Ares Capital (ARCC) investor relations material

Executive summary

• Reported strong Q3 2025 results with GAAP EPS of $0.57, core EPS of $0.50, and record net asset value per share of $20.01, driven by robust net realized gains and healthy credit performance.

• Portfolio fair value reached $28.7 billion across 587 companies, with consistent NAV and dividend growth over the last decade.

• Origination activity accelerated, with $3.9 billion in new commitments and net deployment of $1.3 billion, reflecting a more active M&A environment.

• Portfolio companies showed strong fundamentals, with low double-digit organic EBITDA growth and improved interest coverage and loan-to-value metrics.

• Management expects to benefit from origination strength and rigorous credit standards in an improving market environment.

Financial highlights

• GAAP net income for Q3 2025 was $404 million ($0.57 per share), with core EPS of $0.50; net investment income was $338 million.

• Net realized gains totaled $247 million, the second highest in company history, while net unrealized losses were $96 million.

• Portfolio at fair value grew to $28.7 billion, up from $27.9 billion in Q2 and $25.9 billion a year ago.

• Liquidity stood at $6.2 billion, with a debt-to-equity ratio of 1.09x.

• Fourth quarter dividend declared at $0.48 per share, marking 65 consecutive quarters of stable or increasing dividends.

Outlook and guidance

• Confident in maintaining current dividend levels, supported by spillover income of $1.26 per share and a robust $3.0 billion investment backlog as of October 23, 2025.

• Positioned to capitalize on higher-yielding opportunities and increased transaction activity, with flexibility to increase leverage within the target range.

• Recent investment activity included $735 million in new commitments and $1.1 billion in exits post-quarter end.