10-Q · May 4, 2026
New Mountain Finance Corporation reported Q1 2026 results featuring a revenue increase of 1.5% sequentially, totaling $68.8 million, though it marked a 20% decline year-over-year. EPS matched estimates at $0.32, with…
Earnings analysis · 10-Q
NMFC earnings analysis
Filed August 3, 2026 · Our reading of the company's report
The latest report
NMFC's Q2 investment income fell 26% year over year to $61.5 million, and GAAP diluted EPS was $0.18; adjusted net investment income of $0.26 per share matched consensus. Lower assets following the approximately $468.0…
Read full summary
NMFC's Q2 investment income fell 26% year over year to $61.5 million, and GAAP diluted EPS was $0.18; adjusted net investment income of $0.26 per share matched consensus. Lower assets following the approximately $468.0 million asset sale reduced income, although financing costs also fell as debt declined. Credit and valuation pressure remains substantial, with $88.5 million of first-half realized and unrealized losses, including a $77.0 million realized-loss component, while management provided no numeric operating outlook.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.18
What stood out
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Investment income declined 26% year over year
Q2 total investment income was $61.5 million, down $22.0 million, or 26%, from $83.5 million in Q2 2025. Management attributed the $19.5 million decline in interest income primarily to the lower invested asset base following the Asset Sale.
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Lower leverage reduced financing costs
Net investment income was $24.6 million in Q2 2026, versus $34.6 million a year earlier, as total expenses fell $12.1 million to $36.8 million. Interest and other financing expense declined $8.6 million to $22.5 million due to lower borrowings.
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Asset sale reduced assets and debt
The company completed a sale of approximately $468.0 million of assets in March 2026 at 94% of their December 31, 2025 fair value, using proceeds for debt repayment, general corporate purposes and new investments.
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Operating cash generation increased
Operating cash flow was $425.8 million for the first six months of 2026, compared with $144.3 million in the prior-year period. Cash was $64.8 million at June 30, 2026, down from $80.7 million at December 31, 2025.
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Credit facility maturity extended
Liquidity was enhanced by the July 30 credit-facility amendment: $487.1 million of commitments from extending lenders now mature July 30, 2031, while $50.0 million from non-extending lenders mature September 28, 2029.
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Buybacks and distribution support returns
Capital returns continued, with $65.6 million of stock repurchased in the first half of 2026 and $79.5 million remaining under the $150.0 million authorization at June 30. The Q3 distribution was declared at $0.25 per share.
What to watch
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Portfolio base contracted materially
The portfolio's fair value fell to $2,289.8 million across 112 companies at June 30, 2026, from $2,742.0 million across 113 companies at December 31, 2025, reflecting the asset sale and valuation changes.
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Realized losses increased sharply
Net realized and unrealized losses were $88.5 million for the first six months of 2026, versus $37.8 million of losses a year earlier. The company recorded $77.0 million of realized investment losses, primarily tied to the asset sale.
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Legacy claims saw further writedowns
A collateralized-agreement claim with a $30.0 million cost basis was valued at only $5.7 million at June 30, 2026, down from $13.5 million at year-end 2025. A separate PPVA Black Elk claim had a $14.5 million cost basis and $2.8 million fair value.
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Watchlist and non-accrual credit exposure
One portfolio company was rated Red, with $15.2 million of cost and $1.9 million of fair value; seven companies were Orange-rated, with $79.8 million of cost and $49.2 million of fair value. Convey was placed on non-accrual in Q1 2026.
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Earnings remain rate-sensitive
Interest-rate sensitivity remains material: a 100-basis-point decrease is estimated to reduce interest and dividend income net of interest expense by 5.82%, while a 100-basis-point increase would raise it by 5.82%.
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No material risk-factor updates
The filing states there were no material changes to the risk factors in the 2025 Form 10-K during the six months ended June 30, 2026; therefore, no newly disclosed risk-factor update was identified.
Management's outlook
No numeric earnings or investment-income outlook was provided in the 10-Q. Management stated it expects current liquidity needs to be met with operating and other cash flows; the board declared a Q3 2026 distribution of $0.25 per share.
Earlier filings 4
10-K · February 24, 2026
New Mountain Finance (NMFC) continues to position itself as a sponsor‑backed middle‑market direct lender leveraging New Mountain Capital’s platform (Investment Adviser AUM ~$60 billion). The portfolio fair value…
10-Q · May 5, 2025
New Mountain Finance reported Q1 2025 total investment income of $85,663,000 and basic/diluted earnings per share of $0.22, down versus the prior-year quarter. Operating cash flow was strong at $103,916,000, while net…
10-Q · July 31, 2024
New Mountain Finance reported total investment income of $94,588,000 for Q2 2024 and diluted EPS of $0.31. Investment income was essentially flat year-over-year (down $904,000) while net investment income declined…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.