{"success":true,"data":{"pressRelease":{"id":"19748","rtpr_id":"nBw4PWBBVa","ticker":"NMFC","exchange":"NASDAQ","all_tickers":["NMFC"],"title":"New Mountain Finance Corporation Announces Financial Results for the Quarter Ended March 31, 2026","author":"Business Wire","published_at":"2026-05-04T20:21:00.151Z","article_body":"New Mountain Finance Corporation Announces Financial Results for the Quarter\nEnded March 31, 2026\n\nReports First Quarter Adjusted Net Investment Income(1) of $0.32 per Share and\nDeclares a Second Quarter Distribution of $0.25 per Share\n\nNew Mountain Finance Corporation (NASDAQ: NMFC) (“New Mountain,” “New\nMountain Finance” or the “Company”) today announced its financial\nresults for the quarter ended March 31, 2026.\n\nFirst Quarter and Recent Highlights(2)\n\n\n * Adjusted net investment income(1) of $32.2 million, or $0.32 per weighted\naverage share\n\n * Net asset value of $10.92 per share compared to $11.52 per share as of\nDecember 31, 2025; factoring in the Secondary Sale(11), NAV per share as of\nDecember 31, 2025 would have been $11.15\n\n * Declared a second quarter 2026 distribution of $0.25 per share, payable on\nJune 30, 2026, to holders of record as of June 16, 2026\n\n * Completed the previously announced Secondary Sale on March 10, 2026\n\n * Repurchased ~$66 million of NMFC shares year-to-date as of May 1, 2026, at a\nweighted average purchase price of $8.01 per share; announcing incremental $50\nmillion of board authorization for additional share repurchases bringing\nremaining capacity to ~$80 million\n\n * ~91% of the portfolio is rated green on our internal heatmap\n\n * Reduced cost of debt from SOFR + 1.95% to SOFR + 1.85% on our Holdings Credit\nFacility\n ($ in millions, except per share data) Q1 2026 Q1 2025 \n Net Investment Income per Weighted Average Share $ 0.30   $ 0.32   \n Non-recurring Adjustments(1)   0.02     —   \n Net Adjusted Investment Income(1) per Weighted Average Share $ 0.32   $ 0.32   \n Regular Dividends Paid per Share in Quarter $ 0.32   $ 0.32   \n Annualized Dividend Yield(3)   11.6 %   12.8 % \n   \n   \n   March 31, December 31, \n \n \n \n \n2026 \n2025 \n Investment Portfolio(4) $ 2,319.1   $ 2,755.5   \n NAV per Share $ 10.92   $ 11.52   \n Statutory Debt/Equity(5)   1.12 x   1.26 x \n Statutory Debt/Equity (Net of Available Cash)(5)   1.08 x   1.21 x \n\n\nManagement Comments on First Quarter Performance\n\n“In the first quarter, NMFC delivered stable earnings and completed the\n~$470 million portfolio sale,” said Steven B. Klinsky, NMFC’s Chairman and\nNew Mountain Capital CEO. “We are using the proceeds from the sale to\nde-lever the balance sheet, buy back stock at a significant discount to book\nvalue and reinvest into attractive new investments in the primary and\nsecondary market.”\n\nJohn R. Kline, NMFC CEO, added: “NMFC continued to enhance the portfolio\nquality in the first quarter, materially reducing PIK exposure and improving\ndiversification and asset mix. Excluding the impact from the portfolio sale,\nNMFC’s book value declined modestly in the quarter, primarily reflecting\nbroader market movements in software and technology-oriented loans impacting\nthe BDC sector. We remain focused on further portfolio enhancements throughout\nthe balance of the year.”\n\nPortfolio and Investment Activity(4)\n\nAs of March 31, 2026, the Company’s NAV(2) was $1,043.5 million and its\nportfolio had a fair value of $2,319.1 million of investments in 115 portfolio\ncompanies, with a weighted average YTM at Cost(6) of approximately 11.1%. For\nthe three months ended March 31, 2026, the Company originated $117.1 million\nof investments(7), offset by $47.1 million of repayments(7) and $444.9 million\nof sales (primarily related to the Secondary Sale).\n\nPortfolio and Asset Quality\n\nNMFC’s mandate is to primarily target businesses in the middle market that,\nconsistent with New Mountain’s private equity platform, are high quality,\ndefensive growth companies in industries that are well-researched by New\nMountain. The Company’s focus is on defensive growth businesses that\ngenerally exhibit the following characteristics: (i) acyclicality, (ii)\nsustainable secular growth drivers, (iii) niche market dominance and high\nbarriers to competitive entry, (iv) recurring revenue and strong free cash\nflow, (v) flexible cost structures and (vi) seasoned management teams.\n\nPortfolio Industry Composition based on Fair Value(8)\n Business Services Healthcare \n Utility & Data Center Services 6.8 % Healthcare Services 9.0 % \n Real Estate Services 4.5 % Healthcare IT & Tech-Enabled Services 6.5 % \n Insurance & Benefits Services 3.7 % Healthcare Products 3.2 % \n Misc Services 2.3 % Pharma Services 1.8 % \n Compliance Services 1.8 % Total Healthcare 20.5 % \n Digital Transformation 1.7 %     \n Data & Information Services 1.4 % Financial Services & Technology   \n Field Services 1.3 % Financial Services 3.7 % \n Engineering & Consulting Services 0.9 % Integrated Payments 2.0 % \n Total Business Services 24.4 % Financial Technology 1.4 % \n     Total Financial Services & Technology 7.1 % \n Software     \n ERP 7.1 % Other Industries   \n IT Infrastructure & Security 4.7 % Consumer Services 7.2 % \n Finance & Accounting 4.4 % Education 6.1 % \n Human Capital Management 2.3 % Distribution & Logistics 5.4 % \n Commerce & Supply Chain 0.7 % Packaging 4.2 % \n Governance, Risk & Compliance 0.2 % Other 5.7 % \n Total Software 19.4 % Total Other Industries 28.6 % \n\n\nThe Company monitors the performance and financial trends of its portfolio\ncompanies on at least a quarterly basis. The Company attempts to identify any\ndevelopments within the portfolio company, the industry, or the macroeconomic\nenvironment that may alter any material element of the Company’s original\ninvestment strategy. As described more fully in the Company's Quarterly Report\non Form 10-Q filed with the U.S. Securities and Exchange Commission, the\nportfolio monitoring procedures are designed to provide a simple, yet\ncomprehensive analysis of the Company’s portfolio companies based on their\noperating performance and underlying business characteristics, which in turn\nforms the basis of its Risk Rating. The Risk Rating is expressed in categories\nof Green, Yellow, Orange and Red with Green reflecting an investment that is\nin-line with or above expectations and Red reflecting an investment performing\nmaterially below expectations.\n\nThe following table shows the Risk Rating of the Company’s portfolio\ncompanies as of March 31, 2026:\n (in millions) As of March 31, 2026 \n Risk Rating   Cost   Percent   Fair Value   Percent   Weighted Average Mark \n Green(9)   $ 2,217.7   86.8 %   $ 2,117.0   91.4 %   96.2 % \n Yellow(4)     177.0   6.9 %     119.5   5.1 %   67.6 % \n Orange     145.5   5.7 %     72.5   3.1 %   57.5 % \n Red     15.4   0.6 %     10.1   0.4 %   65.1 % \n Total   $ 2,555.6   100.0 %   $ 2,319.1   100.0 %     \n\n\nAs of March 31, 2026, nearly all investments in the Company’s portfolio had\na Green Risk Rating, with the exception of eight portfolio companies that had\na Yellow Risk Rating, nine portfolio companies that had an Orange Risk Rating\nand one portfolio company had a Red Risk Rating.\n\nThe following table shows the Company’s investment portfolio composition as\nof March 31, 2026:\n (in millions)         \n Investment Portfolio Composition   March 31, 2026   Percent of Total \n First Lien   $ 1,498.7   64.7 % \n Senior Loan Funds (SLP III & SLP IV) & NMNLC     385.8   16.6 % \n Second Lien(4)     86.6   3.7 % \n Subordinated     93.4   4.0 % \n Preferred Equity     153.4   6.6 % \n Common Equity and Other(10)     101.1   4.4 % \n Total   $ 2,319.1   100.0 % \n\n\nLiquidity and Capital Resources\n\nAs of March 31, 2026, the Company had cash and cash equivalents of $51.1\nmillion and total statutory debt outstanding of $1,172.7 million(5). The\nCompany's statutory debt to equity was 1.12x (or 1.08x net of available cash)\nas of March 31, 2026. Additionally, the Company's wholly-owned SBIC\nsubsidiaries had $169.3 million of SBA-guaranteed debentures outstanding as of\nMarch 31, 2026. As of March 31, 2026, the Company had $692.1 million of\navailable capacity on its Holdings Credit Facility, NMFC Credit Facility and\nUnsecured Management Company Revolver.\n\nFirst Quarter 2026 Conference Call\n\nNew Mountain Finance Corporation will host an earnings conference call and\nwebcast at 10:00 am Eastern Time on Tuesday, May 5, 2026. To participate in\nthe live earning conference call, please use the following dial-in numbers or\nvisit the audio webcast link. To avoid any delays, please join at least\nfifteen minutes prior to the start of the call.\n\n\n * United States: +1 (646) 769-9200\n\n * International: (800) 330-6710\n\n * Access Code: 2743990\n\n * Live Audio Webcast\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fevent.webcasts.com%2Fstarthere.jsp%3Fei%3D1759818%26tp_key%3Dbca66501aa&esheet=54528383&newsitemid=20260504896523&lan=en-US&anchor=Live+Audio+Webcast&index=1&md5=a77da73070730ebdcfd842871d27d542)\n\nA replay of the conference call will be available for one year following the\ncall. To access the earnings webcast replay please visit the New Mountain\nInvestor Relations\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fwww.newmountainfinance.com%2F&esheet=54528383&newsitemid=20260504896523&lan=en-US&anchor=New+Mountain+Investor+Relations&index=2&md5=cfc38d0df43a590f3fc17b84bdc6900a)\nwebsite\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fwww.newmountainfinance.com%2F&esheet=54528383&newsitemid=20260504896523&lan=en-US&anchor=website&index=3&md5=6901bc4639e9e4d2e9c3a6a438d9af1d)\n.\n\nFor additional details related to the quarter ended March 31, 2026, please\nrefer to the New Mountain Finance Corporation Quarterly Report on Form 10-Q\nfiled with the SEC and the supplemental investor presentation which can be\nfound on the Company's website at http://www.newmountainfinance.com\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fwww.newmountainfinance.com%2F&esheet=54528383&newsitemid=20260504896523&lan=en-US&anchor=http%3A%2F%2Fwww.newmountainfinance.com&index=4&md5=e35e6adaff463eb06a0f232e6bed6a5c)\n.\n   \n (1)   Adjusted net investment income for Q1 2026 includes $1.6 million of \n accelerated deferred financing costs related to the commitment decrease of the \n Holdings Credit Facility and the partial repayment of the SBIC II \n SBA-guaranteed debentures for $1.5 million and $0.1 million, respectively. \n (2)   Excludes non-controlling interest in New Mountain Net Lease Corporation \n (“NMNLC”). \n (3)   The Q1 2026 dividend yield calculation uses the closing stock price of $8.60 \n on May 1, 2026 and includes annualized dividends of $0.25 per share, to be \n paid in Q2 2026. The Q1 2025 dividend yield calculation uses the closing stock \n price of $9.97 on May 2, 2025 and includes annualized dividends of $0.32 per \n share, which were paid in Q2 2025. \n (4)   Includes collateral for securities purchased under collateralized agreements \n to resell. \n (5)   Excludes the Company’s United States Small Business Administration \n (“SBA”) guaranteed debentures. \n (6)   References to “YTM at Cost” assume the accruing investments, including \n secured collateralized agreements, in the Company's portfolio as of a certain \n date, the ‘‘Portfolio Date’’, are purchased at cost on that date and \n held until their respective maturities with no prepayments or losses and are \n exited at par at maturity. This calculation excludes the impact of existing \n leverage. YTM at Cost uses the Sterling Overnight Interbank Average Rate \n (\"SONIA”), Euro Interbank Offered Rate (\"EURIBOR\") and Secured Overnight \n Financing Rate (“SOFR”) curves at each quarter’s respective end date. \n The actual yield to maturity may be higher or lower due to the future \n selection of SONIA, EURIBOR and SOFR contracts by the individual companies in \n the Company’s portfolio or other factors. \n (7)   Originations exclude payment-in-kind (“PIK”); originations, repayments, \n and sales exclude revolvers, unfunded commitments, bridges, return of capital, \n and realized gains / losses. \n (8)   Excludes NMFC Senior Loan Program III LLC (\"SLP III\"), NMFC Senior Loan \n Program IV LLC (\"SLP IV\") and NMNLC. \n (9)   Includes investments held in NMNLC. \n (10)   Includes investments classified as structured finance obligations. \n (11)   On March 10, 2026, the Company completed the previously announced sale of \n approximately $470.0 million of assets at 94% of the fair value of such assets \n as of December 31, 2025. \n\n New Mountain Finance Corporation \n \n \n \nConsolidated Statements of Assets and Liabilities \n \n \n \n(in thousands, except shares and per share data) \n \n \n \n(unaudited) \n   \n   March 31, 2026   December 31, 2025 \n Assets       \n Investments at fair value       \n Non-controlled/non-affiliated investments (cost of $1,733,010 and $2,060,391, $ 1,628,080     $ 2,002,306   \n respectively) \n Non-controlled/affiliated investments (cost of $132,739 and $131,221,   65,699       60,702   \n respectively) \n Controlled investments (cost of $659,897 and $720,503, respectively)   619,600       679,005   \n Total investments at fair value (cost of $2,525,646 and $2,912,115,   2,313,379       2,742,013   \n respectively) \n Securities purchased under collateralized agreements to resell (cost of   5,700       13,500   \n $30,000 and $30,000, respectively) \n Cash and cash equivalents   51,130       80,718   \n Interest and dividend receivable   34,233       38,549   \n Derivative asset at fair value   2,958       5,647   \n Receivable from affiliates   441       381   \n Receivable from unsettled securities sold   —       4,138   \n Other assets   19,376       17,907   \n Total assets $ 2,427,217     $ 2,902,853   \n Liabilities       \n Borrowings       \n Unsecured Notes $ 787,704     $ 991,585   \n Holdings Credit Facility   354,446       420,063   \n SBA-guaranteed debentures   169,255       196,205   \n NMFC Credit Facility   30,545       81,074   \n Deferred financing costs (net of accumulated amortization of $48,735 and   (15,310 )     (17,875 ) \n $45,302, respectively) \n Net borrowings   1,326,640       1,671,052   \n Payable for unsettled securities purchased   18,490       463   \n Payable to broker   10,080       14,630   \n Management fee payable   7,173       9,176   \n Interest payable   6,780       11,892   \n Derivative liability at fair value   1,936       366   \n Deferred tax liability   1,731       1,819   \n Incentive fee payable   —       3,018   \n Other liabilities   4,417       2,181   \n Total liabilities   1,377,247       1,714,597   \n Commitments and contingencies       \n Net assets       \n Preferred stock, par value $0.01 per share, 2,000,000 shares authorized, none   —       —   \n issued \n Common stock, par value $0.01 per share, 200,000,000 shares authorized,   1,079       1,079   \n 107,851,929 and 107,851,929 shares issued, respectively, and 95,575,151 and \n 102,638,388 shares outstanding, respectively \n Paid in capital in excess of par   1,354,726       1,354,726   \n Treasury stock at cost, 12,276,778 and 5,213,541 shares held, respectively   (108,549 )     (51,952 ) \n Accumulated overdistributed earnings   (203,754 )     (121,676 ) \n Total net assets of New Mountain Finance Corporation $ 1,043,502     $ 1,182,177   \n Non-controlling interest in New Mountain Net Lease Corporation   6,468       6,079   \n Total net assets $ 1,049,970     $ 1,188,256   \n Total liabilities and net assets $ 2,427,217     $ 2,902,853   \n Number of shares outstanding   95,575,151       102,638,388   \n Net asset value per share of New Mountain Finance Corporation $ 10.92     $ 11.52   \n\n New Mountain Finance Corporation \n \n \n \nConsolidated Statements of Operations \n \n \n \n(in thousands, except shares and per share data) \n \n \n \n(unaudited) \n       \n     Three Months Ended \n     March 31, 2026   March 31, 2025 \n Investment income     \n From non-controlled/non-affiliated investments:     \n Interest income (excluding Payment-in-kind (\"PIK\") interest income) $ 39,249   $ 52,113   \n PIK interest income   2,363     2,913   \n Dividend income   1,805     557   \n Non-cash dividend income   1,357     4,434   \n Other income   1,346     1,312   \n From non-controlled/affiliated investments:     \n Interest income (excluding PIK interest income)   315     331   \n PIK interest income   1,188     987   \n Non-cash dividend income   740     1,683   \n Other income   63     63   \n From controlled investments:     \n Interest income (excluding PIK interest income)   3,272     1,485   \n PIK interest income   1,586     3,688   \n Dividend income   11,911     12,198   \n Non-cash dividend income 3,224 2,071   \n Other income   375     1,828   \n Total investment income   68,794     85,663   \n Expenses     \n Interest and other financing expenses   27,524     31,374   \n Management fee   8,154     10,233   \n Incentive fee   6,103     8,247   \n Professional fees   1,028     1,389   \n Administrative expenses   995     1,104   \n Other general and administrative expenses   458     516   \n Total expenses   44,262     52,863   \n Less: management and incentive fees waived   (6,103 )   (1,822 ) \n Net expenses   38,159     51,041   \n Net investment income before income taxes   30,635     34,622   \n Income tax benefit (expense)   4     (19 ) \n Net investment income   30,631     34,641   \n Net realized (losses) gains:     \n Non-controlled/non-affiliated investments   (26,292 )   (1,074 ) \n Controlled investments   (5,718 )   38,899   \n Net change in unrealized appreciation (depreciation):     \n Non-controlled/non-affiliated investments   (46,237 )   4,206   \n Non-controlled/affiliated investments   3,479     (4,891 ) \n Controlled investments   1,201     (48,392 ) \n Securities purchased under collateralized agreements to resell   (7,800 )   —   \n Foreign currency   (100 )   150   \n Benefit (provision) for taxes   87     (22 ) \n Net realized and unrealized losses   (81,380 )   (11,124 ) \n Net (decrease) increase in net assets resulting from operations   (50,749 )   23,517   \n Less: Net increase in net assets resulting from operations related to   (179 )   (104 ) \n non-controlling interest in New Mountain Net Lease Corporation \n Net (decrease) increase in net assets resulting from operations related to New $ (50,928 ) $ 23,413   \n Mountain Finance Corporation \n Basic (loss) earnings per share $ (0.51 ) $ 0.22   \n Weighted average shares of common stock outstanding - basic   100,476,895     107,851,415   \n Diluted (loss) earnings per share $ (0.51 ) $ 0.22   \n Weighted average shares of common stock outstanding - diluted   100,476,895     126,852,911   \n Distributions declared and paid per share $ 0.32   $ 0.32   \n\n\nABOUT NEW MOUNTAIN FINANCE CORPORATION\n\nNew Mountain Finance Corporation (NASDAQ: NMFC) is focused on providing direct\nlending solutions to U.S. upper middle market companies backed by top private\nequity sponsors. Our investment objective is to generate current income and\ncapital appreciation through the sourcing and origination of senior secured\nloans and select junior capital positions, to growing businesses in defensive\nindustries that offer attractive risk-adjusted returns. Our differentiated\ninvestment approach leverages the deep sector knowledge and operating\nresources of New Mountain Capital, a global investment firm with approximately\n$60 billion of assets under management.\n\nABOUT NEW MOUNTAIN CAPITAL\n\nNew Mountain Capital (\"NMC\") is a New York-based investment firm that\nemphasizes business building and growth, rather than debt, as it pursues\nlong-term capital appreciation. The firm currently manages private equity,\ncredit and net lease investment strategies with approximately $60 billion in\nassets under management. New Mountain seeks out what it believes to be the\nhighest quality growth leaders in carefully selected industry sectors and then\nworks intensively with management to build the value of these companies. For\nmore information on New Mountain Capital, please visit\nhttp://www.newmountaincapital.com\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fwww.newmountainfinance.com%2F&esheet=54528383&newsitemid=20260504896523&lan=en-US&anchor=http%3A%2F%2Fwww.newmountaincapital.com&index=5&md5=5f9420a2ee81481e13c4f3e76c38cd7c)\n.\n\nFORWARD-LOOKING STATEMENTS\n\nStatements included herein may contain “forward-looking statements”, which\nrelate to our future operations, future performance or our financial\ncondition. Forward-looking statements are not guarantees of future\nperformance, condition or results and involve a number of risks and\nuncertainties, including changes in base interest rates and significant\nvolatility on our business, portfolio companies, our industry and the global\neconomy. Actual results and outcomes may differ materially from those\nanticipated in the forward-looking statements as a result of a variety of\nfactors, including those described from time to time in our filings with the\nSecurities and Exchange Commission or factors that are beyond our control. New\nMountain Finance Corporation undertakes no obligation to publicly update or\nrevise any forward-looking statements made herein, except as may be required\nby law. All forward-looking statements speak only as of the time of this press\nrelease.\n\n\n\nView source version on businesswire.com:\nhttps://www.businesswire.com/news/home/20260504896523/en/\n(https://www.businesswire.com/news/home/20260504896523/en/)\n\nNew Mountain Finance Corporation\n\nInvestor Relations\n\nLaura C. Holson, Authorized Representative\n\nNMFCIR@newmountaincapital.com \n(mailto:NMFCIR@newmountaincapital.com) \n(212) 220-3505\n\n\nCopyright Business Wire 2026","article_body_html":"","raw_payload":{"data":{"id":"nBw4PWBBVa","title":"New Mountain Finance Corporation Announces Financial Results for the Quarter Ended March 31, 2026","author":"Business Wire","ticker":"NMFC","created":"2026-05-04T20:21:00.151Z","tickers":["NMFC"],"exchange":"NASDAQ","article_body":"New Mountain Finance Corporation Announces Financial Results for the Quarter\nEnded March 31, 2026\n\nReports First Quarter Adjusted Net Investment Income(1) of $0.32 per Share and\nDeclares a Second Quarter Distribution of $0.25 per Share\n\nNew Mountain Finance Corporation (NASDAQ: NMFC) (“New Mountain,” “New\nMountain Finance” or the “Company”) today announced its financial\nresults for the quarter ended March 31, 2026.\n\nFirst Quarter and Recent Highlights(2)\n\n\n * Adjusted net investment income(1) of $32.2 million, or $0.32 per weighted\naverage share\n\n * Net asset value of $10.92 per share compared to $11.52 per share as of\nDecember 31, 2025; factoring in the Secondary Sale(11), NAV per share as of\nDecember 31, 2025 would have been $11.15\n\n * Declared a second quarter 2026 distribution of $0.25 per share, payable on\nJune 30, 2026, to holders of record as of June 16, 2026\n\n * Completed the previously announced Secondary Sale on March 10, 2026\n\n * Repurchased ~$66 million of NMFC shares year-to-date as of May 1, 2026, at a\nweighted average purchase price of $8.01 per share; announcing incremental $50\nmillion of board authorization for additional share repurchases bringing\nremaining capacity to ~$80 million\n\n * ~91% of the portfolio is rated green on our internal heatmap\n\n * Reduced cost of debt from SOFR + 1.95% to SOFR + 1.85% on our Holdings Credit\nFacility\n ($ in millions, except per share data) Q1 2026 Q1 2025 \n Net Investment Income per Weighted Average Share $ 0.30   $ 0.32   \n Non-recurring Adjustments(1)   0.02     —   \n Net Adjusted Investment Income(1) per Weighted Average Share $ 0.32   $ 0.32   \n Regular Dividends Paid per Share in Quarter $ 0.32   $ 0.32   \n Annualized Dividend Yield(3)   11.6 %   12.8 % \n   \n   \n   March 31, December 31, \n \n \n \n \n2026 \n2025 \n Investment Portfolio(4) $ 2,319.1   $ 2,755.5   \n NAV per Share $ 10.92   $ 11.52   \n Statutory Debt/Equity(5)   1.12 x   1.26 x \n Statutory Debt/Equity (Net of Available Cash)(5)   1.08 x   1.21 x \n\n\nManagement Comments on First Quarter Performance\n\n“In the first quarter, NMFC delivered stable earnings and completed the\n~$470 million portfolio sale,” said Steven B. Klinsky, NMFC’s Chairman and\nNew Mountain Capital CEO. “We are using the proceeds from the sale to\nde-lever the balance sheet, buy back stock at a significant discount to book\nvalue and reinvest into attractive new investments in the primary and\nsecondary market.”\n\nJohn R. Kline, NMFC CEO, added: “NMFC continued to enhance the portfolio\nquality in the first quarter, materially reducing PIK exposure and improving\ndiversification and asset mix. Excluding the impact from the portfolio sale,\nNMFC’s book value declined modestly in the quarter, primarily reflecting\nbroader market movements in software and technology-oriented loans impacting\nthe BDC sector. We remain focused on further portfolio enhancements throughout\nthe balance of the year.”\n\nPortfolio and Investment Activity(4)\n\nAs of March 31, 2026, the Company’s NAV(2) was $1,043.5 million and its\nportfolio had a fair value of $2,319.1 million of investments in 115 portfolio\ncompanies, with a weighted average YTM at Cost(6) of approximately 11.1%. For\nthe three months ended March 31, 2026, the Company originated $117.1 million\nof investments(7), offset by $47.1 million of repayments(7) and $444.9 million\nof sales (primarily related to the Secondary Sale).\n\nPortfolio and Asset Quality\n\nNMFC’s mandate is to primarily target businesses in the middle market that,\nconsistent with New Mountain’s private equity platform, are high quality,\ndefensive growth companies in industries that are well-researched by New\nMountain. The Company’s focus is on defensive growth businesses that\ngenerally exhibit the following characteristics: (i) acyclicality, (ii)\nsustainable secular growth drivers, (iii) niche market dominance and high\nbarriers to competitive entry, (iv) recurring revenue and strong free cash\nflow, (v) flexible cost structures and (vi) seasoned management teams.\n\nPortfolio Industry Composition based on Fair Value(8)\n Business Services Healthcare \n Utility & Data Center Services 6.8 % Healthcare Services 9.0 % \n Real Estate Services 4.5 % Healthcare IT & Tech-Enabled Services 6.5 % \n Insurance & Benefits Services 3.7 % Healthcare Products 3.2 % \n Misc Services 2.3 % Pharma Services 1.8 % \n Compliance Services 1.8 % Total Healthcare 20.5 % \n Digital Transformation 1.7 %     \n Data & Information Services 1.4 % Financial Services & Technology   \n Field Services 1.3 % Financial Services 3.7 % \n Engineering & Consulting Services 0.9 % Integrated Payments 2.0 % \n Total Business Services 24.4 % Financial Technology 1.4 % \n     Total Financial Services & Technology 7.1 % \n Software     \n ERP 7.1 % Other Industries   \n IT Infrastructure & Security 4.7 % Consumer Services 7.2 % \n Finance & Accounting 4.4 % Education 6.1 % \n Human Capital Management 2.3 % Distribution & Logistics 5.4 % \n Commerce & Supply Chain 0.7 % Packaging 4.2 % \n Governance, Risk & Compliance 0.2 % Other 5.7 % \n Total Software 19.4 % Total Other Industries 28.6 % \n\n\nThe Company monitors the performance and financial trends of its portfolio\ncompanies on at least a quarterly basis. The Company attempts to identify any\ndevelopments within the portfolio company, the industry, or the macroeconomic\nenvironment that may alter any material element of the Company’s original\ninvestment strategy. As described more fully in the Company's Quarterly Report\non Form 10-Q filed with the U.S. Securities and Exchange Commission, the\nportfolio monitoring procedures are designed to provide a simple, yet\ncomprehensive analysis of the Company’s portfolio companies based on their\noperating performance and underlying business characteristics, which in turn\nforms the basis of its Risk Rating. The Risk Rating is expressed in categories\nof Green, Yellow, Orange and Red with Green reflecting an investment that is\nin-line with or above expectations and Red reflecting an investment performing\nmaterially below expectations.\n\nThe following table shows the Risk Rating of the Company’s portfolio\ncompanies as of March 31, 2026:\n (in millions) As of March 31, 2026 \n Risk Rating   Cost   Percent   Fair Value   Percent   Weighted Average Mark \n Green(9)   $ 2,217.7   86.8 %   $ 2,117.0   91.4 %   96.2 % \n Yellow(4)     177.0   6.9 %     119.5   5.1 %   67.6 % \n Orange     145.5   5.7 %     72.5   3.1 %   57.5 % \n Red     15.4   0.6 %     10.1   0.4 %   65.1 % \n Total   $ 2,555.6   100.0 %   $ 2,319.1   100.0 %     \n\n\nAs of March 31, 2026, nearly all investments in the Company’s portfolio had\na Green Risk Rating, with the exception of eight portfolio companies that had\na Yellow Risk Rating, nine portfolio companies that had an Orange Risk Rating\nand one portfolio company had a Red Risk Rating.\n\nThe following table shows the Company’s investment portfolio composition as\nof March 31, 2026:\n (in millions)         \n Investment Portfolio Composition   March 31, 2026   Percent of Total \n First Lien   $ 1,498.7   64.7 % \n Senior Loan Funds (SLP III & SLP IV) & NMNLC     385.8   16.6 % \n Second Lien(4)     86.6   3.7 % \n Subordinated     93.4   4.0 % \n Preferred Equity     153.4   6.6 % \n Common Equity and Other(10)     101.1   4.4 % \n Total   $ 2,319.1   100.0 % \n\n\nLiquidity and Capital Resources\n\nAs of March 31, 2026, the Company had cash and cash equivalents of $51.1\nmillion and total statutory debt outstanding of $1,172.7 million(5). The\nCompany's statutory debt to equity was 1.12x (or 1.08x net of available cash)\nas of March 31, 2026. Additionally, the Company's wholly-owned SBIC\nsubsidiaries had $169.3 million of SBA-guaranteed debentures outstanding as of\nMarch 31, 2026. As of March 31, 2026, the Company had $692.1 million of\navailable capacity on its Holdings Credit Facility, NMFC Credit Facility and\nUnsecured Management Company Revolver.\n\nFirst Quarter 2026 Conference Call\n\nNew Mountain Finance Corporation will host an earnings conference call and\nwebcast at 10:00 am Eastern Time on Tuesday, May 5, 2026. To participate in\nthe live earning conference call, please use the following dial-in numbers or\nvisit the audio webcast link. To avoid any delays, please join at least\nfifteen minutes prior to the start of the call.\n\n\n * United States: +1 (646) 769-9200\n\n * International: (800) 330-6710\n\n * Access Code: 2743990\n\n * Live Audio Webcast\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fevent.webcasts.com%2Fstarthere.jsp%3Fei%3D1759818%26tp_key%3Dbca66501aa&esheet=54528383&newsitemid=20260504896523&lan=en-US&anchor=Live+Audio+Webcast&index=1&md5=a77da73070730ebdcfd842871d27d542)\n\nA replay of the conference call will be available for one year following the\ncall. To access the earnings webcast replay please visit the New Mountain\nInvestor Relations\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fwww.newmountainfinance.com%2F&esheet=54528383&newsitemid=20260504896523&lan=en-US&anchor=New+Mountain+Investor+Relations&index=2&md5=cfc38d0df43a590f3fc17b84bdc6900a)\nwebsite\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fwww.newmountainfinance.com%2F&esheet=54528383&newsitemid=20260504896523&lan=en-US&anchor=website&index=3&md5=6901bc4639e9e4d2e9c3a6a438d9af1d)\n.\n\nFor additional details related to the quarter ended March 31, 2026, please\nrefer to the New Mountain Finance Corporation Quarterly Report on Form 10-Q\nfiled with the SEC and the supplemental investor presentation which can be\nfound on the Company's website at http://www.newmountainfinance.com\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fwww.newmountainfinance.com%2F&esheet=54528383&newsitemid=20260504896523&lan=en-US&anchor=http%3A%2F%2Fwww.newmountainfinance.com&index=4&md5=e35e6adaff463eb06a0f232e6bed6a5c)\n.\n   \n (1)   Adjusted net investment income for Q1 2026 includes $1.6 million of \n accelerated deferred financing costs related to the commitment decrease of the \n Holdings Credit Facility and the partial repayment of the SBIC II \n SBA-guaranteed debentures for $1.5 million and $0.1 million, respectively. \n (2)   Excludes non-controlling interest in New Mountain Net Lease Corporation \n (“NMNLC”). \n (3)   The Q1 2026 dividend yield calculation uses the closing stock price of $8.60 \n on May 1, 2026 and includes annualized dividends of $0.25 per share, to be \n paid in Q2 2026. The Q1 2025 dividend yield calculation uses the closing stock \n price of $9.97 on May 2, 2025 and includes annualized dividends of $0.32 per \n share, which were paid in Q2 2025. \n (4)   Includes collateral for securities purchased under collateralized agreements \n to resell. \n (5)   Excludes the Company’s United States Small Business Administration \n (“SBA”) guaranteed debentures. \n (6)   References to “YTM at Cost” assume the accruing investments, including \n secured collateralized agreements, in the Company's portfolio as of a certain \n date, the ‘‘Portfolio Date’’, are purchased at cost on that date and \n held until their respective maturities with no prepayments or losses and are \n exited at par at maturity. This calculation excludes the impact of existing \n leverage. YTM at Cost uses the Sterling Overnight Interbank Average Rate \n (\"SONIA”), Euro Interbank Offered Rate (\"EURIBOR\") and Secured Overnight \n Financing Rate (“SOFR”) curves at each quarter’s respective end date. \n The actual yield to maturity may be higher or lower due to the future \n selection of SONIA, EURIBOR and SOFR contracts by the individual companies in \n the Company’s portfolio or other factors. \n (7)   Originations exclude payment-in-kind (“PIK”); originations, repayments, \n and sales exclude revolvers, unfunded commitments, bridges, return of capital, \n and realized gains / losses. \n (8)   Excludes NMFC Senior Loan Program III LLC (\"SLP III\"), NMFC Senior Loan \n Program IV LLC (\"SLP IV\") and NMNLC. \n (9)   Includes investments held in NMNLC. \n (10)   Includes investments classified as structured finance obligations. \n (11)   On March 10, 2026, the Company completed the previously announced sale of \n approximately $470.0 million of assets at 94% of the fair value of such assets \n as of December 31, 2025. \n\n New Mountain Finance Corporation \n \n \n \nConsolidated Statements of Assets and Liabilities \n \n \n \n(in thousands, except shares and per share data) \n \n \n \n(unaudited) \n   \n   March 31, 2026   December 31, 2025 \n Assets       \n Investments at fair value       \n Non-controlled/non-affiliated investments (cost of $1,733,010 and $2,060,391, $ 1,628,080     $ 2,002,306   \n respectively) \n Non-controlled/affiliated investments (cost of $132,739 and $131,221,   65,699       60,702   \n respectively) \n Controlled investments (cost of $659,897 and $720,503, respectively)   619,600       679,005   \n Total investments at fair value (cost of $2,525,646 and $2,912,115,   2,313,379       2,742,013   \n respectively) \n Securities purchased under collateralized agreements to resell (cost of   5,700       13,500   \n $30,000 and $30,000, respectively) \n Cash and cash equivalents   51,130       80,718   \n Interest and dividend receivable   34,233       38,549   \n Derivative asset at fair value   2,958       5,647   \n Receivable from affiliates   441       381   \n Receivable from unsettled securities sold   —       4,138   \n Other assets   19,376       17,907   \n Total assets $ 2,427,217     $ 2,902,853   \n Liabilities       \n Borrowings       \n Unsecured Notes $ 787,704     $ 991,585   \n Holdings Credit Facility   354,446       420,063   \n SBA-guaranteed debentures   169,255       196,205   \n NMFC Credit Facility   30,545       81,074   \n Deferred financing costs (net of accumulated amortization of $48,735 and   (15,310 )     (17,875 ) \n $45,302, respectively) \n Net borrowings   1,326,640       1,671,052   \n Payable for unsettled securities purchased   18,490       463   \n Payable to broker   10,080       14,630   \n Management fee payable   7,173       9,176   \n Interest payable   6,780       11,892   \n Derivative liability at fair value   1,936       366   \n Deferred tax liability   1,731       1,819   \n Incentive fee payable   —       3,018   \n Other liabilities   4,417       2,181   \n Total liabilities   1,377,247       1,714,597   \n Commitments and contingencies       \n Net assets       \n Preferred stock, par value $0.01 per share, 2,000,000 shares authorized, none   —       —   \n issued \n Common stock, par value $0.01 per share, 200,000,000 shares authorized,   1,079       1,079   \n 107,851,929 and 107,851,929 shares issued, respectively, and 95,575,151 and \n 102,638,388 shares outstanding, respectively \n Paid in capital in excess of par   1,354,726       1,354,726   \n Treasury stock at cost, 12,276,778 and 5,213,541 shares held, respectively   (108,549 )     (51,952 ) \n Accumulated overdistributed earnings   (203,754 )     (121,676 ) \n Total net assets of New Mountain Finance Corporation $ 1,043,502     $ 1,182,177   \n Non-controlling interest in New Mountain Net Lease Corporation   6,468       6,079   \n Total net assets $ 1,049,970     $ 1,188,256   \n Total liabilities and net assets $ 2,427,217     $ 2,902,853   \n Number of shares outstanding   95,575,151       102,638,388   \n Net asset value per share of New Mountain Finance Corporation $ 10.92     $ 11.52   \n\n New Mountain Finance Corporation \n \n \n \nConsolidated Statements of Operations \n \n \n \n(in thousands, except shares and per share data) \n \n \n \n(unaudited) \n       \n     Three Months Ended \n     March 31, 2026   March 31, 2025 \n Investment income     \n From non-controlled/non-affiliated investments:     \n Interest income (excluding Payment-in-kind (\"PIK\") interest income) $ 39,249   $ 52,113   \n PIK interest income   2,363     2,913   \n Dividend income   1,805     557   \n Non-cash dividend income   1,357     4,434   \n Other income   1,346     1,312   \n From non-controlled/affiliated investments:     \n Interest income (excluding PIK interest income)   315     331   \n PIK interest income   1,188     987   \n Non-cash dividend income   740     1,683   \n Other income   63     63   \n From controlled investments:     \n Interest income (excluding PIK interest income)   3,272     1,485   \n PIK interest income   1,586     3,688   \n Dividend income   11,911     12,198   \n Non-cash dividend income 3,224 2,071   \n Other income   375     1,828   \n Total investment income   68,794     85,663   \n Expenses     \n Interest and other financing expenses   27,524     31,374   \n Management fee   8,154     10,233   \n Incentive fee   6,103     8,247   \n Professional fees   1,028     1,389   \n Administrative expenses   995     1,104   \n Other general and administrative expenses   458     516   \n Total expenses   44,262     52,863   \n Less: management and incentive fees waived   (6,103 )   (1,822 ) \n Net expenses   38,159     51,041   \n Net investment income before income taxes   30,635     34,622   \n Income tax benefit (expense)   4     (19 ) \n Net investment income   30,631     34,641   \n Net realized (losses) gains:     \n Non-controlled/non-affiliated investments   (26,292 )   (1,074 ) \n Controlled investments   (5,718 )   38,899   \n Net change in unrealized appreciation (depreciation):     \n Non-controlled/non-affiliated investments   (46,237 )   4,206   \n Non-controlled/affiliated investments   3,479     (4,891 ) \n Controlled investments   1,201     (48,392 ) \n Securities purchased under collateralized agreements to resell   (7,800 )   —   \n Foreign currency   (100 )   150   \n Benefit (provision) for taxes   87     (22 ) \n Net realized and unrealized losses   (81,380 )   (11,124 ) \n Net (decrease) increase in net assets resulting from operations   (50,749 )   23,517   \n Less: Net increase in net assets resulting from operations related to   (179 )   (104 ) \n non-controlling interest in New Mountain Net Lease Corporation \n Net (decrease) increase in net assets resulting from operations related to New $ (50,928 ) $ 23,413   \n Mountain Finance Corporation \n Basic (loss) earnings per share $ (0.51 ) $ 0.22   \n Weighted average shares of common stock outstanding - basic   100,476,895     107,851,415   \n Diluted (loss) earnings per share $ (0.51 ) $ 0.22   \n Weighted average shares of common stock outstanding - diluted   100,476,895     126,852,911   \n Distributions declared and paid per share $ 0.32   $ 0.32   \n\n\nABOUT NEW MOUNTAIN FINANCE CORPORATION\n\nNew Mountain Finance Corporation (NASDAQ: NMFC) is focused on providing direct\nlending solutions to U.S. upper middle market companies backed by top private\nequity sponsors. Our investment objective is to generate current income and\ncapital appreciation through the sourcing and origination of senior secured\nloans and select junior capital positions, to growing businesses in defensive\nindustries that offer attractive risk-adjusted returns. Our differentiated\ninvestment approach leverages the deep sector knowledge and operating\nresources of New Mountain Capital, a global investment firm with approximately\n$60 billion of assets under management.\n\nABOUT NEW MOUNTAIN CAPITAL\n\nNew Mountain Capital (\"NMC\") is a New York-based investment firm that\nemphasizes business building and growth, rather than debt, as it pursues\nlong-term capital appreciation. The firm currently manages private equity,\ncredit and net lease investment strategies with approximately $60 billion in\nassets under management. New Mountain seeks out what it believes to be the\nhighest quality growth leaders in carefully selected industry sectors and then\nworks intensively with management to build the value of these companies. For\nmore information on New Mountain Capital, please visit\nhttp://www.newmountaincapital.com\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fwww.newmountainfinance.com%2F&esheet=54528383&newsitemid=20260504896523&lan=en-US&anchor=http%3A%2F%2Fwww.newmountaincapital.com&index=5&md5=5f9420a2ee81481e13c4f3e76c38cd7c)\n.\n\nFORWARD-LOOKING STATEMENTS\n\nStatements included herein may contain “forward-looking statements”, which\nrelate to our future operations, future performance or our financial\ncondition. Forward-looking statements are not guarantees of future\nperformance, condition or results and involve a number of risks and\nuncertainties, including changes in base interest rates and significant\nvolatility on our business, portfolio companies, our industry and the global\neconomy. Actual results and outcomes may differ materially from those\nanticipated in the forward-looking statements as a result of a variety of\nfactors, including those described from time to time in our filings with the\nSecurities and Exchange Commission or factors that are beyond our control. New\nMountain Finance Corporation undertakes no obligation to publicly update or\nrevise any forward-looking statements made herein, except as may be required\nby law. All forward-looking statements speak only as of the time of this press\nrelease.\n\n\n\nView source version on businesswire.com:\nhttps://www.businesswire.com/news/home/20260504896523/en/\n(https://www.businesswire.com/news/home/20260504896523/en/)\n\nNew Mountain Finance Corporation\n\nInvestor Relations\n\nLaura C. Holson, Authorized Representative\n\nNMFCIR@newmountaincapital.com \n(mailto:NMFCIR@newmountaincapital.com) \n(212) 220-3505\n\n\nCopyright Business Wire 2026"},"type":"article","timestamp":"2026-05-04T20:21:00.200168455Z","server_sent_at_ms":1777926060200},"received_at":"2026-05-04T20:21:00.369Z","source_url":"https://www.businesswire.com/news/home/20260504896523/en/"},"analysis":{"id":"14457","press_release_id":"19748","analysis_json":{"industry":{"label":"Financial Services","sector":"Financials"},"redFlags":["Dividend cut from $0.32 to $0.25 per share","Net asset value per share declined from $11.52 to $10.92"],"eventType":"earnings","narrative":"New Mountain Finance reported Q1 adjusted net investment income of $0.32 per share, flat year-over-year, while net asset value per share declined to $10.92 from $11.52 at year-end.\n\nThe board declared a second quarter distribution of $0.25 per share, a reduction from the prior $0.32 level, but authorized an incremental $50 million for share repurchases, adding to the $66 million already bought back YTD at an average of $8.01.\n\nThe company completed a ~$470 million secondary sale in March to de-leverage and reinvest, maintaining a high-quality portfolio with 91% of investments rated green on its internal heatmap.","sentiment":"mixed","agentHooks":{"shouldPost":true,"suggestedAngle":"NMFC pivots from dividend coverage to aggressive buybacks as NAV dips."},"keyFigures":{"eps":0.32,"customDimensions":{"navPerShare":10.92,"dividendDeclared":0.25,"sharesRepurchasedYtd":66,"newBuybackAuthorization":50}},"quotedText":"We are using the proceeds from the sale to de-lever the balance sheet, buy back stock at a significant discount to book value and reinvest into attractive new investments in the primary and secondary market.","namedEntities":{"people":[{"name":"Steven B. Klinsky","role":"Chairman and New Mountain Capital CEO"},{"name":"John R. Kline","role":"CEO"},{"name":"Laura C. 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This is offset by significant share repurchase activity and a completed secondary sale to de-leverage."},"tickerRelevance":{"others":[],"primary":"NMFC"},"globalImportance":25,"audienceRelevance":40,"eventTypeSecondary":["dividend","buyback"],"importanceComponents":{"tickerTier":"mid-cap","eventGravity":"earnings_with_dividend_cut","sectorWeight":"financials"}},"event_type":"earnings","event_type_secondary":["dividend","buyback"],"sentiment":"mixed","material_impact_score":3,"narrative":"New Mountain Finance reported Q1 adjusted net investment income of $0.32 per share, flat year-over-year, while net asset value per share declined to $10.92 from $11.52 at year-end.\n\nThe board declared a second quarter distribution of $0.25 per share, a reduction from the prior $0.32 level, but authorized an incremental $50 million for share repurchases, adding to the $66 million already bought back YTD at an average of $8.01.\n\nThe company completed a ~$470 million secondary sale in March to de-leverage and reinvest, maintaining a high-quality portfolio with 91% of investments rated green on its internal heatmap.","key_figures":{"eps":0.32,"customDimensions":{"navPerShare":10.92,"dividendDeclared":0.25,"sharesRepurchasedYtd":66,"newBuybackAuthorization":50}},"named_entities":{"people":[{"name":"Steven B. 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