New Mountain Finance (NMFC) investor relations material

Executive summary

• Q4 2025 adjusted net investment income was $0.32 per share, fully covering the dividend, supported by recurring income and incentive fee waivers.

• Net asset value (NAV) declined to $11.52 per share from $12.06, mainly due to a lower valuation of Edmentum's common equity.

• Announced a $477 million asset sale at 94% of fair value, expected to close in March, to enhance diversification, reduce PIK income, and increase financial flexibility.

• Board declared a Q1 2026 dividend of $0.32 per share, with plans to reduce to $0.25 per share starting Q2 2026.

• Management pledged to permanently reduce the incentive fee to 15% after 2026.

Financial highlights

• Total investment income for Q4 2025 was $77 million, with adjusted net investment income of $33.0 million or $0.32 per share.

• NAV per share decreased 4.5% quarter-over-quarter to $11.52; year-end NAV was $1.2 billion.

• Total net expenses were $44 million, down 5% sequentially, aided by a $2.4 million fee waiver.

• Annualized NII per share for 2025 was $1.28; total dividends paid since IPO ~$1.5 billion.

• Realized total net loss rate since IPO is 2 basis points; cumulative net realized losses of $24 million.

Outlook and guidance

• Dividend expected to be reduced to $0.25 per share starting Q2 2026, reflecting lower base rates and reduced PIK income.

• Dividend yield projected at ~9% on book value and ~12% on current share price post asset sale.

• Management sees opportunities for equity appreciation, lending at higher spreads, and discounted loan purchases.

• Incentive fee to be permanently reduced to 15% after 2026.