Ares Capital Corp
Q3 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: −0.53%.
Did ARCC Beat Earnings? Q3 2025 Results
Ares Capital delivered a mixed third quarter for fiscal 2025, beating on revenue while falling just short on earnings as yield compression weighed on net investment income. Total investment income reached $782.00 million, clearing the $766.57 million consensus estimate by 2.01% and marking a 27.6% jump from the year-ago period, though Core EPS of $0.50 came in fractionally below the $0.50 consensus by 0.68% — a result driven largely by weighted average yields on debt securities compressing to 10.6% from 11.1% a year earlier as base rates declined. Net investment income fell to $338.00 million from $361.00 million in Q3 2024, reflecting that same rate headwind even as the portfolio expanded to $28.69 billion across 587 companies. On the credit quality front, record net asset value per share of $20.01 and contained non-accrual loans at 1.8% of total investments signaled portfolio resilience. Looking ahead, a $3.00 billion post-quarter investment backlog and a maintained Q4 dividend of $0.48 per share point to management's confidence in deal flow, even as new commitment yields of 9.1% suggest further near-term pressure on income generation.
- Record net asset value per share of $20.01
- New investment commitments of approximately $3.9 billion in Q3 2025, with 85% in first lien senior secured loans
- Net realized gains of $162 million compared to net realized losses of $24 million in Q3 2024
- Healthy credit performance with non-accrual loans at 1.8% of total investments at amortized cost
- Portfolio grew to $28.7 billion at fair value across 587 companies
- Net investment income of $338 million, down from $361 million in Q3 2024 reflecting lower base rates
“We reported strong third quarter Core EPS and another record in our net asset value per share, reflecting continued healthy credit performance and an increase in new investment activity. Looking forward, we believe our origination strength and rigorous credit standards position us to benefit from an improving market environment and build upon our longstanding track record of leading investment performance.”
Ares Capital CEO, on the earnings call
Forward Guidance & Outlook
Ares Capital expressed confidence in its forward positioning, with CEO Kort Schnabel noting the company's origination strength and rigorous credit standards position it to benefit from an improving market environment. Post-quarter activity through October 23, 2025 included approximately $735 million in new investment commitments and an investment backlog of approximately $3.0 billion. The weighted average yield on new investments funded post-quarter was 9.1% at amortized cost, below the 10.0% achieved during Q3, reflecting continued yield compression. The company maintained its quarterly dividend at $0.48 per share for Q4 2025.
ARCC YoY Financials
Figures from SEC filings and company reports. Not investment advice.