New Mountain Finance Cuts Quarterly Dividend to $0.32, Plans Further Reduction
New Mountain Finance Corporation (NASDAQ: NMFC), a business development company, declared a $0.32 per share quarterly distribution for Q1 2026, down from $0.33 previously. The company announced plans to reduce the dividend further to $0.25 per share starting in Q2 2026.
New Mountain Finance Corporation (NASDAQ: NMFC), a business development company, declared a quarterly distribution of $0.32 per share on February 24, 2026, payable to shareholders of record as of March 17, 2026. The distribution represents a $0.01 decrease from the prior quarter's $0.33 per share payout. Read more dividend announcements.
The company announced it will reduce the dividend further to $0.25 per share starting in the second quarter of 2026. Management cited continued base rate compression, lower market spreads, and an increasingly senior asset mix as factors driving the decision.
| Dividend Details | Information |
|---|---|
| Amount | $0.32 per share |
| Record Date | March 17, 2026 |
| Payment Date | March 31, 2026 |
| Previous Amount | $0.33 per share |
Fourth Quarter Financial Performance
New Mountain Finance reported net investment income of $33.0 million, or $0.32 per weighted average share, for the quarter ended December 31, 2025. Net asset value declined to $11.52 per share from $12.06 per share as of September 30, 2025.
The company's investment portfolio totaled $2.76 billion as of December 31, 2025, down from $2.96 billion in the prior quarter. The statutory debt-to-equity ratio remained flat at 1.26 times.
Strategic Actions
New Mountain Finance signed a definitive agreement to sell $477 million of assets to a third party at 94% of December 31, 2025 fair value. The company said the asset sale aims to increase portfolio diversification, reduce payment-in-kind income, and enhance financial flexibility.
Management announced plans to permanently reduce the company's incentive fee to 15% over an 8% hurdle rate at the expiration of the dividend protection program. The company improved its asset mix with senior-oriented assets representing approximately 80% of the portfolio, compared to 75% as of December 31, 2024.
Approximately 95% of the portfolio is rated green on the company's internal heatmap, according to the announcement.