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Jun 30, 2025
Ares Capital Q2 2025 Earnings Report
Ares Capital reported strong net investment income in Q2 2025 with stable earnings and continued portfolio expansion.
Key Takeaways
Ares Capital maintained consistent net income and EPS in Q2 2025 compared to the prior year, while reducing Core EPS due to lower net investment income. The company continued to grow its investment portfolio and liquidity position.
GAAP net income for Q2 2025 was $361 million, or $0.52 per share.
Core EPS for the quarter was $0.50, down from $0.61 in Q2 2024.
Net investment income was $342 million, reflecting a decline from $386 million a year earlier.
The weighted average yield of income-producing securities at amortized cost remained solid at 10.9%.
Revenue by Segment
Forward Guidance
Ares Capital emphasized its strong capital position and readiness to deploy liquidity into market opportunities, though Core EPS has moderated.
Positive Outlook
- Raised over $2 billion in new debt capital post-quarter
- Maintains ~$6.5 billion in available liquidity
- Expanded revolving credit capacity to $5.5 billion
- Strong pipeline with $2.6 billion investment backlog
- Continues to benefit from market transaction activity pickup
Challenges Ahead
- Core EPS declined year-over-year
- Net investment income dropped from Q2 2024
- Capital structuring service fees declined significantly
- Yield compression slightly evident vs. prior year
- Elevated expenses related to credit and facility fees
Historical Earnings Impact
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Avg. Return Before/After Earnings
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