Q2 2026 operating cash flow of $24.4M covered only 75% of dividends and buybacks totaling $32.6M, while investment purchases and sales were zero in 2026, indicating a pause in portfolio repositioning.
New Mountain Finance Corporation (NMFC) cash flow statement — 18-year operating, investing & financing cash flows
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 |
|---|
| Cash from Operations | 660.55M | 378.98M | 42M | 76M | 70.12M | 51.69M | 102.99M | 66.55M | -393.49M | -166.31M | 60.51M | -63.35M | -289.57M | -49.88M | -110.12M | -120.66M | 29.05M | -157.23M | -31.34M |
| Operating CF Growth % | 2947.5% | 802.36% | -44.74% | 8.4% | 35.66% | -49.81% | 54.75% | 116.91% | -136.6% | -374.86% | 195.52% | 78.12% | -480.59% | 54.71% | 8.74% | -515.33% | 118.48% | -401.64% | - |
| Net Income | -48.37M | 16.97M | 113.44M | 135.34M | 74.73M | 201.4M | 58.47M | 112.56M | 72.35M | 109.4M | 111.68M | 32.95M | 45.58M | 61.92M | 31.78M | 0 | 63.79M | 125.68M | -1.18M |
| Depreciation & Amortization | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 22.09M | -50.91M | -40.16M | 35.27M | 43.86M | -7.99M | -9.93B | 23.1B | 0 | 0 | 0 |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 112K | -140K | -642K | 1.18M | 493K | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 327.84M | 361.09M | -70.26M | -47.04M | 5.91M | -134.22M | 15.89M | -25.23M | 4.62M | 5.34M | 2.89M | 518K | -55.98M | -53.93M | 9.79B | -23.42B | -45.96M | -116.12M | 1.44M |
| Working Capital Changes | 380.37M | 915K | -1.18M | -12.3M | -10.53M | -15.49M | 28.62M | -20.78M | 43.2M | -17.06M | -8.49M | -12M | 542K | -49.88M | 0 | 199.13M | 11.22M | -166.79M | -31.6M |
| Cash from Investing | 62K | 0 | -26.23M | 256.8M | -36.92M | -68.01M | 197.65M | -777.02M | -506.33M | -228.3M | -7.38M | -125.44M | -356.44M | -109.14M | -247.39B | -349.59B | 0 | 0 | 0 |
| Purchase of Investments | 0 | 0 | -806.33M | -283.66M | -620.88M | -1.13B | -444.13M | -1.11B | -1.31B | -995.66M | -554.46M | -609.37M | -618.18M | -535.71M | -671.26B | -581.55B | 0 | 0 | 0 |
| Sale/Maturity of Investments | 0 | 0 | 780.1M | 540.46M | 583.96M | 1.07B | 641.78M | 328.15M | 802.96M | 767.36M | 547.08M | 483.94M | 261.75M | 426.56M | 423.87B | 231.96B | 0 | 0 | 0 |
| Net Investment Activity | 0 | 0 | -26.23M | 256.8M | -36.92M | -68.01M | 197.65M | -777.02M | -506.33M | -228.3M | -7.38M | -125.44M | -356.44M | -109.14M | -247.39B | -349.59B | 0 | 0 | 0 |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Investing | 62K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Financing | -653.02M | -378.74M | -31.36M | -333.96M | -19.69M | -4.53M | -270.25M | 709.38M | 408.22M | 155.32M | -44.68M | 70M | 313.02M | 49.88M | 110.12M | 120.66M | -22.42M | 161.15M | 31.53M |
| Dividends Paid | -121.45M | -135.7M | -147.19M | -150.74M | -121.29M | -114.22M | -120.07M | -113.14M | -101.06M | -94.21M | -85.81M | -77.35M | -72.78M | -50.16M | -23.31M | -26.59B | 0 | 0 | 0 |
| Share Repurchases | -107.87M | -51.95M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -2.95M | 0 | 0 | 0 | 0 | 129.87M | 0 | 0 | 0 |
| Stock Issued | 0 | 0 | 67.69M | 20.83M | 39.8M | 12.22M | -278K | 277.78M | 0 | 81.48M | 79.06M | 79.42M | 141.16M | 100.04M | 133.43M | 330.24B | 0 | 0 | 0 |
| Net Stock Activity | -107.87M | -51.95M | 67.69M | 20.83M | 39.8M | 12.22M | -278K | 277.78M | 0 | 81.48M | 76.11M | 79.42M | 141.16M | 100.04M | 133.43M | 330.37B | 0 | 0 | 0 |
| Debt Issuance (Net) | -2M | -1000K | 1000K | -1000K | 1000K | 1000K | -1000K | 1000K | 1000K | 1000K | -1000K | 1000K | 1000K | 0 | 0 | 0 | 1000K | 1000K | 0 |
| Other Financing | -3.76M | -2.99M | -13.03M | -693K | -9.57M | 570K | 0 | 0 | -7.17M | -6.55M | 75.33M | -3.51M | 129.42M | 100.04M | 209.97B | 26.71B | 54.63M | 83.41M | 31.53M |
| Net Change in Cash | 7.41M | 398K | 10.23M | -1.1M | 13.11M | -20.89M | 30.39M | -1.09M | 14.73M | -10.99M | 15.83M | 6.66M | 23.45M | 2.23M | -2.57B | 4.57B | 6.63M | 3.92M | 189.47K |
| Exchange Rate Effect | -121K | 153K | -409K | 55K | -391K | -32K | 0 | 0 | 506.33M | 228.3M | 7.38M | 125.44M | 356.44M | 111.37M | 244.82B | 354.16B | 0 | 0 | 0 |
| Cash at Beginning | 51.13M | 80.32M | 70.09M | 71.19M | 58.08M | 78.97M | 48.57M | 49.66M | 34.94M | 45.93M | 30.1M | 23.45M | 0 | 12.75M | 15.32B | 10.74B | 4.11M | 189.47K | 0 |
| Cash at End | 64.8M | 80.72M | 80.32M | 70.09M | 71.19M | 58.08M | 78.97M | 48.57M | 49.66M | 34.94M | 45.93M | 30.1M | 23.45M | 14.98M | 12.75B | 15.32B | 10.74M | 4.11M | 189.47K |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Income Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Free Cash Flow | 660.55M | 378.98M | 42M | 76M | 70.12M | 51.69M | 102.99M | 66.55M | -393.49M | -166.31M | 60.51M | -63.35M | -289.57M | -49.88M | -110.12M | -120.66M | 29.05M | -157.23M | -31.34M |
| FCF Growth % | 390.47% | 802.36% | -44.74% | 8.4% | 35.66% | -49.81% | 54.75% | 116.91% | -136.6% | -374.86% | 195.52% | 78.12% | -480.59% | 54.71% | 8.74% | -515.33% | 118.48% | -401.64% | - |
Quick answers to the most common questions about buying NMFC stock.
New Mountain Finance Corporation (NMFC) generated $379.0M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
New Mountain Finance Corporation (NMFC) generated $379.0M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
New Mountain Finance Corporation (NMFC) spent $0.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, New Mountain Finance Corporation (NMFC) returned $135.7M to shareholders via cash dividends and spent $52.0M on share repurchases. This shows the company's commitment to returning capital to its equity investors.
Key Metrics
Top Statement Risk
High leverage and negative non-interest income
Metrics are mathematically derived from official filings.
Earnings Retention Under Pressure
NMFC's Q2 2026 net income of $17.3M generated operating cash flow of $24.4M, but cumulative dividends and buybacks of $32.6M exceeded that, indicating reliance on external funding, per recent financial statements.
The OCF/NI ratio of 1.41 in Q2 2026 suggests some cash generation, but the prior quarter's negative net income and OCF of $401.4M highlight volatility. Over the last four quarters, total OCF of $639.4M was offset by dividends and buybacks of $210.4M, leaving a surplus, yet the negative net income quarters indicate that earnings retention is not consistently covering distributions. This suggests that capital generation is insufficient to fully fund shareholder returns without drawing on balance sheet resources.
Securities Portfolio Cash Flows Stabilize
Investment purchases and sales were zero in 2026, a sharp contrast to 2024's active trading, as reported in NMFC's cash flow statements, suggesting a pause in portfolio repositioning.
In 2024, NMFC had significant purchase and sale activity, with net sales of $189M in Q2 2024, but since Q4 2024, activity has ceased. This may indicate a strategic shift to hold investments, possibly to avoid realizing losses or to maintain yield. The lack of reinvestment could signal limited deployment opportunities or a focus on liquidity preservation, which investors should monitor for impact on future income.
Loan Book Cash Flows Reflect Stability
NMFC's loan loss provisions turned to reversals in 2026, with $9.7M in Q2, following $18.4M in Q1, as per cash flow data, suggesting improving credit conditions or prior over-reserving.
The provision reversals in 2026 contrast with the $14.7M provision in Q4 2025 and the $187.9B outlier in Q4 2025 (likely a data error). The consistent reversals may indicate that credit quality is stabilizing, but the extreme volatility in the data warrants caution. The lack of loan origination cash flows in 2026 suggests a slowdown in new lending, which could limit future interest income growth.
Dividend Coverage Relies on Cash Reserves
NMFC paid $23.6M in dividends in Q2 2026, exceeding net income of $17.3M, and with buybacks of $9.0M, total capital return of $32.6M outpaced operating cash flow of $24.4M, per company filings.
The dividend payout ratio exceeded 100% of net income in Q2 2026, and the cumulative dividends over the last four quarters ($122.1M) were only partially covered by net income ($50.4M). This suggests that dividends are being funded by cash reserves or external financing, which may not be sustainable if earnings do not recover. The 15% dividend yield may attract income investors, but the coverage gap warrants monitoring for potential dividend cuts.
Deposit Flows Not Applicable
As a BDC, NMFC does not have traditional deposit flows; its funding relies on debt issuance and equity, with long-term debt changes of $1.0M in Q2 2026, per cash flow statements.
The absence of deposit data is consistent with NMFC's business model. Instead, the company's funding is reflected in debt issuance and repayments, which have been minimal in 2026. The stable debt levels suggest a conservative approach to leverage, but the high debt-to-equity ratio of 1.41x indicates significant reliance on borrowed funds, which could amplify credit risk.
Cash Flow Statement Masks Credit Risk
NMFC's cash flow statement shows no investment purchases or sales in 2026, but the $187.9B loan loss provision in Q4 2025 appears anomalous, as per reported data, warranting scrutiny of credit quality.
The cash flow data reveals that NMFC's operating cash flow is heavily influenced by non-cash items like provisions and unrealized gains/losses. The provision reversals in 2026 may be masking underlying credit deterioration, as the prior year's large provision suggests. Additionally, the lack of investment activity could indicate that NMFC is holding onto assets to avoid realizing losses, which may not be reflected in the cash flow statement. Investors should examine the portfolio's non-accrual rates and PIK income to assess true earnings quality.