New Mountain Finance (NMFC) Q3 2025 earnings summary

Executive summary

• Q3 2025 adjusted net investment income was $0.32 per share, fully covering the dividend, with a Q4 2025 dividend of $0.32 per share declared and protection in place through 2026.

• Net asset value per share declined to $12.06, reflecting modest markdowns in select investments.

• Approximately 95% of the portfolio is green-rated, with non-accruals at 1.7% of fair value.

• $50 million share repurchase program completed; new $100 million buyback authorized.

• Exploring a potential $500 million portfolio sale to diversify holdings, reduce PIK income, and enhance flexibility.

Financial highlights

• Q3 2025 total investment income was $80.5 million, down from $95.3 million in Q3 2024 and 4% lower sequentially.

• Net investment income for Q3 2025 was $34.0 million, or $0.32 per share.

• Net asset value stood at $1.26 billion, or $12.06 per share.

• Net debt-to-equity ratio was 1.26x (1.23x net of cash), at the high end of the target range.

• Annualized dividend yield was 13.2% for Q3 2025.

Outlook and guidance

• Q4 2025 dividend of $0.32 per share declared, with full coverage and protection program through 2026.

• Management expects a better deal environment in 2026, with increased repayments and potential for further share repurchases.

• Update on the portfolio sale expected by the next earnings call in February.

• Liquidity needs expected to be met with cash flows and available credit facilities.