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NMFC

New Mountain Finance Corporation

NMFC

New Mountain Finance Corporation • NASDAQ
$9.67 ▲ 0.62% (+0.06)
Market Cap $1.04 B
52w High $12.05
52w Low $8.84
Dividend Yield 1.29%
P/E 14.88
Volume 251.39K
Outstanding Shares 107.36M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q3-2025 $80.538M ▼ $-2.226M ▼ $12.189M ▲ 15.134% ▲ $0.11 ▲ $12.396M ▲
Q2-2025 $96.879M ▼ $29K ▼ $7.774M ▼ 8.024% ▼ $0.072 ▼ $7.904M ▼
Q1-2025 $123.488M ▲ $1.187M ▼ $23.413M ▼ 18.96% ▼ $0.22 ▼ $23.52M ▼
Q4-2024 $92.887M ▼ $1.762M ▲ $27.675M ▲ 29.794% ▲ $0.26 ▲ $27.96M ▲
Q3-2024 $94.796M $1.639M $23.889M 25.2% $0.22 $25.049M

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q3-2025 $63.684M ▲ $3.089B ▼ $1.826B ▼ $1.263B ▼
Q2-2025 $57.39M ▼ $3.16B ▼ $1.848B ▼ $1.306B ▼
Q1-2025 $85.496M ▲ $3.197B ▼ $1.848B ▼ $1.342B ▼
Q4-2024 $80.32M ▲ $3.247B ▼ $1.887B ▼ $1.353B ▼
Q3-2024 $61.943M $3.414B $2.047B $1.361B

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q3-2025 $12.189M ▲ $23.284M ▲ $49.813M ▲ $-66.753M ▲ $6.294M ▲ $23.284M ▲
Q2-2025 $7.774M ▼ $13.985M ▼ $32.785M ▼ $-75.23M ▲ $-28.106M ▼ $13.985M ▼
Q1-2025 $23.413M ▼ $41.511M ▲ $65.781M ▼ $-101.974M ▲ $5.176M ▼ $41.511M ▲
Q4-2024 $27.675M ▲ $7.14M ▲ $188.981M ▲ $-177.263M ▼ $18.377M ▲ $7.14M ▲
Q3-2024 $23.889M $-16.716M $-39.233M $-1.607M $-57.664M $-16.716M

Five-Year Company Overview

Income Statement

Income Statement Earnings have been consistently positive over the past five years, though not perfectly smooth. Profitability improved sharply coming out of 2020, peaked around 2021, and has since moderated but remained solid. Recent years show that even when revenue moves around, the company still manages to generate a healthy level of net income, suggesting reasonably resilient margins. That said, the pattern shows some year‑to‑year volatility, which is normal for a lender whose income depends on deal flow, credit conditions, and interest rates rather than steady product sales.

Balance Sheet

Balance Sheet The balance sheet looks fairly steady, with total assets moving within a relatively narrow band over the past five years. Equity has inched up over time, indicating gradual value build for shareholders. The most notable shift is on the debt side: leverage was quite elevated in 2022 and 2023 but then dropped meaningfully in 2024, which points to a conscious move to de‑risk or simplify the capital structure. Cash balances are small but stable, which is typical for a business development company that deploys most capital into interest‑earning loans instead of holding idle cash.

Cash Flow

Cash Flow Cash generation has been positive overall but somewhat lumpy. Some years show very strong operating cash flow, while others are more modest or even slightly negative, reflecting the timing of loan originations, repayments, and portfolio repositioning. With effectively no capital spending needs, free cash flow closely matches operating cash flow, which makes the business structurally cash‑efficient. However, the variability highlights how dependent cash flow is on deal activity and portfolio performance rather than on a smooth, recurring operating cycle.

Competitive Edge

Competitive Edge NMFC’s edge comes less from technology and more from process, discipline, and access. By being part of the New Mountain Capital platform, it benefits from deep sector expertise, a large network of industry specialists, and a pipeline of lending opportunities that many standalone lenders may not see. The focus on “defensive growth” companies in relatively resilient industries, and on senior secured loans near the top of the capital structure, gives it a more conservative risk posture than many peers. Key risks include exposure to credit cycles, reliance on the external manager’s continued strong underwriting, and concentration in U.S. upper middle‑market borrowers, which could be pressured in a severe downturn.

Innovation and R&D

Innovation and R&D This is not an R&D‑heavy or technology‑driven business; its innovation is in how it selects and manages loans. The company emphasizes deep industry research, detailed underwriting, and active portfolio management rather than new financial products or complex structures. Recent strategic moves—like reducing non‑cash interest types, exploring portfolio sales to sharpen risk‑return, and concentrating on its best “power alley” sectors—show a focus on incremental improvement rather than big experimental shifts. The main uncertainty is how well this disciplined framework will continue to adapt if credit conditions or competitive dynamics in private lending change materially.

Summary

Overall, NMFC presents as a conservative, income‑oriented lender with a relatively stable earnings record, a gradually strengthening equity base, and a recent step down in leverage that reduces financial risk. Its business model is built around deep research, senior secured lending, and concentration in relatively resilient industries, supported by the broader New Mountain Capital platform. The trade‑off is exposure to credit quality, interest rate movements, and deal‑flow cyclicality, which can produce year‑to‑year swings in revenue and cash flow. The story here is one of steady execution and defensive positioning rather than rapid growth or disruptive innovation.

NEWS

November 3, 2025 · 4:38 PM UTC

New Mountain Finance Corporation Announces Financial Results for the Quarter Ended September 30, 2025

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October 2, 2025 · 4:15 PM UTC

New Mountain Finance Corporation Schedules its Third Quarter 2025 Earnings Release and Conference Call

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