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Sep 30
Ares Capital Q3 2025 Earnings Report
Ares Capital reported strong results in Q3 2025 with solid net income and healthy yields on investments.
Key Takeaways
Ares Capital delivered strong Q3 2025 results with $782 million in revenue and $404 million in net income. The company maintained solid credit performance, a healthy debt/equity ratio, and continued active portfolio growth.
Generated $404 million in net income and $0.57 EPS.
Core EPS came in at $0.50, reflecting operating strength excluding gains/losses.
Portfolio investments grew to $28.7 billion, up from $26.7 billion at year-end 2024.
Debt/equity ratio slightly increased to 1.09x, reflecting continued balance sheet expansion.
Ares Capital
Ares Capital
Ares Capital Revenue by Segment
Revenue by Segment
Interest Income Revenue
CapyFin.comStructuring Fees Revenue
CapyFin.comDividend Income Revenue
CapyFin.comOther Income Revenue
CapyFin.com Forward Guidance
Management expects continued strong origination and investment activity supported by a robust balance sheet and improving market conditions.
Positive Outlook
- Strong origination strength highlighted for upcoming quarters
- Robust investment backlog of $3.0 billion
- Improved leverage through new credit facility terms
- Stable dividend policy reaffirmed
- Healthy yields on recent investments (9.1% average)
Challenges Ahead
- Portfolio yield slightly declined from prior year levels
- Exposure to floating rate loans could be sensitive to interest rate shifts
- Net unrealized losses impacted GAAP performance
- Higher debt levels increased debt/equity ratio
- Portion of exited investments were on non-accrual status (4%)