New Mountain Finance Corp

For the period ended Sep 30, 2026. Filed Nov 2, 2026.

About this filing

A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.

Sep 30, 2026 · Filed Nov 2, 2026

NMFC$6.88-0.4%Stored close · as of Nov 9, 2026

Extracted filing text, with the paragraph anchors used by the comparison.

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Contents

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

Consolidated Statements of Assets and Liabilities

	September 30, 2026	December 31, 2025
Assets
Investments at fair value
Non-controlled/non-affiliated investments (cost of $1,664,543 and $2,060,391, respectively)	$1,559,410	$2,002,306
Non-controlled/affiliated investments (cost of $136,025 and $131,221, respectively)	69,692	60,702
Controlled investments (cost of $653,422 and $720,503, respectively)	630,860	679,005
Total investments at fair value (cost of $2,453,990 and $2,912,115, respectively)	2,259,962	2,742,013
Securities purchased under collateralized agreements to resell (cost of $30,000 and $30,000, respectively)	5,700	13,500
Cash and cash equivalents	41,912	80,718
Interest and dividend receivable	31,675	38,549
Receivable from broker	60	—
Receivable from affiliates	53	381
Derivative asset at fair value	—	5,647
Receivable from unsettled securities sold	—	4,138
Other assets	13,339	17,907
Total assets	$2,352,701	$2,902,853
Liabilities
Borrowings
Unsecured Notes	$778,013	$991,585
Holdings Credit Facility	391,446	420,063
SBA-guaranteed debentures	120,000	196,205
NMFC Credit Facility	30,212	81,074
Deferred financing costs (net of accumulated amortization of $50,994 and $45,302, respectively)	(15,470)	(17,875)
Net borrowings	1,304,201	1,671,052
Derivative liability at fair value	9,296	366
Interest payable	7,454	11,892
Management fee payable	7,312	9,176
Incentive fee payable	4,160	3,018
Deferred tax liability	1,838	1,819
Payable for unsettled securities purchased	168	463
Payable to broker	—	14,630
Other liabilities	4,064	2,181
Total liabilities	1,338,493	1,714,597
Commitments and contingencies (See Note 9)
Net assets
Preferred stock, par value $0.01 per share, 2,000,000 shares authorized, none issued	—	—
Common stock, par value $0.01 per share, 200,000,000 shares authorized, 107,851,929 and 107,851,929 shares issued, respectively, and 94,452,390 and 102,638,388 shares outstanding, respectively	1,079	1,079
Paid in capital in excess of par	1,354,726	1,354,726
Treasury stock at cost, 13,399,539 and 5,213,541 shares held, respectively	(117,515)	(51,952)
Accumulated overdistributed earnings	(230,243)	(121,676)
Total net assets of New Mountain Finance Corporation	$1,008,047	$1,182,177
Non-controlling interest in New Mountain Net Lease Corporation	6,161	6,079
Total net assets	$1,014,208	$1,188,256
Total liabilities and net assets	$2,352,701	$2,902,853
Number of shares outstanding	94,452,390	102,638,388
Net asset value per share of New Mountain Finance Corporation	$10.67	$11.52

Consolidated Statements of Operations

	Three Months Ended		Nine Months Ended
	September 30, 2026	September 30, 2025	September 30, 2026	September 30, 2025
Investment income
From non-controlled/non-affiliated investments:
Interest income (excluding Payment-in-kind ("PIK") interest income)	$35,311	$49,811	$110,509	$155,508
PIK interest income	3,602	2,968	8,497	8,812
Dividend income	147	179	2,304	1,242
Non-cash dividend income	1,272	4,026	3,464	12,432
Other income	1,349	1,436	4,368	3,640
From non-controlled/affiliated investments:
Interest income (excluding PIK interest income)	324	322	959	989
PIK interest income	1,330	1,132	3,774	3,176
Dividend income	689	—	689	—
Non-cash dividend income	352	304	1,753	2,279
Other income	63	63	188	188
From controlled investments:
Interest income (excluding PIK interest income)	1,594	1,665	6,511	5,172
PIK interest income	1,694	3,505	4,907	10,093
Dividend income	8,671	11,818	31,285	36,199
Non-cash dividend income	3,555	2,925	10,165	7,374
Other income	461	375	1,310	2,578
Total investment income	60,414	80,529	190,683	249,682
Expenses
Interest and other financing expenses	22,867	31,720	72,845	94,232
Management fee	7,312	9,619	22,880	29,611
Incentive fee	5,548	7,345	17,417	23,563
Professional fees	894	924	2,978	3,413
Administrative expenses	806	916	2,771	3,204
Other general and administrative expenses	681	478	1,755	1,325
Total expenses	38,108	51,002	120,646	155,348
Less: management and incentive fees waived (See Note 5)	(1,387)	(4,544)	(8,932)	(8,952)
Net expenses	36,721	46,458	111,714	146,396
Net investment income before income taxes	23,693	34,071	78,969	103,286
Income tax expense	—	29	23	18
Net investment income	23,693	34,042	78,946	103,268
Net realized (losses) gains:
Non-controlled/non-affiliated investments	(530)	8	(58,933)	12,324
Controlled investments	(2)	1	(18,593)	38,899
Net change in unrealized appreciation (depreciation):
Non-controlled/non-affiliated investments	(14,408)	(8,977)	(46,117)	(33,783)
Non-controlled/affiliated investments	(1,946)	(9,736)	4,186	(23,555)
Controlled investments	(2,905)	(2,851)	18,937	(53,833)
Securities purchased under collateralized agreements to resell	—	—	(7,800)	—
Foreign currency	9	(120)	(97)	482
Provision for taxes	(168)	(25)	(22)	(68)
Net realized and unrealized losses	(19,950)	(21,700)	(108,439)	(59,534)
Net increase (decrease) in net assets resulting from operations	3,743	12,342	(29,493)	43,734
Less: Net increase in net assets resulting from operations related to non-controlling interest in New Mountain Net Lease Corporation	(264)	(153)	(699)	(358)
Net increase (decrease) in net assets resulting from operations related to New Mountain Finance Corporation	$3,479	$12,189	$(30,192)	$43,376
Basic earnings (loss) per share	$0.04	$0.11	$(0.31)	$0.40
Weighted average shares of common stock outstanding - basic (See Note 11)	94,452,390	106,016,542	96,471,368	107,199,318
Diluted earnings (loss) per share	$0.04	$0.11	$(0.31)	$0.40
Weighted average shares of common stock outstanding - diluted (See Note 11)	94,452,390	125,036,696	96,471,368	126,201,036
Distributions declared and paid per share	$0.25	$0.32	$0.82	$0.96

Consolidated Statements of Changes in Net Assets

(in thousands, except share data)

	Three Months Ended		Nine Months Ended
	September 30, 2026	September 30, 2025	September 30, 2026	September 30, 2025
Increase (decrease) in net assets resulting from operations:
Net investment income	$23,693	$34,042	$78,946	$103,268
Net realized (losses) gains on investments and foreign currency	(532)	9	(77,526)	51,223
Net change in unrealized (depreciation) appreciation of investments, foreign currency and New Mountain Net Lease Corporation	(19,250)	(21,684)	(23,091)	(110,689)
Net change in unrealized depreciation of securities purchased under collateralized agreements to resell	—	—	(7,800)	—
Provision for taxes	(168)	(25)	(22)	(68)
Net increase (decrease) in net assets resulting from operations	3,743	12,342	(29,493)	43,734
Less: Net increase in net assets resulting from operations related to non-controlling interest in New Mountain Net Lease Corporation ("NMNLC")	(264)	(153)	(699)	(358)
Net increase (decrease) in net assets resulting from operations related to New Mountain Finance Corporation	3,479	12,189	(30,192)	43,376
Capital transactions
Repurchase of shares under the repurchase programs	—	(27,611)	(65,563)	(37,253)
Conversion of 2022 Convertible Notes to Shares	—	7	—	7
Offering costs	—	4	—	(10)
Distributions declared to stockholders from net investment income	(23,613)	(33,822)	(78,375)	(102,833)
Total net decrease in net assets resulting from capital transactions	(23,613)	(61,422)	(143,938)	(140,089)
Net decrease in net assets	(20,134)	(49,233)	(174,130)	(96,713)
New Mountain Finance Corporation net assets at the beginning of the period	1,028,181	1,305,859	1,182,177	1,353,339
New Mountain Finance Corporation net assets at the end of the period	1,008,047	1,256,626	1,008,047	1,256,626
Non-controlling interest in NMNLC	6,161	6,040	6,161	6,040
Net assets at the end of the period	$1,014,208	$1,262,666	$1,014,208	$1,262,666
Capital share activity
Conversion of 2022 Convertible Notes to Shares	—	—	—	514
Shares repurchased under the repurchase programs	—	(2,737,377)	(8,185,998)	(3,662,593)
Net decrease in shares outstanding	—	(2,737,377)	(8,185,998)	(3,662,079)

Consolidated Statements of Cash Flows

(in thousands)

	Nine Months Ended
	September 30, 2026	September 30, 2025
Cash flows from operating activities
Net (decrease) increase in net assets resulting from operations	$(29,493)	$43,734
Adjustments to reconcile net (decrease) increase in net assets resulting from operations to net cash provided by operating activities:
Net realized losses (gains) on investments	77,526	(51,223)
Net change in unrealized depreciation of investments and New Mountain Net Lease Corporation	22,994	111,171
Net change in unrealized depreciation (appreciation) on translation of assets and liabilities in foreign currencies	97	(482)
Net change in unrealized depreciation of securities purchased under collateralized agreements to resell	7,800	—
Amortization of purchase discount	(6,677)	(7,482)
Amortization of deferred financing costs	7,128	6,866
Amortization of premium on 2022 Convertible Notes	—	(74)
Amortization of discount on February 2029 and October 2027 Notes	932	932
Net change due to hedging activity	72	(871)
Non-cash investment income	(36,981)	(40,281)
(Increase) decrease in operating assets:
Purchase of investments and delayed draw facilities	(199,790)	(370,769)
Proceeds from sales and paydowns of investments	644,946	519,148
Cash received for purchase of undrawn portion of revolving credit or delayed draw facilities	64	236
Cash paid for purchase of drawn portion of revolving credit facilities	(5,318)	—
Cash paid on drawn revolvers	(31,361)	(25,603)
Cash repayments on drawn revolvers	15,733	15,601
Interest and dividend receivable	6,879	(1,771)
Receivable from broker	(60)	—
Receivable from unsettled securities sold	4,138	—
Receivable from affiliates	328	(121)
Other assets	4,569	1,496
(Decrease) increase in operating liabilities:
Management fee payable	(1,864)	(848)
Incentive fee payable	1,142	(5,824)
Payable for unsettled securities purchased	(295)	10,412
Interest payable	(4,439)	959
Deferred tax liability	19	68
Payable to broker	(14,630)	10,230
Other liabilities	1,793	1,889
Net cash flows provided by operating activities	465,252	217,393
Cash flows from financing activities
Repurchase of shares under the repurchase programs	(65,563)	(37,253)
Offering costs paid	—	(76)
Distributions paid	(78,375)	(102,833)
Proceeds from Holdings Credit Facility	315,000	378,500
Repayment of Holdings Credit Facility	(343,617)	(364,800)
Repayment of 2022 Convertible Notes	—	(1,228)
Repayment of Unsecured Notes	(200,000)	—
Proceeds from NMFC Credit Facility	90,000	—
Repayment of NMFC Credit Facility	(140,000)	—
Repayment of SBA-guaranteed debentures	(76,205)	(103,795)
Contributions related to non-controlling interest in NMNLC	300	—
Distributions related to non-controlling interest in NMNLC	(917)	(270)
Deferred financing costs paid	(4,636)	(2,436)
Net cash flows used in financing activities	(504,013)	(234,191)
Net decrease in cash and cash equivalents	(38,761)	(16,798)
Effect of foreign exchange rate changes on cash and cash equivalents	(45)	162
Cash and cash equivalents at the beginning of the period	80,718	80,320
Cash and cash equivalents at the end of the period	$41,912	$63,684
Supplemental disclosure of cash flow information
Cash interest paid	$66,969	$82,554
Income taxes received	(62)	(345)
Non-cash operating activities:
Non-cash activity on investments	$24,188	$61,007
Non-cash financing activities:
Conversion of 2022 Convertible Notes to Shares	$—	$7
Accrued but unpaid offering costs	$41	$41
Accrued but unpaid deferred financing costs	146	45

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