Earnings release
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New Mountain Finance Corporation Announces Financial Results for the Quarter Ended June 30, 2026 Reports Second Quarter Adjusted Net Investment Income of $0.26 per Share and Declares a Third Quarter Distribution of $0.25 per Share NEW YORK--(BUSINESS WIRE) — August 3, 2026 -- New Mountain Finance Corporation (NASDAQ: NMFC) (“New Mountain,” “New Mountain Finance” or the “Company”) today announced its financial results for the quarter ended June 30, 2026. Second Quarter and Recent Highlights • Adjusted net investment income of $24.7 million, or $0.26 per weighted average share • Net asset value of $10.89 per share compared to $10.92 per share as of March 31, 2026 • Declared a third quarter 2026 distribution of $0.25 per share, payable on September 30, 2026, to holders of record as of September 16, 2026 • Non-accruals decreased from 2.6% of fair value in Q1 to 1.5% for Q2; ~88% of the portfolio is rated green on our internal heatmap • Extended the maturity date of the NMFC Credit Facility to July 2031 ($ in millions, except per share data) Q2 2026 Q2 2025 Net Investment Income per Weighted Average Share $ 0.26 $ 0.32 Non-recurring Adjustments 0.00 — Net Adjusted Investment Income per Weighted Average Share $ 0.26 $ 0.32 Regular Dividends Paid per Share in Quarter $ 0.25 $ 0.32 Annualized Dividend Yield 14.5 % 12.3 % June 30, 2026 March 31, 2026 Investment Portfolio $ 2,295.5 $ 2,319.1 NAV per Share $ 10.89 $ 10.92 Statutory Debt/Equity 1.16x 1.12x Statutory Debt/Equity (Net of Available Cash) 1.11x 1.08x Management Comments on Second Quarter Performance "Our second quarter results reflect stable NAV and solid credit performance across the portfolio," said Steven B. Klinsky, NMFC Chairman and New Mountain Capital CEO. "We believe NMFC remains undervalued, with a dividend yield of 15% based on Friday's closing share price. Our insider ownership now represents 18% of shares outstanding, demonstrating our confidence in the Company’s long-term value." John R. Kline, NMFC CEO, added: "During the second quarter, NMFC improved its portfolio composition through a reduction in non- accruals. Looking ahead, we remain focused on our strategic priorities which include selling certain equity positions, reducing PIK income and increasing portfolio diversification." 1 2 1 1 1 3 4 5 5 1
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Portfolio and Investment Activity As of June 30, 2026, the Company’s NAV was $1,028.2 million and its portfolio had a fair value of $2,295.5 million of investments in 113 portfolio companies, with a weighted average YTM at Cost of approximately 11.1%. For the three months ended June 30, 2026, the Company originated $73.3 million of investments , offset by $61.0 million of repayments and $43.4 million of sales. Portfolio and Asset Quality NMFC’s mandate is to primarily target businesses in the middle market that, consistent with New Mountain’s private equity platform, are high quality, defensive growth companies in industries that are well-researched by New Mountain. The Company’s focus is on defensive growth businesses that generally exhibit the following characteristics: (i) acyclicality, (ii) sustainable secular growth drivers, (iii) niche market dominance and high barriers to competitive entry, (iv) recurring revenue and strong free cash flow, (v) flexible cost structures and (vi) seasoned management teams. Portfolio Industry Composition based on Fair Value Business Services Healthcare Utility & Data Center Services 7.0 % Healthcare Services 9.1 % Real Estate Services 4.6 % Healthcare IT & Tech-Enabled Services 6.3 % Insurance & Benefits Services 4.5 % Healthcare Products 2.2 % Misc Services 2.3 % Pharma Services 1.7 % Digital Transformation 1.6 % Total Healthcare 19.3 % Field Services 1.4 % Data & Information Services 1.4 % Financial Services & Technology Compliance Services 1.4 % Financial Services 3.3 % Engineering & Consulting Services 0.9 % Integrated Payments 2.3 % Total Business Services 25.1 % Financial Technology 1.4 % Total Financial Services & Technology 7.0 % Software ERP 7.1 % Other Industries IT Infrastructure & Security 4.7 % Consumer Services 7.3 % Finance & Accounting 4.7 % Education 6.2 % Human Capital Management 2.3 % Distribution & Logistics 5.2 % Commerce & Supply Chain 0.8 % Packaging 4.7 % Governance, Risk & Compliance 0.2 % Other 5.4 % Total Software 19.8 % Total Other Industries 28.8 % The Company monitors the performance and financial trends of its portfolio companies on at least a quarterly basis. The Company attempts to identify any developments within the portfolio company, the industry, or the macroeconomic environment that may alter any material element of the Company’s original investment strategy. As described more fully in the Company's Quarterly Report on Form 10- Q filed with the U.S. Securities and Exchange Commission, the portfolio monitoring procedures are designed to provide a simple, yet comprehensive analysis of the Company’s portfolio companies based on their operating performance and underlying business characteristics, which in turn forms the basis of its Risk Rating. The Risk Rating is expressed in categories of Green, Yellow, Orange and Red with Green reflecting an investment that is in-line with or above expectations and Red reflecting an investment performing materially below expectations. 4 2 6 7 7 8 2
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The following table shows the Risk Rating of the Company’s portfolio companies as of June 30, 2026: (in millions) As of June 30, 2026 Risk Rating Cost Percent Fair Value Percent Weighted Average Mark Green $ 2,090.6 83.8 % $ 2,010.5 87.6 % 97.9 % Yellow 308.8 12.4 % 233.9 10.2 % 68.9 % Orange 79.8 3.2 % 49.2 2.1 % 71.3 % Red 15.2 0.6 % 1.9 0.1 % 12.5 % Total $ 2,494.4 100.0 % $ 2,295.5 100.0 % As of June 30, 2026, most of the investments in the Company’s portfolio had a Green Risk Rating, with the exception of thirteen portfolio companies that had a Yellow Risk Rating, seven portfolio companies that had an Orange Risk Rating and one portfolio company had a Red Risk Rating. The following table shows the Company’s investment portfolio composition as of June 30, 2026: (in millions) Investment Portfolio Composition June 30, 2026 Percent of Total First Lien $ 1,453.6 63.3 % Senior Loan Funds (SLP III & SLP IV) & NMNLC 384.8 16.8 % Second Lien 74.3 3.2 % Subordinated 98.4 4.3 % Preferred Equity 155.9 6.8 % Common Equity and Other 128.5 5.6 % Total $ 2,295.5 100.0 % Liquidity and Capital Resources As of June 30, 2026, the Company had cash and cash equivalents of $64.8 million and total statutory debt outstanding of $1,192.5 million. The Company's statutory debt to equity was 1.16x (or 1.11x net of available cash) as of June 30, 2026. Additionally, the Company's wholly-owned SBIC subsidiaries had $169.3 million of SBA-guaranteed debentures outstanding as of June 30, 2026. As of June 30, 2026, the Company had $668.5 million of available capacity on its Holdings Credit Facility, NMFC Credit Facility and Unsecured Management Company Revolver. Second Quarter 2026 Conference Call New Mountain Finance Corporation will host an earnings conference call and webcast at 10:30 am Eastern Time on Tuesday, August 4, 2026. To participate in the live earning conference call, please use the following dial-in numbers or visit the audio webcast link. To avoid any delays, please join at least fifteen minutes prior to the start of the call. • United States: +1 (646) 769-9200 • International: (800) 330-6710 • Access Code: 1670693 • Live Audio Webcast A replay of the conference call will be available for one year following the call. To access the earnings webcast replay please visit the New Mountain Investor Relations website. For additional details related to the quarter ended June 30, 2026, please refer to the New Mountain Finance Corporation Quarterly Report on Form 10-Q filed with the SEC and the supplemental investor presentation which can be found on the Company's website at http://www.newmountainfinance.com. (1) Adjusted net investment income for Q2 2026 includes $0.2 million of accelerated deferred financing costs related to the commitment decrease of the Holdings Credit Facility. 9 4 10 5
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(2) Excludes non-controlling interest in New Mountain Net Lease Corporation (“NMNLC”). (3) The Q2 2026 dividend yield calculation uses the closing stock price of $6.89 on July 31, 2026 and includes annualized dividends of $0.25 per share, to be paid in Q3 2026. The Q2 2025 dividend yield calculation uses the closing stock price of $10.42 on August 1, 2025 and includes annualized dividends of $0.32 per share, which were paid in Q3 2025. (4) Includes claim related to the collateralized agreements to resell. (5) Excludes the Company’s United States Small Business Administration (“SBA”) guaranteed debentures. (6) References to “YTM at Cost” assume the accruing investments, including secured collateralized agreements, in the Company's portfolio as of a certain date, the ‘‘Portfolio Date’’, are purchased at cost on that date and held until their respective maturities with no prepayments or losses and are exited at par at maturity. This calculation excludes the impact of existing leverage. YTM at Cost uses the Sterling Overnight Interbank Average Rate ("SONIA”), Euro Interbank Offered Rate ("EURIBOR") and Secured Overnight Financing Rate (“SOFR”) curves at each quarter’s respective end date. The actual yield to maturity may be higher or lower due to the future selection of SONIA, EURIBOR and SOFR contracts by the individual companies in the Company’s portfolio or other factors. (7) Originations exclude payment-in-kind (“PIK”); originations, repayments, and sales exclude revolvers, unfunded commitments, bridges, return of capital, and realized gains / losses. (8) Excludes NMFC Senior Loan Program III LLC ("SLP III"), NMFC Senior Loan Program IV LLC ("SLP IV") and NMNLC. (9) Includes investments held in NMNLC. (10) Includes investments classified as structured finance obligations and claim related to the collateralized agreement to resell. 4
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New Mountain Finance Corporation Consolidated Statements of Assets and Liabilities (in thousands, except shares and per share data) (unaudited) June 30, 2026 December 31, 2025 Assets Investments at fair value Non-controlled/non-affiliated investments (cost of $1,680,189 and $2,060,391, respectively) $ 1,589,609 $ 2,002,306 Non-controlled/affiliated investments (cost of $134,340 and $131,221, respectively) 69,953 60,702 Controlled investments (cost of $649,899 and $720,503, respectively) 630,243 679,005 Total investments at fair value (cost of $2,464,428 and $2,912,115, respectively) 2,289,805 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 64,799 80,718 Interest and dividend receivable 33,600 38,549 Receivable from affiliates 182 381 Derivative asset at fair value 34 5,647 Receivable from unsettled securities sold — 4,138 Other assets 21,333 17,907 Total assets $ 2,415,453 $ 2,902,853 Liabilities Borrowings Unsecured Notes $ 784,045 $ 991,585 Holdings Credit Facility 378,146 420,063 SBA-guaranteed debentures 169,255 196,205 NMFC Credit Facility 30,356 81,074 Deferred financing costs (net of accumulated amortization of $48,929 and $45,302, respectively) (15,416) (17,875) Net borrowings 1,346,386 1,671,052 Payable to broker 7,490 14,630 Management fee payable 7,414 9,176 Interest payable 7,395 11,892 Incentive fee payable 4,324 3,018 Derivative liability at fair value 2,968 366 Deferred tax liability 1,670 1,819 Payable for unsettled securities purchased 313 463 Other liabilities 2,678 2,181 Total liabilities 1,380,638 1,714,597 Commitments and contingencies 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 (210,109) (121,676) Total net assets of New Mountain Finance Corporation $ 1,028,181 $ 1,182,177 Non-controlling interest in New Mountain Net Lease Corporation 6,634 6,079 Total net assets $ 1,034,815 $ 1,188,256 Total liabilities and net assets $ 2,415,453 $ 2,902,853 Number of shares outstanding 94,452,390 102,638,388 Net asset value per share of New Mountain Finance Corporation $ 10.89 $ 11.52
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New Mountain Finance Corporation Consolidated Statements of Operations (in thousands, except shares and per share data) (unaudited)
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Three Months Ended Six Months Ended June 30, 2026 June 30, 2025 June 30, 2026 June 30, 2025 Investment income From non-controlled/non-affiliated investments: Interest income (excluding Payment-in-kind ("PIK") interest income) $ 35,949 $ 53,584 $ 75,198 $ 105,697 PIK interest income 2,532 2,931 4,895 5,844 Dividend income 352 506 2,157 1,063 Non-cash dividend income 835 3,972 2,192 8,406 Other income 1,673 892 3,019 2,204 From non-controlled/affiliated investments: Interest income (excluding PIK interest income) 320 336 635 667 PIK interest income 1,256 1,057 2,444 2,044 Non-cash dividend income 661 292 1,401 1,975 Other income 62 62 125 125 From controlled investments: Interest income (excluding PIK interest income) 1,645 2,022 4,917 3,507 PIK interest income 1,627 2,900 3,213 6,588 Dividend income 10,703 12,183 22,614 24,381 Non-cash dividend income 3,386 2,378 6,610 4,449 Other income 474 375 849 2,203 Total investment income 61,475 83,490 130,269 169,153 Expenses Interest and other financing expenses 22,454 31,138 49,978 62,512 Management fee 7,414 9,759 15,568 19,992 Incentive fee 5,766 7,971 11,869 16,218 Professional fees 1,056 1,100 2,084 2,489 Administrative expenses 970 1,184 1,965 2,288 Other general and administrative expenses 616 331 1,074 847 Total expenses 38,276 51,483 82,538 104,346 Less: management and incentive fees waived (1,442) (2,586) (7,545) (4,408) Net expenses 36,834 48,897 74,993 99,938 Net investment income before income taxes 24,641 34,593 55,276 69,215 Income tax expense (benefit) 19 8 23 (11) Net investment income 24,622 34,585 55,253 69,226 Net realized (losses) gains: Non-controlled/non-affiliated investments (32,111) 13,390 (58,403) 12,316 Controlled investments (12,873) (1) (18,591) 38,898 Net change in unrealized appreciation (depreciation): Non-controlled/non-affiliated investments 14,528 (29,012) (31,709) (24,806) Non-controlled/affiliated investments 2,653 (8,928) 6,132 (13,819) Controlled investments 20,641 (2,590) 21,842 (50,982) Securities purchased under collateralized agreements to resell — — (7,800) — Foreign currency (6) 452 (106) 602 Benefit (provision) for taxes 59 (21) 146 (43) Net realized and unrealized losses (7,109) (26,710) (88,489) (37,834) Net increase (decrease) in net assets resulting from operations 17,513 7,875 (33,236) 31,392 Less: Net increase in net assets resulting from operations related to non-controlling interest in New Mountain Net Lease Corporation (256) (101) (435) (205) 6
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Net increase (decrease) in net assets resulting from operations related to New Mountain Finance Corporation $ 17,257 $ 7,774 $ (33,671) $ 31,187 Basic earnings (loss) per share $ 0.18 $ 0.07 $ (0.35) $ 0.29 Weighted average shares of common stock outstanding - basic 94,551,023 107,750,160 97,497,589 107,800,508 Diluted earnings (loss) per share $ 0.18 $ 0.07 $ (0.35) $ 0.29 Weighted average shares of common stock outstanding - diluted 94,551,023 126,733,459 97,497,589 126,792,855 Distributions declared and paid per share $ 0.25 $ 0.32 $ 0.57 $ 0.64 7
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ABOUT NEW MOUNTAIN FINANCE CORPORATION New Mountain Finance Corporation (NASDAQ: NMFC) is focused on providing direct lending solutions to U.S. upper middle market companies backed by top private equity sponsors. Our investment objective is to generate current income and capital appreciation through the sourcing and origination of senior secured loans and select junior capital positions, to growing businesses in defensive industries that offer attractive risk-adjusted returns. Our differentiated investment approach leverages the deep sector knowledge and operating resources of New Mountain Capital, a global investment firm with approximately $60 billion of assets under management. ABOUT NEW MOUNTAIN CAPITAL New Mountain Capital ("NMC") is a New York-based investment firm that emphasizes business building and growth, rather than debt, as it pursues long-term capital appreciation. The firm currently manages private equity, credit and net lease investment strategies with approximately $60 billion in assets under management. New Mountain seeks out what it believes to be the highest quality growth leaders in carefully selected industry sectors and then works intensively with management to build the value of these companies. For more information on New Mountain Capital, please visit http://www.newmountainfinance.com. FORWARD-LOOKING STATEMENTS Statements included herein may contain “forward-looking statements”, which relate to our future operations, future performance or our financial condition. Forward-looking statements are not guarantees of future performance, condition or results and involve a number of risks and uncertainties, including changes in base interest rates and significant volatility on our business, portfolio companies, our industry and the global economy. Actual results and outcomes may differ materially from those anticipated in the forward-looking statements as a result of a variety of factors, including those described from time to time in our filings with the Securities and Exchange Commission or factors that are beyond our control. New Mountain Finance Corporation undertakes no obligation to publicly update or revise any forward- looking statements made herein, except as may be required by law. All forward-looking statements speak only as of the time of this press release. CONTACT New Mountain Finance Corporation Investor Relations Laura C. Holson, Authorized Representative NMFCIR@newmountaincapital.com (212) 220-3505 8