New Mountain Finance (NASDAQ: NMFC) posts Q4 NII $0.32 and plans dividend cut

Filing Impact

(Moderate)

Filing Sentiment

(Neutral)

Form Type

8-K

Rhea-AI Filing Summary

New Mountain Finance Corporation reported fourth-quarter 2025 net investment income of $33.0 million, or $0.32 per share, fully covering its $0.32 quarterly distribution. Net asset value per share declined to $11.52 from $12.06 as of September 30, 2025.

The company signed a definitive agreement to sell $477 million of assets at 94% of December 31, 2025 fair value to diversify the portfolio, reduce payment-in-kind income and enhance financial flexibility. Management also plans to permanently reduce NMFC’s incentive fee to 15% over an 8% hurdle.

NMFC declared a first-quarter 2026 distribution of $0.32 per share, payable March 31, 2026, to holders of record on March 17, 2026, but expects to reduce the dividend to $0.25 per share starting in Q2 2026 as base rates fall and the asset mix becomes more senior-focused.

Positive

Permanent incentive fee reduction: Management plans to reduce NMFC’s incentive fee to 15% over an 8% hurdle at the expiration of the dividend protection program, potentially improving net investment income available to common shareholders over time.
Strategic asset sale above share price: NMFC signed a definitive agreement to sell $477 million of assets at 94% of year-end 2025 fair value to diversify the portfolio, reduce PIK income and enhance financial flexibility, while management notes the sale occurs at valuations meaningfully above where the stock trades.

Negative

NAV decline and weaker profitability: Net asset value per share fell to $11.52 from $12.55 year-over-year, while basic earnings per share dropped to $0.16 from $1.06, indicating significant realized and unrealized losses and reduced overall profitability.
Planned dividend reduction: Although Q4 2025 net investment income covered the $0.32 per share distribution, NMFC expects to lower the dividend to $0.25 per share starting in Q2 2026 in response to lower base rates, tighter spreads and a more senior, lower-yielding asset mix.

Insights

Income remains covered, but NAV erosion and a planned dividend cut signal pressure.

New Mountain Finance Corporation generated Q4 2025 net investment income of $33.0 million, or $0.32 per share, matching its quarterly dividend. However, net asset value per share slipped to $11.52 from $12.06 at September 30, 2025, reflecting realized and unrealized losses over the year.

Management agreed to a $477 million asset sale at 94% of December 31, 2025 fair value to reduce PIK income, improve diversification and add flexibility. They also plan to permanently cut the incentive fee to 15% over an 8% hurdle, aligning economics more closely with shareholders and potentially supporting future net investment income.

The board declared a first-quarter 2026 dividend of $0.32 per share but indicated an expected reduction to $0.25 per share from Q2 2026, given lower base rates, tighter spreads and a more senior, lower-yielding asset mix. Investors may focus on how the asset sale, ongoing share repurchases, leverage at 1.26x statutory debt-to-equity, and fee changes affect NAV stability and the sustainability of the new dividend level in subsequent quarters.

02/24/2026 - 04:28 PM

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of Report (Date of Earliest Event Reported): February 24, 2026

New Mountain Finance Corporation

(Exact name of registrant as specified in its charter)

Delaware

814-00832

27-2978010

(State or other jurisdiction of

incorporation or organization)

(Commission

File Number)

(IRS Employer

Identification Number)

1633 Broadway, 48th Floor, New York, NY 10019

(Address of principal executive offices)(zip code)

Registrant’s telephone number, including area code (212) 720-0300

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):


☐			Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)


☐			Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)


☐			Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))


☐			Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common stock, par value $0.01 per share

NMFC

NASDAQ Global Select Market

8.250% Notes due 2028

NMFCZ

NASDAQ Global Select Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐


Item 2.02.			Results of Operations and Financial Condition

On February 24, 2026, New Mountain Finance Corporation (“NMFC” or the “Company”) issued a press release announcing financial results for its quarter and year ended December 31, 2025. The press release is included as Exhibit 99.1 hereto and incorporated herein by reference.

The information disclosed under this Item 2.02, including Exhibit 99.1 hereto, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, (the “Exchange Act”) or otherwise subject to the liabilities of that section. The information provided herein shall not be deemed incorporated by reference into any filing made under the Securities Act of 1933, as amended, (the “Securities Act”) except as expressly set forth by specific reference in such filing.

Item 7.01. Regulation FD Disclosure

On February 24, 2026, NMFC issued a press release, included herewith as Exhibit 99.1, announcing the declaration of a first quarter 2026 distribution of $0.32 per share, payable on March 31, 2026 to holders of record as of March 17, 2026. Additionally, on February 24, 2026, NMFC made available on its website, http://www.newmountainfinance.com, a supplemental investor presentation with respect to the earnings release.

The information disclosed under this Item 7.01, including Exhibit 99.1 hereto, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Exchange Act, or otherwise subject to the liabilities of that section. The information provided herein shall not be deemed incorporated by reference into any filing made under the Securities Act, except as expressly set forth by specific reference in such filing.


Item 9.01.			Financial Statements and Exhibits.

d) Exhibits.



Exhibit Number						Description

99.1						Press Release, dated February 24, 2026
104						Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this Current Report on Form 8-K to be signed on its behalf by the undersigned hereunto duly authorized.

NEW MOUNTAIN FINANCE CORPORATION

Date: February 24, 2026

By:

/s/ Eric Kane

Name:

Eric Kane

Title:

Corporate Secretary

New Mountain Finance Corporation Announces December 31, 2025 Financial Results

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

NEW YORK--(BUSINESS WIRE) — February 24, 2026 -- 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.

Fourth Quarter and Recent Highlights1

•Net investment income of $33.0 million, or $0.32 per weighted average share

•Net asset value of $11.52 per share compared to $12.06 per share as of September 30, 2025

•Signed a definitive agreement (the "Secondary Sale") to sell $477 million of assets to a third party at 94% of December 31, 2025 fair value for the purposes of increasing portfolio diversification, reducing PIK income and enhancing financial flexibility

•New Mountain plans to permanently reduce NMFC’s incentive fee to 15% over an 8% hurdle at the expiration of the dividend protection program, effectively making the program permanent

•~95% of the portfolio is rated green on our internal heatmap

•Improved asset mix with senior oriented asset mix around 80%, compared to 75% as of December 31, 2024

•Declared a first quarter 2026 distribution of $0.32 per share, payable on March 31, 2026, to holders of record as of March 17, 2026

•Given continued base rate compression, lower market spreads and an increasingly senior asset mix, we expect to reduce the dividend to $0.25 per share, starting in Q2 of 2026, representing a pro forma yield of ~12% at our current stock price and ~9% yield at our estimated book value post Secondary Sale


($ 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	$	0.32		$	0.33
Annualized Dividend Yield2	15.7		%	10.7		%


	December 31, 2025		September 30, 2025
Investment Portfolio3	$	2,755.5	$	2,957.1
NAV per Share	$	11.52	$	12.06
Statutory Debt/Equity4	1.26x		1.26x
Statutory Debt/Equity (Net of Available Cash)4	1.21x		1.23x

Management Comments on Fourth Quarter Performance

“In Q4, NMFC covered its dividend, despite tight credit spreads in the market generally,” said Steven B. Klinsky, NMFC’s Chairman and New Mountain Capital CEO. “We are taking proactive steps to strengthen NMFC, including voluntarily reducing our incentive fees, and completing asset sales at valuations meaningfully above where our stock trades. We remain committed to maintaining credit discipline and serving our shareholders.”

John R. Kline, NMFC CEO, added: “We believe that the $477 million asset sale represents a positive catalyst for our business as we seek to reduce PIK income, diversify our portfolio and allocate capital to both new loans and stock buybacks. Since the end of Q3, NMFC has repurchased $30 million worth of shares and we expect repurchases to continue in 2026, underscoring our confidence in NMFC’s long-term value.”

Portfolio and Investment Activity3

As of December 31, 2025, the Company’s NAV1 was $1,182.2 million and its portfolio had a fair value of $2,755.5 million of investments in 114 portfolio companies, with a weighted average YTM at Cost5 of approximately 10.5%. For the three months ended December 31, 2025, the Company originated $29.5 million of investments6, offset by $139.7 million of repayments6 and $55.2 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 Value7



Business Services				Software
	Utility & Data Center Services	4.9	%		ERP	6.9	%
	Real Estate Services	4.5	%		Finance & Accounting	5.3	%
	Digital Transformation	2.6	%		Human Capital Management	4.3	%
	Compliance Services	2.5	%		IT Infrastructure & Security	3.5	%
	Insurance & Benefits Services	2.4	%		Governance, Risk & Compliance	1.6	%
	Misc Services	2.4	%		Commerce & Supply Chain	0.6	%
	Data & Information Services	1.4	%	Total Software		22.2	%
	Field Services	1.0	%
	Engineering & Consulting Services	0.7	%	Financial Services & Technology
Total Business Services		22.4	%		Financial Services	4.5	%
					Integrated Payments	1.7	%
Healthcare					Financial Technology	1.1	%
	Healthcare Services	11.4	%	Total Financial Services & Technology		7.3	%
	Healthcare IT & Tech-Enabled Services	5.8	%
	Pharma Services	2.0	%	Other Industries
	Healthcare Products	0.4	%		Consumer Services	8.2	%
Total Healthcare		19.6	%		Distribution & Logistics	6.7	%
					Education	5.0	%
					Packaging	3.2	%
					Other	5.4	%
				Total Other Industries		28.5	%

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 Annual Report on Form 10-K 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 December 31, 2025:


(in millions)	As of December 31, 2025
Risk Rating		Cost		Percent		Fair Value		Percent		Weighted Average Mark
Green8		$	2,700.0	91.8	%	$	2,611.1	94.8	%	98.6	%
Yellow3		85.4		2.9	%	55.5		2.0	%	64.8	%
Orange		156.7		5.3	%	88.9		3.2	%	64.8	%
Red		—		—		—		—		—
Total		$	2,942.1	100.0	%	$	2,755.5	100.0	%

As of December 31, 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. As of December 31, 2025 there were no portfolio companies that had a Red Risk Rating.

The following table shows the Company’s investment portfolio composition as of December 31, 2025:


(in millions)
Investment Portfolio Composition	December 31, 2025		Percent of Total
First Lien	$	1,818.2	66.0	%
Senior Loan Funds (SLP III & SLP IV) & NMNLC	387.5		14.1	%
Second Lien3	104.7		3.8	%
Subordinated	121.5		4.4	%
Preferred Equity	232.6		8.4	%
Common Equity and Other9	91.0		3.3	%
Total	$	2,755.5	100.0	%

Liquidity and Capital Resources

As of December 31, 2025, the Company had cash and cash equivalents of $80.7 million and total statutory debt outstanding of $1,492.7 million4. The Company's statutory debt to equity was 1.26x (or 1.21x net of available cash) as of December 31, 2025. Additionally, the Company's wholly owned SBIC subsidiaries had $196.2 million of SBA-guaranteed debentures outstanding as of December 31, 2025. As of December 31, 2025, the Company had $856.0 million of available capacity on its Holdings Credit Facility, NMFC Credit Facility and Unsecured Management Company Revolver.

Fourth Quarter 2025 Conference Call

New Mountain Finance Corporation will host an earnings conference call and webcast at 11:30 am Eastern Time on Wednesday, February 25, 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 (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 May 25, 2026. The full webcast replay will be available through February 25, 2027. 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: 4464661

For additional details related to the quarter ended December 31, 2025, please refer to the New Mountain Finance Corporation Annual Report on Form 10-K 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)Dividend yield calculation uses the closing stock price of $8.15 on February 20, 2026 and $11.94 on February 24, 2025 and includes regular dividends for Q4 2025 and regular and supplemental dividends for Q4 2024.

(3)Includes collateral for securities purchased under collateralized agreements to resell.

(4)Excludes the Company’s United States Small Business Administration (“SBA”) guaranteed debentures.

(5)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.

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

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

(8)Includes investments held in NMNLC.

(9)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)


	December 31, 2025		December 31, 2024
Assets
Investments at fair value
Non-controlled/non-affiliated investments (cost of $2,060,391 and $2,298,083, respectively)	$	2,002,306	$	2,277,352
Non-controlled/affiliated investments (cost of $131,221 and $124,254, respectively)	60,702		112,776
Controlled investments (cost of $720,503 and $679,587, respectively)	679,005		700,896
Total investments at fair value (cost of $2,912,115 and $3,101,924, respectively)	2,742,013		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	80,718		80,320
Interest and dividend receivable	38,549		42,379
Derivative asset at fair value	5,647		—
Receivable from unsettled securities sold	4,138		—
Receivable from affiliates	381		213
Other assets	17,907		19,265
Total assets	$	2,902,853	$	3,246,701
Liabilities
Borrowings
Unsecured Notes	$	991,585	$	978,503
Holdings Credit Facility	420,063		294,363
SBA-guaranteed debentures	196,205		300,000
NMFC Credit Facility	81,074		27,944
2022 Convertible Notes	—		260,091
Deferred financing costs (net of accumulated amortization of $45,302 and $63,971, respectively)	(17,875)		(24,191)
Net borrowings	1,671,052		1,836,710
Payable to broker	14,630		3,230
Interest payable	11,892		17,109
Management fee payable	9,176		10,467
Incentive fee payable	3,018		8,625
Deferred tax liability	1,819		1,410
Payable for unsettled securities purchased	463		—
Derivative liability at fair value	366		7,423
Other liabilities	2,181		2,436
Total liabilities	1,714,597		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 102,638,388 and 107,851,415 shares outstanding, respectively	1,079		1,079
Paid in capital in excess of par	1,354,726		1,365,852
Treasury stock at cost, 5,213,541 and 0 shares held, respectively	(51,952)		—
Accumulated overdistributed earnings	(121,676)		(13,592)
Total net assets of New Mountain Finance Corporation	$	1,182,177	$	1,353,339
Non-controlling interest in New Mountain Net Lease Corporation	6,079		5,952
Total net assets	$	1,188,256	$	1,359,291
Total liabilities and net assets	$	2,902,853	$	3,246,701
Number of shares outstanding	102,638,388		107,851,415
Net asset value per share of New Mountain Finance Corporation	$	11.52	$	12.55

New Mountain Finance Corporation

Consolidated Statements of Operations

(in thousands, except shares and per share data)


	Year ended December 31,
	2025		2024		2023
Investment income
From non-controlled/non-affiliated investments:
Interest income (excluding Payment-in-kind ("PIK") interest income)	$	201,743	$	232,023	$	249,851
PIK interest income	12,011		17,573		15,968
Dividend income	1,382		3,987		193
Non-cash dividend income	15,911		19,286		17,481
Other income	5,542		7,686		4,981
From non-controlled/affiliated investments:
Interest income (excluding PIK interest income)	1,320		1,443		1,951
PIK interest income	4,358		3,648		2,183

Non-cash dividend income	2,594		5,843		4,625
Other income	250		250		251
From controlled investments:
Interest income (excluding PIK interest income)	6,751		5,800		5,386
PIK interest income	13,833		15,649		15,443
Dividend income	47,991		48,640		45,905
Non-cash dividend income	10,445		6,446		5,303

Other income	2,953		3,392		5,315
Total investment income	327,084		371,666		374,836
Expenses
Interest and other financing expenses	123,718		136,636		124,784
Management fee	38,787		45,522		45,610
Incentive fee	30,761		36,385		38,303
Professional fees	4,632		4,379		3,771
Administrative expenses	4,155		4,222		4,101
Other general and administrative expenses	1,784		2,039		2,068
Total expenses	203,837		229,183		218,637
Less: management and incentive fees waived	(13,132)		(3,739)		(4,117)

Net expenses	190,705		225,444		214,520
Net investment income before income taxes	136,379		146,222		160,316
Income tax expense	21		262		418
Net investment income	136,358		145,960		159,898
Net realized (losses) gains:
Non-controlled/non-affiliated investments	4,260		(45,365)		(49,267)

Controlled investments	38,898		2,000		16,413
New Mountain Net Lease Corporation	—		1,533		—
Foreign currency	—		420		13
Net change in unrealized appreciation (depreciation):
Non-controlled/non-affiliated investments	(40,766)		52,581		47,956
Non-controlled/affiliated investments	(59,041)		(37,242)		(19,052)
Controlled investments	(62,807)		336		(18,588)
Securities purchased under collateralized agreements to resell	—		(3,000)		(39)

Foreign currency	480		(606)		100
Provision for taxes	(409)		(2,114)		(1,344)
Net realized and unrealized losses	(119,385)		(31,457)		(23,808)
Net increase in net assets resulting from operations	16,973		114,503		136,090


Less: Net increase in net assets resulting from operations related to non-controlling interest in New Mountain Net Lease Corporation	(485)		(1,060)		(747)
Net increase in net assets resulting from operations related to New Mountain Finance Corporation	$	16,488	$	113,443	$	135,343
Basic earnings per share	$	0.16	$	1.06	$	1.34
Weighted average shares of common stock outstanding - basic	106,150,261		106,570,782		101,118,302
Diluted earnings per share	$	0.16	$	1.03	$	1.24
Weighted average shares of common stock outstanding - diluted	121,093,317		125,463,389		123,488,882
Distributions declared and paid per share	$	1.28	$	1.37	$	1.49

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.

CONTACT

New Mountain Finance Corporation
Investor Relations

Laura C. Holson, Authorized Representative

NMFCIR@newmountaincapital.com

(212) 220-3505

Source: View Original Filing on SEC EDGAR

FAQ

How did New Mountain Finance Corporation (NMFC) perform in Q4 2025?

New Mountain Finance generated net investment income of $33.0 million, or $0.32 per share, in Q4 2025. This fully covered its $0.32 per share quarterly dividend, though net asset value per share declined to $11.52 from $12.06 as of September 30, 2025.

What dividend did NMFC declare for the first quarter of 2026?

NMFC declared a first-quarter 2026 distribution of $0.32 per share. It will be payable on March 31, 2026, to shareholders of record as of March 17, 2026, continuing the company’s pattern of returning income to investors based on net investment income generation.

Is New Mountain Finance planning to change its regular dividend after Q1 2026?

Yes. The company stated it expects to reduce the dividend to $0.25 per share starting in Q2 2026. Management cited continued base rate compression, lower market spreads and a more senior asset mix as reasons for aligning the payout with anticipated earnings power.

What is the significance of NMFC’s $477 million asset sale agreement?

NMFC signed a definitive agreement to sell $477 million of assets at 94% of December 31, 2025 fair value. The transaction is intended to increase portfolio diversification, reduce payment-in-kind income and enhance financial flexibility as the firm reallocates capital to new loans and share repurchases.

How has New Mountain Finance’s net asset value changed over the past year?

Net asset value per share declined to $11.52 at December 31, 2025, from $12.55 a year earlier. The drop reflects net realized and unrealized losses, partially offset by net investment income, and occurs alongside active portfolio repositioning and leverage management.

What fee changes is NMFC implementing for shareholders’ benefit?

New Mountain plans to permanently reduce NMFC’s incentive fee to 15% over an 8% hurdle when the dividend protection program expires. This voluntary change lowers the share of income paid to the manager, potentially leaving more net investment income available for common shareholders.

What does NMFC’s portfolio quality look like at year-end 2025?

Approximately 95% of NMFC’s portfolio is rated Green on its internal risk rating system at December 31, 2025. Only five portfolio companies are rated Yellow and nine are rated Orange, with no Red-rated companies, indicating most investments are performing in line with or above expectations.

Filing Exhibits & Attachments

5 documents

Press Releases

EX-99.1 EX-99.1 292.3 KB

New Mountain Finance (NASDAQ: NMFC) posts Q4 NII $0.32 and plans dividend cut