Ares Capital Corporation · NASDAQ:ARCC
Ares Capital — Q3 2025 Earnings Presentation
28 slides from Ares Capital's earnings presentation, Oct 28, 2025
Slide 1: Third Quarter 2025 Earnings Presentation
Third Quarter 2025 Earnings Presentation
Slide 2: Important Notice
Important Notice This presentation has been prepared for Ares Capital Corporation (“Ares Capitalˮ) for the benefit of its public stockholders. This presentation is solely for information purposes in connection with evaluating the business, operations and financial results of Ares Capital. This prese
Slide 3: Financial and Portfolio Highlights
Financial and Portfolio Highlights Financial Highlights Q3-25 Q2-25 Q3-24 GAAP Net Income Per Share(1) $ 0.57 $ 0.52 $ 0.62 Core EPS*(2) $ 0.50 $ 0.50 $ 0.58 Net Investment Income Per Share(1) $ 0.48 $ 0.49 $ 0.57 Net Realized Gains (Losses) Per Share(1) $ 0.23 $ 0.05 $ (0.04) Net Unrealized Gains (
Slide 4: Selected Historical Financial Information
Selected Historical Financial Information As of and for the Three Months Ended (dollar amounts in millions, except per share data and stock prices) 9/30/25 6/30/25 3/31/25 12/31/24 9/30/24 GAAP Net Income Per Share(1) $ 0.57 $ 0.52 $ 0.36 $ 0.55 $ 0.62 Core EPS*(2) $ 0.50 $ 0.50 $ 0.50 $ 0.55 $ 0.58
Slide 5: Selected Historical Financial Information (cont'd)
Selected Historical Financial Information (cont’d) As of (dollar amounts in millions) 9/30/25 6/30/25 3/31/25 12/31/24 9/30/24 Investments at Fair Value $ 28,693 $ 27,886 $ 27,130 $ 26,720 $ 25,918 Number of Portfolio Companies(11) 587 566 566 550 535 Asset Class (at fair value): First Lien Senior S
Slide 6: Selected Historical Financial Information (cont'd)
Selected Historical Financial Information (cont’d) For the Three Months Ended (dollar amounts in millions) 9/30/25 6/30/25 3/31/25 12/31/24 9/30/24 Commitments: Gross Commitments(3) $ 3,924 $ 2,573 $ 3,453 $ 3,751 $ 3,919 Exits of Commitments(4) (2,625) (1,963) (2,857) (2,715) (2,598) Net Commitment
Slide 7: Quarterly Operating Results
Quarterly Operating Results For the Three Months Ended (amounts in millions, except per share data) 9/30/25 6/30/25 3/31/25 12/31/24 9/30/24 Investment income $ 782 $ 745 $ 732 $ 759 $ 775 Expenses 433 395 360 387 402 Net investment income before income taxes 349 350 372 372 373 Income tax expense,
Slide 8: Quarterly Operating Results Detail
Quarterly Operating Results Detail For the Three Months Ended (amounts in millions) 9/30/25 6/30/25 3/31/25 12/31/24 9/30/24 Net Investment Income Before Income Taxes: Investment Income: Interest income from investments $ 561 $ 533 $ 526 $ 542 $ 568 Capital structuring service fees 48 34 46 48 38 Di
Slide 9: Quarterly Gain/Loss Detail
Quarterly Gain/Loss Detail For the Three Months Ended (amounts in millions) 9/30/25 6/30/25 3/31/25 12/31/24 9/30/24 Net Realized and Unrealized Gains (Losses): Realized gains (losses) on investments: Gains $ 317 $ 229 $ 46 $ 49 $ 72 Losses (70) (112) (138) (84) (91) Net realized gains (losses) on i
Slide 10: Quarterly Balance Sheets
Quarterly Balance Sheets As of (amounts in millions, except per share data) 9/30/25 6/30/25 3/31/25 12/31/24 9/30/24 ASSETS Investments at fair value $ 28,693 $ 27,886 $ 27,130 $ 26,720 $ 25,918 Cash and cash equivalents 1,036 447 647 635 486 Restricted cash 218 217 95 225 138 Interest receivable 25
Slide 11: Investment Portfolio by Issuer as of September 30, 2025
Investment Portfolio by Issuer as of September 30, 2025* Top 15 6.9% Investments 24.7% 3.6% Ivy Hill Asset Management, L.P.(14) 1.5% Senior Direct Lending Program, LLC (13) 1.4% 1.3% Neptune Bidco US Inc. 1.2% High Street Buyer, Inc. and High Street Holdco LLC 1.1% 1.1% Denali Intermediate Holdings,
Slide 12: Investment Portfolio as of September 30, 2025
Investment Portfolio as of September 30, 2025* Asset Class Industry 8% 6% 2% 2% 7% 2% 23% 2% 4% 9% 4% 4% 5% 61% 4% 12% 4% 5% 6% 6% 11% 6% 7% First Lien Senior Secured Loans(12) Software and Services Senior Direct Lending Program(13) Second Lien Senior Secured Loans Health Care Equipment and Services
Slide 13: Portfolio Activity
Portfolio Activity Gross Commitments by Asset Class Exits of Commitments by Asset Class 1% 1% 1% 1% 100% 2% 3% 100% 2% 3% 1% 6% 2% 6% 1% 2% 1% 4% 6% 5% 3% 1% 10% 1% 3% 1% 2% 5% 3% 1% 6% 2% 1% 3% 1% 2% 2% 3% 2% 3% 5% 6% 7% 3% 1% 14% 10% 1% 80% 80% 4% 12% 10% 3% 3% 35% 60% 60% 93% 92% 88% 85% 40% 82%
Slide 14: Portfolio Company EBITDA and Credit Statistics
Portfolio Company EBITDA and Credit Statistics 12.0x $400.0 10.0x $304.5 $297.3 $289.6 $286.5 $300.0 $274.0 8.0x ($ Millions) 6.0x 5.8x 5.8x $200.0 5.7x 5.7x 5.6x $177.0 $159.9 $159.7 $162.9 $165.7 4.0x $100.0 2.0x 1.8x 1.9x 1.9x 1.9x 2.0x 0.0x $0.0 Q3-24 Q4-24 Q1-25 Q2-25 Q3-25 * Portfolio Weighted
Slide 15: Portfolio By Grade
Portfolio By Grade(23) % by Fair Value % by Number of Companies 100% 100% 11% 12% 12% 12% 11% 17% 18% 19% 19% 16% 90% 90% 80% 80% 70% 70% 60% 60% 50% 50% 80% 78% 79% 79% 80% 80% 79% 78% 77% 81% 40% 40% 30% 30% 20% 20% 10% 10% 5% 6% 5% 5% 5% 2% 1% 2% 1% 2% 1% 3% 1% 2% 1% 4% 4% 4% 4% 4% 0% 0% Q3-24 Q4
Slide 16: Loans on Non-Accrual Status
Loans on Non-Accrual Status Amortized Cost Fair Value 5.0% $600 5.0% $600 $546 $509 $500 $500 4.0% 4.0% $439 $414 $400 $400 3.0% 3.0% ($ Millions) $327 ($ Millions) $323 $289 $300 $300 $254 $244 2.0% 2.0% 2.0% $200 $200 1.8% $166 1.7% 1.5% 1.0% 1.3% 1.0% 1.2% $100 1.0% 1.0% $100 0.9% 0.6% 0.0% $0 0.
Slide 17: Investment Activity from October 1, 2025 through October 23, 2025
Investment Activity from October 1, 2025 through October 23, 2025 Ares Capital made approximately $735 million of new investment commitments • 95% were in first lien senior secured loans, 1% were in subordinated certificates of the SDLP, 2% were in preferred equity and 2% were in other equity • 96%
Slide 18: Investment Backlog
Investment Backlog • As of October 23, 2025, Ares Capital had a backlog of approximately $3.0 billion(24) • The following is a breakdown of the backlog by asset class and by industry Asset Class Industry 1% 2% 10% 9% 1% 25% 4% 3% 5% 6% 85% 6% 15% 7% 7% 14% First Lien Senior Secured Loans(12) Softwar
Slide 19: Debt Summary
Debt Summary As of 6/30/25 As of 9/30/25 Aggregate Aggregate Weighted Principal Carrying Principal Carrying Average Amount Principal Value of Amount Principal Value of Stated Committed/ Amount Outstanding Committed/ Amount Outstanding Interest (dollar amounts in millions) Outstanding(26) Outstanding
Slide 20: Debt Summary
Debt Summary Debt Maturities* ($ in millions) $10,000 $9,000 $8,000 $7,000 $4,659 (29) $6,000 $5,000 $4,000 $3,000 $3,100 $57 $2,000 $89 (29) ** $40 (29) (29) $1,000 $2,150 $1,850 $1,400 $1,250 $1,020 (30) $0 $— 2025 $— 2026 $— 2027 — 2028 2029 Thereafter As of September 30, 2025 Secured Revolving F
Slide 21: Quarterly Dividends
Quarterly Dividends $0.60 $0.50 $0.03 $0.48 $0.48 $0.48 $0.48 $0.48 $0.48 $0.48 $0.48 $0.48 $0.48 $0.48 $0.48 $0.48 $0.03 $0.03 $0.03 $0.43 $0.40 $0.42 $0.42 $0.41 $0.30 $0.20 $0.10 $0.00 (31) Q4-21 Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 Q3-23 Q4-23 Q1-24 Q2-24 Q3-24 Q4-24 Q1-25 Q2-25 Q3-25 Q4-25 Regul
Slide 22: Corporate Data
Corporate Data Board of Directors Investment Committee Corporate Officers Research Coverage Corporate Counsel MICHAEL AROUGHETI MARK AFFOLTER MICHAEL AROUGHETI BANK OF AMERICA SECURITIES KIRKLAND & ELLIS LLP Executive Vice President of Ares Capital Partner, U.S. Direct Lending Director and Executive
Slide 23: Reconciliations of GAAP Net Income Per Share to Core EPS
Reconciliations of GAAP Net Income Per Share to Core EPS The following are reconciliations of net income per share computed in accordance with GAAP to core earnings per share: For the Three Months Ended 9/30/25 6/30/25 3/31/25 12/31/24 9/30/24 GAAP net income per share(1) $ 0.57 $ 0.52 $ 0.36 $ 0.55
Slide 24: Endnotes
Endnotes 1) Per share amounts and weighted average shares outstanding are basic and diluted. The basic and diluted weighted average shares outstanding for the three months ended September 30, 2025, June 30, 2025, March 31, 2025, December 31, 2024 and September 30, 2024 were approximately 709 million
Slide 25: Endnotes (cont'd)
Endnotes (cont’d) 10) Excludes realized and unrealized gains (losses), incentive fee attributable to net realized and unrealized gains (losses) and income tax expense, including excise taxes. Fixed charges include interest and credit facility fees expense and amortization of debt issuance costs. 11)
Slide 26: Endnotes (cont'd)
Endnotes (cont’d) 21) The interest coverage ratio represents portfolio companies’ LTM EBITDA as a multiple of implied annualized cash interest expense based on the borrowing levels and market rates at quarter end. The portfolio weighted average interest coverage ratio is weighted based on the fair v
Slide 27: Endnotes (cont'd)
Endnotes (cont’d) 29) See Note 5 to Ares Capital’s consolidated financial statements included in the quarterly report on Form 10-Q for the quarter ended September 30, 2025 for more information regarding each of Ares Capital’s secured revolving facilities. 30) Excludes the subordinated notes issued b
Slide 28: Ares Capital Corporation
OD ARES ARES CAPITAL CORPORATION