Skip to main content

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

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.

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.

Contacts

Recent Quotes

View More
Symbol Price Change (%)
AMZN  250.87
-3.13 (-1.23%)
AAPL  270.51
+1.46 (0.54%)
AMD  254.34
-5.31 (-2.05%)
BAC  53.53
-0.03 (-0.06%)
GOOG  277.96
-6.16 (-2.17%)
META  629.82
-7.89 (-1.24%)
MSFT  512.68
-4.35 (-0.84%)
NVDA  200.90
-5.98 (-2.89%)
ORCL  249.79
-8.06 (-3.13%)
TSLA  450.74
-17.63 (-3.76%)
Stock Quote API & Stock News API supplied by www.cloudquote.io
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the Privacy Policy and Terms Of Service.