Ares Capital (NASDAQ:ARCC) Announces Quarterly Earnings Results

Ares Capital (NASDAQ:ARCC) posted its quarterly earnings data on Wednesday. The investment management company reported $0.47 EPS for the quarter, meeting the consensus estimate of $0.47, FiscalAI reports. The business had revenue of $768.00 million during the quarter, compared to analyst estimates of $770.19 million. Ares Capital had a net margin of 37.30% and a return on equity of 9.85%. During the same quarter last year, the firm posted $0.50 earnings per share.

Ares Capital Stock Performance

Shares of ARCC stock traded down $0.14 during midday trading on Wednesday, hitting $18.89. The company had a trading volume of 1,219,919 shares, compared to its average volume of 6,334,972. The stock has a market cap of $13.57 billion, a price-to-earnings ratio of 11.61 and a beta of 0.56. The company has a debt-to-equity ratio of 1.13, a current ratio of 1.40 and a quick ratio of 1.40. The company’s 50 day simple moving average is $18.67 and its 200 day simple moving average is $18.93. Ares Capital has a 52-week low of $17.40 and a 52-week high of $22.93.

Key Stories Impacting Ares Capital

Here are the key news stories impacting Ares Capital this week:

• Positive Sentiment: Net investment income was $359 million, or $0.50 per share, while total investment income increased to $768 million from $745 million a year earlier. The company also generated approximately $2.6 billion of new investment commitments, with $2.2 billion funded. Ares Capital Q2 results
• Positive Sentiment: Ares Capital declared a third-quarter dividend of $0.48 per share, payable September 30 to shareholders of record on September 15. The unchanged payout supports the stock’s income appeal. Ares Capital dividend announcement
• Neutral Sentiment: Quarterly adjusted EPS of $0.47 matched consensus, and revenue of $768 million was only slightly below the $770.19 million estimate. However, EPS declined from $0.50 in the prior-year quarter. Ares Capital earnings estimate comparison
• Neutral Sentiment: Liquidity remained substantial, with $383 million in cash and approximately $6.7 billion available under credit facilities. Portfolio investments totaled $29.35 billion at fair value as of June 30. Ares Capital Q2 results and dividend
• Negative Sentiment: GAAP net income fell to $171 million, or $0.24 per share, from $361 million, or $0.52, a year earlier, as realized and unrealized losses weighed on results. Net asset value declined to $19.35 per share from $19.94 at year-end 2025, signaling deterioration in portfolio valuations. Ares Capital losses affect earnings

Analyst Upgrades and Downgrades

A number of research firms have weighed in on ARCC. Weiss Ratings restated a “hold (c)” rating on shares of Ares Capital in a research note on Tuesday, June 9th. Royal Bank Of Canada dropped their price objective on Ares Capital from $22.00 to $21.00 and set an “outperform” rating on the stock in a report on Wednesday, April 29th. Wall Street Zen upgraded Ares Capital from a “sell” rating to a “hold” rating in a research note on Saturday. Truist Financial lowered their price target on Ares Capital from $23.00 to $22.00 and set a “buy” rating for the company in a report on Wednesday, April 29th. Finally, Citizens Jmp cut their price objective on shares of Ares Capital from $23.00 to $22.00 and set a “market outperform” rating on the stock in a report on Wednesday, April 22nd. Eight investment analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus target price of $20.60.

Institutional Investors Weigh In On Ares Capital

A number of institutional investors and hedge funds have recently modified their holdings of the company. First Citizens Bank & Trust Co. grew its holdings in Ares Capital by 5.3% in the fourth quarter. First Citizens Bank & Trust Co. now owns 10,530 shares of the investment management company’s stock valued at $213,000 after purchasing an additional 532 shares during the last quarter. PCG Wealth Advisors LLC raised its position in Ares Capital by 3.4% during the third quarter. PCG Wealth Advisors LLC now owns 19,282 shares of the investment management company’s stock worth $394,000 after acquiring an additional 643 shares during the last quarter. Navis Wealth Advisors LLC lifted its holdings in shares of Ares Capital by 2.3% in the third quarter. Navis Wealth Advisors LLC now owns 28,104 shares of the investment management company’s stock valued at $574,000 after purchasing an additional 643 shares in the last quarter. Empowered Funds LLC raised its position in shares of Ares Capital by 2.1% during the 4th quarter. Empowered Funds LLC now owns 38,803 shares of the investment management company’s stock worth $785,000 after purchasing an additional 780 shares during the last quarter. Finally, DCM Advisors LLC grew its holdings in Ares Capital by 4.0% during the 2nd quarter. DCM Advisors LLC now owns 23,348 shares of the investment management company’s stock valued at $471,000 after buying an additional 905 shares during the last quarter. Institutional investors and hedge funds own 27.38% of the company’s stock.

About Ares Capital

Ares Capital Corporation (NASDAQ: ARCC) is a publicly traded business development company (BDC) that specializes in providing debt and equity financing solutions to U.S. middle-market companies. As a BDC, Ares Capital offers investors access to a diversified portfolio of tailored credit investments, including senior secured loans, unitranche financing, mezzanine debt and equity co-investments. The firm’s flexible capital structures are designed to support companies seeking growth capital, refinancing or strategic acquisitions.

Through its credit platform, Ares Capital focuses on originations, underwriting and portfolio management across a range of industries, with a particular emphasis on sectors such as healthcare, technology, industrials and business services.