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ARCC

Ares Capital Corporation

ARCC

Ares Capital Corporation • NASDAQ
$20.62 ▲ 0.54% (+0.11)
Market Cap $14.76 B
52w High $23.84
52w Low $18.26
Dividend Yield 1.92%
P/E 10.36
Volume 1.72M
Outstanding Shares 715.73M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q3-2025 $655M ▲ $29M $404M ▲ 61.679% ▼ $0.57 ▲ $431M ▲
Q2-2025 $579M ▲ $29M ▲ $361M ▲ 62.349% ▲ $0.52 ▲ $378M ▲
Q1-2025 $446M ▼ $26M ▲ $241M ▼ 54.036% ▼ $0.36 ▼ $248M ▼
Q4-2024 $567M ▼ $23M ▼ $357M ▼ 62.963% ▼ $0.55 ▼ $370M ▼
Q3-2024 $613M $26M $394M 64.274% $0.62 $406M

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q3-2025 $1.036B ▲ $30.806B ▲ $16.484B ▲ $14.322B ▲
Q2-2025 $447M ▼ $29.071B ▲ $15.037B ▲ $14.034B ▲
Q1-2025 $647M ▲ $28.317B ▲ $14.645B ▼ $13.672B ▲
Q4-2024 $635M ▲ $28.254B ▲ $14.899B ▲ $13.355B ▲
Q3-2024 $486M $27.1B $14.327B $12.773B

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q3-2025 $404M ▲ $365M ▲ $-1.138B ▼ $1.363B ▲ $590M ▲ $365M ▲
Q2-2025 $361M ▲ $347M ▲ $-565M ▼ $140M ▼ $-78M ▲ $347M ▲
Q1-2025 $241M ▼ $182M ▼ $-481M ▲ $181M ▼ $-118M ▼ $182M ▼
Q4-2024 $357M ▼ $410M ▲ $-678M ▲ $504M ▲ $236M ▲ $410M ▲
Q3-2024 $394M $337M $-858M $464M $-57M $337M

Five-Year Company Overview

Income Statement

Income Statement ARCC’s income statement shows a business that has grown meaningfully over the past five years, but with some bumps along the way. Revenue has expanded strongly over time, reflecting a larger lending book and the benefit of higher interest rates, although there was a noticeable soft patch a few years ago. Profit levels have generally been healthy, with recent years showing solid net income, but earnings have not climbed as fast as revenue, suggesting higher funding costs, credit provisions, or valuation swings on the loan portfolio. Overall, the company appears to generate attractive profitability for a lender, but results can be lumpy from year to year, which is typical for a business development company exposed to credit and market cycles.

Balance Sheet

Balance Sheet The balance sheet has steadily scaled up, with total assets and shareholder equity both rising over the period. Debt has also increased, but broadly in line with the growth in assets, which points to a relatively disciplined use of leverage for a BDC that depends on borrowing to fund loans. Cash holdings are modest compared with total assets, which is normal for a company that invests most of its capital into income‑producing loans rather than keeping idle liquidity. The overall picture is of a larger, more diversified balance sheet that still relies on leverage, making ongoing credit quality and funding access key areas to watch.

Cash Flow

Cash Flow ARCC’s cash flow profile looks straightforward and relatively strong. Operating cash flow has been consistently positive and has grown over time, indicating that the lending portfolio is producing reliable cash earnings. Because this is a capital‑light model with essentially no traditional capital spending, free cash flow closely tracks operating cash flow, which is a structural advantage. This combination supports the company’s ability to service debt and return capital to shareholders, as long as credit conditions remain manageable.

Competitive Edge

Competitive Edge ARCC operates from a position of clear scale advantage in middle‑market lending. Its size allows it to participate in larger, more complex deals and to spread risk across many borrowers and industries. Being managed by Ares Management gives it access to deep industry networks, deal flow, and credit expertise that many smaller rivals cannot match, along with generally attractive funding terms. It also differentiates itself by offering flexible, “one‑stop” financing solutions and by emphasizing senior secured loans, which can be more defensive in downturns. The main strategic risks are its heavy exposure to middle‑market credit cycles and reliance on the external manager to maintain underwriting discipline and performance.

Innovation and R&D

Innovation and R&D While ARCC is not a traditional R&D or technology company, it does innovate in how it structures and manages credit. It uses data‑driven underwriting and portfolio monitoring tools, together with Ares’ proprietary “value creation” playbook, to help portfolio companies improve operations and cash flow. Its innovation is expressed mainly through new financing structures, tailored capital solutions, and disciplined risk management rather than through patents or software products. Looking ahead, its ability to refine these tools, broaden product types, and adapt to changing interest rate and credit environments will be more important than conventional R&D spending.

Summary

Overall, ARCC appears to be a scaled, profitable lender with a growing balance sheet, solid cash generation, and a strong competitive position in middle‑market private credit. Financial results show clear growth but also natural volatility tied to credit markets and interest rates, so individual years can look quite different. The company benefits from its association with Ares Management, diversified portfolio, and focus on senior secured lending, but remains exposed to economic downturns and borrower health. Future performance will hinge on maintaining credit discipline as it grows, preserving funding flexibility, and continuing to leverage its data‑driven, partnership‑oriented approach to lending.

NEWS

October 28, 2025 · 7:00 AM UTC

Ares Capital Corporation Announces September 30, 2025 Financial Results and Declares Fourth Quarter 2025 Dividend of $0.48 Per Share

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October 2, 2025 · 7:00 AM UTC

Ares Capital Corporation Schedules Earnings Release for the Third Quarter Ended September 30, 2025

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September 2, 2025 · 5:15 PM UTC

Ares Capital Corporation Prices Public Offering of $650 Million 5.100% Unsecured Notes Due 2031

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