New Mountain Finance Stock Earnings Reports

New Mountain Finance (NMFC) reported Q1 2026 adjusted net investment income of $0.32 per share, covering the $0.32 dividend paid in March. The board declared a $0.25 quarterly dividend payable June 30 (record June 16), which management expects to be covered by earnings. NMFC completed a strategic portfolio sale (~$470M) at ~94% of 12/31 book value that provided liquidity to delever the balance sheet, repurchase stock, and pursue opportunistic secondary and primary lending at wider spreads. Book value was $10.92 per share (3/31) and is modestly accretive pro forma for post-quarter buybacks; management highlighted substantial insider buying and increased New Mountain ownership to ~17%. Portfolio highlights: 91% of holdings are green-rated, nonaccruals were 2.6% of fair value (small increase driven by two names, Affordable Care and Convey), 81% senior secured, and average portfolio yield rose to 11.1% (Q1 originations ~15.5% weighted average yield, aided by secondary discounted purchases). NMFC has diversified financing, ~1.08x net debt-to-equity (within 1.0–1.25x target), ~$690M revolver capacity (subject to borrowing base) and laddered maturities with most debt maturing 2029+. Management emphasized: (1) the strategic pivot has reduced illiquids/PIK and created optionality to buy oversold, high-quality loans; (2) software exposure is being actively managed and is heterogeneous—NMFC focuses on defensive, high-quality software; (3) they will balance buybacks, redeployment into loans, and opportunistic secondary purchases. Near-term priorities include monetizing performing equity/PIK positions (e.g., Benevis, UniTek), continuing buybacks (additional $50M authorization approved), and redeploying proceeds into higher-yielding loans amid wider spreads. Credit performance remains historically strong (cumulative realized losses small relative to invested capital), and management expects several nonaccruals to remediate in coming quarters.