Net interest income grew 16.2% QoQ to $36.8M in Q2 2026, but total revenue fell to $16.5M due to negative non-interest income of -$42.8M, while net interest margin compressed to 1.5% from 1.1% a year earlier.
New Mountain Finance Corporation (NMFC) annual income statement — 18-year revenue, gross profit & net income history
| 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 |
|---|
| Net Interest Income | -187.73B | 116.3M | 139.5M | 166M | 119.77M | 116.48M | 133.5M | 124.42M | 104.85M | 112.71M | 118.97M | 116.7M | 112.37M | 84.92M | 36.44M | 0 | 0 | 0 | 0 |
| NII Growth % | -578769.98% | -16.63% | -15.96% | 38.59% | 2.82% | -12.75% | 7.3% | 18.67% | -6.97% | -5.27% | 1.95% | 3.85% | 32.32% | 133.06% | - | - | - | - | - |
| Net Interest Margin % | -7772.24% | 4.01% | 4.3% | 5.25% | 3.57% | 3.53% | 4.31% | 3.81% | 4.28% | 5.85% | 7.18% | 7.28% | 7.42% | 13.06% | 10.55% | 0% | 0% | 0% | 0% |
| Interest Income | 247.2M | 240.02M | 276.14M | 290.78M | 212.19M | 189.58M | 212.63M | 208.72M | 161.9M | 149.8M | 147.43M | 140.07M | 125.64M | 84.92M | 36.44M | 0 | 2.95M | 490.19K | 0 |
| Interest Expense | 187.98B | 123.72M | 136.64M | 124.78M | 92.42M | 73.1M | 79.13M | 84.3M | 57.05M | 37.09M | 28.45M | 23.37M | 13.27M | 0 | 0 | 0 | 2.95M | 490.19K | 0 |
| Loan Loss Provision | -187.93B | 0 | -54.25M | -40.89M | -16.41M | 685K | -1.08M | 0 | 0 | 0 | 0 | 0 | 0 | 11.4M | 0 | 0 | -2.95M | -490.19K | 0 |
| Non-Interest Income | -44.05M | -101.46M | 53.7M | 51.2M | 135.14M | 77.51M | 58.27M | 68.67M | 59.91M | 8.27M | 3.94M | 992K | 18.89M | 11.38M | 8.66M | 14.81M | 104.71M | 58.41M | 255.94K |
| Non-Interest Income % | 0.02% | -683.57% | 27.79% | 23.57% | 53.01% | 39.96% | 30.39% | 35.56% | 36.36% | 6.84% | 3.21% | 0.84% | 14.39% | 11.81% | 19.21% | 100% | 100% | 100% | 100% |
| Total Net Revenue | -187.78B | 14.84M | 193.2M | 217.2M | 254.91M | 194M | 191.78M | 193.1M | 164.76M | 120.98M | 122.92M | 117.69M | 131.26M | 96.3M | 45.1M | 14.81M | 104.71M | 58.41M | 255.94K |
| Revenue Growth % | -160090.24% | -92.32% | -11.05% | -14.79% | 31.4% | 1.16% | -0.68% | 17.2% | 36.19% | -1.58% | 4.44% | -10.33% | 36.3% | 113.52% | 204.55% | -85.86% | 79.29% | 22719.72% | - |
| Non-Interest Expense | 90.78M | -2.56M | -6.26M | -4.44M | 94.79M | -87.27M | -3.94M | -3.44M | 3.05M | 157K | 1.81M | 1.78M | 24.74M | 40.35M | 17.72M | 0 | 3.91M | 1.36M | 0 |
| Efficiency Ratio | -0.05% | -17.26% | -3.24% | -2.04% | 37.18% | -44.98% | -2.06% | -1.78% | 1.85% | 0.13% | 1.47% | 1.52% | 18.85% | 41.9% | 39.29% | 0% | 3.73% | 2.33% | 0% |
| Operating Income | 64.03M | 17.4M | 253.7M | 262.52M | 176.54M | 280.58M | 60.85M | 112.56M | 72.76M | 109.81M | 111.19M | 34.3M | 46.5M | 50.52M | 31.78M | 56.52M | 37.46M | 20.41M | 255.94K |
| Operating Margin % | -0.03% | 117.26% | 131.32% | 120.87% | 69.25% | 144.63% | 31.73% | 58.29% | 44.16% | 90.77% | 90.46% | 29.14% | 35.43% | 52.46% | 70.47% | 381.66% | 35.78% | 34.94% | 100% |
| Operating Income Growth % | - | -93.14% | -3.36% | 48.71% | -37.08% | 361.13% | -45.94% | 54.71% | -33.75% | -1.24% | 224.18% | -26.25% | -7.95% | 58.95% | -43.77% | 50.87% | 83.58% | 7873.54% | - |
| Pretax Income | -47.38M | 17.4M | 116.88M | 137.85M | 83.83M | 207.41M | 60.85M | 112.56M | 72.76M | 109.81M | 111.19M | 34.3M | 46.5M | 61.92M | 31.78M | 0 | 37.46M | 20.41M | 255.94K |
| Pretax Margin % | 0.03% | 117.26% | 60.5% | 63.47% | 32.88% | 106.92% | 31.73% | 58.29% | 44.16% | 90.77% | 90.46% | 29.14% | 35.43% | 64.3% | 70.47% | 0% | 35.78% | 34.94% | 100% |
| Income Tax | 275K | 430K | 2.38M | 1.76M | 9.3M | 232K | -991K | 0 | 403K | 416K | -490K | 1.34M | 929K | 0 | 0 | 0 | -26.33M | -105.27M | 1.44M |
| Effective Tax Rate % | -0.58% | 2.47% | 2.03% | 1.28% | 11.09% | 0.11% | -1.63% | 0% | 0.55% | 0.38% | -0.44% | 3.92% | 2% | 0% | 0% | - | -70.27% | -515.85% | 560.72% |
| Net Income | -48.37M | 16.49M | 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 |
| Net Margin % | 0.03% | 111.09% | 58.72% | 62.31% | 29.32% | 103.82% | 30.49% | 58.29% | 43.91% | 90.43% | 90.86% | 28% | 34.72% | 64.3% | 70.47% | 0% | 60.92% | 215.19% | -460.72% |
| Net Income Growth % | -158.45% | -85.47% | -16.18% | 81.1% | -62.89% | 244.43% | -48.05% | 55.57% | -33.86% | -2.04% | 238.88% | -27.69% | -26.4% | 94.81% | - | -100% | -49.24% | 10758.23% | - |
| Net Income (Continuing) | -47.66M | 16.97M | 114.5M | 136.09M | 74.53M | 207.18M | 61.84M | 112.56M | 72.35M | 109.4M | 111.68M | 32.95M | 45.58M | 61.92M | 31.78M | 0 | 63.79M | 125.68M | -1.18M |
| EPS (Diluted) | -0.51 | 0.14 | 1.03 | 1.24 | 0.74 | 1.91 | 0.60 | 1.22 | 0.91 | 1.38 | 1.60 | 0.55 | 0.86 | 1.76 | 0.89 | 0.00 | 5.96 | 11.75 | -0.11 |
| EPS Growth % | -163.16% | -86.41% | -16.94% | 67.57% | -61.26% | 218.33% | -50.82% | 34.07% | -34.06% | -13.75% | 190.91% | -36.05% | -51.14% | 97.75% | - | -100% | -49.28% | 10781.82% | - |
| EPS (Basic) | - | 0.16 | 1.06 | 1.34 | 0.75 | 2.08 | 0.60 | 1.32 | 0.95 | 1.47 | 1.72 | 0.55 | 0.88 | 1.76 | 2.14 | 0.00 | 5.96 | 11.75 | -0.11 |
| Diluted Shares Outstanding | 94.55M | 121.09M | 126.78M | 123.49M | 115.43M | 110.21M | 110.08M | 100.46M | 88.63M | 84M | 72.86M | 66.97M | 56.16M | 35.09M | 35.88M | 30.92M | 10.7M | 10.7M | 10.7M |
Quick answers to the most common questions about buying NMFC stock.
For fiscal year 2025, New Mountain Finance Corporation (NMFC) reported total revenue of $14.8M. This represents a 5698.9% increase compared to $0.3M in 2008.
New Mountain Finance Corporation (NMFC) is profitable, generating $16.5M in net income for the fiscal year ending 2025 with a net profit margin of 11.9%.
New Mountain Finance Corporation (NMFC) reported an operating income of $17.4M, resulting in an operating profit margin of 12.6%. This margin reflects the operational efficiency of the business before interest and taxes.
New Mountain Finance Corporation (NMFC) generated $14.8M in gross profit for the year, representing a gross profit margin of 10.7%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
High leverage and negative non-interest income
Metrics are mathematically derived from official filings.
NII Growth Masked by Portfolio Volatility
Net interest income grew 16.2% quarter-over-quarter to $36.8M in Q2 2026, yet total revenue fell to $16.5M due to negative non-interest income, per NMFC's latest financials.
The sequential NII increase suggests higher yields or deployment, but the dramatic swings in non-interest income—ranging from -$42.8M to +$25.6M over the past year—indicate that mark-to-market volatility on equity investments is a dominant revenue driver. Investors should focus on core NII stability, which has hovered around $30-40M, rather than headline revenue, to gauge underlying earnings power.
NIM Compression Signals Asset Yield Pressure
Net interest margin fell to 1.5% in Q2 2026 from 1.1% a year earlier, as reported in NMFC's quarterly statements, indicating asset yields are not keeping pace with funding costs.
Despite a rising rate environment, NIM remains thin, suggesting that the portfolio's floating-rate assets are being offset by higher borrowing costs or non-accruals. The negative NIM in Q4 2025 (-64.7%) is an anomaly likely due to a large negative NII adjustment, but the trend of sub-1% NIM in early 2025 underscores persistent margin pressure. This compares unfavorably to peers like ARCC, which maintains a NIM above 7%, highlighting NMFC's competitive disadvantage in funding costs.
Efficiency Ratio Distorted by Unrealized Losses
NMFC's efficiency ratio swung from -2.2% in Q2 2026 to 138.2% in Q1 2026, per company filings, reflecting extreme volatility in non-interest income rather than operational cost changes.
The efficiency ratio is not a reliable indicator of cost management for NMFC because non-interest income is heavily influenced by unrealized gains and losses on investments. Excluding these marks, the core expense base appears stable, but the negative revenue in some quarters makes the ratio meaningless. Analysts should monitor the pre-provision net revenue (PPNR) excluding investment gains to assess true operating leverage.
Provision Reversals Mask Credit Deterioration
NMFC recorded a $9.7M provision reversal in Q2 2026, following $18.4M reversals in Q1 2026 and Q3 2025, as per financial statements, suggesting improving credit conditions or prior over-reserving.
The consistent provision reversals may indicate that the portfolio is performing better than expected, but they also inflate net income. However, the low net margin of 4.45% and negative non-interest income suggest that realized losses or write-downs are offsetting these benefits. Investors should scrutinize the non-accrual rate and PIK income to determine if the reversals are sustainable or a one-time adjustment.
Non-Interest Income: A Volatile Earnings Component
Non-interest income swung from -$42.8M in Q2 2026 to +$25.6M in Q4 2024, as reported in NMFC's income statements, indicating heavy reliance on mark-to-market gains and losses.
The negative non-interest income in most quarters reflects unrealized depreciation on equity investments, which is a common feature for BDCs but adds significant earnings volatility. This contrasts with peers like ARCC, which generate stable fee income from management and advisory services. NMFC's fee income appears to be primarily from capital gains on exits, which are unpredictable and not a reliable source of recurring revenue.
Earnings Quality Questioned by Non-Cash Items
Despite a 157% EPS growth in Q2 2026, NMFC's net income of $17.3M is bolstered by provision reversals and may not reflect cash earnings, based on reported figures.
The reported net margin of 4.45% is far below peers, and the reliance on provision reversals and unrealized gains suggests that core earnings power is weak. The high dividend yield of 15% may not be sustainable if cash generation does not improve. Investors should monitor the ratio of PIK income to total interest income, as a high proportion would indicate deteriorating borrower health and lower earnings quality.