New Mountain Finance (NMFC) Q2 2025 earnings summary

Executive summary

• Adjusted net investment income was $0.32 per share in Q2 2025, fully covering the $0.32 per share dividend, supported by recurring income and a modest fee waiver.

• Net asset value per share declined to $12.21 from $12.45, mainly due to modest declines in select portfolio positions.

• Approximately 95% of the portfolio is rated green, with senior-oriented assets at 78% and a focus on defensive growth sectors.

• $16 million in shares repurchased year-to-date, with $31 million of board authorization remaining.

• Employees and senior advisors own about 14% of shares, aligning interests with shareholders.

Financial highlights

• Total investment income for Q2 2025 was $83.5 million, down 12% year-over-year, mainly due to a lower asset base and slightly lower yields.

• Net investment income for Q2 2025 was $34.6 million, or $0.32 per share, compared to $38.4 million in Q2 2024.

• Net asset value at quarter-end was $1.31 billion, or $12.21 per share.

• Statutory debt-to-equity ratio was 1.17x (1.13x net of cash), within the target range.

• Fair value of investments at quarter-end was $3.01 billion across 124 portfolio companies.

Outlook and guidance

• Q3 2025 dividend of $0.32 per share declared, payable September 30, 2025; dividend protection program extended through Q4 2026.

• Adviser will reduce incentive fee as needed to support the $0.32 per share dividend through 2026.

• Management expects improved portfolio activity and positive catalysts from refinancing higher-cost debt and new SBIC initiatives.