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New Mountain Finance Corp. (NMFC)
NASDAQ:NMFC
Earnings Data
Report Date
May 11, 2026After Close (Confirmed)
Period Ending
2026 (Q1)Consensus EPS Forecast
0.32Last Year’s EPS
0.32Same Quarter Last Year
Based on 2 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call conveyed a constructive and proactive tone: management demonstrated that Q4 dividend was fully covered (adjusted NII $0.32), executed significant strategic actions (a $477M sale at 94% of marks) to reduce concentration, lower PIK exposure (expected -20%–25%), and improve the balance sheet (pro forma leverage ~0.9x). They also committed to permanent incentive fee alignment (15%) and retained strong liquidity and repurchase activity. Offsetting these positives were a Q4 NAV decline (-4.5% q/q), concentrated markdowns (Edmentum and Affordable Care driving most of the NAV hit), modestly lower investment income (-4% q/q), and a small sale-related haircut (~6%) plus ~$7M of transaction fees. Overall, management’s actions and healthy recurring cash income mitigate the recent mark-driven headwinds and position the company to improve portfolio composition and earnings over time.Company Guidance
Dividend Coverage and Near-Term Payout
Adjusted net investment income (NII) for Q4 was $0.32 per share, which covered the $0.32 per share dividend paid on December 31. The Board declared a $0.32 dividend payable March 31, 2026 (record March 17).
Fee Alignment and Manager Support
Manager utilized the dividend protection program to reduce the incentive fee from 20% to 15% through end-2026, announced an intent to permanently reduce to 15% thereafter, and provided an additional voluntary fee waiver of $2.4 million.
Large Secondary Sale to Improve Portfolio Composition
Signed agreement to sell ~$477 million of concentrated and harder-to-value assets at 94% of 12/31/25 marks (6% discount). Pro forma the sale, top-5 positions fall to ~14% of portfolio (from higher), senior-oriented assets rise to 81% (from 75%), and pro forma leverage falls to ~0.9x from 1.21x.
Recurring and Cash Income Mix
97% of total investment income in Q4 was recurring; 77% of investment income was paid in cash and 15% was PIK. In 2025 YTD, the company collected ~$35 million of previously accrued PIK in cash.
Planned Reduction in PIK Exposure
Management expects PIK income to decrease ~20%–25% as proceeds are redeployed to more senior, cash-paying first-lien assets; ~37% of the sold portfolio generated PIK prior to the transaction.
Strong Credit/Portfolio Health Metrics
Approximately 95% of the loan portfolio is green rated on the internal heat map; only ~3.2% is orange and no names are red. Non-accruals remain low at 1.4% of portfolio fair value. Two investments improved in rating in the quarter, and no names worsened.
Balance Sheet Liquidity and Capital Actions
Portfolio fair value $2.8 billion; total assets $2.9 billion. Total borrowing capacity ~$2.3 billion with ~ $650 million available on revolvers (as of Jan 30), covering $210 million unfunded commitments. Repurchased ~$52 million of shares in 2025 and ~$15 million YTD 2026; board authorized ~$80 million additional buybacks.
Long-Term Dividend & Yield Outlook
With the permanent incentive fee reduction to 15% management expects a long-term sustainable dividend of roughly $0.25 per quarter (beginning Q2 2026), implying ~ $1.00/year equating to a ~9% yield on pro forma book value and ~12% yield on current share price.
NMFC Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
NMFC Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
Feb 24, 2026 | $8.16 | $7.83 | -4.04% |
Nov 03, 2025 | $9.37 | $9.31 | -0.64% |
Aug 04, 2025 | $9.66 | $9.52 | -1.45% |
May 05, 2025 | $8.85 | $9.22 | +4.18% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does New Mountain Finance Corp. (NMFC) report earnings?
New Mountain Finance Corp. (NMFC) is schdueled to report earning on May 11, 2026, After Close (Confirmed).
What is New Mountain Finance Corp. (NMFC) earnings time?
New Mountain Finance Corp. (NMFC) earnings time is at May 11, 2026, After Close (Confirmed).
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is NMFC EPS forecast?
NMFC EPS forecast for the fiscal quarter 2026 (Q1) is 0.32.