New Mountain Finance (NMFC) - 2025 Q4 - Annual Results

Financial Performance - Fourth quarter net investment income was $33.0 million, or $0.32 per weighted average share, consistent with Q4 2024[2] - Total investment income for 2025 was $327,084,000, a decrease of 11.97% from $371,666,000 in 2024[18] - Net investment income before income taxes for 2025 was $136,379,000, down from $146,222,000 in 2024, reflecting a decline of 5.79%[18] - Net increase in net assets resulting from operations for New Mountain Finance Corporation was $16,488,000 in 2025, compared to $113,443,000 in 2024, a decrease of 85.48%[19] - Basic earnings per share for 2025 was $0.16, significantly lower than $1.06 in 2024, representing a decline of 84.96%[19] Asset and Liability Management - Total assets decreased to $2,902,853,000 in 2025 from $3,246,701,000 in 2024, a reduction of 10.59%[16] - Total liabilities decreased to $1,714,597,000 in 2025 from $1,887,410,000 in 2024, a decline of 9.15%[16] - Net asset value per share decreased to $11.52 in 2025 from $12.55 in 2024, a decrease of 8.22%[16] Investment Portfolio - The investment portfolio's fair value decreased to $2,755.5 million from $2,957.1 million as of September 30, 2025[2] - The investment portfolio composition included 66.0% in first lien investments, 14.1% in senior loan funds, and 8.4% in preferred equity[8] - Approximately 95% of the portfolio is rated green, indicating strong performance[4] Dividend Policy - The annualized dividend yield increased to 15.7% from 10.7% year-over-year[2] - The company plans to reduce the dividend to $0.25 per share starting in Q2 2026, reflecting a pro forma yield of approximately 12% at the current stock price[4] Cash and Debt Position - As of December 31, 2025, the company had cash and cash equivalents of $80.7 million and total statutory debt of $1,492.7 million, resulting in a debt-to-equity ratio of 1.26x[9] Share Repurchase - The company repurchased $30 million worth of shares since the end of Q3 2025, with plans for continued repurchases in 2026[3] Management Fees - Management fees for 2025 were $38,787,000, down from $45,522,000 in 2024, a decrease of 14.06%[18] Company Overview - New Mountain Finance Corporation focuses on providing direct lending solutions to U.S. upper middle market companies, with approximately $60 billion in assets under management[20]