends to maintain this lower fee permanently thereafter [12] - The focus is on redeploying proceeds from the asset sale into first lien assets and potentially buying back stock [41][42] - The company aims to improve earnings and book value through strategic investments and stock buybacks [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the portfolio's quality, with 95% rated green, and highlighted the potential for equity appreciation in companies like UniTek [11][16] - The impact of AI on the market is acknowledged, with a focus on managing risks associated with technological changes [22] - Management believes NMFC shares should trade back towards book value, given the positive factors in the market [11] Other Important Information - The company repurchased approximately $52 million of shares in 2025 and has board authorization to buy an additional $80 million [16] - Nonaccruals remain low at 1.4% of the portfolio at fair value, with expectations for DCA to return to accrual status in Q2 [26] Q&A Session Summary Question: Is the 94% discount inclusive of any advisory fee? - The 94% of par was the purchase price of the assets, with expected fees and expenses around $7 million [41] Question: Did the company try to sell any struggling assets? - The company focused on reducing concentration and PIK income, selling larger positions that were scrutinized by the market [44][46] Question: How were the assets selected and priced? - The sale was a competitive process with multiple bidders, and assets were selected based on concentration and PIK characteristics [50][52] Question: How does the pricing of these assets relate to internal marks? - The sale was seen as fair for both sides, validating internal marks while improving portfolio composition [60]

New Mountain Finance (NasdaqGS:NMFC) Q4 2025 Earnings call February 25, 2026 11:30 AM ET Company ParticipantsEthan Kaye - VP of Equity ResearchFinian O'Shea - Director of WFS ResearchJohn Kline - President and CEOKris Corbett - CFO and TreasurerLaura Holson - COOSteven Klinsky - ChairmanOperatorGood day, and welcome to the New Mountain Finance Corporation Fourth Quarter 2025 Earnings Call. All participants will be in a listen-only mode. Should you need assistance, please signal a conference specialist by pr ...

Financial Data and Key Metrics Changes - Adjusted net investment income for Q4 2025 was $0.32 per share, covering the $0.32 per share dividend paid on December 31, 2025 [4] - Net asset value (NAV) declined to $11.52 per share from $12.06 per share, primarily due to lower valuation on Edmentum [5][25] - Total investment income for the quarter was $77 million, a 4% decrease compared to the prior quarter [35] - Total net expenses decreased by 5% to $44 million, including a fee waiver [35] Business Line Data and Key Metrics Changes - Approximately 95% of the loan portfolio is ranked green, with no positions rated red [8][24] - The company sold $477 million of assets, diversifying the portfolio and reducing PIK income [12][18] - Senior-oriented assets now represent 81% of the portfolio, up from 75% in the prior year [19][32] Market Data and Key Metrics Changes - The company expects to see some spread widening and increased pricing dispersion in direct lending [28] - Approximately 41% of pro forma PIK income will be generated by high-performing companies like Benevis and UniTek [20] Company Strategy and Development Direction - The company plans to utilize the full Dividend Protection Program, reducing the incentive fee from 20% to 15% until the end of 2026 [12] - Following the asset sale, the company aims to redeploy proceeds primarily into first lien assets [19][32] - The company is focused on business building and leveraging its expertise in software loans, particularly in the context of AI [10][22] Management's Comments on Operating Environment and Future Outlook - Management believes NMFC shares should trade back towards book value, citing several positive factors [11] - The company acknowledges increased risks related to AI but sees opportunities for well-informed lenders [22] - Management remains optimistic about the potential for equity appreciation in companies like UniTek [16] Other Important Information - The company repurchased approximately $52 million of shares in 2025 and has authorization to buy an additional $80 million [16] - Nonaccruals remain low at 1.4% of the portfolio at fair value [26] Q&A Session Summary Question: Is the 94% discount on the asset sale inclusive of any advisory fees? - The 94% of par was the purchase price, with expected fees and expenses of about $7 million [41] Question: Did the company try to sell any struggling assets? - The company focused on reducing concentration and PIK income, selling larger positions that were scrutinized by the market [44][45] Question: How were the assets selected for the sale? - The assets were chosen based on concentration and PIK characteristics, aiming to improve portfolio composition [51][52] Question: How does the pricing of the assets compare to internal marks? - The sale was seen as fair for both sides, validating internal marks while reducing concentration [61]

Earnings Presentation Q4 2025 February 25, 2026 14 Important Notices and Safe Harbor Statement Throughout the document, Senior Advisors are included in all references to staff members, team members, investment professionals or operating partners/executives unless stated otherwise. Generally, New Mountain Senior Advisors are similar to "Operating Partners" who provide general or specific industry expertise on particular projects or transactions. All persons listed in the Senior Advisors (Full Access) categor ...

New Mountain Finance (NMFC) came out with quarterly earnings of $0.32 per share, in line with the Zacks Consensus Estimate . This compares to earnings of $0.32 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +1.59%. A quarter ago, it was expected that this business development company would post earnings of $0.32 per share when it actually produced earnings of $0.32, delivering no surprise.Over the last four quarters, the comp ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _________________________________________________________________________________ FORM 10-K ý Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the fiscal year ended December 31, 2025 o Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Exact name of registrant as specified in its charter, addresses of principal executive offices, telephone nu ...

Financial Performance - Fourth quarter net investment income was $33.0 million, or $0.32 per weighted average share, consistent with Q4 2024[2] - Total investment income for 2025 was $327,084,000, a decrease of 11.97% from $371,666,000 in 2024[18] - Net investment income before income taxes for 2025 was $136,379,000, down from $146,222,000 in 2024, reflecting a decline of 5.79%[18] - Net increase in net assets resulting from operations for New Mountain Finance Corporation was $16,488,000 in 2025, compared to $113,443,000 in 2024, a decrease of 85.48%[19] - Basic earnings per share for 2025 was $0.16, significantly lower than $1.06 in 2024, representing a decline of 84.96%[19] Asset and Liability Management - Total assets decreased to $2,902,853,000 in 2025 from $3,246,701,000 in 2024, a reduction of 10.59%[16] - Total liabilities decreased to $1,714,597,000 in 2025 from $1,887,410,000 in 2024, a decline of 9.15%[16] - Net asset value per share decreased to $11.52 in 2025 from $12.55 in 2024, a decrease of 8.22%[16] Investment Portfolio - The investment portfolio's fair value decreased to $2,755.5 million from $2,957.1 million as of September 30, 2025[2] - The investment portfolio composition included 66.0% in first lien investments, 14.1% in senior loan funds, and 8.4% in preferred equity[8] - Approximately 95% of the portfolio is rated green, indicating strong performance[4] Dividend Policy - The annualized dividend yield increased to 15.7% from 10.7% year-over-year[2] - The company plans to reduce the dividend to $0.25 per share starting in Q2 2026, reflecting a pro forma yield of approximately 12% at the current stock price[4] Cash and Debt Position - As of December 31, 2025, the company had cash and cash equivalents of $80.7 million and total statutory debt of $1,492.7 million, resulting in a debt-to-equity ratio of 1.26x[9] Share Repurchase - The company repurchased $30 million worth of shares since the end of Q3 2025, with plans for continued repurchases in 2026[3] Management Fees - Management fees for 2025 were $38,787,000, down from $45,522,000 in 2024, a decrease of 14.06%[18] Company Overview - New Mountain Finance Corporation focuses on providing direct lending solutions to U.S. upper middle market companies, with approximately $60 billion in assets under management[20]

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 and year ended December 31, 2025. 1Fourth Quarter and Recent Highlights | ($ in millions, except per share data) | Q4 2025 | | Q4 2024 | | | | --- | --- | --- | --- | --- | --- | | Net Investment Income per Weighted Average Share | $ | 0.32 | | $ | 0.32 | | Regular & Supplemental Dividends Paid per Share in Quarter | $ | 0. ...

Group 1 - New Mountain Finance (NMFC) shares increased by 5% to close at $8.58, following a period of 10.7% loss over the past four weeks, indicating a significant recovery in trading volume [1] - The rise in NMFC shares is attributed to positive market sentiment driven by U.S. Small Business Administration reforms, which aim to reduce regulatory barriers and encourage private capital investment in critical industries, thereby enhancing lending activity for SBIC-focused companies [2] - NMFC is expected to report quarterly earnings of $0.32 per share, unchanged from the previous year, while revenues are projected to decline by 13.6% to $78.84 million [3] Group 2 - The consensus EPS estimate for NMFC has remained stable over the last 30 days, suggesting that stock price movements may not sustain without trends in earnings estimate revisions [4] - NMFC holds a Zacks Rank of 3 (Hold), indicating a neutral outlook, while another company in the same industry, Nuveen Churchill Direct Lending Corp. (NCDL), also holds a Zacks Rank of 3 and has seen a 2.8% return over the past month [4][5]

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