Core Insights - New Mountain Finance (NMFC) has been recognized as a Top 10 dividend-paying financial stock according to Dividend Channel's latest "DividendRank" report [1] - The report highlights NMFC's attractive valuation metrics and strong profitability, with a current share price of $10.47, a price-to-book ratio of 0.9, and an annual dividend yield of 12.23% [1] - In comparison, the average stock in Dividend Channel's coverage yields 3.9% and has a price-to-book ratio of 2.7, indicating NMFC's superior performance [1] Valuation and Profitability - NMFC's annualized dividend is $1.28 per share, paid quarterly, with the next ex-dividend date on 09/16/2025 [2] - The report emphasizes the importance of NMFC's strong quarterly dividend history and favorable long-term growth rates in key fundamental data points [1][2] Investment Appeal - The DividendRank formula used by Dividend Channel aims to identify the most profitable companies trading at attractive valuations, making NMFC a noteworthy candidate for dividend investors [2] - The historical dividend performance of NMFC is considered a critical factor in assessing the sustainability of its current dividend [2]

Company Overview - Arizona Gold & Silver Inc. is a leading exploration company focused on uncovering precious metal resources in Arizona and Nevada [3] - The company is committed to sustainable practices and innovative exploration techniques, aiming to drive value for stakeholders while prioritizing environmental stewardship [3] - The flagship asset is the Philadelphia gold-silver property, where the company is drilling off an epithermal gold-silver system ahead of an initial resource calculation [3] Stock Options Announcement - The company has granted incentive stock options to purchase a total of 2,222,481 common shares at a price of $0.37 for a period of five years [1] - The stock options will vest immediately and are subject to a four-month hold period [1] - This offering is aimed at the company's officers, directors, and certain consultants, recognizing their leadership and excellence [2]

Group 1: Market Overview - U.S. stock futures were higher, with Dow futures gaining more than 50 points on Monday [1] - New Mountain Finance Corporation shares fell sharply in pre-market trading, dipping 4.4% to $10.01 after a downgrade from Buy to Underperform by B of A Securities analyst Derek Hewett, with a price target cut from $11.75 to $10 [1] Group 2: Notable Stock Movements - Kindly MD Inc shares tumbled 37.1% to $1.75 in pre-market trading after a 30% drop on Friday [3] - aTyr Pharma Inc shares fell 19.7% to $4.84 after gaining around 15% on Friday [3] - GlucoTrack, Inc. shares dipped 17.4% to $8.73 after a significant jump of 117% on Friday due to a purchase agreement announcement [3] - Hang Feng Technology Innovation Co., Ltd. shares declined 17.4% to $10.16 after a 209% gain on Friday following its IPO pricing [3] - Akso Health Group shares fell 16.4% to $1.60 after a more than 4% gain on Friday [3] - YD Bio Ltd shares declined 9.1% to $21.00 after a 13% gain on Friday [3] - Texas Instruments Incorporated shares declined 2.9% to $177.35 amid reports of an anti-dumping investigation by the Chinese Ministry of Commerce into American-made analog IC chips [3] - Analog Devices, Inc. shares fell 2.7% to $238.63, also related to the same anti-dumping investigation [3]

Core Viewpoint - Small-cap companies are rapidly adopting AI technologies, leading to increased efficiency and potential profit growth, while currently being the cheapest sector in the market [2] Group 1: Small-Cap Dividend Stocks - BlackRock TCP Capital (TCPC) has a yield of 15.7% and invests in over 150 companies across 20 industries, but is currently facing restructuring due to credit issues [3] - TCPC is trading at an 18% discount to its net asset value (NAV), with a regular yield of 14% and an additional 1.7% from special dividends [4] - New Mountain Finance (NMFC) offers a 12.1% yield and is also trading at a 14% discount to NAV, focusing on U.S. upper-middle-market businesses [5][6] - NMFC's NAV has declined nearly 2% quarter-over-quarter, with markdowns in healthcare and consumer products, but its credit quality remains stable [8][9] - Kayne Anderson BDC (KBDC) has a yield of 12.6% and targets companies with $10 million to $75 million in EBITDA, with a focus on defensive industries [10] - KBDC has initiated a $100 million buyback program and has seen investments increase in Q3, despite a slight decline in NAV [12] Group 2: Income-Generating Investments - Mach Natural Resources LP (MNR) offers a 16.0% distribution and operates primarily in the Anadarko Basin, with a focus on natural gas [13] - MNR trades at approximately 3.5 times this year's EBITDAX estimates, which is below the average for comparable MLPs [14] - MFA Financial (MFA) has a yield of 14.4% and invests in residential mortgage loans and securities, with a recent 13% QoQ increase in origination fees [15][17] - MFA's distributable earnings are expected to drop significantly this year, but the market does not seem to be pricing in a dividend cut [18] - Armour Residential REIT (ARR) offers a high yield of 19.0% but has a history of dividend cuts, trading at about 90% of book value [19][21]

Company Overview - New Mountain Finance (NASDAQ: NMFC) operates as a business development company focused on providing attractive total returns through a portfolio of debt investments [1] Investment Strategy - The company generates earnings by lending capital, aiming to create a hybrid investment strategy that combines growth and income [1] - The approach includes a mix of classic dividend growth stocks, Business Development Companies, REITs, and Closed End Funds to enhance investment income while achieving total returns comparable to traditional index funds like the S&P [1]

Group 1 - New Mountain Finance Corporation held its Second Quarter 2025 Earnings Conference Call, with key participants including the President, CEO, CFO, and COO [1][2] - The call was initiated by John Kline, who welcomed attendees and introduced other executives present on the call [2] - Kris Corbett, CFO, provided preliminary statements regarding the call, emphasizing that it is being recorded and that unauthorized broadcasts are prohibited [3] Group 2 - The company highlighted the importance of customary safe harbor disclosures related to forward-looking statements in their press release and presentation slides [3]

Financial Data and Key Metrics Changes - Adjusted net investment income for the quarter was $0.32 per share, covering the $0.32 per share dividend paid on June 30 [5] - Net asset value per share declined by $0.24 to $12.21 compared to Q1 [5][16] - Total investment income for the quarter was $83 million, a 12% decrease over the prior year [29] Business Line Data and Key Metrics Changes - The portfolio loan-to-value ratio stands at 45%, with nearly 80% exposure to senior-oriented assets [6][25] - The average yield of NMFC's portfolio decreased slightly to 10.6% for Q2 [25] - In Q2, the company originated $122 million of assets, offset by $155 million of repayments and sales [18] Market Data and Key Metrics Changes - The company noted a stabilization in direct lending spreads, with most unitranche loans pricing at SOFR plus $4.75 to $5.25 [21] - Approximately 78% of investments are senior in nature, up from 75% in the prior year [24] - The weighted average EBITDA of portfolio companies increased slightly to $176 million [25] Company Strategy and Development Direction - The company focuses on improving the quality and diversity of its asset base and optimizing liabilities with low-cost floating rate debt [13] - NMFC is committed to its dividend protection program through 2026, which aims to stabilize dividends during tighter market conditions [7][48] - The company is actively working on refinancing its 7.5% convertible notes and 8.25% unsecured notes maturing in Q4 [13] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the potential for deal flow to normalize as market conditions improve [8][20] - The company is focused on optimizing leverage and enhancing income quality, with expectations for increased portfolio activity in Q3 and Q4 [49] - Management acknowledged challenges in certain sectors, particularly in dental and consumer products, but remains positive about overall portfolio performance [15][60] Other Important Information - NMFC has repurchased approximately $16 million of shares year-to-date, with an additional $31 million of Board authorization remaining [9] - The company has maintained a strong credit performance with only $38 million or 1.2% of the portfolio on non-accrual [18] Q&A Session Summary Question: Concerns about healthcare names and industry headwinds - Management noted that while the dental downgrade was idiosyncratic, the sector has good secular tailwinds, but operational execution is critical [42][44] Question: Dividend protection program and future outlook - The dividend protection program is designed to provide visibility and support to shareholders, with management committed to maintaining it through 2026 [48][51] Question: Risks related to tariff exposure in consumer products - Management confirmed that the consumer products business had been flagged for tariff exposure, and while it was already underperforming, tariffs exacerbated the situation [56][60] Question: Trends in the education space and Edmentum's performance - Management indicated that Edmentum remains well-positioned to address learning loss post-COVID, despite some capital structure challenges [70][72]

Financial Performance - Q2 2025 adjusted net investment income ("NII") was $0.32 per share, covering the dividend of $0.32 per share[15] - June 30, 2025 net asset value ("NAV") was $12.21 per share, compared to $12.45 per share as of March 31, 2025[15] - The company repurchased approximately $16 million of NMFC shares year-to-date, including $10 million in Q2 at a weighted average purchase price of $10.42 per share[15] - Total dividends paid to shareholders is approximately $1.4 billion since IPO[27] Portfolio Composition and Risk - Approximately 95% of the portfolio is rated green on the company's heatmap, indicating strong credit quality[15] - Nearly 80% of the portfolio is senior in nature, including First Lien, SLPs, and Net Lease assets[15] - Realized Total Net Loss Rate for NMFC since IPO is 1bp[19] - Top 10 portfolio companies represent $759.4 million, or 25.2%, of consolidated investments[67] Investment Activity - Gross originations for Q2 2025 were $122.2 million, while repayments were $141.4 million and sales were $13.7 million, resulting in net less sales originations of $(32.9) million[17, 55] Leverage and Liquidity - Statutory leverage ratio is 1.13x debt to equity as of June 30, 2025[16] - The company has $1,789 million in outstanding debt with a weighted average interest rate of 6.04%[53, 82]

New Mountain Finance (NMFC) came out with quarterly earnings of $0.32 per share, in line with the Zacks Consensus Estimate . This compares to earnings of $0.36 per share a year ago. These figures are adjusted for non-recurring items. Ahead of this earnings release, the estimate revisions trend for New Mountain was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the ...

PART I. FINANCIAL INFORMATION [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) Presents unaudited consolidated financial statements, including assets, operations, cash flows, and investment schedules, with comprehensive notes on accounting policies and disclosures [Consolidated Statements of Assets and Liabilities](index=3&type=section&id=Consolidated%20Statements%20of%20Assets%20and%20Liabilities) Summarizes the company's financial position, detailing assets, liabilities, and net assets as of June 30, 2025, and December 31, 2024 | Metric (in thousands) | June 30, 2025 | December 31, 2024 | Change | | :-------------------- | :------------ | :---------------- | :----- | | Total investments at fair value | $3,000,696 | $3,091,024 | $(90,328) | | Cash and cash equivalents | $57,390 | $80,320 | $(22,930) | | Total assets | $3,159,712 | $3,246,701 | $(86,989) | | Net borrowings | $1,767,630 | $1,836,710 | $(69,080) | | Total liabilities | $1,847,876 | $1,887,410 | $(39,534) | | Total net assets | $1,311,836 | $1,359,291 | $(47,455) | | Net asset value per share | $12.21 | $12.55 | $(0.34) | [Consolidated Statements of Operations](index=4&type=section&id=Consolidated%20Statements%20of%20Operations) Details the company's revenues, expenses, and net increase in net assets from operations for the three and six months ended June 30, 2025 and 2024 | Metric (in thousands) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | Change (YoY) | | :-------------------- | :--------------------------- | :--------------------------- | :----------- | | Total investment income | $83,490 | $94,588 | $(11,098) | | Net expenses | $48,897 | $55,915 | $(7,018) | | Net investment income | $34,585 | $38,439 | $(3,854) | | Net realized (losses) gains | $13,389 | $(31,166) | $44,555 | | Net change in unrealized appreciation (depreciation) | $(40,078) | $30,641 | $(70,719) | | Net increase in net assets from operations | $7,774 | $34,471 | $(26,697) | | Basic earnings per share | $0.07 | $0.32 | $(0.25) | | Diluted earnings per share | $0.07 | $0.31 | $(0.24) | | Metric (in thousands) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | Change (YoY) | | :-------------------- | :--------------------------- | :--------------------------- | :----------- | | Total investment income | $169,153 | $185,144 | $(15,991) | | Net expenses | $99,938 | $108,916 | $(8,978) | | Net investment income | $69,226 | $75,993 | $(6,767) | | Net realized (losses) gains | $51,214 | $(42,993) | $94,207 | | Net change in unrealized appreciation (depreciation) | $(89,005) | $33,635 | $(122,640) | | Net increase in net assets from operations | $31,187 | $61,879 | $(30,692) | | Basic earnings per share | $0.29 | $0.59 | $(0.30) | | Diluted earnings per share | $0.29 | $0.56 | $(0.27) | [Consolidated Statements of Changes in Net Assets](index=6&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Net%20Assets) Outlines the changes in the company's net assets, including investment income, realized and unrealized gains/losses, share repurchases, and distributions | Metric (in thousands) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | Change (YoY) | | :-------------------- | :--------------------------- | :--------------------------- | :----------- | | Net investment income | $69,226 | $75,993 | $(6,767) | | Net realized gains (losses) on investments and foreign currency | $51,214 | $(42,993) | $94,207 | | Net change in unrealized (depreciation) appreciation of investments | $(89,005) | $33,635 | $(122,640) | | Net increase in net assets from operations | $31,187 | $62,868 | $(31,681) | | Repurchase of shares under repurchase program | $(9,642) | $0 | $(9,642) | | Distributions declared to stockholders | $(69,011) | $(74,934) | $5,923 | | Total net (decrease) increase in net assets from capital transactions | $(78,667) | $(7,712) | $(70,955) | | Net (decrease) increase in net assets | $(47,480) | $54,167 | $(101,647) | [Consolidated Statements of Cash Flows](index=7&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Presents the cash inflows and outflows from operating, investing, and financing activities for the six months ended June 30, 2025 and 2024 | Metric (in thousands) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | Change (YoY) | | :-------------------- | :--------------------------- | :--------------------------- | :----------- | | Net cash flows provided by (used in) operating activities | $144,253 | $(91,604) | $235,857 | | Net cash flows used in financing activities | $(167,395) | $140,941 | $(308,336) | | Net increase (decrease) in cash and cash equivalents | $(23,142) | $49,337 | $(72,479) | | Cash and cash equivalents at end of period | $57,390 | $119,607 | $(62,217) | [Consolidated Schedule of Investments as of June 30, 2025](index=9&type=section&id=Consolidated%20Schedule%20of%20Investments%20as%20of%20June%2030%2C%202025) Provides a detailed breakdown of the company's investment portfolio by type, industry, and interest rate as of June 30, 2025 | Investment Type | Percent of Total Investments at Fair Value | | :------------------------ | :--------------------------------------- | | First lien | 65.55 % | | Second lien | 5.64 % | | Subordinated | 3.60 % | | Structured Finance Obligations | 0.11 % | | Equity and other | 25.10 % | | **Total investments** | **100.00 %** | | Industry Type | Percent of Total Investments at Fair Value | | :---------------------------------------- | :--------------------------------------- | | Software | 26.99 % | | Business Services | 17.05 % | | Healthcare | 15.39 % | | Investment Funds (includes investments in joint ventures) | 9.19 % | | Consumer Services | 6.28 % | | Education | 5.81 % | | Financial Services | 4.44 % | | Distribution & Logistics | 3.96 % | | Net Lease | 3.81 % | | Packaging | 2.36 % | | Energy | 2.16 % | | Business Products | 1.02 % | | Food & Beverage | 0.71 % | | Consumer Products | 0.51 % | | Specialty Chemicals & Materials | 0.32 % | | **Total investments** | **100.00 %** | | Interest Rate Type | Percent of Total Investments at Fair Value | | :----------------- | :--------------------------------------- | | Floating rates | 85.69 % | | Fixed rates | 14.31 % | | **Total investments** | **100.00 %** | [Consolidated Schedule of Investments as of December 31, 2024](index=40&type=section&id=Consolidated%20Schedule%20of%20Investments%20as%20of%20December%2031%2C%202024) Provides a detailed breakdown of the company's investment portfolio by type, industry, and interest rate as of December 31, 2024 | Investment Type | Percent of Total Investments at Fair Value | | :------------------------ | :--------------------------------------- | | First lien | 63.31 % | | Second lien | 6.37 % | | Subordinated | 3.30 % | | Structured Finance Obligations | 0.10 % | | Equity and other | 26.92 % | | **Total investments** | **100.00 %** | | Industry Type | Percent of Total Investments at Fair Value | | :---------------------------------------- | :--------------------------------------- |