New Mountain Finance (NMFC) investor relations material

Executive summary

• Adjusted net investment income for Q1 2026 was $0.32 per share, fully covering the dividend, supported by recurring loan income and a $6.1 million incentive fee waiver.

• Net asset value per share declined to $10.92 from $11.52 at year-end 2025, mainly due to market-driven valuation declines and a large asset sale.

• Approximately $470 million of illiquid assets were sold at 94% of book value, enabling deleveraging, share repurchases, and redeployment into higher-yielding assets.

• Aggressive share repurchases at a discount to book value added $0.26 per share in book value accretion; buyback authorization increased by $50 million, with $80 million capacity remaining.

• Insider, employee, and advisor ownership increased to 17% of shares outstanding during the quarter.

Financial highlights

• Total investment income for Q1 2026 was $68.8 million, down from $85.7 million in Q1 2025 and 11% lower sequentially.

• Net investment income was $30.6 million, compared to $34.6 million in Q1 2025.

• Net realized and unrealized losses totaled $81.4 million, resulting in a net loss of $50.9 million for Q1 2026.

• Book value per share was $10.92 at March 31, 2026.

• 98% of investment income was recurring; 83% paid in cash, 12% PIK, 3% modified PIK.

Outlook and guidance

• Q2 2026 dividend set at $0.25 per share, expected to be covered by core earnings.

• Management is focused on monetizing equity winners, redeploying proceeds into cash-yielding loans, and enhancing portfolio diversification.

• Dividend protection program in place through 2026, with a permanent reduction in incentive fee to 15% planned thereafter.

• Cautiously optimistic on 2026 outlook as M&A activity picks up and spread widening creates attractive opportunities.

• $80 million of capacity remains under the stock repurchase program.