ARES CAPITAL CORPORATION ANNOUNCES SEPTEMBER 30, 2026 FINANCIAL RESULTS AND DECLARES FOURTH QUARTER 2026 DIVIDEND OF $0.48 PER SHARE DIVIDEND DECLARATIONS

The quarterly dividend remains $0.48 per share, while third-quarter net investment income was $0.46 per share.

Rhea-AI Summary

Ares Capital (NASDAQ: ARCC) declared a fourth-quarter dividend of $0.48 per share, payable December 29, 2026, alongside lower third-quarter earnings. Stockholders of record on December 15 qualify for the payment. Third-quarter GAAP net income was $319 million, or $0.44 per share, versus $404 million, or $0.57, a year earlier. Net investment income fell to $328 million from $338 million.

At September 30, net asset value was $19.31 per share, down from $19.94 at December 31, 2025. Loans on non-accrual status rose to 2.4% of investments at amortized cost from 1.8%. Quarterly gross commitments fell to $2.109 billion from $3.924 billion a year earlier. Ares Capital issued $750 million of unsecured notes during the quarter. It ended September with $722 million in cash and approximately $6.9 billion of additional borrowing availability, subject to borrowing-base and other restrictions.

10 points · 0 major

MixediHow this balance works

How this balance works

Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.

It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.

Rhea-AI Sentiment measures something else, the tone of the wording.

How the balance worksHow Sentiment works

0 major · 13 points

How the balance works

Positive

• Moderate point$750 million unsecured note issuance added funding in September 2026. 5.6% of market cap
• Moderate point$1,000 million of maturing unsecured notes repaid in full in July 2026. 7.5% of market cap
• Moderate pointDebt refinancing spread fell from SOFR plus 1.86% to SOFR plus 1.51%, with maturity extended to July 25, 2038.
• Moderate pointNet unrealized gains of $43 million compared with $96 million of losses in third-quarter 2025.
• Moderate pointApproximately $1.6 billion of new third-quarter investment commitments were funded. 12% of market cap
• Moderate pointApproximately $1.1 billion in new commitments made October 1–22, 2026; approximately $855 million was funded. 8.2% of market cap

4 minor points

• Minor pointDebt/equity declined to 1.11x from 1.12x at December 31, 2025; net of available cash, to 1.06x from 1.08x.
• Minor pointIncome-producing securities yields rose to 10.6% at amortized cost and 10.8% at fair value, versus 10.3% each at year-end.
• Minor pointTotal investment yields rose to 9.5% at amortized cost and 9.6% at fair value, versus 9.4% and 9.3% at year-end.
• Minor pointApproximately $711 million funded previously existing revolving and delayed-draw loan commitments during the third quarter.

Negative

• Moderate pointThird-quarter GAAP net income fell to $319 million, or $0.44 per share, from $404 million, or $0.57, year over year.
• Moderate pointNet realized losses of $52 million compared with $162 million of gains in third-quarter 2025.
• Moderate pointNet asset value per share declined to $19.31 from $19.94 at December 31, 2025.
• Moderate pointNon-accrual loans rose to 2.4% at amortized cost and 1.4% at fair value, from 1.8% and 1.2% at year-end.
• Moderate pointThird-quarter gross commitments declined to $2.109 billion from $3.924 billion a year earlier.
• Moderate point$750 million of new unsecured notes bear 6.250% annual interest and mature September 15, 2033. 5.6% of market cap

7 minor points

• Minor pointThird-quarter net investment income fell to $328 million, or $0.46 per share, from $338 million, or $0.48, year over year.
• Minor pointThird-quarter Core EPS, a non-GAAP measure, declined to $0.46 from $0.50 a year earlier.
• Minor pointPortfolio fair value declined to $29.213 billion from $29.485 billion at December 31, 2025.
• Minor pointTotal assets declined to $30.596 billion from $31.235 billion at December 31, 2025.
• Minor pointStockholders' equity declined to $13.946 billion from $14.318 billion at December 31, 2025.
• Minor pointApproximately $2 million debt-extinguishment loss arose from the July refinancing.
• Minor pointApproximately $6.9 billion of additional borrowing availability remains subject to borrowing-base and other restrictions.

Key Figures

GAAP net income: $319 million Core EPS: $0.46 per share Net investment income: $328 million +4 more

GAAP net income

$319 million

Q3 2026; versus $404 million in Q3 2025

Core EPS

$0.46 per share

Q3 2026; versus $0.50 in Q3 2025

Net investment income

$328 million

Q3 2026; versus $338 million in Q3 2025

Fourth-quarter dividend

$0.48 per share

Declared for Q4 2026

Net asset value per share

$19.31

As of September 30, 2026; versus $19.94 at December 31, 2025

Loans on non-accrual status

2.4% at amortized cost; 1.4% at fair value

As of September 30, 2026; versus 1.8% and 1.2%, respectively, at December 31, 2025

Gross investment commitments

$2,109 million

Q3 2026; versus $3,924 million in Q3 2025

Previous Dividends,earnings Reports

2 past events · Latest: Jul 29

Same Type 2 events

1. Jul 29

   Q2 2026 results

   24h Move

   -1.7%

   Net investment income rose, but GAAP net income and Core EPS declined year over year.

2. Oct 28

   Q3 2025 results

   24h Move

   +1.2%

   Reported $404 million GAAP net income, $0.50 Core EPS and record net assets per share.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

non-gaap financial measure, non-accrual status, collateralized loan obligation, term sofr, +1 more

5 terms

non-gaap financial measure financial

"Core EPS is a non-GAAP financial measure."

A non-GAAP financial measure is a way companies present their financial results that excludes certain expenses or income to show how they believe their core business is performing. It matters because it can give a clearer picture of how the company is really doing, but it can also be used to make results look better than they actually are.

non-accrual status financial

"loans on non-accrual status represented 2.4% of the total investments"

A loan or credit account is placed in non-accrual status when the lender stops recording expected interest income because the borrower is not making scheduled payments or repayment is doubtful. Think of it like a landlord who stops counting unpaid rent as future income once a tenant stops paying; it signals rising credit problems and potential losses. For investors, non-accrual levels indicate loan quality and can foreshadow write-downs, lower earnings, and increased risk to a lender’s balance sheet.

collateralized loan obligation financial

"The ADL CLO 1 Debt Securitization is also known as a collateralized loan obligation"

A collateralized loan obligation (CLO) is a financial product that bundles many corporate loans into a single pool and then sells pieces of that pool to investors, with each piece offering different levels of risk and return. Think of it like a large box of varied loans sliced into portions so investors can choose higher safety with lower yield or higher reward with more risk; CLO performance matters because it concentrates credit and interest-rate risk and affects income stability for holders.

term sofr financial

"Class A-1-R Senior Floating Rate Notes, which bear interest at Term SOFR plus 1.46%"

Term SOFR is a benchmark interest rate that reflects the cost of borrowing money over a specific period, based on actual transactions in the financial markets. It is used by lenders and borrowers to set the interest rates on loans and financial contracts, helping to ensure rates are fair and transparent. For investors, understanding term SOFR helps gauge borrowing costs and the overall direction of interest rates in the economy.

interest rate swap financial

"Ares Capital entered into an interest rate swap for a total notional amount of $750 million"

An interest rate swap is a financial agreement where two parties exchange interest payments on a set amount of money over time. Typically, one side pays a fixed interest rate, while the other pays a variable rate that can change with market conditions. This helps investors manage or reduce their exposure to interest rate fluctuations, much like locking in a mortgage rate to avoid future cost increases.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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NEW YORK, Oct. 27, 2026 /PRNewswire/ -- Ares Capital Corporation ("Ares Capital") (NASDAQ: ARCC) announced that its Board of Directors has declared a fourth quarter 2026 dividend of $0.48 per share. The fourth quarter 2026 dividend is payable on December 29, 2026 to stockholders of record as of December 15, 2026.

SEPTEMBER 30, 2026 FINANCIAL RESULTS

Ares Capital also announced financial results for its third quarter ended September 30, 2026.

OPERATING RESULTS

		Q3-26(3)				Q3-25(3)
(dollar amounts in millions, except per share data)		Total Amount		Per Share		Total Amount		Per Share
GAAP net income per share(1)				$   0.44				$   0.57
Core EPS(2)				$   0.46				$   0.50
Dividends declared and payable				$   0.48				$   0.48
Net investment income(1)		$   328		$   0.46		$   338		$   0.48
Net realized gains (losses)(1)		$    (52)		$ (0.07)		$   162		$   0.23
Net unrealized gains (losses)(1)		$     43		$   0.05		$    (96)		$ (0.14)
GAAP net income(1)		$   319		$   0.44		$   404		$   0.57

 

		As of
(dollar amounts in millions, except per share data)		September 30, 2026		December 31, 2025
Portfolio investments at fair value		$           29,213		$          29,485
Total assets		$           30,596		$          31,235
Stockholders' equity		$           13,946		$          14,318
Net asset value per share		$             19.31		$            19.94
Debt/equity ratio		1.11x		1.12x
Debt/equity ratio, net of available cash(4)		1.06x		1.08x

	____________________________________________
(1)	All per share amounts and weighted average shares outstanding are basic and diluted. The basic and diluted weighted average shares outstanding for the three months ended September 30, 2026 and 2025 were approximately 720 million and 709 million, respectively.
(2)	Core EPS is a non-GAAP financial measure. Core EPS is the net increase (decrease) in stockholders' equity resulting from operations, and excludes net realized and unrealized gains and losses, any capital gains incentive fee attributable to such net realized and unrealized gains and losses and any income taxes (including excise taxes) related to such net realized gains and losses, divided by the basic weighted average shares outstanding for the relevant period. GAAP net income (loss) per share is the most directly comparable GAAP financial measure. Ares Capital believes that Core EPS provides useful information to investors regarding financial performance because it is one method Ares Capital uses to measure its financial condition and results of operations. The presentation of this additional information is not meant to be considered in isolation or as a substitute for financial results prepared in accordance with GAAP. Reconciliations of GAAP net income, the most directly comparable GAAP financial measure, to Core EPS are set forth in Schedule 1 hereto.
(3)	Net income can vary substantially from period to period due to various factors, including the level of new investment commitments, the recognition of realized gains and losses and unrealized appreciation and depreciation. As a result, quarterly comparisons of net income may not be meaningful.
(4)	Computed as total principal debt outstanding less available cash divided by stockholders' equity. Available cash excludes restricted cash as well as cash held for uses specifically designated for paying interest and expenses on certain debt.

"We reported solid third quarter results supported by continued healthy portfolio performance, including stable credit quality and historically low levels of non-accruing loans and problem assets," said Kort Schnabel, Chief Executive Officer of Ares Capital. "While a slower transaction environment led to a more measured pace of originations during the quarter, our investment backlog is up meaningfully from last quarter, and we are seeing stronger transaction activity entering the fourth quarter. We believe our market leadership, scale, diversified portfolio and strong financial position, along with the expected benefit from higher yields and our recently announced acquisition of MidCap Financial Investment Corporation, reinforce our strong underlying earnings power and our confidence in the current level of our regular quarterly dividend."

"During the third quarter, we further strengthened our funding profile while maintaining significant financial flexibility," said Scott Lem, Chief Financial Officer of Ares Capital. "We increased our debt capacity through a $750 million issuance of seven-year unsecured notes, while also reducing our funding costs through the reset of our debt securitization and modest utilization of our commercial paper program. With approximately $7 billion of available liquidity, prudent leverage and limited near-term maturities, our balance sheet remains well positioned to support our investment activity and future growth."

PORTFOLIO AND INVESTMENT ACTIVITY

(dollar amounts in millions)	Q3-26		Q3-25
Portfolio Activity During the Period:
Gross commitments	$          2,109		$           3,924
Exits of commitments	$          2,473		$           2,625
Portfolio Information:
	As of
	September 30, 2026		December 31, 2025
Portfolio investments at fair value	$         29,213		$          29,485
Fair value of accruing debt and other income producing securities(5)	$         26,050		$          26,510
Number of portfolio company investments	636		603
Percentage of floating rate securities at fair value(6)	70 %		72 %
Weighted average yields on debt and other income producing securities(7):
At amortized cost	10.6 %		10.3 %
At fair value	10.8 %		10.3 %
Weighted average yields on total investments(8):
At amortized cost	9.5 %		9.4 %
At fair value	9.6 %		9.3 %
Asset class percentage at fair value:
First lien senior secured loans	58 %		61 %
Second lien senior secured loans	4 %		5 %
Subordinated certificates of the SDLP	4 %		4 %
Senior subordinated loans	7 %		5 %
Preferred equity	8 %		9 %
Ivy Hill Asset Management, L.P.(9)	10 %		8 %
Other equity	9 %		8 %

	____________________________________________
(5)	Includes the fair value of Ares Capital's equity investment in Ivy Hill Asset Management, L.P. ("IHAM").
(6)	Includes Ares Capital's investment in the subordinated certificates of the Senior Direct Lending Program (the "SDLP"), through which Ares Capital co-invests with Varagon Capital Partners, and its clients, to fund first lien senior secured loans.
(7)	Weighted average yields on debt and other income producing securities are computed as (a) the annual stated interest rate or yield earned plus the net annual amortization of original issue discount and market discount or premium earned on accruing debt and other income producing securities (including the annualized amount of the regular dividend received by Ares Capital related to its equity investment in IHAM during the most recent quarter end), divided by (b) the total accruing debt and other income producing securities at amortized cost or at fair value (including the amortized cost or fair value of Ares Capital's equity investment in IHAM as applicable), as applicable.
(8)	Weighted average yields on total investments are computed as (a) the annual stated interest rate or yield earned plus the net annual amortization of original issue discount and market discount or premium earned on accruing debt and other income producing securities (including the annualized amount of the regular dividend received by Ares Capital related to its equity investment in IHAM during the most recent quarter end), divided by (b) total investments at amortized cost or at fair value, as applicable.
(9)	Includes Ares Capital's subordinated loan and equity investments in IHAM, as applicable.

In the third quarter of 2026, Ares Capital made new investment commitments of approximately $2.1 billion, of which approximately $1.6 billion were funded. New investment commitments were made to 25 new portfolio companies and 28 existing portfolio companies. As of September 30, 2026, 271 separate private equity sponsors were represented in Ares Capital's portfolio. Of the approximately $2.1 billion in new commitments made during the third quarter of 2026, 71% were in first lien senior secured loans, 2% were in second lien senior secured loans, 7% were in senior subordinated loans, 18% were in Ares Capital's investment in IHAM, 1% were in preferred equity and 1% were in other equity. Of the approximately $2.1 billion in new commitments, 85% were in floating rate debt securities, of which 74% contained interest rate floors. The weighted average yield of debt and other income producing securities funded during the period at amortized cost was 10.4% and the weighted average yield on total investments funded during the period at amortized cost was 10.2%. Ares Capital may seek to sell all or a portion of these new investment commitments, although there can be no assurance that Ares Capital will be able to do so. Also in the third quarter of 2026, Ares Capital funded approximately $711 million related to previously existing unfunded revolving and delayed draw loan commitments.

In the third quarter of 2026, Ares Capital exited approximately $2.5 billion of investment commitments, including approximately $1.2 billion of loans sold to IHAM or certain vehicles managed by IHAM. Of the approximately $2.5 billion of exited investment commitments, 83% were first lien senior secured loans, 10% were second lien senior secured loans, 6% were Ares Capital's subordinated loan to IHAM and 1% were other equity. Of the approximately $2.5 billion of exited investment commitments, 95% were floating rate, 1% were fixed rate, 1% were non-income producing and 3% were on non-accrual status.

As of September 30, 2026 and December 31, 2025, the weighted average grade of the portfolio at fair value was 3.1 and 3.1, respectively, and loans on non-accrual status represented 2.4% of the total investments at amortized cost (or 1.4% at fair value) and 1.8% at amortized cost (or 1.2% at fair value), respectively. For more information on Ares Capital's portfolio investment grades and loans on non-accrual status, see "Part I—Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations—Portfolio and Investment Activity" in Ares Capital's Quarterly Report on Form 10-Q for the quarter ended September 30, 2026, filed with the Securities and Exchange Commission ("SEC") on October 27, 2026.

LIQUIDITY AND CAPITAL RESOURCES

As of September 30, 2026, Ares Capital had $722 million in cash and cash equivalents and $15.5 billion in total aggregate principal amount of debt outstanding ($15.1 billion at carrying value). Subject to borrowing base and other restrictions, Ares Capital had approximately $6.9 billion available for additional borrowings under its existing credit facilities as of September 30, 2026.

In July 2026, Ares Capital's wholly-owned, consolidated subsidiary, Ares Direct Lending CLO 1 LLC ("ADL CLO 1"), completed a refinancing of its approximately $702 million term debt securitization with an approximately $709 million term debt securitization (as refinanced, the "ADL CLO 1 Debt Securitization"). The ADL CLO 1 Debt Securitization is also known as a collateralized loan obligation and is an on-balance-sheet financing incurred by Ares Capital.

The notes offered and term loans incurred in connection with the ADL CLO 1 Debt Securitization that mature on July 25, 2038 (collectively, the "July 2038 CLO Secured Debt") were issued by ADL CLO 1 pursuant to the amended and restated indenture and security agreement governing the July 2038 CLO Notes (as defined below) and the Class A-1-LR credit agreement, as applicable, and include (i) $267.0 million of Class A-1-R Senior Floating Rate Notes, which bear interest at Term SOFR plus 1.46%; (ii) $24.5 million of Class A-2-R Senior Floating Rate Notes, which bear interest at Term SOFR plus 1.70%; (iii) $45.5 million of Class B-R Senior Floating Rate Notes, which bear interest at Term SOFR plus 1.90% (collectively, the "July 2038 CLO Notes") and (iv) $139.0 million of Class A-1-LR term loans, which bear interest at Term SOFR plus 1.46%. In addition, ADL CLO issued an additional $7.1 million of subordinated notes (in addition to the $225.6 million of existing subordinated notes previously issued by ADL CLO 1), which do not bear interest. Ares Capital retained all of the subordinated notes, which are unsecured obligations of ADL CLO 1 and are eliminated in consolidation. The proceeds from the ADL CLO 1 Debt Securitization were used in part to redeem all outstanding $406 million of Class A Senior Floating Rate Notes and $70 million of Class B Senior Floating Rate Notes issued by ADL CLO 1 in May 2024. In connection with the refinancing, Ares Capital realized a loss on extinguishment of debt of approximately $2 million. The refinancing effectively adjusted the interest rate charged on the July 2038 CLO Secured Debt from SOFR plus a blended weighted average spread of 1.86% to SOFR plus a blended weighted average spread of 1.51% and extended the stated maturity date from April 25, 2036 to July 25, 2038.

In July 2026, Ares Capital repaid in full the $1,000 million aggregate principal amount outstanding of its unsecured notes upon their maturity, which bore interest at a rate of 2.150% per annum.

In September 2026, Ares Capital issued $750 million in aggregate principal amount of unsecured notes, which bear interest at a rate of 6.250% per annum and mature on September 15, 2033 (the "September 2033 Notes"). The September 2033 Notes pay interest semi-annually and all principal is due upon maturity. The September 2033 Notes may be redeemed in whole or in part at any time at Ares Capital's option at a redemption price equal to par plus a "make whole" premium, if applicable, as determined pursuant to the indenture governing the September 2033 Notes, and any accrued and unpaid interest. The September 2033 Notes were issued at a discount to the principal amount. In connection with the September 2033 Notes, Ares Capital entered into an interest rate swap for a total notional amount of $750 million that matures on September 15, 2033. Under the interest rate swap, Ares Capital will receive a fixed interest rate of 6.250% and pay a floating interest rate of three-month SOFR plus 1.8525%.

THIRD QUARTER 2026 DIVIDENDS PAID

On July 29, 2026, Ares Capital announced that its Board of Directors declared a third quarter 2026 dividend of $0.48 per share for a total of approximately $346 million. The third quarter 2026 dividend was paid on September 30, 2026 to stockholders of record as of September 15, 2026.

RECENT DEVELOPMENTS

From October 1, 2026 through October 22, 2026, Ares Capital made new investment commitments of approximately $1.1 billion, of which approximately $855 million were funded. Of the approximately $1.1 billion in new investment commitments, 90% were in first lien senior secured loans, 9% were in Ares Capital's subordinated loan to IHAM and 1% were in preferred equity. Of the approximately $1.1 billion in new investment commitments, 88% were floating rate, 11% were fixed rate and 1% were non-income producing. The weighted average yield of debt and other income producing securities funded during the period at amortized cost was 10.0% and the weighted average yield on total investments funded during the period at amortized cost was 9.9%. Ares Capital may seek to sell all or a portion of these new investment commitments, although there can be no assurance that it will be able to do so.

From October 1, 2026 through October 22, 2026, Ares Capital exited approximately $727 million of investment commitments, including $497 million of loans sold to IHAM or certain vehicles managed by IHAM. Of the approximately $727 million of exited investment commitments, 93% were first lien senior secured loans, 1% were second lien senior secured loans and 6% were senior subordinated loans. Of the approximately $727 million of exited investment commitments, 94% were floating rate, 5% were fixed rate and 1% were on non-accrual status. The weighted average yield of debt and other income producing securities exited or repaid during the period at amortized cost was 9.2% and the weighted average yield on total investments exited or repaid during the period at amortized cost was 9.1%. Of the approximately $727 million of investment commitments exited from October 1, 2026 through October 22, 2026, Ares Capital recognized total net realized gains of approximately $2 million, including approximately $1 million of net realized losses recognized from the sale of loans to IHAM or certain vehicles managed by IHAM.

In addition, as of October 22, 2026, Ares Capital had an investment backlog of approximately $2.5 billion. Investment backlog includes transactions approved by Ares Capital's investment adviser's U.S. direct lending investment committee and/or for which a formal mandate, letter of intent or a signed commitment have been issued, and therefore Ares Capital believes are likely to close. The consummation of any of the investments in this backlog depends upon, among other things, one or more of the following: Ares Capital's acceptance of the terms and structure of such investment and the execution and delivery of satisfactory transaction documentation. In addition, Ares Capital may sell all or a portion of these investments and certain of these investments may result in the repayment of existing investments. Ares Capital cannot assure you that it will make any of these investments or that Ares Capital will sell all or any portion of these investments.

On October 26, 2026, Ares Capital entered into a definitive agreement to acquire MidCap Financial Investment Corporation in a cash and stock transaction (the "MFIC Transaction"). See Ares Capital's Current Report on Form 8-K, filed with the SEC on October 27, 2026 for more information on the MFIC Transaction.

WEBCAST / CONFERENCE CALL

Ares Capital will host a webcast/conference call on Tuesday, October 27, 2026 at 12:00 p.m. (Eastern Time) to discuss its quarter ended September 30, 2026 financial results. PLEASE VISIT ARES CAPITAL'S WEBCAST LINK LOCATED ON THE HOME PAGE OF THE INVESTOR RESOURCES SECTION OF ARES CAPITAL'S WEBSITE FOR A SLIDE PRESENTATION THAT COMPLEMENTS THE EARNINGS CONFERENCE CALL.

All interested parties are invited to participate via telephone or the live webcast, which will be hosted on a webcast link located on the Home page of the Investor Resources section of Ares Capital's website at www.arescapitalcorp.com. Please visit the website to test your connection before the webcast. Domestic callers can access the conference call toll free by dialing +1 (833) 419-0865. International callers can access the conference call by dialing +1 (785) 838-9333. All callers are asked to dial in 10-15 minutes prior to the call so that name and company information can be collected and to reference the conference ID ARCCQ326. For interested parties, an archived replay of the call will be available approximately one hour after the end of the call through November 27, 2026 at 5:00 p.m. (Eastern Time) to domestic callers by dialing toll free +1 (800) 839-1247 and to international callers by dialing +1 (402) 220-0470. An archived replay will also be available through November 27, 2026 on a webcast link located on the Home page of the Investor Resources section of Ares Capital's website.

ABOUT ARES CAPITAL CORPORATION

Founded in 2004, Ares Capital is a leading specialty finance company focused on providing direct loans and other investments in private middle market companies in the United States. Ares Capital's objective is to source and invest in high-quality borrowers that need capital to achieve their business goals, which oftentimes can lead to economic growth and employment. Ares Capital believes its loans and other investments in these companies can help generate attractive levels of current income and potential capital appreciation for investors. Ares Capital, through its investment manager, utilizes its extensive, direct origination capabilities and incumbent borrower relationships to source and underwrite predominantly senior secured loans but also subordinated debt and equity investments. Ares Capital has elected to be regulated as a business development company ("BDC") and was the largest publicly traded BDC by market capitalization as of September 30, 2026. Ares Capital is externally managed by a subsidiary of Ares Management Corporation (NYSE: ARES), a publicly traded, leading global alternative investment manager. For more information about Ares Capital, visit www.arescapitalcorp.com.

FORWARD-LOOKING STATEMENTS

Statements included herein or on the webcast/conference call may constitute "forward-looking statements," which relate to future events or Ares Capital's future performance or financial condition. These statements are not guarantees of future performance, condition or results and involve a number of risks and uncertainties. Actual results and conditions may differ materially from those in the forward-looking statements as a result of a number of factors, including those described from time to time in Ares Capital's filings with the SEC. Ares Capital undertakes no duty to update any forward-looking statements made herein or on the webcast/conference call.

INVESTOR RELATIONS CONTACTS

Ares Capital Corporation
John Stilmar or Carl Drake
(888) 818-5298
irarcc@aresmgmt.com

ARES CAPITAL CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEET (in millions, except per share data)
	As of
	September 30, 2026		December 31, 2025
	(unaudited)
ASSETS
Total investments at fair value (amortized cost of $29,478 and $29,250, respectively)	$          29,213		$          29,485
Cash and cash equivalents	722		638
Restricted cash	220		286
Interest receivable	278		288
Receivable for open trades	9		317
Derivative assets	18		83
Other assets	136		138
Total assets	$          30,596		$          31,235
LIABILITIES
Debt	$          15,124		$          15,991
Base management fee payable	109		111
Income based fee payable	166		89
Capital gains incentive fee payable	—		82
Interest and facility fees payable	170		193
Payable to participants	60		131
Interest rate swap collateral payable	—		155
Derivative liabilities	224		19
Payable for open trades	574		5
Accounts payable and other liabilities	149		113
Deferred tax liabilities	74		28
Total liabilities	16,650		16,917
STOCKHOLDERS' EQUITY
Common stock, par value $0.001 per share, 1,000 common shares authorized; 722 and 718 common shares issued and outstanding, respectively	1		1
Capital in excess of par value	13,441		13,359
Accumulated undistributed earnings	504		958
Total stockholders' equity	13,946		14,318
Total liabilities and stockholders' equity	$          30,596		$          31,235
NET ASSET VALUE PER SHARE	$           19.31		$           19.94

 

ARES CAPITAL CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENT OF OPERATIONS (in millions, except per share data) (unaudited)
	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2026		2025		2026		2025
INVESTMENT INCOME
Interest income from investments	$              558		$              561		$           1,665		$           1,620
Capital structuring service fees	23		48		102		128
Dividend income	160		141		468		442
Other income	22		32		59		69
Total investment income	763		782		2,294		2,259
EXPENSES
Interest and credit facility fees	221		209		648		583
Base management fee	109		108		330		314
Income based fee	82		88		250		259
Capital gains incentive fee	—		13		(82)		(8)
Administrative fees	4		4		12		12
Other general and administrative	13		11		31		28
Total expenses	429		433		1,189		1,188
NET INVESTMENT INCOME BEFORE INCOME TAXES	334		349		1,105		1,071
Income tax expense, including excise taxes	6		11		20		26
NET INVESTMENT INCOME	328		338		1,085		1,045
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS, FOREIGN CURRENCY AND OTHER TRANSACTIONS:
Net realized gains (losses) on investments	(61)		247		46		272
Net realized gains (losses) on foreign currency and other transactions	11		(13)		5		(21)
Net income tax expense on net realized gains	—		(72)		—		(116)
Net realized gains (losses)	(50)		162		51		135
Net unrealized gains (losses) on investments	54		(182)		(542)		(219)
Net unrealized gains (losses) on foreign currency and other transactions	(8)		30		30		(24)
Net change in deferred tax liabilities	(3)		56		(40)		69
Net unrealized gains (losses)	43		(96)		(552)		(174)
Net realized and unrealized gains (losses) on investments, foreign currency and other transactions	(7)		66		(501)		(39)
Realized loss on extinguishment of debt	(2)		—		(2)		—
NET INCREASE IN STOCKHOLDERS' EQUITY RESULTING FROM OPERATIONS	$              319		$              404		$              582		$           1,006
Basic and diluted net income per common share	$             0.44		$             0.57		$             0.81		$             1.45
Basic and diluted weighted average shares of common stock outstanding	720		709		719		694

SCHEDULE 1

Reconciliations of GAAP net income per share to Core EPS 

Reconciliations of GAAP net income per share, the most directly comparable GAAP financial measure, to Core EPS for the three and nine months ended September 30, 2026 and 2025 are provided below.

	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2026		2025		2026		2025
	(unaudited)		(unaudited)		(unaudited)		(unaudited)
GAAP net income per share(1)	$             0.44		$             0.57		$            0.81		$            1.45
Adjustments:
Net realized and unrealized (gains) losses(1)	0.02		(0.09)		0.70		0.06
Capital gains incentive fee attributable to net realized and unrealized gains and losses(1)	—		0.02		(0.12)		(0.01)
Other income tax expense (including excise taxes) related to net realized gains and losses(1)	—		—		—		—
Core EPS(2)	$             0.46		$             0.50		$            1.39		$            1.50

	____________________________________________
(1)	All per share amounts and weighted average shares outstanding are basic and diluted. The basic and diluted weighted average shares outstanding for the three and nine months ended September 30, 2026 were approximately 720 million and 719 million, respectively, and approximately 709 million and 694 million, respectively, for the comparable periods in 2025.
(2)	Core EPS is a non-GAAP financial measure. Core EPS is the net increase (decrease) in stockholders' equity resulting from operations, and excludes net realized and unrealized gains and losses, any capital gains incentive fee attributable to such net realized and unrealized gains and losses and any income taxes (including excise taxes) related to such net realized gains and losses, divided by the basic weighted average shares outstanding for the relevant period. GAAP net income (loss) per share is the most directly comparable GAAP financial measure. Ares Capital believes that Core EPS provides useful information to investors regarding financial performance because it is one method Ares Capital uses to measure its financial condition and results of operations. The presentation of this additional information is not meant to be considered in isolation or as a substitute for financial results prepared in accordance with GAAP.

 

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SOURCE Ares Capital Corporation

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

When will Ares Capital pay its fourth-quarter 2026 dividend?

Ares Capital will pay $0.48 per share on December 29, 2026, to stockholders of record as of December 15, 2026. The amount matches its third-quarter 2026 dividend.

What were Ares Capital's third-quarter 2026 earnings?

Ares Capital reported GAAP net income of $319 million, or $0.44 per share, for the quarter ended September 30, 2026. That compares with $404 million, or $0.57 per share, a year earlier. Net investment income was $328 million, or $0.46 per share.

How does Ares Capital's interest rate swap affect its September 2033 notes?

Under the swap, Ares Capital receives 6.250% fixed interest and pays a floating rate of three-month SOFR plus 1.8525%. The swap has a $750 million notional amount and matures September 15, 2033, matching the notes' principal amount and maturity.

How did Ares Capital's July 2026 debt securitization refinancing change its borrowing terms?

The refinancing reduced the secured debt's blended weighted average spread from SOFR plus 1.86% to SOFR plus 1.51% and extended its stated maturity from April 25, 2036, to July 25, 2038. It replaced an approximately $702 million securitization with an approximately $709 million securitization and resulted in an approximately $2 million debt-extinguishment loss.