Financial Data and Key Metrics Changes - Total revenues for Q1 2025 reached $114.8 million, a year-over-year increase of $32.9 million, translating to approximately 40% growth [10][18] - Adjusted for voluntary product withdrawals, revenues would have been $118.6 million, representing approximately 45% year-over-year growth [10][18] - Adjusted net income grew by 87% year-over-year to $33.3 million, while adjusted EBITDA increased by 81% to $47.9 million [20][21] Business Line Data and Key Metrics Changes - The increase in total revenue is primarily attributed to higher sales of Ascentive, reflecting increased acceptance and utilization by physicians, payers, and patients [19] - Gross profit for Q1 2025 was $61.1 million, with a gross margin of 53.2%, up from 47.8% in Q1 2024, driven by a favorable mix of higher margin IG sales [19][20] Market Data and Key Metrics Changes - Demand for commercial products, particularly BIVIGAM and Ascentive, has consistently exceeded prior supply capabilities, with new patient starts continuing to grow [12][13] - The company anticipates significant sequential operating cash flow growth throughout 2025, supported by a strong balance sheet with cash and receivables totaling $171 million at the end of Q1 2025 [13][21] Company Strategy and Development Direction - The company is focused on advancing its R&D platform and optimizing production capabilities, particularly with the recent FDA approval of the yield enhancement production process, expected to provide 20% more bulk IG from the same plasma volumes [8][9] - A stock repurchase program has been authorized, allowing the company to buy back up to $500 million of its common stock, reflecting confidence in its financial position and commitment to shareholder value [14][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to achieve sustainable revenue and earnings growth, driven by a robust U.S.-based supply chain and favorable market conditions [23][24] - The company has raised its revenue guidance for 2025 to $500 million or more and for 2026 to $625 million or more, reflecting ongoing commercial momentum and the impact of the yield enhancement process [11][12] Other Important Information - The company has successfully reduced its cost of debt through a recent debt reorganization, which is expected to enhance its capital structure and financial flexibility [13][22] - The company remains insulated from government price negotiations affecting other sectors of the pharmaceutical industry, which supports its strong reimbursement profile [15][16] Q&A Session Summary Question: Guidance and FDA Clearance - Inquiry about the guidance increase and the timeline for revenue contribution from the yield enhancement process [29] - Management confirmed that three conformance lots were manufactured for FDA approval and expressed confidence in releasing these lots into the market [30][31] Question: Demand Generation and Capital Allocation - Questions regarding backlog for Ascentive and capital allocation priorities [35][36] - Management indicated that operational expenses are expected to normalize and that cash generation will support debt repayment, R&D funding, and stock repurchases [38][41] Question: Supply Agreements and Donor Retention - Inquiry about the contribution of new supply agreements to plasma sourcing and donor retention strategies [47][52] - Management reported that all new centers are contributing to plasma supply and that donor retention strategies are effective [48][52] Question: Patient Queue and HEOR Data - Questions about managing the patient queue and the status of health economic outcome data [57][62] - Management stated that demand trends are strong and that they expect to publish HEOR data by year-end to support product access [63][64] Question: Voluntary Product Withdrawals and IP Extension - Inquiry about the reasons for voluntary product withdrawals and the potential for extending IP [65][72] - Management clarified that the withdrawals were due to known adverse events and expressed confidence in the defensibility of their IP position [66][72]

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 March 31 [6] - Net asset value per share declined by $0.10 to $12.45, indicating stable credit performance across the portfolio [6][18] - Total investment income for the quarter was $86 million, a 5% decrease compared to the prior year [29] - Total net expenses decreased by 4% to $51 million, including a fee waiver [29] Business Line Data and Key Metrics Changes - Over 96% of the portfolio is rated green, with no non-accruals reported [7][17] - The percentage of first lien assets is increasing while PIK income and second lien income are decreasing [7] - The average yield of the portfolio decreased to 10.7% due to lower yields on originations compared to repayments [25] Market Data and Key Metrics Changes - NMFC has only 2% exposure to sectors most at risk for tariffs, compared to 13% for peers [7][13] - The loan-to-value ratio stands at 43%, indicating a conservative lending approach [7][25] - The weighted average EBITDA of borrowers decreased to $170 million, reflecting the realization of larger companies during the quarter [25] Company Strategy and Development Direction - The company aims to continuously improve and has a strategic imperative to reduce non-yielding equity positions [10][24] - A stock repurchase program has been authorized to buy back up to $47 million of NMFC shares, indicating confidence in the stock's value [9] - The focus remains on defensive non-cyclical sectors, leveraging private equity expertise to enhance NMFC's performance [12][20] Management's Comments on Operating Environment and Future Outlook - Management noted a pause in M&A activity but sees direct lending as an attractive asset class with stable risk-adjusted returns [20] - The dividend protection program can provide up to $0.02 of extra support per quarter if necessary [8] - Management expressed optimism about refinancing opportunities and maintaining a strong balance sheet [32][68] Other Important Information - The company has raised a $15.4 billion private equity fund, one of the largest in the industry [9] - The current stock price reflects a 21% discount to book value, with a dividend yield of 13% [8] Q&A Session Summary Question: Inquiry about Unitech's complicated capital structure - Management acknowledged the complexity and provided details on cash invested and accrued PIK in Unitech, totaling a cost basis of $114 million [38][39] Question: Stability of income from Unitech going forward - Management confirmed that income is expected to remain stable, accruing primarily from the super senior preferred [42] Question: Market outlook on spreads and pricing - Management indicated that spreads have stabilized, with some incremental OID on new deals, driven by a lack of supply [50][51] Question: Sufficiency of dividend protection plan amid declining rate cycle - Management expressed confidence in having sufficient levers to cover dividends, including refinancing opportunities and strong portfolio activity [53][56] Question: PIK income expectations - Management indicated a target to reduce PIK income to the low teens, acknowledging current levels are higher than desired [66] Question: Duration of the dividend protection program - Management confirmed that the program is in place for the full years of 2025 and 2026 [69]

Core Viewpoint - The acquisition proposal by ACT for 7-11's parent company, SEVEN & I Holdings, is positioned as beneficial for both parties' growth, with a significant offer of approximately 7 trillion yen [1][2]. Group 1: Acquisition Proposal - ACT has made a non-binding acquisition proposal of about 7 trillion yen for SEVEN & I Holdings, emphasizing the potential for mutual growth [1][2]. - ACT's CEO, Alex Miller, stated that the merger would create a global retail network with over 100,000 stores, and there are plans to invest in store and IT development without closing stores or layoffs [2]. - ACT's founder, Alain Bouchard, expressed a strong commitment to the acquisition, stating that they would not consider a hostile takeover and would not withdraw the proposal despite lengthy negotiations [1][2]. Group 2: Regulatory and Strategic Challenges - There are significant disagreements between ACT and SEVEN & I Holdings regarding the handling of U.S. antitrust regulations, with ACT claiming to have proposed solutions while SEVEN & I Holdings has not found them satisfactory [4]. - SEVEN & I Holdings is focusing on its independent growth strategy, including a 2 trillion yen stock buyback plan and plans for an IPO of its U.S. convenience store subsidiary, aiming for a sales target of over 30 trillion yen by 2030 [2][4]. Group 3: Internal Changes and Market Response - SEVEN & I Holdings has experienced internal turmoil, with the resignation of key executives, including the head of North American operations, which is considered unusual for a Japanese listed company [5]. - As the annual shareholders' meeting approaches, SEVEN & I Holdings is expected to make a final decision on the acquisition proposal, with market reactions remaining lukewarm, as its stock price is about 2,200 yen, approximately 20% lower than ACT's offer [4][5].