Ares Capital (ARCC) Q4 2025 Earnings
How Did ARCC Stock React to Q4 2025 Earnings?
S&P 500 over the same 30 days: −1.15%.
Did ARCC Beat Earnings? Q4 2025 Results
Yes. Ares Capital reported Q4 2025 earnings of $0.50 a share on Feb 4, 2026, beating the $0.50 consensus estimate by 0.4%. Revenue was $793.0M against a $793.8M estimate.
Ares Capital closed out Q4 2025 with a narrow but meaningful earnings beat, posting core EPS of $0.50 against a consensus estimate of $0.4981 — a 0.38% beat — while revenue of $793.00 million fell well short of the $1.37 billion analysts had expected, a miss of 42.28%, even as total investment income climbed 39.9% year-over-year. The central story behind the quarter was credit pressure: GAAP earnings declined to $293.00 million ($0.41 per share) from $357.00 million a year ago, dragged down by $155.00 million in net realized losses versus just $29.00 million in Q4 2024. Still, core EPS comfortably covered the $0.48 quarterly dividend, a threshold management has consistently defended. The company also delivered record gross commitments of $5.83 billion in the quarter, with 80% in first lien senior secured loans, and grew its portfolio to $29.48 billion across 603 companies. With an investment backlog of approximately $2.20 billion as of late January 2026 and the CFO recently purchasing shares in the open market — a signal of internal conviction — Ares Capital enters 2026 with its pipeline intact and its credit quality holding steady at a 1.8% non-accrual rate.
- Record Q4 gross investment commitments of $5.8 billion, with $4.1 billion funded
- Net investment income of $370 million ($0.52 per share) in Q4 2025
- Stable credit quality with non-accruals at 1.8% of total investments at amortized cost
- Portfolio grew to 603 companies from 550 year-over-year
- Weighted average portfolio grade stable at 3.1
- 72% of portfolio in floating rate securities at fair value
- Full-year gross commitments of $15.8 billion, a record level
“Our strong fourth quarter results capped another successful year for our company. We originated a record level of new investment commitments, maintained strong credit performance with stable non-accruals, and generated a healthy level of profits, including core earnings in excess of our dividends.”
Ares Capital CEO, on the earnings call
What Was Ares Capital's Outlook in Q4 2025?
Ares Capital maintains an investment backlog of approximately $2.2 billion as of January 29, 2026, including transactions approved by its investment committee or with signed commitments. From January 1 through January 29, 2026, the company made approximately $1.4 billion in new investment commitments, of which $966 million were funded, with 90% in first lien senior secured loans. The company's market-leading platform, scale, experience, and portfolio management capabilities are expected to continue generating attractive returns for stockholders. The share repurchase program was extended through February 2027, and the company issued $750 million in new unsecured notes to support ongoing operations.
ARCC YoY Financials
| Metric | Q4 2025 | Q4 2024 | Year over year |
|---|---|---|---|
| Revenue | $793.0M | $567.0M | +39.9% |
| Net Income | $293.0M | $357.0M | −17.9% |
Figures from SEC filings and company reports. Not investment advice.