New Mountain Finance Corp. (NMFC) reported a net increase in net assets resulting from operations of $12.3 million for the three months ended September 30, 2025, compared to $23.9 million for the same period in 2024. Basic earnings per share were $0.11, down from $0.22 in the prior year, while diluted earnings per share also decreased to $0.11 from $0.22. Total investment income was $80.5 million, a decrease from $95.3 million in the prior year, while net expenses decreased to $46.5 million from $59.8 million. The company attributed the decrease in investment income to a lower invested asset base and slightly lower portfolio yields.
The company's financial position also saw changes, with total assets decreasing to $3.09 billion as of September 30, 2025, from $3.25 billion as of December 31, 2024. Total liabilities decreased to $1.83 billion from $1.89 billion over the same period. Net asset value per share decreased from $12.55 to $12.06. The company repurchased 2,737,377 shares of its common stock under the Old Repurchase Program during the quarter.
Strategic developments included the extension of the investment period for NMFC Senior Loan Program III LLC (SLP III) until August 7, 2028, and the extension of the maturity date for its revolving credit facility to August 7, 2030. Similarly, the maturity date of NMFC Senior Loan Program IV LLC's (SLP IV) revolving credit facility was extended to July 11, 2030, and its investment period was extended until July 11, 2028. The company also repaid all amounts outstanding under the DB Credit Facility and terminated it on September 30, 2024.
Key operational developments included the declaration of a fourth quarter 2025 distribution of $0.32 per share. The company's portfolio consisted of 126 portfolio companies with a fair value of $2.94 billion as of September 30, 2025. The company's investment portfolio is primarily composed of first lien debt, with significant allocations to the software, business services, and healthcare industries. The company's management continues to monitor the performance and financial trends of its portfolio companies, assigning risk ratings to characterize and monitor the credit profile and expected level of returns on each investment.
Looking ahead, New Mountain Finance Corp. intends to maintain its RIC status by distributing sufficient income to stockholders. The company's ability to service its debt will depend on its financial performance, which is subject to prevailing economic conditions and competitive pressures. The company's management will continue to monitor its portfolio investments and adjust its strategies as needed to achieve its investment objectives.
About New Mountain Finance Corp
New Mountain Finance Corporation is a business development company providing direct loans and equity investments to U.S. middle-market companies across sectors like software, healthcare, and business services. It focuses on senior secured debt, often in defensive industries with recurring revenue, and targets private equity-backed firms. Its business model emphasizes generating income and capital appreciation through disciplined investment selection, leveraging sector expertise, and maintaining regulatory compliance.
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