New Mountain Finance Corporation (NMFC) Earnings
New Mountain Finance Corporation is expected to report next earnings on August 3, 2026 (in NaN days), with a consensus EPS estimate of $0.26. NMFC has beaten EPS estimates in 2 of its last 12 reported quarters (average surprise -1.5% over the last four).
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| May 5, 2026 | $0.32 | $0.32 | +0.0% | $69M | +1.5% |
| Feb 25, 2026 | $0.32 | $0.32 | +0.0% | $26M | -66.1% |
| Feb 26, 2025 | $0.33 | $0.32 | -3.0% | $93M | -0.4% |
| Oct 30, 2024 | $0.35 | $0.34 | -2.9% | $95M | +1.7% |
| Jul 31, 2024 | $0.36 | $0.36 | +0.0% | $63M | -29.2% |
| May 1, 2024 | $0.39 | $0.36 | -7.7% | $79M | -12.6% |
| Feb 26, 2024 | $0.39 | $0.40 | +2.6% | $52M | -36.7% |
| Nov 2, 2023 | $0.40 | $0.38 | -5.0% | $99M | +6.2% |
| Aug 2, 2023 | $0.38 | $0.39 | +2.6% | $98M | +5.7% |
| Feb 27, 2023 | $0.35 | $0.35 | +0.0% | $91M | +12.0% |
| Feb 28, 2022 | $0.31 | $0.31 | +0.0% | $52M | -22.7% |
| Nov 3, 2021 | $0.30 | $0.27 | -10.0% | $91M | +37.1% |
Source: company filings + earnings calendar. For informational purposes only — not investment advice.
Earnings call summary
Q1 FY2026 · May 5, 2026
AI summary of management’s prepared remarks and analyst Q&A. For informational purposes only — not investment advice.
Management highlights
- Adjusted net investment income covered dividend. Announced 25 cent dividend payable on June 30th. Sold $470 million of illiquid positions at 94% of December 31st book value. Buying back own stock at ~$8 per share, ~$95 million buyback authorization, ~$66 million completed by March 31st. Board authorized incremental $50 million for buybacks. Book value affected by general market bearishness but average mark of green-rated names is ~96 cents on dollar. Buying specific names in secondary market when oversold. Deploying cash into new loans at higher yields. Seeing forward momentum at some companies from past defaults. Largest shareholders increasing ownership. Focus on differentiated direct lending approach, including defensive sectors, unique investment model, maintaining investment-grade rating. Made progress on strategic priorities like portfolio sale enabling reductions in PIC income, increased diversity, moderated software exposure, repriced credit facility. Goal to monetize equity winners. NAV changes due to broader market movement and credit-specific movement. Credit performance with non-accruals modest increase but improving outlook for some names. Media scrutiny addressed including SaaSpocalypse, potential systemic credit stress, heightened redemptions, sector-wide lack of transparency. M&A activity seasonally slower in Q1 but new deal activity picking up. Interest rate analysis showing loan portfolio mix and liability mix shift. Originations of $117 million in Q1, investments in core defensive growth areas. Diversified portfolio across 115 companies.
Guidance
- Announced 25 cent dividend payable on June 30th to shareholders of record as of June 16th. Expect dividend to be covered by earnings from core business. Board authorized incremental $50 million for buybacks, total remaining capacity around $80 million. Expect to monetize equity winners in near and medium term, dependent on portfolio performance and improving M&A marketplace.
Segment performance
Adjusted net investment income for the first quarter was $0.32 per share. Net investment income and dividend were supported by consistent recurring income from loan portfolio and $6.1 million voluntary incentive fee waiver. Book value per share was $10.92 on March 31st, and $10.95 pro forma for post-March buybacks. 91% of portfolio is green on risk rating scale. Non-accruals at fair value stood at 2.6% for the quarter. Approximately 81% of investments are senior in nature. Average yield of portfolio increased to 11.1% during the quarter. Top 10 single name issuers account for 24% of total fair value.
Risks & headwinds
- Media scrutiny of private credit asset class including SaaSpocalypse perception, potential systemic credit stress, heightened redemptions, sector-wide lack of transparency. M&A activity seasonally slower and impacted by AI-induced volatility.
Analyst Q&A
Q: Non-accruals jumped more than just Convey, any other details?
A: Two new non-accruals were Affordable Care first lien and Convey, with positive outlook for them.
Q: Yields of Q1 origination, what accounts for 15.5%?
A: Weighted average based on dollars deployed, including material discounts from secondary purchases.
Q: SBIC2 repaid early, why?
A: Modest amount, out of reinvestment period, mechanical to maximize liquidity, with third SBIC license for ramp.
Q: Path forward with asset sale initiatives?
A: Ongoing benefits from sale, next step is monetizing pick positions and non-yielding equity.
Q: Yield increase, share of rotation vs higher spread opportunities?
A: Bit of SOFR curve movement, origination activity, and rotation contribute. Spreads for regular way deals widened 25-50 basis points, more for software ecosystem.
Q: Confidence in monetizing Benevis and Unitec in near to medium term?
A: Confidence from underlying performance, Benevis has improving numbers, Unitec in hot industry.
Q: Spread expansion and appetite to play in different risk areas?
A: Philosophy of staying safe, focusing on best credits in safer sectors, seeing more dispersion in software.
Q: Buyback vs general deployments vs opportunistic secondary purchases?
A: Balance between managing leverage, taking secondary market opportunities, supporting clients, and buying back stock when attractive.
Q: PIC portfolio income generation drop, reason?
A: Main driver was secondary sales.
Q: EBITDA trends and NAV marks?
A: EBITDA up ~11%, leverage declined, interest coverage improved. Majority of NAV movement related to mark-to-market, modest heat map degradation.
Q: Balancing portfolio expansion and leverage range?
A: Comfortable within target leverage range of 1 to 1.25 times, not specific target within range.