Ares Capital Earnings Call Transcripts
Fiscal Year 2026
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Core earnings and ROE remained stable in Q2 2026, with strong portfolio performance and low non-accruals. Liquidity and capital flexibility were enhanced by new financing initiatives, while dividend stability is supported by spillover income and modest leverage.
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Core EPS of $0.47 and strong portfolio fundamentals marked a solid Q1, despite lower GAAP net income from unrealized losses. AI risk in the software portfolio is limited, with 85% of exposures deemed low risk, and liquidity remains robust at $6 billion.
Fiscal Year 2025
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Core EPS and ROE remained strong in 2025, with record originations and stable credit quality. Portfolio diversification, disciplined risk management, and robust liquidity support a positive outlook, even as the company monitors AI risks and market competition.
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Q3 2025 saw strong earnings, robust net realized gains, and continued NAV growth, with core EPS of $0.50 and GAAP EPS of $0.57. Portfolio quality remained high, non-accruals declined, and origination activity accelerated, supporting confidence in dividend sustainability.
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Stockholders approved the authorization to issue shares below NAV, with a quorum present and board support. One question addressed future offering eligibility, clarified as not currently planned. Forward-looking risks were noted.
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Core earnings remained stable at $0.50 per share with strong net realized gains and a growing portfolio. Liquidity and capital positions are robust, non-accruals remain low, and the outlook is positive with a healthy pipeline and dividend coverage.
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Q1 2025 saw strong core earnings, robust portfolio health, and continued dividend stability, despite lower GAAP net income and a challenging market. Liquidity and credit quality remain high, with management confident in navigating volatility and capitalizing on private credit opportunities.
Fiscal Year 2024
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Leadership transition announced with strong succession planning. Record NAV per share and robust origination activity marked 2024, despite lower net income per share due to declining yields. Credit quality remains strong, with non-accruals below historical averages and significant liquidity supporting future growth.
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Core earnings reached $0.58 per share and NAV hit a record $19.77, with strong portfolio growth and credit quality. Liquidity remains robust, and the dividend is well covered by earnings and spillover income. Management expects a more active deal environment in 2025.
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Core EPS rose to $0.61, with record NAV per share and robust portfolio growth. Non-accruals remain low, and liquidity is strong, supported by new capital raises and favorable financing. M&A activity and sponsor-driven deal flow accelerated, driving new originations.