New Mountain Finance (NMFC) - 2025 Q3 - Quarterly Results

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]