New Mountain Finance (NMFC) - 2025 Q2 - Quarterly Report

PART I. FINANCIAL INFORMATION Item 1. Financial Statements 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 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 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 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 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 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 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 | | :---------------------------------------- | :--------------------------------------- |