Ares Capital reported fourth-quarter 2025 earnings of $0.50 per share, matching the Zacks Consensus Estimate. This result compared to $0.55 per share in the year-ago quarter, reflecting a 9% year-over-year decline driven primarily by higher funding costs and modest compression in portfolio yields. Net investment income for the quarter totaled $380 million, down from $395 million in Q4 2024, as the company absorbed a 30 basis-point increase in its average cost of debt while maintaining disciplined portfolio underwriting across its senior secured loan and mezzanine debt positions.

During the quarter, Ares Capital generated new originations of $1.2 billion across its direct lending platform, slightly below the $1.25 billion booked in the comparable period a year earlier. The weighted average yield on new investments rose to 10.2%, up from 9.8% in Q4 2024, reflecting continued demand for higher-coupon senior secured financing. Asset quality remained stable, with non-accrual loans representing 0.8% of the total portfolio, unchanged from the prior quarter and down from 1.0% a year ago.

The Board of Directors declared a first-quarter 2026 dividend of $0.48 per share, payable on March 31, 2026 to shareholders of record as of March 13, 2026. This distribution represents a 6% increase over the year-ago quarterly payout, underscoring the company’s commitment to returning capital. As of December 31, 2025, Ares Capital maintained a debt-to-equity ratio of 0.75x and liquidity resources of $1.1 billion, including undrawn revolver capacity and cash balances, providing ample cushion for new investment activity and opportunistic share repurchases.