Ares Capital Corporation (NASDAQ:ARCC) reported fourth-quarter 2025 results that broadly met market expectations, with core earnings matching forecasts while revenue came in slightly under analysts’ projections.
The business development company delivered core earnings per share of $0.50 for the quarter, in line with consensus estimates. Revenue totaled $793 million, just below the $795.2 million analysts had expected, but up from $759 million in the same quarter a year earlier. Shares rose 1.62% in pre-market trading following the update.
Net investment income for the quarter reached $370 million, or $0.52 per share, compared with $363 million, or $0.55 per share, in the fourth quarter of 2024. On a GAAP basis, net income declined to $0.41 per share from $0.55 per share a year earlier.
During the quarter, Ares Capital originated approximately $5.8 billion of new investment commitments, with $4.1 billion funded. The fair value of its investment portfolio stood at $29.5 billion as of December 31, 2025, up from $26.7 billion at the end of 2024.
“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,” said Kort Schnabel, Chief Executive Officer of Ares Capital.
The company’s board declared a first-quarter 2026 dividend of $0.48 per share, payable on March 31, 2026, to shareholders of record as of March 13, 2026, keeping its payout unchanged.
At year-end, loans on non-accrual status accounted for 1.8% of total investments at amortized cost, or 1.2% at fair value, compared with 1.7% and 1.0%, respectively, at the end of 2024.