New Mountain Finance Stock Earnings Reports

New Mountain Finance (NMFC) reported Q3 2025 results with adjusted net investment income of $0.32 per share, covering the $0.32 quarterly dividend payable Dec 31 (record date Dec 17). Net asset value (NAV) declined $0.15 sequentially to $12.06, driven by markdowns in a few names (notably Edmentum, TriMark and Beauty Industry Group), though approximately 95% of the portfolio remains “green” on the company’s internal heat map. Portfolio fair value was ~$3.0B with loan-to-value of ~45%; ~80–85% of investments are senior in nature and ~85% of the loan book is floating rate. Nonaccruals remained low at $51M (1.7% of the portfolio). NMFC has been actively repurchasing stock (used ~$47M of a $50M 10b5-1 program this year at an average ~$10/share) and the Board approved an additional $100M buyback program. Management is exploring a potential portfolio sale of up to $500M to diversify concentrations and reduce PIK exposure; proceeds could be used for debt paydown, additional buybacks, and redeployment into new loans. Liquidity and leverage: total assets ~$3.1B, statutory debt ~$1.6B, net debt-to-equity ~1.23:1 (within target 1–1.25x), with significant borrowing capacity (~$2.5B including SBA debentures and revolvers) and laddered maturities (60% maturing 2028+). Management emphasized disciplined underwriting, focus on defensive growth sectors, alignment with New Mountain Capital (management are large shareholders), and a goal to further reduce position concentrations (targeting average position size ≤1% and max ~2%).