Ares Capital (ARCC) Q3 2025 earnings summary

Executive summary

• Reported strong Q3 2025 results with GAAP EPS of $0.57, core EPS of $0.50, and net investment income of $338 million, driven by robust net realized gains and portfolio growth.

• Net asset value per share increased to $20.01, marking the ninth NAV increase in the past 10 quarters and a record high.

• Origination activity accelerated with $3.9 billion in new commitments and net deployment of $1.3 billion, supporting a $3.0 billion investment backlog as of October 23, 2025.

• Portfolio companies demonstrated strong fundamentals, with weighted average organic EBITDA growth exceeding 10% and improved credit quality.

• Portfolio fair value reached $28.7 billion across 587 companies as of September 30, 2025.

Financial highlights

• GAAP net income per share was $0.57, up from $0.52 in Q2 2025; core EPS was $0.50, flat sequentially but down from $0.58 year-over-year.

• Net investment income for Q3 2025 was $338 million on $782 million total investment income.

• Net realized gains for Q3 2025 were $162 million, with net unrealized losses of $96 million.

• Portfolio at fair value grew to $28.7 billion, up from $27.9 billion in Q2 and $25.9 billion a year ago.

• Dividend declared at $0.48 per share for Q4 2025, marking over 65 consecutive quarters of stable or increasing dividends.

Outlook and guidance

• Management expects continued portfolio growth, supported by a $3.0 billion investment backlog and $735 million in new commitments post-quarter-end.

• Confident in maintaining current dividend levels, supported by spillover income of $1.26 per share.

• Positioned to capitalize on higher-yielding opportunities and increased transaction activity, with flexibility to increase leverage within the target range.