NMFC finances portfolio companies and earns interest for providing that capital, alongside investment dividends and fees for arranging or changing financing. Borrowing costs, adviser charges and operating expenses reduce the income left for shareholders, while some income is recorded before the cash arrives. Both the amount earned and how it is collected therefore matter when judging the earnings behind the dividend.
Business
BDC
Listing
NMFC · NASDAQ
Reporting period
2026-06-30
Dividend schedule
Quarterly
How the business works
Cash interest collections on portfolio loans are the main input to adjusted net investment income. The company then pays interest on its own borrowings, covers management and operating costs, and retains or distributes the remaining income. Portfolio repayments can provide capital for reinvestment, while credit problems can interrupt cash interest payments, produce non-accrual loans and reduce future income. The sustainability of the distribution therefore depends on both portfolio income and the cost and availability of the company's financing.
Financial snapshot: 2026-06-30. Research reviewed 2026-10-24. The annual earnings comparison is from 2026-10-24. The business and balance-sheet figures below relate to the reporting period shown.
The assets it owns
$2.415 billion total assetsReported by New Mountain Finance Corporation
NMFC held investments valued at approximately $2,289.8 million across 112 companies at June 30, 2026. This is the investment portfolio, not total consolidated assets. The company also sold approximately $468.0 million of assets in March at 94% of their December 2025 fair value, which helps explain the smaller portfolio. For future income, the important question is what the remaining investments can earn after costs, rather than portfolio size alone.
Share of consolidated total assets at 2026-06-30; other assets are the arithmetic residual. This is not a loan-seniority or sector allocation.
Annual earnings of $1.10 per share compare with $1.00 in annual dividends. Coverage is 110.00%. Earnings cover the payment in this update. Keep watching whether that support holds up.
NMFC earns dividends from SLP III, a jointly governed investment venture, rather than including all of the venture's accounts in its own results. At June 30, 2026, dividend income from the venture was also recorded as receivable, which means recognizing the income and collecting the cash were separate steps.
The venture provides another income stream, but its entire revenue does not belong to NMFC shareholders. For the dividend, what matters is the contribution from NMFC's own stake and how reliably that income turns into cash.
NMFC draws cash from its operations and revolving borrowing facilities, and it also expects to issue equity periodically. That money can fund portfolio investments, repay debt, meet shareholder payments and cover other corporate needs.
Access to cash keeps the business moving, but raising capital and earning income are different things. Borrowing or issuing shares may help fund a payment without improving earnings per share, so the portfolio's contribution to the dividend still needs to be judged separately.
Annual earnings of $1.10 per share compare with $1.00 in annual dividends. Coverage is 110.00%. Earnings cover the payment in this update. Keep watching whether that support holds up.
We like the earnings support here. A steady or growing cushion would make the income case more comfortable.
When overdue payments cast doubt on collection, NMFC can stop recording income and generally reverse some amounts already recognized but not collected. Later cash receipts may count as income or repay principal, depending on what management expects to recover.
Cash recovery is welcome, but it does not always restore earnings behind the dividend. The stronger sign is a troubled borrower catching up on overdue payments and becoming dependable enough to contribute income again.
At June 30, 2026, floating-rate investments represented 87.71% of NMFC's portfolio measure excluding non-accruals, unfunded debt and equity that pays no dividend. Its revolving credit facilities and interest-rate swaps also carry floating rates, so rate changes affect both investment income and financing costs.
Lower rates can ease borrowing costs, but they can also reduce what NMFC earns on its investments. The important result for the dividend is how much income remains after financing costs, rather than whether rates move up or down.
The June 30, 2026 report identifies new non-accrual positions in Convey during the first quarter and Symplr preferred shares during the second quarter. Reported second-quarter income not earned on the affected positions was $0.359 million for Convey and $0.709 million for Symplr, in addition to older non-accrual investments.
Fly High assessment: The new non-accrual positions directly reduce income from existing assets. Monitor actual repayments and recovery of cash income; a portfolio valuation or a maintained distribution does not resolve those interruptions.
At June 30, 2026, NMFC held $64.8 million of cash and equivalents and reported 186.2% asset coverage against a 150% minimum. The regulatory calculation excludes eligible SBA debentures. Outstanding commitments to fund investments were $157.2 million, compared with $211.1 million at December 31, 2025.
Fly High assessment: The disclosed resources and borrowing headroom do not identify an immediate funding shortfall. Cash alone is less than total unfunded commitments, and the regulatory ratio excludes SBA borrowing, so continued access to committed facilities and portfolio repayments remains important.
NAV finished June 2026 at $10.89 per share. Over the first half, reported realized and unrealized losses of $0.92 per share outweighed the $0.30 benefit from repurchases.
Buybacks cushioned the damage, but they did not offset the losses affecting capital behind each share. Stabilizing portfolio values and recurring income would provide more convincing support than repurchases alone.
For NMFC, the clearest improvement would be troubled investments catching up on overdue amounts and returning to dependable payments. Cash recovered from a non-accrual investment may instead repay principal, so collections and recognized income need to improve together before treating a recovery as stronger support for the dividend.
Net asset value
Latest recorded asset value per share$10.89Share price compared with recorded asset value38.75% discount
Financial data through October 24, 2026.
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U.S. federal · Tax year 2025
Dividend tax treatment
New Mountain Finance's 2025 tax supplement allocates 90.25% to ordinary, nonqualified dividends and 9.75% to return of capital.
Ordinary, nonqualified
90.25%
Qualified dividends
0%
Capital-gain distributions
0%
Return of capital
9.75%
Tax year: 2025. Total distributions: $1.28 per share.
Tax details and source
Total ordinary dividends (includes qualified)
90.25%
Section 199A portion (within ordinary dividends)
2.1%
Exempt-interest distributions
0%
Reporting form
Form 1099-DIV
Source date
Not stated
Qualified dividends are included in total ordinary dividends. Section 199A is a separate designation within ordinary dividends, not extra income or qualified dividend income.
Your account type, holding period and circumstances affect treatment. Use your broker’s tax statement for filing. Return of capital generally reduces cost basis; amounts beyond basis can be taxable. IRS dividend guidance.
