New Mountain Finance (NMFC) investor relations material

Executive summary

• Adjusted net investment income for Q2 2026 was $0.26 per share ($24.7 million), exceeding the $0.25 per share dividend paid and declared for Q3, with management projecting continued coverage of the dividend in future quarters; this was supported by a voluntary incentive fee waiver and recurring income.

• Net asset value per share was $10.89 as of June 30, 2026, down slightly from $10.92 at March 31, 2026, reflecting stable credit performance and improved non-accruals at fair value from 2.6% to 1.5%.

• Portfolio fair value was $2.3 billion across 113 companies, with a focus on defensive, recurring-revenue sectors and ongoing efforts to diversify holdings and monetize equity positions.

• $9 million of stock was repurchased in Q2 at a significant discount to book value, with $80 million of buyback capacity remaining and insider ownership increasing to 18%.

• Major asset sale of ~$468 million at 94% of fair value was completed in March 2026, with proceeds used to repay debt and for new investments.

Financial highlights

• Total investment income for Q2 2026 was $61.5 million, down year-over-year due to a smaller, more senior, and diversified portfolio.

• Net investment income for Q2 2026 was $24.7 million ($0.26 per share), with total net expenses of $37–38.3 million and an effective incentive fee rate of 15% after a voluntary waiver.

• Net asset value per share declined to $10.89 from $11.52 at year-end 2025.

• Portfolio had total assets of $2.4 billion, liabilities of $1.4 billion, and net asset value of $1 billion as of June 30, 2026.

• Annualized dividend yield was 14.5–15% based on the latest closing stock price.

Outlook and guidance

• Management expects net investment income to continue covering the dividend in upcoming quarters, with a Q3 2026 dividend of $0.25 per share declared and payable September 30, 2026.

• Strategic priorities include reducing PIK income below 12%, increasing senior assets, further portfolio diversification, and monetizing equity positions.

• The repurchase program is expected to remain in place until the earlier of December 31, 2026 or until $150 million of stock is repurchased.

• Optimism about improved M&A activity and origination environment in the second half of 2026.