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Ares Capital (NASDAQ: ARCC) Q2 2026 earnings, $0.48 dividend and new debt

Filing Impact
(Moderate)
Filing Sentiment
(Neutral)
Form Type
8-K

Rhea-AI Filing Summary

Ares Capital Corporation reported second quarter 2026 results with net investment income of $359 million ($0.50 per share), up from $342 million ($0.49) a year earlier. GAAP net income was $171 million ($0.24 per share), down from $361 million ($0.52), as net realized and unrealized results weakened.

Core EPS was $0.47 versus $0.50 in the prior-year quarter, against a regular quarterly dividend of $0.48 per share. At June 30, 2026, total investments at fair value were $29,349 million, net asset value per share was $19.35, and the debt-to-equity ratio was 1.15x.

Liquidity remained substantial, with $383 million in cash, approximately $15.9 billion of debt outstanding and approximately $6.7 billion available under credit facilities. The Board declared a third quarter 2026 dividend of $0.48 per share, payable September 30, 2026 to stockholders of record on September 15, 2026.

Positive

  • None.

Negative

  • Ares Capital’s GAAP net income declined to $171 million ($0.24 per share) in Q2 2026 from $361 million ($0.52 per share) a year earlier, alongside higher net unrealized losses of $183 million versus $15 million.

Filing Explained

July debt refinancing and repayment are complete; commercial paper adds up to $1.0 billion of capacity, not reported funding.

The filing discloses two completed July debt actions—a refinancing of an approximately $708.7 million securitization and repayment of $1.0 billion of maturing unsecured notes—alongside a commercial-paper program that creates borrowing capacity rather than a reported issuance.

A Form 8-K reports specified material events; here, the disclosed financing events are at different stages: the refinancing and note repayment are completed, while the commercial-paper program permits but does not itself establish borrowing.

The commercial-paper program allows up to $1.0 billion of short-term unsecured notes, with maturities of up to 397 days, backed by the A&R Credit Facility. The filing does not report notes issued under the program.

The completed CLO refinancing issued new secured notes and $139.0 million of term loans maturing in July 2038; its proceeds were used in part to redeem all outstanding April 2036 CLO secured notes. Separately, the company repaid the full $1.0 billion principal amount of unsecured notes that matured in July.

During the second quarter, the company made approximately $2.6 billion of new investment commitments, funded approximately $2.2 billion, and exited approximately $2.9 billion of commitments.

As of July 23, 2026, an approximately $1.5 billion investment backlog remained prospective: closing depends on satisfactory documentation and other conditions, and the company states that it may not make those investments.

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.
Net investment income Q2 2026 $359 million Quarter ended June 30, 2026; $342 million in Q2 2025
GAAP net income Q2 2026 $171 million Quarter ended June 30, 2026; $361 million in Q2 2025
Core EPS Q2 2026 $0.47 per share Non-GAAP metric for quarter ended June 30, 2026; $0.50 in Q2 2025
Dividend per share Q3 2026 $0.48 per share Declared for third quarter 2026, payable September 30, 2026
Net asset value per share $19.35 As of June 30, 2026; $19.94 as of December 31, 2025
Total investments at fair value $29,349 million Consolidated balance sheet as of June 30, 2026
Debt-to-equity ratio 1.15x As of June 30, 2026; 1.12x at December 31, 2025
Available borrowing capacity approximately $6.7 billion Available under existing credit facilities as of June 30, 2026
Core EPS financial
"Core EPS is a non-GAAP financial measure and excludes net realized and unrealized gains"
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.
commercial paper program financial
"In June 2026, Ares Capital established a commercial paper program under which it may issue notes"
A commercial paper program is a formal way a company issues very short-term IOUs to raise quick cash, typically for days to months, without using a bank loan. Investors care because it shows how the company manages short-term funding and how trustworthy it appears—like watching whether someone keeps using and repaying a credit card; frequent use or higher costs can signal cash strain, while smooth issuance suggests healthy liquidity.
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
"The interest rate charged on the A&R Credit Facility is based on Term SOFR plus an applicable spread"
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.
Senior Direct Lending Program financial
"purchased from the Senior Direct Lending Program, through which Ares Capital co-invests"
Net investment income $359 million vs $342 million in Q2 2025
GAAP net income $171 million vs $361 million in Q2 2025
Core EPS $0.47 vs $0.50 in Q2 2025
Dividend declared $0.48 per share same as Q2 2025 dividend

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

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FAQ

What dividend did Ares Capital (ARCC) declare for the third quarter of 2026?
Ares Capital declared a $0.48 per share dividend for the third quarter of 2026. It is payable on September 30, 2026 to stockholders of record as of September 15, 2026, continuing the company’s regular quarterly payout level.

How did Ares Capital’s (ARCC) Q2 2026 net investment income compare to last year?
Net investment income in Q2 2026 was $359 million ($0.50 per share), compared with $342 million ($0.49 per share) in Q2 2025. This reflects modest growth in income from the portfolio despite higher interest and fee expenses year over year.

What were Ares Capital’s (ARCC) GAAP earnings and Core EPS in Q2 2026?
For Q2 2026, Ares Capital reported GAAP net income of $171 million ($0.24 per share). Core EPS, a non-GAAP measure excluding realized and unrealized gains and losses and related fees and taxes, was $0.47, compared with $0.50 in the prior-year quarter.

What is Ares Capital’s (ARCC) net asset value per share and leverage as of June 30, 2026?
As of June 30, 2026, Ares Capital’s net asset value per share was $19.35. The reported debt-to-equity ratio was 1.15x, or 1.12x net of available cash, reflecting a modestly levered balance sheet for its business development company structure.

What liquidity and borrowing capacity did Ares Capital (ARCC) have at June 30, 2026?
At June 30, 2026, Ares Capital held $383 million in cash and cash equivalents and had approximately $15.9 billion of debt outstanding. Subject to borrowing base limits, it also had approximately $6.7 billion available for additional borrowings under its existing credit facilities.

What recent financing and credit actions did Ares Capital (ARCC) undertake in 2026?
In 2026, Ares Capital issued $800 million of unsecured January 2030 Notes at 5.550%, upsized and extended its A&R Credit Facility to about $5.5 billion, established a $1.0 billion commercial paper program, and increased its BNP Funding Facility commitments to approximately $1.5 billion.
0001287750FALSE00012877502026-07-292026-07-29

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) July 29, 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 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 July 29, 2026, the registrant issued a press release, included herewith as Exhibit 99.1, announcing its financial results for the quarter ended June 30, 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 July 29, 2026, the registrant announced the declaration of a third quarter 2026 dividend of $0.48 per share, payable on September 30, 2026 to stockholders of record as of September 15, 2026.

Item 9.01  Financial Statements and Exhibits.
 
(d)                               Exhibits:
 
Exhibit Number Description
   
99.1
 Press Release, dated July 29, 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: July 29, 2026  
   
 By:/s/ SCOTT C. LEM
 Name:Scott C. Lem
 Title:Chief Financial Officer and Treasurer






Exhibit 99.1
ares_logoxrgbxnavyblue.jpg
ARES CAPITAL CORPORATION ANNOUNCES JUNE 30, 2026 FINANCIAL RESULTS
AND DECLARES THIRD QUARTER 2026 DIVIDEND OF $0.48 PER SHARE
 
DIVIDEND DECLARATIONS
 
New York, NY — July 29, 2026 — Ares Capital Corporation (“Ares Capital”) (NASDAQ: ARCC) announced that its Board of Directors has declared a third quarter 2026 dividend of $0.48 per share. The third quarter 2026 dividend is payable on September 30, 2026 to stockholders of record as of September 15, 2026.
 
JUNE 30, 2026 FINANCIAL RESULTS
 
Ares Capital also announced financial results for its second quarter ended June 30, 2026.
 
OPERATING RESULTS

 
Q2-26(3)
Q2-25(3)
(dollar amounts in millions, except per share data)Total AmountPer ShareTotal AmountPer Share
GAAP net income per share(1)$0.24 $0.52 
Core EPS(2)$0.47 $0.50 
Dividends declared and payable $0.48 $0.48 
Net investment income(1)$359 $0.50 $342 $0.49 
Net realized gains (losses)(1)$(5)$(0.01)$34 $0.05 
Net unrealized losses(1)$(183)$(0.25)$(15)$(0.02)
GAAP net income(1)$171 $0.24 $361 $0.52 

 As of
(dollar amounts in millions, except per share data)June 30, 2026December 31, 2025
Portfolio investments at fair value $29,349 $29,485 
Total assets$30,498 $31,235 
Stockholders’ equity$13,891 $14,318 
Net asset value per share$19.35 $19.94 
Debt/equity ratio1.15x1.12x
Debt/equity ratio, net of available cash(4)1.12x1.08x
____________________________________________ 

(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 June 30, 2026 and 2025 were approximately 718 million and 695 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.
1


(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 second quarter results, supported by consistent Core Earnings, healthy portfolio performance and historically low levels of non-accruing loans and problem assets,” said Kort Schnabel, Chief Executive Officer of Ares Capital. “In the slower transaction environment of the second quarter, our scale, stable capital base and longstanding borrower relationships enabled us to capture enhanced economics in attractive credits while remaining highly selective. Given our market leadership and competitive advantages, we remain well positioned to continue to generate attractive long-term shareholder returns, anchored by 17 years of stable or increasing regular quarterly dividends.”

“We continued to enhance our balance sheet during the second quarter by raising approximately $1.2 billion of additional financing, including the upsizing and extension of two of our bank-led revolving credit facilities, while improving the economics of our largest revolving credit facility,” said Scott Lem, Chief Financial Officer of Ares Capital. “During the quarter, we also launched the first commercial paper program in the BDC sector, establishing access to a lower-cost source of capital while preserving the durability and flexibility that have long differentiated ARCC. We ended the quarter once again in a position of strength with approximately $6.0 billion of available liquidity (after giving effect to the repayment of our unsecured notes that matured in July), modest leverage and no meaningful near-term debt maturities.”

PORTFOLIO AND INVESTMENT ACTIVITY
(dollar amounts in millions)Q2-26Q2-25
Portfolio Activity During the Period:
Gross commitments$2,592 $2,573 
Exits of commitments$2,915 $1,963 
Portfolio Information:
As of
June 30, 2026December 31, 2025
Portfolio investments at fair value$29,349 $29,485 
Fair value of accruing debt and other income producing securities(5)$26,262 $26,510 
Number of portfolio company investments 619 603 
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 value10.5 %10.3 %
Weighted average yields on total investments(8):
At amortized cost9.3 %9.4 %
At fair value9.4 %9.3 %
Asset class percentage at fair value:
First lien senior secured loans59 %61 %
Second lien senior secured loans4 %5 %
Subordinated certificates of the SDLP4 %4 %
Senior subordinated loans6 %5 %
Preferred equity8 %9 %
Ivy Hill Asset Management, L.P.(9)10 %8 %
Other equity9 %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).

2

(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 second quarter of 2026, Ares Capital made new investment commitments of approximately $2.6 billion, of which approximately $2.2 billion were funded. New investment commitments were made to 14 new portfolio companies, 41 existing portfolio companies and 3 additional existing portfolio companies purchased from 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. As of June 30, 2026, 273 separate private equity sponsors were represented in Ares Capital’s portfolio. Of the approximately $2.6 billion in new commitments made during the second quarter of 2026, 68% were in first lien senior secured loans, 2% were in subordinated certificates of the SDLP, 4% were in senior subordinated loans, 21% were in Ares Capital’s subordinated loan to IHAM, 2% were in preferred equity and 3% were in other equity. Of the approximately $2.6 billion in new commitments, 94% were in floating rate debt securities, of which 76% 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 9.4% 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 Ares Capital will be able to do so. Also in the second quarter of 2026, Ares Capital funded approximately $758 million related to previously existing unfunded revolving and delayed draw loan commitments.

In the second quarter of 2026, Ares Capital exited approximately $2.9 billion of investment commitments, including approximately $1.1 billion of loans sold to IHAM or certain vehicles managed by IHAM and approximately $361 million of loans sold to the SDLP. Of the approximately $2.9 billion of exited investment commitments, 69% were first lien senior secured loans, 4% were second lien senior secured loans, 1% were subordinated certificates of the SDLP, 7% were senior subordinated loans, 13% were Ares Capital’s subordinated loan to IHAM, 5% were preferred equity and 1% were other equity. Of the approximately $2.9 billion of exited investment commitments, 88% were floating rate, 9% were fixed rate, 1% were non-income producing and 2% were on non-accrual status.
 
As of June 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 June 30, 2026, filed with the Securities and Exchange Commission (“SEC”) on July 29, 2026.

LIQUIDITY AND CAPITAL RESOURCES

As of June 30, 2026, Ares Capital had $383 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 $6.7 billion available for additional borrowings under its existing credit facilities as of June 30, 2026.

In May 2026, Ares Capital issued $800 million in aggregate principal amount of unsecured notes, which bear interest at a rate of 5.550% per annum and mature on January 15, 2030 (the “January 2030 Notes”). The January 2030 Notes pay interest semi-annually and all principal is due upon maturity. The January 2030 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 January 2030 Notes, and any accrued and unpaid interest. The January 2030 Notes were issued at a discount to the principal amount. In connection with the January 2030 Notes, Ares Capital entered into an interest rate swap for a total notional amount of $800 million that matures on January 15, 2030. Under the interest rate swap, Ares Capital will receive a fixed interest rate of 5.550% and pay a floating interest rate of one-month SOFR plus 1.69950%.

3

In May 2026, Ares Capital amended and restated its senior secured credit facility (as amended and restated, the “A&R Credit Facility”). The amendment, among other things, (a) increased the total commitment and loans under the A&R Credit Facility from approximately $5.3 billion to approximately $5.5 billion, (b) amended the base interest rate charged on the USD loans under the A&R Credit Facility from (x) Term Secured Overnight Financing Rate (“SOFR”) plus a credit spread adjustment of 0.10% plus an applicable spread to (y) Term SOFR in each case, (c) modified certain covenant restrictions, (d) extended the expiration of the revolving period for lenders electing to extend their revolving commitments in an amount equal to approximately $4.2 billion from April 15, 2029 to May 21, 2030, (e) extended the stated maturity date for lenders electing to extend their revolving commitments in an amount equal to approximately $4.2 billion from April 15, 2030 to May 21, 2031 and (f) extended the stated maturity date for lenders electing to extend their term loan commitments in an amount equal to approximately $1.0 billion from April 15, 2030 to May 21, 2031. Lenders who elected not to extend their revolving commitments in an amount equal to approximately $37.5 million and $131 million will remain subject to a revolving period expiration of April 12, 2028 and April 15, 2029, respectively, and a stated maturity date of April 12, 2029 and April 15, 2030, respectively. Lenders who elected not to extend the stated maturity of their term loan commitments in an amount equal to $40 million, $12.5 million and $70 million will remain subject to a maturity date of April 19, 2028, April 12, 2029 and April 15, 2030, respectively.

Subject to certain exceptions, the interest rate charged on the A&R Credit Facility is based on Term SOFR (or an alternate rate of interest for certain loans, commitments and/or other extensions of credit denominated in certain approved foreign currencies plus a spread adjustment, if applicable) plus an applicable spread of either 1.525%, 1.650% or 1.775% or an alternate base rate (as defined in the documents governing the A&R Credit Facility) plus an applicable spread of either 0.525%, 0.650% or 0.775%, in each case determined monthly based on the borrowing base.

In June 2026, Ares Capital established a commercial paper program (the “CP Program”) under which it may issue short-term unsecured commercial paper notes. The CP Program provides for borrowings of up to $1.0 billion, with individual commercial paper notes having maturities of up to 397 days and interest rates determined at issuance. The CP Program is backed by Ares Capital’s A&R Credit Facility, and Ares Capital expects to maintain available capacity under the A&R Credit Facility at least equal to the amount of any commercial paper notes outstanding.

In June 2026, Ares Capital and its wholly owned consolidated subsidiary, ARCC FB Funding LLC (“AFB”), entered into an agreement to amend AFB’s revolving funding facility (the “BNP Funding Facility”). The amendment among other things increased the total commitment under the BNP Funding Facility from approximately $1.3 billion to approximately $1.5 billion and modified certain concentration limitations and the advance rate applicable to certain collateral loans. The other terms of the BNP Funding Facility remained materially unchanged.

SECOND QUARTER 2026 DIVIDENDS PAID

On April 28, 2026, Ares Capital announced that its Board of Directors declared a second quarter 2026 dividend of $0.48 per share for a total of approximately $345 million. The second quarter 2026 dividend was paid on June 30, 2026 to stockholders of record as of June 15, 2026.

RECENT DEVELOPMENTS

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 $708.7 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 in the ADL CLO 1 Debt Securitization that mature on July 25, 2038 (collectively, the “July 2038 CLO Notes”) were issued by ADL CLO 1 pursuant to the amended and restated indenture and security agreement governing the July 2038 CLO Notes 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% and (iv) an additional $7.1 million of additional subordinated notes (in addition to the $225.6 million of existing subordinated notes issued by ADL CLO 1), which do not bear interest. Ares Capital retained all of the $7.1 million of subordinated notes, which are unsecured obligations of ADL CLO 1 and will accordingly be eliminated in consolidation. In addition, in connection with the ADL CLO 1 Debt Securitization, ADL CLO 1 incurred $139.0 million of Class A-1-LR term loans that mature on July 25, 2038, which bear interest at Term SOFR plus 1.46%, under a Class A-1-LR credit agreement. The proceeds from the ADL CLO 1 Debt Securitization were used in part to redeem all outstanding April 2036 CLO Secured Notes issued by ADL CLO 1.

4

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.

From July 1, 2026 through July 23, 2026, Ares Capital made new investment commitments of approximately $244 million, of which approximately $179 million were funded. Of the approximately $244 million in new investment commitments, 47% were in first lien senior secured loans, 17% were in second lien senior secured loans, 5% were in subordinated certificates of the SDLP, 19% were in senior subordinated loans, 11% were in Ares Capital’s subordinated loan to IHAM and 1% were in other equity. Of the approximately $244 million in new investment commitments, 64% were floating rate, 35% 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 10.2% and the weighted average yield on total investments funded during the period at amortized cost was 10.0%. 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 July 1, 2026 through July 23, 2026, Ares Capital exited approximately $132 million of investment commitments. All of the approximately $132 million of exited investment commitments were first lien senior secured loans, all of which were floating rate. The weighted average yield of debt and other income producing securities exited or repaid during the period at amortized cost was 8.3% and the weighted average yield on total investments exited or repaid during the period at amortized cost was 8.3%. Of the approximately $132 million of investment commitments exited from July 1, 2026 through July 23, 2026, Ares Capital recognized total net realized losses of approximately $2 million.

In addition, as of July 23, 2026, Ares Capital had an investment backlog of approximately $1.5 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.

WEBCAST / CONFERENCE CALL
 
Ares Capital will host a webcast/conference call on Wednesday, July 29, 2026 at 12:00 p.m. (Eastern Time) to discuss its quarter ended June 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 (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 ARCCQ226. For interested parties, an archived replay of the call will be available approximately one hour after the end of the call through August 29, 2026 at 5:00 p.m. (Eastern Time) to domestic callers by dialing toll free +1 (800) 839-3736 and to international callers by dialing +1 (402) 220-2978. An archived replay will also be available through August 29, 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 June 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.

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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
 June 30, 2026December 31, 2025
(unaudited)
ASSETS 
Total investments at fair value (amortized cost of $29,675 and $29,250, respectively)
$29,349 $29,485 
Cash and cash equivalents383 638 
Restricted cash241 286 
Interest receivable299 288 
Receivable for open trades50 317 
Other assets176 221 
Total assets$30,498 $31,235 
LIABILITIES
Debt$15,773 $15,991 
Base management fee payable110 111 
Income based fee payable84 89 
Capital gains incentive fee payable— 82 
Interest and facility fees payable199 193 
Payable to participants104 131 
Interest rate swap collateral payable97 155 
Payable for open trades2 5 
Accounts payable and other liabilities167 132 
Deferred tax liabilities71 28 
Total liabilities16,607 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 earnings531 958 
Total stockholders’ equity13,891 14,318 
Total liabilities and stockholders’ equity$30,498 $31,235 
NET ASSET VALUE PER SHARE$19.35 $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 June 30,For the Six Months Ended June 30,
 2026202520262025
INVESTMENT INCOME
Interest income from investments$557 $533 $1,107 $1,059 
Capital structuring service fees40 34 79 80 
Dividend income152 158 308 301 
Other income19 20 37 37 
Total investment income768 745 1,531 1,477 
EXPENSES
Interest and credit facility fees214 188 427 374 
Base management fee110 104 221 206 
Income based fee84 86 168 171 
Capital gains incentive fee(21)4 (82)(21)
Administrative fees4 4 8 8 
Other general and administrative10 9 18 17 
Total expenses401 395 760 755 
NET INVESTMENT INCOME BEFORE INCOME TAXES367 350 771 722 
Income tax expense, including excise taxes8 8 14 15 
NET INVESTMENT INCOME 359 342 757 707 
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS, FOREIGN CURRENCY AND OTHER TRANSACTIONS:
Net realized gains (losses) on investments(7)117 107 25 
Net realized gains (losses) on foreign currency and other transactions2 (39)(6)(8)
Net income tax expense on net realized gains— (44)— (44)
Net realized gains (losses)(5)34 101 (27)
Net unrealized losses on investments(180)(40)(596)(37)
Net unrealized gains (losses) on foreign currency and other transactions8 (10)38 (54)
Net change in deferred tax liabilities (11)35 (37)13 
Net unrealized losses(183)(15)(595)(78)
Net realized and unrealized gains (losses) on investments, foreign currency and other transactions(188)19 (494)(105)
NET INCREASE IN STOCKHOLDERS’ EQUITY RESULTING FROM OPERATIONS$171 $361 $263 $602 
Basic and diluted net income per common share$0.24 $0.52 $0.36 $0.88 
Basic and diluted weighted average shares of common stock outstanding718 695718 686 
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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 and six months ended June 30, 2026 and 2025 are provided below.
 
 For the Three Months Ended June 30,For the Six Months Ended June 30,
 2026202520262025
(unaudited)(unaudited)(unaudited)(unaudited)
GAAP net income per share(1)$0.24 $0.52 $0.36 $0.88 
Adjustments:
Net realized and unrealized (gains) losses(1)0.26 (0.03)0.69 0.15 
Capital gains incentive fee attributable to net realized and unrealized gains and losses(1)(0.03)0.01 (0.11)(0.03)
Other income tax expense (including excise taxes) related to net realized gains and losses(1)— — — — 
Core EPS(2)$0.47 $0.50 $0.94 $1.00 
__________________________________________________ 

(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 six months ended June 30, 2026 were approximately 718 million and 718 million, respectively, and approximately 695 million and 686 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: View Original Filing on SEC EDGAR

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