Companies /Financial Services

Ares Capital Corp

NASDAQ: ARCC Asset Management
$19.70
▼ $0.34 (−1.70%) today
Markets closed · 4:56am ET

Q2 2025 Earnings

Reported Jul 28, 2025, 9:11pm ET · SEC source
$0.50
Miss −1.11%
EPS · est. $0.51
$745.0M
Miss −0.72%
Revenue · est. $750.4M
−3.4%
Trailing market
ARCC vs S&P since report
2 quarters
Consecutive EPS misses

Market Reaction

% change · around the report
−2.4%−1.6%−0.8%0Jul 28Jul 29report 9:11pm ETearnings−0.4%−1.5%
−2.4%−1.6%−0.8%0Jul 28Jul 29earnings−0.4%−1.5%
ARCC −1.5%S&P 500 −0.4%
−2.7%−1.8%−0.9%0Jul 28Jul 29report 9:11pm ETearnings−0.3%−1.5%
−2.7%−1.8%−0.9%0Jul 28Jul 29earnings−0.3%−1.5%
ARCC −1.5%NASDAQ −0.3%
−2%0+2%Jul 28Aug 5report 9:11pm ETearnings−1.6%−1.1%
−2%0+2%Jul 28Aug 5earnings−1.6%−1.1%
ARCC −1.1%S&P 500 −1.6%
−2%0+2%Jul 28Aug 5report 9:11pm ETearnings−1.9%−1.1%
−2%0+2%Jul 28Aug 5earnings−1.9%−1.1%
ARCC −1.1%NASDAQ −1.9%
−0.70%
Day of report
+0.40%
Next session
−0.27%
One week
−1.29%
30 days

S&P 500 over the same 30 days: +2.15%.

Did ARCC Beat Earnings? Q2 2025 Results

Ares Capital delivered a muted second quarter, missing on both the top and bottom lines as compressed portfolio yields and rising expenses weighed on per-share earnings. The business development company posted core EPS of $0.50 for Q2 2025, falling just short of the $0.51 consensus estimate, while total investment income of $745.00 million came in 0.72% below expectations — though it still represented a 40.0% jump year over year, reflecting the dramatically expanded balance sheet. The primary culprit was a meaningful squeeze in net investment income, which fell to $342.00 million ($0.49 per share) from $386.00 million a year ago, as expenses climbed to $395.00 million on higher management fees and interest costs tied to the company's growth. For income-focused investors <a href="https://247wallst.com/investing/2025/07/22/this-is-how-much-you-can-make-with-an-8-dividend-stock-in-10-years/">weighing long-term dividend compounding</a>, Ares Capital's 8.4% yield and $2.60 billion investment backlog offer a constructive forward picture, with CEO Kort Schnabel citing a pickup in deal activity and approximately $6.50 billion in available liquidity to deploy.

Key Takeaways
  • Net investment income of $342 million for Q2 2025
  • Net realized gains of $34 million compared to net realized losses of $16 million in Q2 2024
  • Net unrealized losses narrowed to $15 million from $48 million in Q2 2024
  • Portfolio grew to $27.9 billion at fair value from $26.7 billion at year-end 2024
  • NAV per share increased to $19.90 from $19.89 at December 31, 2024
  • 82% of new commitments in first lien senior secured loans
  • 92% of new commitments in floating rate debt securities

“We reported another solid quarter with strong levels of core earnings and growth in our net asset value reflecting the positioning and performance of our investment portfolio. Looking forward, we are seeing a pickup in market transaction activity, and we believe we are well positioned to benefit due to our deep relationships and extensive market coverage.”

Ares Capital CEO, on the earnings call

Forward Guidance & Outlook

Ares Capital is seeing a pickup in market transaction activity and believes it is well positioned to benefit from deep relationships and extensive market coverage. As of July 24, 2025, the company had an investment backlog of approximately $2.6 billion. Pro-forma for post-quarter financing activities, the company has approximately $6.5 billion of available liquidity to support portfolio growth and direct lending market activity.

ARCC YoY Financials

Q2 2025 vs Q2 2024 · SEC filings Q2 2024 Q2 2025
$0$300.0M$600.0M$532.0M$745.0MRevenue$322.0M$361.0MNet Income
$0$300.0M$600.0MRevenueNet Income

Figures from SEC filings and company reports. Not investment advice.