New Mountain Finance Corporation (NASDAQ:NMFC)⁠ is included among the 15 Stocks with Highest Dividend to Invest in. B. Riley Maintains Neutral Rating on NMFC, Lowers Price Target to $10 Photo by Vitaly Taranov on Unsplash On Nov‌ember 5, B.⁠ Ri‍le‍y l⁠owered it‌s price target on New Mountain Finance Corporation (NASDAQ:NMFC)⁠ t⁠o $10 from $11 and maintained a Neutral rating on the stock f‌o‍llow‍ing t‌he Q3 results, as reported by The Fly. The analyst noted that the company’s raw earnings fell short of ...

Financial Data and Key Metrics Changes - Adjusted net investment income for Q3 2025 was $0.32 per share, covering the $0.32 per share dividend paid on September 30 [5] - Net asset value per share declined by $0.15 compared to Q2, now at $12.06, due to modest declines across four investments [5][15] - Total investment income for the quarter was $80 million, a 4% decrease compared to the prior quarter [26] - Total net expenses decreased by 5% to $47 million, including a fee waiver [27] Business Line Data and Key Metrics Changes - NMFC's portfolio loan-to-value stands at 45%, with a focus on defensive growth sectors such as healthcare and IT [6][24] - Senior-oriented assets increased to 80% of the overall portfolio, up from 78% in the prior quarter [12][23] - The average yield of NMFC's portfolio decreased slightly to 10.4% due to lower yields on originations compared to repayments [24] Market Data and Key Metrics Changes - The direct lending market remains attractive, with stable spreads despite a lack of significant M&A activity [19][20] - Most unitranche loans are pricing at SOFR plus 450-500 range, indicating a stable pricing environment [20] - Approximately 80% of investments are senior in nature, reflecting a shift towards lower-risk assets [23] Company Strategy and Development Direction - NMFC aims to improve the quality and diversity of its asset base while optimizing liabilities and enhancing income quality [12] - The company is exploring a portfolio sale of up to $500 million to diversify its portfolio and reduce PIK income [7][8] - NMFC's management emphasizes shareholder alignment, with 14% of outstanding shares owned by employees and senior advisors [11] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the deal environment improving in Q4 and 2026, with expectations of increased repayments [36] - The company remains committed to maintaining leverage within a target range of 1 to 1.25 [26][36] - Management is focused on reversing unrealized depreciation within the existing portfolio and recovering full principal value on challenged investments [17][58] Other Important Information - NMFC has fully utilized a $50 million stock repurchase program, repurchasing approximately $47 million in shares at an average price of $10 [7] - The company has a diversified portfolio across 127 companies, with the top 10 single-name issuers accounting for 26% of total fair value [25] Q&A Session Summary Question: Regarding the potential portfolio sale - The sale will focus on the largest positions to diversify the portfolio and reduce PIK income, including both PIK and cash-yielding names [34] Question: On the buyback strategy - The company aims to stay within leverage levels while potentially using repayments to buy back stock if conditions allow [36] Question: About deployment capacity and strategy - NMFC remains active in the market but is prioritizing share repurchases due to leverage considerations [41] Question: On the potential secondary sale and use of proceeds - Proceeds could be used for debt repayment, stock repurchases, or new loans to diversify the portfolio [44] Question: Concerns about other portfolio positions affected by tariffs - The portfolio is well-positioned against tariff impacts, with Beauty Industry Group being the only significant exposure [55] Question: On the performance of Admentum - Admentum's performance is stable, and the company is working on targeted M&A to grow the business [67]

14 Important Notices and Safe Harbor Statement This presentation contains forward looking statements, which are not guarantees of future performance, conditions or results, and involve substantial risks and uncertainties, including the current conflict between Russia and Ukraine, conflict in the Middle East, and related changes in base interest rates and significant volatility on our business, portfolio companies, our industry, the global economy, and uncertainty associated with the imposition of tariffs an ...

Financial Position - As of September 30, 2025, the company's net asset value was approximately $1,256.6 million, with a portfolio fair value of approximately $2,943.6 million across 126 portfolio companies[430]. - The company raised approximately $1,034.6 million in net proceeds from additional offerings of common stock since its IPO[422]. - As of September 30, 2025, the asset coverage ratio was 179.1%, allowing the company to borrow $2 for every $1 of equity[506]. - The company had outstanding commitments to fund investments totaling $255.9 million as of September 30, 2025[512]. - Total contractual obligations amount to $1,784.1 million, with $476.7 million due in less than 1 year[518]. - Cash and cash equivalents were approximately $63.7 million as of September 30, 2025, down from $80.3 million as of December 31, 2024[508]. Investment Performance - The weighted average yield to maturity at cost for income-producing investments was approximately 10.4%, while the overall yield to maturity at cost for all investments was approximately 10.0%[430]. - As of September 30, 2025, the fair value of the company's investments was approximately $2,943.6 million across 126 portfolio companies, down from approximately $3,091.0 million in 120 portfolio companies at December 31, 2024[492]. - Total investment income for the three months ended September 30, 2025, was approximately $80.5 million, a decrease of about $14.8 million or 16% compared to $95.3 million for the same period in 2024[494]. - For the nine months ended September 30, 2025, total investment income was approximately $249.7 million, reflecting a decrease of about $30.8 million or 11% from $280.5 million in the same period in 2024[499]. - The company reported net realized and unrealized losses of approximately $21.7 million for the three months ended September 30, 2025, compared to a net loss of approximately $11.5 million for the same period in 2024[496]. - Net realized gains on investments were $51.2 million for the nine months ended September 30, 2025, compared to net realized losses of $43.5 million for the same period in 2024[501]. - The company reported a net loss of approximately $59.5 million for the nine months ended September 30, 2025, compared to a net loss of $24.6 million for the same period in 2024[501]. Portfolio Composition - As of September 30, 2025, the top five industry concentrations in the company's portfolio were software, business services, healthcare, investment funds, and consumer services[429]. - The company primarily invests in senior secured debt of U.S. sponsor-backed middle market companies, defined as those with annual EBITDA of $10 million to $200 million[428]. - SLP III had total investments with an aggregate fair value of approximately $758.0 million, up from $715.1 million as of December 31, 2024[458]. - SLP IV had total investments with a fair value of approximately $525.3 million, up from $469.3 million as of December 31, 2024, representing a growth of 11.5%[466]. - The number of portfolio companies in SLP III decreased slightly to 89 from 90 year-over-year[459]. - The number of portfolio companies in SLP IV increased to 87 as of September 30, 2025, compared to 79 as of December 31, 2024, indicating a growth of 10.1%[467]. Debt and Financing - On October 15, 2025, the company repaid the outstanding principal of $258.7 million on the 2022 Convertible Notes[433]. - The board of directors authorized a stock repurchase program of up to $100.0 million, expected to be in place until December 31, 2026, or until the full amount is repurchased[434]. - The company entered into a Third Amended and Restated Uncommitted Revolving Loan Agreement, extending the maturity date from December 31, 2027, to December 31, 2030[435]. - SLP IV's maximum borrowing capacity was increased to $600.0 million as of July 11, 2025, up from $370.0 million prior to the amendment[465]. - The Holdings Credit Facility had outstanding borrowings of $308.1 million as of September 30, 2025, with approximately $421.9 million of available capacity remaining[514]. Interest Rate Exposure - Approximately 85.39% of the company's investments at fair value are floating-rate investments, while 14.61% are fixed-rate investments as of September 30, 2025[531]. - The company's senior secured revolving credit facilities are subject to floating interest rates based on SOFR, SONIA, or EURIBOR rates[531]. - A decrease of 200 basis points in interest rates could lead to a 15.77% reduction in interest and dividend income net of interest expense[534]. - An increase of 200 basis points in interest rates could result in a 15.77% increase in interest and dividend income net of interest expense[534]. - The potential impact of interest rate changes on net investment income is significant, with a high interest rate environment potentially increasing income[531]. - A prolonged low interest rate environment could compress the difference between interest income and interest expense, adversely affecting operating results[531]. Distributions and Dividends - Distributions declared and paid to stockholders for the nine months ended September 30, 2025, totaled approximately $102.8 million[519]. - The company declared a total of $0.96 per share in distributions for the fiscal year ended December 31, 2025[519]. - For the fiscal year ended December 31, 2024, total distributions were $147.2 million, with 75.68% classified as ordinary income[519]. - The company has a dividend reinvestment plan allowing stockholders to reinvest cash distributions in additional shares[522]. - The company intends to distribute approximately all of its net investment income on a quarterly basis and substantially all of its taxable income annually[521]. Management and Fees - Management fees for the three months ended September 30, 2025, totaled $9.6 million, down from $10.7 million in the same period in 2024, primarily due to a lower invested asset base[495]. - The company has entered into a fee waiver agreement with the Investment Adviser, reducing management fees through December 31, 2024[525].

Financial Performance - Net investment income for Q3 2025 was $33.9 million, or $0.32 per weighted average share, compared to $0.33 per share in Q3 2024[3] - Total investment income for the three months ended September 30, 2025, was $80,529,000, down 15.5% from $95,327,000 for the same period in 2024[24] - Net investment income before income taxes for the nine months ended September 30, 2025, was $103,286,000, compared to $111,734,000 for the same period in 2024, reflecting a decrease of about 7.6%[24] - Basic earnings per share for the three months ended September 30, 2025, was $0.11, down from $0.22 in the same period of 2024, a decline of 50%[25] - Net increase in net assets resulting from operations related to New Mountain Finance Corporation was $12,189,000 for the three months ended September 30, 2025, compared to $23,889,000 for the same period in 2024, a decrease of about 49.1%[25] Asset and Liability Management - The net asset value (NAV) per share decreased to $12.06 as of September 30, 2025, from $12.21 as of June 30, 2025[5] - Total assets decreased to $3,088,909,000 as of September 30, 2025, from $3,246,701,000 as of December 31, 2024, representing a decline of approximately 4.9%[21] - Total liabilities decreased to $1,826,243,000 as of September 30, 2025, from $1,887,410,000 as of December 31, 2024, a reduction of approximately 3.2%[21] - The net asset value per share of New Mountain Finance Corporation was $12.06 as of September 30, 2025, compared to $12.55 as of December 31, 2024, a decrease of about 3.9%[21] Investment Portfolio - Approximately 95% of the investment portfolio is rated green, indicating strong performance[5] - The investment portfolio had a fair value of $2,957.1 million, with investments in 127 portfolio companies[6] - The company increased its senior-oriented asset mix to 80%, up from 75% as of September 30, 2024[5] - The company is exploring a secondary portfolio sale of up to $500 million of assets to enhance financial flexibility and diversify the portfolio[5] Dividends and Shareholder Returns - The annualized dividend yield increased to 13.2% in Q3 2025, compared to 11.9% in Q3 2024[3] - The company declared a fourth quarter 2025 distribution of $0.32 per share, payable on December 31, 2025[5] - A new stock repurchase plan was established, authorizing the repurchase of up to $100 million worth of common shares, doubling the capacity of the original plan[5] Expenses and Losses - Total expenses for the three months ended September 30, 2025, were $51,002,000, down from $60,791,000 in the same period of 2024, a reduction of approximately 16.3%[24] - The company reported net realized and unrealized losses of $21,700,000 for the three months ended September 30, 2025, compared to losses of $11,494,000 for the same period in 2024[24] Business Focus - The company focuses on providing direct lending solutions to U.S. upper middle market companies, aiming for current income and capital appreciation through senior secured loans[26]

Nov 3, 2025 4:38 PM Eastern Standard Time New Mountain Finance Corporation Announces Financial Results for the Quarter Ended September 30, 2025 Share Reports Third Quarter Net Investment Income of $0.32 per Share and Declares a Fourth Quarter Distribution of $0.32 per Share NEW YORK--(BUSINESS WIRE)--New Mountain Finance Corporation (NASDAQ: NMFC) ("New Mountain,†"New Mountain Finance†or the "Company†) today announced its financial results for the quarter ended September 30, 2025. Third Quarter and Recent ...

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh. ...

Core Points - New Mountain Finance Corporation will release its financial results for the quarter ended September 30, 2025, on November 3, 2025, after market close [1] - The Company will host an earnings conference call and webcast on November 4, 2025, at 10:00 am Eastern Time to review third quarter performance and discuss recent events [1]

Group 1 - New Mountain Finance (NASDAQ: NMFC) is trading at a double-digit discount to its net asset value (NAV) per share [1] - The company is providing a double-digit dividend yield that is nearly covered by net investment income (NII) [1] - The business development company (BDC) recently declared a quarterly dividend [1] Group 2 - Pacifica Yield focuses on long-term wealth creation by targeting undervalued high-growth companies, high-dividend stocks, REITs, and green energy firms [1]

Group 1 - New Mountain Finance (NASDAQ: NMFC) is trading at a double-digit discount to its net asset value (NAV) per share [1] - The company is providing a double-digit dividend yield that is nearly covered by net investment income (NII) [1] - The business development company (BDC) recently declared a quarterly dividend [1] Group 2 - Pacifica Yield focuses on long-term wealth creation by targeting undervalued high-growth companies, high-dividend stocks, REITs, and green energy firms [1]