ARCC · Ares Capital Corporation

Ares Capital Corporation reported its first quarter 2026 financial results, showing a decline in GAAP net income to $92 million ($0.13 per share) from $241 million ($0.36 per share) in the same quarter last year. The decrease was primarily driven by net unrealized losses of $412 million, compared to $63 million in the prior year, reflecting market volatility and fair value adjustments. However, net investment income increased to $398 million ($0.55 per share) from $365 million ($0.54 per share), supported by a larger portfolio and higher interest income. Core EPS, a non-GAAP measure that excludes realized and unrealized gains/losses, was $0.47, down from $0.50, but still covering the declared dividend of $0.48 per share. The company maintained a strong balance sheet with $505 million in cash and $15.9 billion in total debt, and a debt/equity ratio of 1.13x. Management highlighted improving lending conditions with enhanced spreads and fees, lower leverage, and more attractive terms. During the quarter, Ares Capital raised over $1.25 billion in new debt financing, including $750 million in unsecured notes due 2031, and increased a revolving funding facility to $1.6 billion. The company also declared a second quarter 2026 dividend of $0.48 per share, payable on June 30, 2026. The portfolio remained diversified with 607 investments, and non-accruals represented 2.1% of total investments at amortized cost. Overall, the results reflect a solid core earnings performance despite market headwinds, with ample liquidity and a stable dividend.