Ares Capital Corporation (NASDAQ:ARCC) reported second-quarter 2025 earnings on Tuesday that missed analyst expectations, causing a slight decline in its shares.
Shares slipped 0.22% in pre-market trading following the announcement.
The business development company posted core earnings per share of $0.50, just below the consensus estimate of $0.51. Total investment income reached $745 million, marginally under the expected $748.83 million. Revenue declined from $755 million reported in the same quarter last year.
Despite the earnings miss, Ares Capital confirmed its quarterly dividend at $0.48 per share for Q3 2025, payable September 30 to shareholders of record as of September 15.
“We delivered another solid quarter with robust core earnings and net asset value growth, reflecting the strong positioning and performance of our investment portfolio,” said Kort Schnabel, CEO. “Looking ahead, we are witnessing increased market transaction activity and believe our deep relationships and broad market coverage position us well to capitalize on opportunities.”
During the quarter, the company committed approximately $2.6 billion to new investments, funding about $2.0 billion of that, while exiting roughly $2.0 billion in commitments.
Ares Capital strengthened its financial flexibility, with CFO Scott Lem stating, “With about $6.5 billion in available liquidity, pro-forma for financing completed after quarter-end, our balance sheet remains strong to support portfolio growth and to act decisively in the direct lending market.”
As of June 30, 2025, the company held $447 million in cash and cash equivalents, alongside $14.1 billion in total debt outstanding.
Ares Capital Corporation stock price
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