Q1 25 EPS
$0.50
MISS 6.65%
Est. $0.54
Q1 25 Revenue
$732.0M
MISS 4.93%
Est. $769.9M
vs S&P Since Q1 25
-33.1%
TRAILING MARKET
ARCC -3.1% vs S&P +30.0%
Market Reaction
Did ARCC Beat Earnings? Q1 2025 Results
Ares Capital delivered a softer-than-expected first quarter for 2025, missing on both the top and bottom lines as realized and unrealized portfolio losses weighed on results. Core EPS came in at $0.50, falling 6.65% short of the $0.54 consensus estim… Read more Ares Capital delivered a softer-than-expected first quarter for 2025, missing on both the top and bottom lines as realized and unrealized portfolio losses weighed on results. Core EPS came in at $0.50, falling 6.65% short of the $0.54 consensus estimate, while revenue of $732.00 million trailed the $769.95 million consensus by 4.93%, though total investment income still grew 14.6% year over year, underpinned by rising interest income and a jump in capital structuring service fees to $46.00 million from $28.00 million. The headline pressure stemmed primarily from $61.00 million in net realized losses and $63.00 million in net unrealized losses, a sharp reversal from the net unrealized gains recorded a year ago. Net asset value per share dipped modestly to $19.82, and the company maintained its $0.48 quarterly dividend, a consistency that matters for investors focused on long-term dividend compounding. Looking ahead, an investment backlog of approximately $2.60 billion and roughly $5.40 billion in available borrowing capacity suggest the incoming CEO, Kort Schnabel, has meaningful dry powder to deploy.
Key Takeaways
- • Net investment income of $365 million ($0.54 per share) for Q1 2025
- • Total investment income grew to $732 million from $701 million year-over-year
- • Capital structuring service fees increased to $46 million from $28 million year-over-year
- • Capital gains incentive fee reversal of $25 million reduced total expenses
- • Portfolio investments at fair value grew to $27.1 billion from $26.7 billion at year-end
- • Non-accrual loans improved to 1.5% of total investments at amortized cost from 1.7%
ARCC YoY Financials
Q1 2025 vs Q1 2024, source: SEC Filings
“As announced last quarter, after more than a decade as ARCC's CEO, I will transition leadership to Kort Schnabel, effective April 30. As I step into my new role at Ares Management, I look forward to continuing to serve as a Director of ARCC and believe that ARCC's leadership team will continue delivering strong results for our stockholders.”
— Kipp deVeer, Q1 2025 Earnings Press Release
ARCC Earnings Trends
ARCC vs Market 30 Day Price Reactions
30-day stock return vs benchmark after each earnings
ARCC EPS Trend
Earnings per share: estimate vs actual
ARCC Revenue Trend
Quarterly revenue: estimate vs actual
ARCC Quarterly Results
5 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q1 26 | — | $0.47 | — | $763.0M | -1.72% |
| Q4 25 BEAT FY | $0.50 | $0.50 | +0.38% | $793.0M | — |
| FY Full Year | $1.99 | $2.01 | +0.95% | $3.05B | -0.06% |
| Q3 25 MISS | $0.50 | $0.50 | -0.68% | $782.0M | +2.01% |
| Q2 25 MISS | $0.51 | $0.50 | -1.11% | $745.0M | -0.72% |
| Q1 25 MISS | $0.54 | $0.50 | -6.65% | $732.0M | -4.93% |