Ares Capital (ARCC) Q2 2026 earnings summary

Executive summary

• Net investment income for Q2 2026 was $359 million, with core earnings per share of $0.47 and annualized ROE of 9.7%, reflecting stable performance and healthy portfolio metrics.

• GAAP net income for Q2 2026 was $171 million ($0.24 per share), up from $0.13 in Q1 2026 but down from $0.52 in Q2 2025, due to higher unrealized losses.

• Portfolio at fair value was $29.3 billion across 619 companies, with no single investment over 1.3% of the portfolio and diversified industry exposure.

• 75% of transactions were with incumbent borrowers, highlighting strong sponsor relationships.

• Maintained strong liquidity and modest leverage, with $6.0 billion in available liquidity post-July note repayment.

Financial highlights

• Total investment income for Q2 2026 was $768 million, with expenses of $401 million, resulting in net investment income of $359 million.

• Core earnings per share remained stable at $0.47, reflecting healthy portfolio performance.

• Net realized losses were $5 million and net unrealized losses were $183 million in Q2 2026.

• Net asset value per share was $19.35 as of June 30, 2026, down from $19.94 at year-end 2025 and $19.59 at March 31, 2026.

• Dividend declared for Q2 2026 was $0.48 per share, consistent with prior quarters.

Outlook and guidance

• Maintains stable quarterly dividend of $0.48 per share for Q3 2026, supported by spillover income and modest leverage.

• Estimated $988 million ($1.38 per share) in taxable income spillover available for future distribution.

• Investment backlog was approximately $1.5 billion as of late July 2026, with a focus on first lien senior secured loans.

• Management remains confident in generating attractive long-term shareholder returns, citing market leadership and competitive advantages.

• Optimistic about increased transaction activity and improving deal quality in the second half of the year.