New Mountain Finance Corp. (NMFC)
NASDAQ:NMFC
Want to see NMFC full AI Analyst Report?
Earnings Data
Report Date
Aug 05, 2026After Close (Confirmed)
Period Ending
2026 (Q2)Consensus EPS Forecast
0.26Last Year’s EPS
0.32Same Quarter Last Year
Based on 6 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call highlighted strong strategic actions (a $470M secondary sale, meaningful buybacks, deleveraging, increased portfolio yields, high recurring income, favorable liability repricing and insider buying) that materially improve liquidity flexibility and future earnings power. Near-term challenges include an 11% QoQ decline in investment income driven by the sale and market marks, a modest rise in nonaccruals, a $0.23 / 2.06% NAV decline largely tied to market mark-to-market movement, and a reduced quarterly dividend to $0.25. Management emphasized confidence in turnaround catalysts for specific stressed names and expects dividend coverage and accretion from redeployment or buybacks. Overall, positive strategic progress appears to outweigh current mark-to-market and idiosyncratic credit headwinds.Company Guidance
Dividend Coverage and Payout
Adjusted net investment income (NII) of $0.32 per share in Q1 2026 covered the $0.32 per share dividend paid on March 31. The Board declared a Q2 dividend of $0.25 per share (a 21.9% decrease vs. $0.32). Management states the $0.25 payout is expected to be more than covered by core earnings.
Large Portfolio Sale Provided Liquidity and Deleveraging
Sold approximately $470 million of illiquid positions at ~94% of December 31 book value (closed/funded in March), enabling deleveraging and opportunistic redeployment of capital.
Active and Accretive Share Repurchases
Executed ~$66 million of buybacks (≈$57M by March 31 plus ~$9M after quarter), representing $0.26 per share of book value accretion this quarter. Original $95M program had ~ $30M remaining and Board authorized an incremental $50M (total remaining capacity ≈ $80M). Buybacks executed around ~$8 per share (~27% discount to book value).
Improved Portfolio Yield and Attractive New Originations
Average portfolio yield rose to 11.1% in the quarter. New originations produced a weighted average reported yield of ~15.5% (reflecting secondary discounted purchases and OID), while market spread widening created opportunities (generic spread widening ~25–50 bps and larger in software).
Strong Recurring Income and Cash Conversion
98% of total investment income was recurring in Q1; 83% of investment income was paid in cash (up from 77% the prior quarter). During the quarter the firm also collected approximately $35 million of previously accrued PIK as part of the secondary sale.
Prudent Balance Sheet and Liquidity Metrics
Investments at fair value $2.3B, total assets $2.4B, total liabilities $1.4B; net asset value $1.0B or $10.92 per share (pro forma $10.95 after post-quarter buybacks). Net debt-to-equity ratio 1.08:1 (within target 1.0–1.25x). Loan-to-value ratio 47%. Over $2B total borrowing capacity with ≈$690M revolver availability covering $190M unfunded commitments.
Credit Quality and Risk Positioning
91% of the portfolio rated green on the firm's internal risk scale; orange/red names represent only ~3.5% of fair value. Cumulative credit performance since IPO: ~$10.5B invested with realized net losses of $56M, indicating historically low realized losses.
Liability Positioning to Benefit Rate Environment
Portfolio 89% floating-rate vs. liabilities 73% floating (up from 50% floating liabilities a year ago), narrowing asset-liability repricing mismatch and positioning earnings to benefit if base rates remain higher for longer.
Insider Confidence
New Mountain (management) increased ownership from ~14% to ~17% of outstanding shares during Q1; Chairman Steve Klinsky purchased 1.5M shares and other senior leaders also bought shares, signaling alignment with public shareholders.
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 |
|---|---|---|---|
May 04, 2026 | $8.56 | $8.41 | -1.75% |
Feb 24, 2026 | $7.82 | $7.51 | -4.05% |
Nov 03, 2025 | $8.98 | $8.93 | -0.62% |
Aug 04, 2025 | $9.27 | $9.13 | -1.46% |
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 Aug 05, 2026, After Close (Confirmed).
What is New Mountain Finance Corp. (NMFC) earnings time?
New Mountain Finance Corp. (NMFC) earnings time is at Aug 05, 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 (Q2) is 0.26.