NMFC exhibits structural margin instability, with net margins swinging to a negative 138.5% in 2026Q1, indicating that bottom-line performance is heavily distorted by non-cash valuation adjustments.
| 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 |
|---|
| Sales/Revenue | 225.73M | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Revenue Growth % | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Cost of Goods Sold | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| COGS % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Gross Profit | 158.96M | 309.67M | 247.44M | 258.08M | 271.32M | 193.31M | 56.9M | 109.12M | 75.81M | 109.97M | 113M | 36.08M | 71.24M | 90.88M | 49.5M | 56.52M | 41.37M | 21.77M | 255.94K |
| Gross Margin % | 70.42% | 83.64% | 75.02% | 75.47% | 78.12% | 72.38% | 21% | 39.34% | 34.18% | 69.57% | 74.65% | 25.58% | 49.29% | 94.36% | 109.75% | 381.66% | 38.43% | 36.96% | 100% |
| Gross Profit Growth % | - | 25.15% | -4.12% | -4.88% | 40.36% | 239.73% | -47.86% | 43.94% | -31.06% | -2.68% | 213.17% | -49.35% | -21.6% | 83.58% | -12.42% | 36.61% | 90.08% | 8404.51% | - |
| Operating Expenses | 126.96M | 169.03M | -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 |
| OpEx % of Revenue | - | 45.65% | -1.9% | -1.3% | 27.29% | -32.67% | -1.46% | -1.24% | 1.38% | 0.1% | 1.2% | 1.26% | 17.12% | 41.9% | 39.29% | - | 3.63% | 2.31% | - |
| Selling, General & Admin | 1.49B | 6.42M | 10.64M | 89.74M | 9.9M | 9.58M | 9.79M | 8.91M | 10.04M | 8.07M | 7.36M | 7.33M | 5M | 0 | 0 | 0 | 962.06K | 868.79K | 0 |
| SG&A % of Revenue | - | 1.73% | 3.23% | 26.24% | 2.85% | 3.59% | 3.61% | 3.21% | 4.53% | 5.11% | 4.86% | 5.2% | 3.46% | - | - | - | 0.89% | 1.48% | - |
| Research & Development | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Operating Income | 32M | 140.64M | 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 % | 14.18% | 37.99% | 76.92% | 76.77% | 50.83% | 105.05% | 22.46% | 40.58% | 32.8% | 69.47% | 73.46% | 24.31% | 32.18% | 52.46% | 70.47% | 381.66% | 34.8% | 34.65% | 100% |
| Operating Income Growth % | - | -44.56% | -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% | - |
| EBITDA | 83.22M | 303.18M | 116.88M | -22.58M | 83.83M | 207.41M | 60.85M | 112.56M | 72.76M | 109.81M | 111.19M | 34.3M | 46.5M | 39.12M | 31.78M | 9.49M | 37.46M | 20.41M | 255.94K |
| EBITDA Margin % | 36.87% | 81.89% | 35.44% | -6.6% | 24.13% | 77.66% | 22.46% | 40.58% | 32.8% | 69.47% | 73.46% | 24.31% | 32.18% | 40.62% | 70.47% | 64.06% | 34.8% | 34.65% | 100% |
| EBITDA Growth % | -25.48% | 159.39% | 617.69% | -126.93% | -59.58% | 240.88% | -45.94% | 54.71% | -33.75% | -1.24% | 224.18% | -26.25% | 18.87% | 23.09% | 235.05% | -74.68% | 83.58% | 7873.54% | - |
| D&A (Non-Cash Add-back) | 51.44M | 162.53M | 0 | -285.1M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -11.4M | 0 | 0 | 0 | 0 | 0 |
| EBIT | 31.78M | 141.12M | 253.51M | 262.64M | 83.83M | 280.51M | 60.85M | 112.56M | 72.76M | 109.81M | 111.19M | 34.3M | 46.5M | 50.52M | 31.78M | 9.49M | 0 | 0 | 0 |
| Net Interest Income | -187.74B | 194.62M | 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 |
| Interest Income | 250.76M | 318.34M | 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 | 187.99B | 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 |
| Other Income/Expense | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Pretax Income | -56.95M | 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 % | -25.23% | 4.7% | 35.44% | 40.31% | 24.13% | 77.66% | 22.46% | 40.58% | 32.8% | 69.47% | 73.46% | 24.31% | 32.18% | 64.3% | 70.47% | - | 34.8% | 34.65% | 100% |
| Income Tax | 344K | 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 % | -0.6% | 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 | -57.85M | 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 % | -25.63% | 4.45% | 34.39% | 39.58% | 21.52% | 75.4% | 21.58% | 40.58% | 32.62% | 69.21% | 73.78% | 23.36% | 31.53% | 64.3% | 70.47% | - | 59.25% | 213.39% | -460.72% |
| Net Income Growth % | -152.86% | -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) | -57.29M | 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 |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 6.47M | 6.08M | 5.95M | 11.77M | 11.72M | 21.37M | 15.01M | 0 | 1.33B | 834.56M | 650.81M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -0.58 | 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 % | -159% | -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 | 100.48M | 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 |
| Basic Shares Outstanding | 100.48M | 106.15M | 107.85M | 101.12M | 100.2M | 96.95M | 96.83M | 85.21M | 76.02M | 74.17M | 64.92M | 59.72M | 51.85M | 35.09M | 14.86M | 10.7M | 10.7M | 10.7M | 10.7M |
| Dividend Payout Ratio | - | 823% | 1.58% | - | - | - | - | - | 139.67% | 86.12% | 76.84% | 234.7% | 159.7% | 81.02% | 73.35% | - | 181.75% | - | - |
Portfolio valuation volatility
As evidenced by the quarterly income statement data, NMFC's gross margin has fluctuated significantly, reaching a low of 20.3% in 2025Q2 before recovering to 81.0% by 2025Q4, suggesting that the firm's underlying investment portfolio is subject to substantial non-operating valuation adjustments rather than consistent interest-based revenue generation.
The wide variance in gross margins indicates that the company's reported profitability is heavily influenced by unrealized marks on its debt and equity holdings. Investors should interpret these swings as a reflection of market-driven valuation changes rather than operational efficiency, which complicates the assessment of core lending profitability.
Based on the provided financial filings, NMFC's operating income has demonstrated extreme volatility, swinging from a negative $23.2 million in 2026Q1 to a positive $44.2 million in 2025Q3, which highlights a lack of consistent scalability in the firm's current cost structure relative to its revenue base.
The erratic nature of operating income suggests that the firm's overhead and interest expenses are not scaling linearly with portfolio growth. This inconsistency warrants further investigation into whether the firm's management and incentive fee structures are adequately aligned with the actual cash-generating capacity of the underlying assets.
According to the reported income statements, NMFC's net margin has experienced dramatic shifts, including a negative 138.5% in 2026Q1, which suggests that the company's bottom-line performance is frequently distorted by non-cash items and valuation adjustments that do not necessarily reflect the underlying health of the credit portfolio.
The frequent divergence between top-line revenue and net income implies that investors should prioritize Net Investment Income (NII) over GAAP net income to gauge true performance. The presence of such significant bottom-line swings may indicate that the firm is highly sensitive to credit market sentiment and valuation markdowns.
While the firm markets a defensive growth strategy, the income statement data reveals a net margin of only 4.45% in recent periods, suggesting that the high cost of leverage and potential credit markdowns may be eroding the benefits of the firm's specialized lending focus in software and healthcare.
Short-term observers may argue that the firm's reliance on equity kickers and complex credit structures creates a high-beta profile that contradicts the 'defensive' label. The narrow net margin suggests that even minor credit deterioration could lead to significant earnings compression, necessitating a cautious view on the sustainability of current dividend distributions.
Quick answers to the most common questions about buying NMFC stock.
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 4.5%.
New Mountain Finance Corporation (NMFC) reported an operating income of $140.6M, resulting in an operating profit margin of 38.0%. This margin reflects the operational efficiency of the business before interest and taxes.
New Mountain Finance Corporation (NMFC) generated $309.7M in gross profit for the year, representing a gross profit margin of 83.6%. This demonstrates the company's core pricing power and production efficiency.