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Ares Capital (NASDAQ: ARCC) Q1 2026 earnings and $0.48 dividend

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(Moderate)
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(Neutral)
Form Type
8-K

Rhea-AI Filing Summary

Ares Capital Corporation reported first quarter 2026 results and declared a second quarter 2026 dividend of $0.48 per share, payable June 30, 2026 to stockholders of record on June 15, 2026.

For the quarter ended March 31, 2026, GAAP net income was $92 million, or $0.13 per share, compared with $241 million, or $0.36 per share, a year earlier, mainly reflecting higher net unrealized losses of $412 million. Net investment income increased to $398 million, or $0.55 per share, from $365 million, or $0.54 per share, while Core EPS was $0.47 versus $0.50.

Portfolio investments at fair value were $29.5 billion as of March 31, 2026, and net asset value per share was $19.59, slightly below $19.94 as of December 31, 2025. The debt/equity ratio was 1.13x, and loans on non-accrual status remained low at 2.1% of total investments at amortized cost and 1.2% at fair value.

Ares Capital highlighted approximately $6.0 billion of available liquidity, including $505 million of cash and $5.5 billion of capacity under credit facilities. During the quarter it issued $750 million of unsecured notes due 2031 at 5.250%, repaid $1,150 million of maturing 3.875% notes, and expanded its SMBC revolving funding facility from $1.1 billion to $1.6 billion while modestly reducing spreads.

Positive

  • None.

Negative

  • None.

Insights

Core earnings and credit metrics remain solid, while unrealized marks and modest NAV decline temper headline results.

Ares Capital grew net investment income to $398 million and maintained Core EPS of $0.47, covering the regular $0.48 quarterly dividend. Portfolio yields stayed high, with weighted average yields on debt and other income producing securities around 10.3–10.4%, supporting income generation in a higher-rate environment.

The main drag was $412 million of net unrealized losses, which reduced GAAP net income per share to $0.13 and nudged net asset value per share down to $19.59 from $19.94 as of December 31, 2025. However, non-accrual levels remained low at 2.1% of total investments at amortized cost and 1.2% at fair value, indicating portfolio credit quality remains relatively stable.

On the liability side, the company refinanced debt by issuing $750 million of 5.250% notes due 2031 and repaying $1,150 million of 3.875% notes, while expanding the SMBC funding facility from $1.1 billion to $1.6 billion and slightly tightening spreads. With roughly $6.0 billion of available liquidity and a debt/equity ratio of 1.13x, Ares Capital reports ample capacity to fund its $1.8 billion investment backlog and support existing borrowers.

Item 2.02 Results of Operations and Financial Condition Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 8.01 Other Events Other
Voluntary disclosure of events the company deems important to shareholders but not covered by other items.
Item 9.01 Financial Statements and Exhibits Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Q1 2026 GAAP net income $92 million Quarter ended March 31, 2026
Q1 2026 GAAP EPS $0.13 per share Quarter ended March 31, 2026
Q1 2026 net investment income $398 million ($0.55 per share) Quarter ended March 31, 2026
Core EPS $0.47 Quarter ended March 31, 2026
Quarterly dividend $0.48 per share Second quarter 2026 declaration
Net asset value per share $19.59 As of March 31, 2026
Portfolio investments at fair value $29.5 billion As of March 31, 2026
Available liquidity Approximately $6.0 billion Management commentary for March 31, 2026
Core EPS financial
"Core EPS is a non-GAAP financial measure."
Core EPS is a company’s reported earnings per share after removing one-time or unusual items so investors see the business’s regular profit per share; think of it as the household’s monthly income after ignoring a one-off inheritance or emergency expense. It matters because it highlights the company’s underlying, repeatable profitability and makes it easier to compare performance across periods and with other firms, though the adjustments can vary by company.
non-accrual status financial
"loans on non-accrual status represented 2.1% 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.
Secured Overnight Financing Rate financial
"pay a floating interest rate of one-month Secured Overnight Financing Rate"
A secured overnight financing rate (SOFR) is a daily benchmark interest rate that reflects the cost of borrowing cash overnight using U.S. Treasury securities as collateral. Think of it as the market price to “rent” cash for a day with a very safe pledge, similar to paying a short-term rental fee for money backed by government bonds. Investors track SOFR because it underpins pricing for loans, bonds and derivatives, so movements change borrowing costs, interest income and the valuation of interest-rate–linked positions.
accordion feature financial
"increased the “accordion” feature that allows ACJB, under certain circumstances,"
An accordion feature is a clause in a loan or financing agreement that allows a company to expand the size of a credit line or the amount of securities available under the same contract without drafting a completely new deal. Like a suitcase that can be extended to hold more items, it gives a company quick flexibility to raise extra money, which can help fund growth but may increase debt or dilute existing shareholders—so investors watch it for changes in risk and ownership.
business development company financial
"Ares Capital has elected to be regulated as a business development company (“BDC”)"
A business development company is a publicly traded investment vehicle that lends to and buys stakes in smaller or privately held companies, acting like a combination of a lender, investor, and business partner. It matters to investors because BDCs offer the potential for higher regular income through dividends and diversified exposure to growing businesses, but they can also carry greater credit and liquidity risk than typical stocks or bonds—think higher-yielding but riskier income instruments.
interest rate swap financial
"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.
GAAP net income $92 million
GAAP EPS $0.13 per share
Net investment income $398 million ($0.55 per share)
Core EPS $0.47
Net asset value per share $19.59
Dividend per share $0.48
Understanding 8-K Material Events →
0001287750FALSE00012877502026-04-282026-04-28

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549 
_____________________________________________________________________  
FORM 8-K
 
CURRENT REPORT
 
Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934
 
Date of report (Date of earliest event reported) April 28, 2026
 
ARES CAPITAL CORPORATION
(Exact Name of Registrant as Specified in Charter)
 
Maryland 814-00663 33-1089684
(State or Other Jurisdiction
of Incorporation)		 (Commission
File Number)		 (IRS Employer
Identification No.)
 
245 Park Avenue, 44th Floor, New York, NY
 10167
(Address of Principal Executive Offices) (Zip Code)
 
Registrant’s telephone number, including area code (212) 750-7300
 
(Former Name or Former Address, if Changed Since Last Report)
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
 
o  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
o  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
o  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
o  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading symbolName of each exchange on which registered
Common stock, $0.001 par valueARCCNASDAQ Global Select Market

Indicate by check mark whether the registrant is an emerging growth company as defined in as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company o

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o



Item 2.02 Results of Operations and Financial Condition.

On April 28, 2026, the registrant issued a press release, included herewith as Exhibit 99.1, announcing its financial results for the quarter ended March 31, 2026.

The information disclosed under this Item 2.02, including Exhibit 99.1 hereto, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 and shall not be deemed incorporated by reference into any filing made under the Securities Act of 1933, except as expressly set forth by specific reference in such filing.

Item 8.01  Other Events.

On April 28, 2026, the registrant announced the declaration of a second quarter 2026 dividend of $0.48 per share, payable on June 30, 2026 to stockholders of record as of June 15, 2026.

Item 9.01  Financial Statements and Exhibits.
 
(d)                               Exhibits:
 
Exhibit Number Description
   
99.1
 Press Release, dated April 28, 2026
104Cover Page Interactive Data File (embedded within the Inline XBRL document)





SIGNATURE
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
  ARES CAPITAL CORPORATION
   
Date: April 28, 2026  
   
 By:/s/ SCOTT C. LEM
 Name:Scott C. Lem
 Title:Chief Financial Officer and Treasurer






Exhibit 99.1
ares_logoxrgbxnavybluea.jpg
ARES CAPITAL CORPORATION ANNOUNCES MARCH 31, 2026 FINANCIAL RESULTS
AND DECLARES SECOND QUARTER 2026 DIVIDEND OF $0.48 PER SHARE
 
DIVIDEND DECLARATIONS
 
New York, NY — April 28, 2026 — Ares Capital Corporation (“Ares Capital”) (NASDAQ: ARCC) announced that its Board of Directors has declared a second quarter 2026 dividend of $0.48 per share. The second quarter 2026 dividend is payable on June 30, 2026 to stockholders of record as of June 15, 2026.
 
MARCH 31, 2026 FINANCIAL RESULTS
 
Ares Capital also announced financial results for its first quarter ended March 31, 2026.
 
OPERATING RESULTS

 
Q1-26(3)
Q1-25(3)
(dollar amounts in millions, except per share data)Total AmountPer ShareTotal AmountPer Share
GAAP net income per share(1)$0.13 $0.36 
Core EPS(2)$0.47 $0.50 
Dividends declared and payable $0.48 $0.48 
Net investment income(1)$398 $0.55 $365 $0.54 
Net realized gains (losses)(1)$106 $0.15 $(61)$(0.09)
Net unrealized losses(1)$(412)$(0.57)$(63)$(0.09)
GAAP net income(1)$92 $0.13 $241 $0.36 

 As of
(dollar amounts in millions, except per share data)March 31, 2026December 31, 2025
Portfolio investments at fair value $29,499 $29,485 
Total assets$30,679 $31,235 
Stockholders’ equity$14,065 $14,318 
Net asset value per share$19.59 $19.94 
Debt/equity ratio1.13x1.12x
Debt/equity ratio, net of available cash(4)1.10x1.08x
____________________________________________ 

(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 March 31, 2026 and 2025 were approximately 718 million and 676 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.
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(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 are off to a strong start to 2026 with solid core earnings, continued healthy portfolio performance and borrower fundamentals, and low levels of non-accruing investments,” said Kort Schnabel, Chief Executive Officer of Ares Capital. “In an environment characterized by heightened volatility and reduced transaction activity, we are seeing improving lending conditions, including enhanced spreads and fees, lower leverage and more attractive terms and documentation. With our scale, diversified portfolio and strong financial position, we believe we are well positioned to capitalize on new investment opportunities and to continue to generate attractive long-term shareholder returns.”

“During the first quarter, we maintained a strong and flexible balance sheet while further enhancing our capital structure, including raising over $1.25 billion of new debt financing at attractive terms,” said Scott Lem, Chief Financial Officer of Ares Capital. “With approximately $6.0 billion of available liquidity, modest leverage and a well-laddered liability profile with limited near-term maturities, we believe we are well positioned to continue supporting our portfolio companies and opportunistically investing in new companies. Underpinned by our significant level of taxable spillover income and our consistently strong performance, our stable quarterly dividend reflects our view of the earnings power of our company in the current market environment.”

PORTFOLIO AND INVESTMENT ACTIVITY
(dollar amounts in millions)Q1-26Q1-25
Portfolio Activity During the Period:
Gross commitments$3,246 $3,453 
Exits of commitments$3,176 $2,857 
Portfolio Information:
As of
March 31, 2026December 31, 2025
Portfolio investments at fair value$29,499 $29,485 
Fair value of accruing debt and other income producing securities(5)$26,500 $26,510 
Number of portfolio company investments 607 603 
Percentage of floating rate securities at fair value(6)71 %72 %
Weighted average yields on debt and other income producing securities(7):
At amortized cost10.3 %10.3 %
At fair value10.4 %10.3 %
Weighted average yields on total investments(8):
At amortized cost9.3 %9.4 %
At fair value9.3 %9.3 %
Asset class percentage at fair value:
First lien senior secured loans60 %61 %
Second lien senior secured loans5 %5 %
Subordinated certificates of the SDLP4 %4 %
Senior subordinated loans6 %5 %
Preferred equity8 %9 %
Ivy Hill Asset Management, L.P.(9)9 %8 %
Other equity8 %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 SDLP (as defined below).

(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
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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 first quarter of 2026, Ares Capital made new investment commitments of approximately $3.2 billion, of which approximately $2.5 billion were funded. New investment commitments included 18 new portfolio companies and 43 existing portfolio companies. As of March 31, 2026, 264 separate private equity sponsors were represented in Ares Capital’s portfolio. Of the approximately $3.2 billion in new commitments made during the first quarter of 2026, 73% were in first lien senior secured loans, 4% were in second lien senior secured loans, 1% were in subordinated certificates of the Senior Direct Lending Program (the “SDLP”), 8% were in senior subordinated loans, 12% were in Ares Capital’s subordinated loan to IHAM, 1% were in preferred equity and 1% were in other equity. Of the approximately $3.2 billion in new commitments, 91% were in floating rate debt securities, of which 95% contained interest rate floors and 2% were in the subordinated certificates of the SDLP. The weighted average yield of debt and other income producing securities funded during the period at amortized cost was 9.2% and the weighted average yield on total investments funded during the period at amortized cost was 9.0%. 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 first quarter of 2026, Ares Capital funded approximately $838 million related to previously existing unfunded revolving and delayed draw loan commitments.

In the first quarter of 2026, Ares Capital exited approximately $3.2 billion of investment commitments, including $1.0 billion of loans sold to IHAM or certain vehicles managed by IHAM. Of the approximately $3.2 billion of exited investment commitments, 84% were first lien senior secured loans, 2% were second lien senior secured loans, 6% were senior subordinated loans, 5% were Ares Capital’s subordinated loan to IHAM, 2% were preferred equity and 1% were other equity. Of the approximately $3.2 billion of exited investment commitments, 94% were floating rate, 4% were fixed rate and 2% were non-income producing.
 
As of March 31, 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 2.1% of the total investments at amortized cost (or 1.2% 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 March 31, 2026, filed with the Securities and Exchange Commission (“SEC”) on April 28, 2026.

LIQUIDITY AND CAPITAL RESOURCES

As of March 31, 2026, Ares Capital had $505 million in cash and cash equivalents and $15.9 billion in total aggregate principal amount of debt outstanding ($15.8 billion at carrying value). Subject to borrowing base and other restrictions, Ares Capital had approximately $5.5 billion available for additional borrowings under its existing credit facilities as of March 31, 2026.

In January 2026, Ares Capital issued $750 million in aggregate principal amount of unsecured notes, which bear interest at a rate of 5.250% per annum and mature on April 12, 2031 (the “April 2031 Notes”). The April 2031 Notes pay interest semi-annually and all principal is due upon maturity. The April 2031 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 April 2031 Notes, and any accrued and unpaid interest. The April 2031 Notes were issued at a discount to the principal amount. In connection with the April 2031 Notes, Ares Capital entered into an interest rate swap for a total notional amount of $750 million that matures on April 12, 2031. Under the interest rate swap, Ares Capital will receive a fixed interest rate of 5.250% and pay a floating interest rate of one-month Secured Overnight Financing Rate (“SOFR”) plus 1.7217%.

In January 2026, Ares Capital repaid in full the $1,150 million aggregate principal amount outstanding of its unsecured notes upon their maturity, which bore interest at a rate of 3.875% per annum.

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In February 2026, Ares Capital and its consolidated subsidiary, Ares Capital JB Funding LLC (“ACJB”), entered into an agreement to amend ACJB’s revolving funding facility (the “SMBC Funding Facility”). The amendment, among other things, (a) increased the total commitment under the SMBC Funding Facility from $1.1 billion to $1.6 billion, (b) adjusted the interest rate charged on the SMBC Funding Facility from an applicable spread of either (i) 1.80% over SOFR or (ii) 0.80% over a “base rate” to an applicable spread of either (x) 1.75% over SOFR or (y) 0.75% over a “base rate” (as defined in the documents governing the SMBC Funding Facility) and (c) increased the “accordion” feature that allows ACJB, under certain circumstances, to increase the overall size of the SMBC Funding Facility from a maximum of $1.3 billion to a maximum of $2.5 billion. The other terms of the SMBC Funding Facility remained materially unchanged.

FIRST QUARTER 2026 DIVIDENDS PAID

On February 4, 2026, Ares Capital announced that its Board of Directors declared a first quarter 2026 dividend of $0.48 per share for a total of approximately $345 million. The first quarter 2026 dividend was paid on March 31, 2026 to stockholders of record as of March 13, 2026.

RECENT DEVELOPMENTS

From April 1, 2026 through April 23, 2026, Ares Capital made new investment commitments of approximately $198 million, of which approximately $187 million were funded. Of the approximately $198 million in new investment commitments, 56% were in first lien senior secured loans, 43% were in Ares Capital’s subordinated loan to IHAM and 1% were in other equity. Of the approximately $198 million in new investment commitments, 99% were floating 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 9.2% and the weighted average yield on total investments funded during the period at amortized cost was 9.1%. 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 April 1, 2026 through April 23, 2026, Ares Capital exited approximately $13 million of investment commitments. Of the approximately $13 million of exited investment commitments, 84% were first lien senior secured loans and 16% were Ares Capital’s subordinated loan to IHAM. All of the approximately $13 million of exited investment commitments were floating rate. The weighted average yield of debt and other income producing securities exited or repaid during the period at amortized cost was 9.7% and the weighted average yield on total investments exited or repaid during the period at amortized cost was 9.7%. Of the approximately $13 million of investment commitments exited from April 1, 2026 through April 23, 2026, Ares Capital did not recognize any realized gains or losses.

In addition, as of April 23, 2026, Ares Capital had an investment backlog of approximately $1.8 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.

WEBCAST / CONFERENCE CALL
 
Ares Capital will host a webcast/conference call on Tuesday, April 28, 2026 at 12:00 p.m. (Eastern Time) to discuss its quarter ended March 31, 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 (800) 245-3047. International callers can access the conference call by dialing +1 (203) 518-9765. 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 ARCCQ126. For interested parties, an archived replay of the call will be available approximately one hour after the end of the call through May 28, 2026 at 5:00 p.m. (Eastern Time) to domestic callers by dialing toll free +1 (800) 727-6189 and to international callers by dialing +1 (402) 220-2671. An archived replay will also be available through May 28, 2026 on a webcast link located on the Home page of the Investor Resources section of Ares Capital’s website.

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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 March 31, 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
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ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(in millions, except per share data)
 
 As of
 March 31, 2026December 31, 2025
ASSETS(unaudited) 
Total investments at fair value (amortized cost of $29,648 and $29,250, respectively)
$29,499 $29,485 
Cash and cash equivalents505 638 
Restricted cash150 286 
Interest receivable239 288 
Receivable for open trades97 317 
Other assets189 221 
Total assets$30,679 $31,235 
LIABILITIES
Debt$15,848 $15,991 
Base management fee payable111 111 
Income based fee payable84 89 
Capital gains incentive fee payable20 82 
Interest and facility fees payable134 193 
Payable to participants78 131 
Interest rate swap collateral payable62 155 
Payable for open trades91 5 
Accounts payable and other liabilities126 132 
Deferred tax liabilities 60 28 
Total liabilities16,614 16,917 
STOCKHOLDERS’ EQUITY
Common stock, par value $0.001 per share, 1,000 common shares authorized; 718 common shares issued and outstanding
1 1 
Capital in excess of par value13,359 13,359 
 Accumulated undistributed earnings705 958 
Total stockholders’ equity14,065 14,318 
Total liabilities and stockholders’ equity$30,679 $31,235 
NET ASSET VALUE PER SHARE$19.59 $19.94 

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ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF OPERATIONS
(in millions, except per share data)
(unaudited)
For the Three Months Ended March 31,
 20262025
INVESTMENT INCOME
Interest income from investments$550 $526 
Capital structuring service fees39 46 
Dividend income156 143 
Other income18 17 
Total investment income763 732 
EXPENSES
Interest and credit facility fees213 186 
Base management fee111 102 
Income based fee84 85 
Capital gains incentive fee(61)(25)
Administrative fees4 4 
Other general and administrative8 8 
Total expenses359 360 
NET INVESTMENT INCOME BEFORE INCOME TAXES404 372 
Income tax expense, including excise taxes6 7 
NET INVESTMENT INCOME 398 365 
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS, FOREIGN CURRENCY AND OTHER TRANSACTIONS:
Net realized gains (losses) on investments114 (92)
Net realized gains (losses) on foreign currency and other transactions(8)31 
Net realized gains (losses)106 (61)
Net unrealized gains (losses) on investments(416)3 
Net unrealized gains (losses) on foreign currency and other transactions30 (44)
Net change in deferred tax liabilities (26)(22)
Net unrealized losses(412)(63)
Net realized and unrealized losses on investments, foreign currency and other transactions (306)(124)
NET INCREASE IN STOCKHOLDERS’ EQUITY RESULTING FROM OPERATIONS$92 $241 
Basic and diluted net income per common share$0.13 $0.36 
Basic and diluted weighted average shares of common stock outstanding718 676
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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 months ended March 31, 2026 and 2025 are provided below.
 
 For the Three Months Ended March 31,
 20262025
(unaudited)(unaudited)
GAAP net income per share(1)$0.13 $0.36 
Adjustments:
Net realized and unrealized losses(1)0.42 0.18 
Capital gains incentive fee attributable to net realized and unrealized gains and losses(1)(0.08)(0.04)
Other income tax expense (including excise taxes) related to net realized gains and losses(1)— — 
Core EPS(2)$0.47 $0.50 
__________________________________________________ 

(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 months ended March 31, 2026 and 2025 were approximately 718 million and 676 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.
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Source: View Original Filing on SEC EDGAR

FAQ

What dividend did Ares Capital (ARCC) declare for Q2 2026?

Ares Capital declared a second quarter 2026 dividend of $0.48 per share, payable on June 30, 2026 to stockholders of record as of June 15, 2026. The company also paid a first quarter 2026 dividend of $0.48 per share, totaling approximately $345 million.

How did Ares Capital’s Q1 2026 earnings compare with Q1 2025?

In Q1 2026, Ares Capital reported GAAP net income of $92 million, or $0.13 per share, versus $241 million, or $0.36 per share, in Q1 2025. Net investment income rose to $398 million from $365 million, while Core EPS declined slightly to $0.47 from $0.50.

What was Ares Capital’s net asset value per share as of March 31, 2026?

As of March 31, 2026, Ares Capital’s net asset value per share was $19.59, compared with $19.94 as of December 31, 2025. Total stockholders’ equity was $14.1 billion and total assets were $30.7 billion at quarter-end, reflecting modest unrealized losses.

What were Ares Capital’s portfolio size and credit quality metrics in Q1 2026?

At March 31, 2026, Ares Capital’s portfolio investments at fair value were $29.5 billion across 607 portfolio companies. Loans on non-accrual status represented 2.1% of total investments at amortized cost, or 1.2% at fair value, indicating relatively low levels of problem credits.

How strong was Ares Capital’s liquidity and leverage position in Q1 2026?

Ares Capital reported $505 million in cash and cash equivalents and $15.9 billion of total debt as of March 31, 2026. Subject to restrictions, it had about $5.5 billion available under credit facilities, supporting roughly $6.0 billion of total liquidity and a debt/equity ratio of 1.13x.

What recent financing actions did Ares Capital take in early 2026?

In January 2026, Ares Capital issued $750 million of unsecured notes due April 12, 2031 with a 5.250% coupon and repaid $1,150 million of 3.875% notes at maturity. It also expanded the SMBC funding facility from $1.1 billion to $1.6 billion and increased its accordion feature to $2.5 billion.

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