New Mountain Finance Corporation — Q3 2026 Earnings Summary

Financial Performance:

• Adjusted net investment income was $24.1 million ($0.26 per weighted average share), compared to $34.0 million ($0.32 per share) in Q3 2025.
• Net investment income was $23.7 million ($0.25 per share) in Q3 2026, down from $34.0 million ($0.32 per share) in Q3 2025.
• Net increase in net assets resulting from operations was $3.7 million ($0.04 per share) for the three months ended September 30, 2026, compared to a $12.3 million increase ($0.11 per share) in the prior year period.
• Net realized and unrealized losses totaled $19.9 million for the quarter, compared to $21.7 million in Q3 2025.
• Net assets per share were $10.67 as of September 30, 2026, down from $10.89 as of June 30, 2026.
• Statutory debt-to-equity ratio was 1.19x as of September 30, 2026, compared to 1.16x as of June 30, 2026 (1.15x net of available cash).
• Total investment portfolio fair value was $2,265.7 million as of September 30, 2026, down from $2,295.5 million as of June 30, 2026.
• Cash and cash equivalents were $41.9 million as of September 30, 2026, compared to $80.7 million as of December 31, 2025.
• Total statutory debt outstanding was $1,199.7 million as of September 30, 2026.
• Annualized dividend yield was 14.2% for Q3 2026, compared to 13.2% in Q3 2025.

Guidance and Future Outlook:

• Management stated that NMFC has improving prospects for 2027.
• The Company aims to reinvest proceeds from monetizations into first-lien, cash-paying assets to improve portfolio diversification and enhance income quality.
• Management expressed confidence that NMFC is undervalued, citing increasing internal ownership.

Business Segments and Product Lines:

• The portfolio consists of 110 portfolio companies with a weighted average yield to maturity (YTM) at cost of approximately 12.0%.
• For the three months ended September 30, 2026, the Company originated $10.3 million of investments, offset by $35.8 million in repayments and $8.1 million in sales.
• Portfolio industry composition by fair value: Business Services (25.7%), Healthcare (19.3%), Software (19.9%), Other Industries (27.9%), and Financial Services & Technology (7.2%).
• Investment portfolio composition by security type: First Lien (63.2%), Senior Loan Funds (SLP III & SLP IV) & NMNLC (16.7%), Preferred Equity (7.1%), Common Equity and Other (5.5%), Subordinated (4.5%), and Second Lien (3.0%).
• 86% of the portfolio is rated "Green" on the internal heatmap, with 11.7% rated "Yellow," 2.1% "Orange," and 0.1% "Red."

Market and Competitive Landscape:

• The Company targets middle-market businesses characterized by acyclicality, sustainable secular growth drivers, niche market dominance, recurring revenue, strong free cash flow, flexible cost structures, and seasoned management teams.
• The investment strategy leverages the sector knowledge of New Mountain Capital, a global investment firm with approximately $60 billion in assets under management.

Risks and Challenges:

• The press release notes that forward-looking statements involve risks and uncertainties, including changes in base interest rates and significant volatility in the business, portfolio companies, industry, and global economy.
• Portfolio monitoring identifies developments that may alter the original investment strategy, with risk ratings ranging from Green (in-line or above expectations) to Red (materially below expectations).

Management Commentary and Tone:

• Steven B. Klinsky, NMFC Chairman and New Mountain Capital CEO, stated: "We continue to believe NMFC is undervalued, and our increasing internal ownership reflects our confidence in the Company's long-term value."
• John R. Kline, NMFC CEO, noted: "We're seeing positive underlying performance in many of our equity and PIK-yielding positions and remain focused on monetizations."
• Management confirmed that the Company covered its dividend in the third quarter.

Other Key Points:

• Declared a fourth quarter 2026 distribution of $0.25 per share, payable on December 31, 2026, to holders of record as of December 17, 2026.
• Funded a $150 million private placement of unsecured notes on October 1, 2026.
• Extended the $150 million stock repurchase program through December 31, 2027, with approximately $79.5 million remaining available.
• Reduced the Holdings Credit Facility commitment from $450.0 million to $350.0 million on October 2, 2026.
• SBIC I repaid all outstanding debentures and surrendered its SBIC license on October 20, 2026.
• Wholly-owned SBIC subsidiaries had $120.0 million of SBA-guaranteed debentures outstanding as of September 30, 2026.
• The Company had $815.4 million of available capacity across its credit facilities and notes as of September 30, 2026.