Q2 25 EPS
$0.50
MISS 1.11%
Est. $0.51
Q2 25 Revenue
$745.0M
MISS 0.72%
Est. $750.4M
vs S&P Since Q2 25
-24.8%
TRAILING MARKET
ARCC -11.4% vs S&P +13.4%
Market Reaction
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 j… Read more 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 weighing long-term dividend compounding, 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
ARCC YoY Financials
Q2 2025 vs Q2 2024, source: SEC Filings
“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.”
— Kort Schnabel, Q2 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% |