Ares Capital Financials

ARCC

Source SEC Filings (10-K/10-Q) Updated Dec 31, 2025 Currency USD FYE December

Financial Health Signals

Piotroski F-Score Weak

1/9

Ares Capital passes 1 of 9 financial strength tests. 1 of 4 profitability signals pass, no leverage/liquidity signals pass (rising debt, declining liquidity, or share dilution).

Earnings Quality Low Quality

-1.32x

For every $1 of reported earnings, Ares Capital generates $-1.32 in operating cash flow (-$1.7B OCF vs $1.3B net income). This low ratio suggests earnings are primarily driven by accounting accruals rather than cash generation, which may not be sustainable.

This page shows Ares Capital (ARCC) financial statements, including the income statement, balance sheet, cash flow statement, and key financial ratios. View 6 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).

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Key Financial Metrics

Revenue

N/A

EBITDA

N/A

Free Cash Flow

N/A

Net Income

$1.3B

YoY-14.7%

5Y CAGR+21.8%

Ares Capital reported $1.3B in net income in fiscal year 2025. This represents a decrease of 14.7% from the prior year.

EPS (Diluted)

$1.86

YoY-23.8%

5Y CAGR+10.3%

Ares Capital earned $1.86 per diluted share (EPS) in fiscal year 2025. This represents a decrease of 23.8% from the prior year.

Cash & Debt

$638.0M

YoY+0.5%

5Y CAGR+14.4%

Ares Capital held $638.0M in cash against $16.0B in long-term debt as of fiscal year 2025.

Dividends Per Share

$1.92

YoY+0.0%

5Y CAGR+3.7%

Ares Capital paid $1.92 per share in dividends in fiscal year 2025. This represents an increase of 0.0% from the prior year.

Shares Outstanding

718M

YoY+6.9%

5Y CAGR+11.2%

Ares Capital had 718M shares outstanding in fiscal year 2025. This represents an increase of 6.9% from the prior year.

Gross Margin

N/A

Operating Margin

N/A

Net Margin

N/A

Return on Equity

9.1%

YoY-2.3pp

5Y CAGR+2.3pp

Ares Capital's ROE was 9.1% in fiscal year 2025, measuring profit generated per dollar of shareholder equity. This is down 2.3 percentage points from the prior year.

R&D Spending

N/A

Share Buybacks

N/A

Capital Expenditures

N/A

ARCC Income Statement

Metric	FY25	FY24	FY23	FY22	FY21	FY20
Revenue	N/A	N/A	N/A	N/A	N/A	N/A
Cost of Revenue	N/A	N/A	N/A	N/A	N/A	N/A
Gross Profit	N/A	N/A	N/A	N/A	N/A	N/A
R&D Expenses	N/A	N/A	N/A	N/A	N/A	N/A
SG&A Expenses	N/A	N/A	N/A	N/A	N/A	N/A
Operating Income	N/A	N/A	N/A	N/A	N/A	N/A
Interest Expense	$793.0M+10.9%	$715.0M+22.9%	$582.0M+27.9%	$455.0M+22.3%	$372.0M+17.4%	$317.0M
Income Tax	N/A	N/A	N/A	N/A	N/A	N/A
Net Income	$1.3B-14.7%	$1.5B0.0%	$1.5B+153.7%	$600.0M-61.7%	$1.6B+223.8%	$484.0M
EPS (Diluted)	$1.86-23.8%	$2.44-9.0%	$2.68+125.2%	$1.19-66.1%	$3.51+207.9%	$1.14

Metric	Q4'25	Q3'25	Q2'25	Q1'25	Q4'24	Q3'24	Q2'24	Q1'24
Revenue	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Cost of Revenue	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Gross Profit	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
R&D Expenses	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
SG&A Expenses	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Operating Income	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Interest Expense	N/A	$209.0M+11.2%	$188.0M+1.1%	$186.0M	N/A	$195.0M+12.1%	$174.0M+9.4%	$159.0M
Income Tax	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Net Income	N/A	$404.0M+11.9%	$361.0M+49.8%	$241.0M	N/A	$394.0M+22.4%	$322.0M-28.3%	$449.0M
EPS (Diluted)	N/A	$0.57+9.6%	$0.52+44.4%	$0.36	N/A	$0.62+19.2%	$0.52-31.6%	$0.76

ARCC Balance Sheet

Metric	FY25	FY24	FY23	FY22	FY21	FY20
Total Assets	$31.2B+10.6%	$28.3B+18.7%	$23.8B+6.3%	$22.4B+7.5%	$20.8B	N/A
Current Assets	N/A	N/A	N/A	N/A	N/A	N/A
Cash & Equivalents	$638.0M+0.5%	$635.0M+18.7%	$535.0M+76.6%	$303.0M-18.5%	$372.0M+14.1%	$326.0M
Inventory	N/A	N/A	N/A	N/A	N/A	N/A
Accounts Receivable	N/A	N/A	N/A	N/A	N/A	N/A
Goodwill	N/A	N/A	N/A	N/A	N/A	N/A
Total Liabilities	$16.9B+13.5%	$14.9B+18.3%	$12.6B-1.9%	$12.8B+7.2%	$12.0B	N/A
Current Liabilities	N/A	N/A	N/A	N/A	N/A	N/A
Long-Term Debt	$16.0B+16.5%	$13.7B+15.5%	$11.9B-2.7%	$12.2B+10.8%	$11.0B	N/A
Total Equity	$14.3B+7.2%	$13.4B+19.2%	$11.2B+17.2%	$9.6B+7.7%	$8.9B+23.6%	$7.2B
Retained Earnings	$958.0M+12.4%	$852.0M+84.4%	$462.0M+23200.0%	-$2.0M	N/A	N/A

Metric	Q4'25	Q3'25	Q2'25	Q1'25	Q4'24	Q3'24	Q2'24	Q1'24
Total Assets	$31.2B+1.4%	$30.8B+6.0%	$29.1B+2.7%	$28.3B+0.2%	$28.3B+4.3%	$27.1B+3.9%	$26.1B+7.6%	$24.3B
Current Assets	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Cash & Equivalents	$638.0M-38.4%	$1.0B+131.8%	$447.0M-30.9%	$647.0M+1.9%	$635.0M+30.7%	$486.0M-19.1%	$601.0M+18.1%	$509.0M
Inventory	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Accounts Receivable	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Goodwill	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Total Liabilities	$16.9B+2.6%	$16.5B+9.6%	$15.0B+2.7%	$14.6B-1.7%	$14.9B+4.0%	$14.3B+4.4%	$13.7B+10.9%	$12.4B
Current Liabilities	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Long-Term Debt	$16.0B+2.5%	$15.6B+10.6%	$14.1B+1.3%	$13.9B+1.4%	$13.7B+1.7%	$13.5B+4.2%	$13.0B+10.8%	$11.7B
Total Equity	$14.3B0.0%	$14.3B+2.1%	$14.0B+2.6%	$13.7B+2.4%	$13.4B+4.6%	$12.8B+3.3%	$12.4B+4.1%	$11.9B
Retained Earnings	$958.0M+12.6%	$851.0M+7.9%	$789.0M+3.1%	$765.0M-10.2%	$852.0M+17.0%	$728.0M+13.4%	$642.0M+3.5%	$620.0M

ARCC Cash Flow Statement

Metric	FY25	FY24	FY23	FY22	FY21	FY20
Operating Cash Flow	-$1.7B+19.3%	-$2.1B-516.4%	$511.0M+137.6%	-$1.4B+44.7%	-$2.5B-324.0%	-$580.0M
Capital Expenditures	N/A	N/A	N/A	N/A	N/A	N/A
Free Cash Flow	N/A	N/A	N/A	N/A	N/A	N/A
Investing Cash Flow	N/A	N/A	N/A	N/A	N/A	N/A
Financing Cash Flow	$1.8B-26.5%	$2.4B+953.5%	-$284.0M-123.5%	$1.2B-53.8%	$2.6B+258.8%	$730.0M
Dividends Paid	$1.3B+11.0%	$1.1B+10.5%	$1.0B+13.0%	$912.0M+31.4%	$694.0M+2.2%	$679.0M
Share Buybacks	N/A	N/A	N/A	$0	$0-100.0%	$100.0M

Metric	Q4'25	Q3'25	Q2'25	Q1'25	Q4'24	Q3'24	Q2'24	Q1'24
Operating Cash Flow	-$427.0M+44.8%	-$773.0M-254.6%	-$218.0M+27.1%	-$299.0M-11.6%	-$268.0M+48.6%	-$521.0M+60.5%	-$1.3B-6176.2%	-$21.0M
Capital Expenditures	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Free Cash Flow	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Investing Cash Flow	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Financing Cash Flow	$97.0M-92.9%	$1.4B+873.6%	$140.0M-22.7%	$181.0M-64.1%	$504.0M+8.6%	$464.0M-67.4%	$1.4B+4082.4%	$34.0M
Dividends Paid	$319.0M-0.3%	$320.0M+0.9%	$317.0M+2.9%	$308.0M+1.7%	$303.0M+5.6%	$287.0M+2.9%	$279.0M+3.3%	$270.0M
Share Buybacks	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A

ARCC Financial Ratios

Metric	FY25	FY24	FY23	FY22	FY21	FY20
Gross Margin	N/A	N/A	N/A	N/A	N/A	N/A
Operating Margin	N/A	N/A	N/A	N/A	N/A	N/A
Net Margin	N/A	N/A	N/A	N/A	N/A	N/A
Return on Equity	9.1%-2.3pp	11.4%-2.2pp	13.6%+7.3pp	6.3%-11.4pp	17.7%+10.9pp	6.7%
Return on Assets	4.2%-1.2pp	5.4%-1.0pp	6.4%+3.7pp	2.7%-4.8pp	7.5%	N/A
Current Ratio	N/A	N/A	N/A	N/A	N/A	N/A
Debt-to-Equity	1.12+0.1	1.03-0.0	1.06-0.2	1.28+0.0	1.24	N/A
FCF Margin	N/A	N/A	N/A	N/A	N/A	N/A

Metric	Q4'25	Q3'25	Q2'25	Q1'25	Q4'24	Q3'24	Q2'24	Q1'24
Gross Margin	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Operating Margin	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Net Margin	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Return on Equity	N/A	2.8%+0.2pp	2.6%+0.8pp	1.8%	N/A	3.1%+0.5pp	2.6%-1.2pp	3.8%
Return on Assets	N/A	1.3%+0.1pp	1.2%+0.4pp	0.9%	N/A	1.5%+0.2pp	1.2%-0.6pp	1.8%
Current Ratio	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Debt-to-Equity	1.12+0.0	1.09+0.1	1.01-0.0	1.020.0	1.03-0.0	1.060.0	1.05+0.1	0.99
FCF Margin	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A

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Frequently Asked Questions

Is Ares Capital profitable?

Yes, Ares Capital (ARCC) reported a net income of $1.3B in fiscal year 2025.

What is Ares Capital's earnings per share (EPS)?

Ares Capital (ARCC) reported diluted earnings per share of $1.86 for fiscal year 2025. This represents a -23.8% change compared to the previous fiscal year. EPS represents the portion of a company's net income allocated to each outstanding share of common stock and is widely used to evaluate profitability on a per-share basis.

How much debt does Ares Capital have?

As of fiscal year 2025, Ares Capital (ARCC) had $638.0M in cash and equivalents against $16.0B in long-term debt.

Does Ares Capital pay dividends?

Yes, Ares Capital (ARCC) paid $1.92 per share in dividends during fiscal year 2025.

What is Ares Capital's return on equity (ROE)?

Ares Capital (ARCC) has a return on equity of 9.1% for fiscal year 2025, measuring how efficiently the company generates profit from shareholder equity.

What is Ares Capital's operating cash flow?

Ares Capital (ARCC) generated -$1.7B in operating cash flow during fiscal year 2025, representing cash generated from core business activities.

What are Ares Capital's total assets?

Ares Capital (ARCC) had $31.2B in total assets as of fiscal year 2025, including both current and long-term assets.

How many shares does Ares Capital have outstanding?

Ares Capital (ARCC) had 718M shares outstanding as of fiscal year 2025.

What is Ares Capital's debt-to-equity ratio?

Ares Capital (ARCC) had a debt-to-equity ratio of 1.12 as of fiscal year 2025, measuring the company's financial leverage by comparing total debt to shareholder equity.

What is Ares Capital's return on assets (ROA)?

Ares Capital (ARCC) had a return on assets of 4.2% for fiscal year 2025, measuring how efficiently the company uses its assets to generate profit.

What is Ares Capital's cash runway?

Based on fiscal year 2025 data, Ares Capital (ARCC) had $638.0M in cash against an annual operating cash burn of $1.7B. This gives an estimated cash runway of approximately 4 months at the current burn rate. Cash runway measures how long a company can continue operating before running out of cash, assuming no additional funding.

What is Ares Capital's Piotroski F-Score?

Ares Capital (ARCC) has a Piotroski F-Score of 1 out of 9, indicating weak financial health. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7–9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.

Are Ares Capital's earnings high quality?

Ares Capital (ARCC) has an earnings quality ratio of -1.32x, considered low quality (accrual-driven). This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.