Ares Capital's core profitability has deteriorated sharply, with net interest income collapsing to -$214M in 2026Q2 from $379M in 2024Q1, driving NIM to -0.7% and a 62% net income decline. The company's efficiency ratio spiked to 2.4%, and fee income swung to ...
Price trend, volume and key moving averages
Start with the evidence for owning the stock and the risks that can break the thesis.
Net interest income plunged 159.3% year-over-year to -$214M in 2026Q2, pushing NIM to -0.7% and net income down 62% from 2024Q1 levels.
ARCC's unmatched scale allows it to originate and structure deals that smaller competitors cannot, creating a durable competitive advantage. Its large portfolio of over 600 companies provides significant diversification, reducing idiosyncratic credit risk.
The company offers a compelling dividend yield, often exceeding 10%, supported by recurring cash flows from a diversified loan book. It is also seen as trading at an attractive valuation, sometimes below its net asset value (NAV), presenting an opportunity for income-focused investors.
ARCC is favorably positioned for a potential rise in interest rates, which is expected to enhance its net investment income due to its focus on first and second lien senior secured loans. The company has a 'spillover income' safety net and robust dividend coverage, mitigating concerns about dividend sustainability.
Trailing total returns as of 9/24/2026, which may include dividends or other distributions. Benchmark is S&P 500 (^GSPC).
Check whether operating performance supports the current valuation.
Recent results and news deserve attention only when they alter the forward view.
| Quarter | EPS (Act vs Est) | Revenue (Act vs Est) |
|---|---|---|
Q3 2026Latest Jul 29, 2026 | $0.47-0.7% vs $0.47 | $768M-0.3% vs $770M |
Q2 2026 Apr 28, 2026 | $0.47-2.6% vs $0.48 | $763M-1.9% vs $778M |
Q1 2026 Feb 4, 2026 | $0.50+0.0% vs $0.50 | $793M-0.0% vs $793M |
Q4 2025 Oct 28, 2025 | $0.50-0.6% vs $0.50 | $655M-14.7% vs $768M |
Turning a $910,000 rollover into a reliable monthly paycheck without buying an annuity sounds straightforward until you run the math and discover that hitting the yield target forces trade-offs most retirees never see coming.
Ares Capital (ARCC) has been one of the stocks most watched by Zacks.com users lately. So, it is worth exploring what lies ahead for the stock.
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Benchmark ARCC against direct peers instead of judging its metrics in isolation.
Key metrics vs top competitors for Ares Capital Corporation (ARCC)
| Company | Price | Market Cap | P/E Ratio | Rev Growth (1Y) | Net Margin | ROE | Div Yield |
|---|---|---|---|---|---|---|---|
| $19.15 | $13.75B | 10.30 | -11.83% | 57.94% | 9.39% | 9.44% | |
| $12.45 | $3.24B | 8.77 | 44.68% | 20.51% | 3.82% | — | |
| $10.95 | $5.43B | 8.83 | 62.44% | 20.43% | 3.95% | — | |
| $4.92 | $199.75M | 4.03 | 55.25% | 45.97% | 10.97% | — | |
| $16.97 | $3.18B | 9.17 | 28.6% | 66.09% | 17.21% | — | |
| $2.17 | $1.09B | -1.61 | -226.81% | 30.16% | 4.09% | — |
Ares Capital Corporation (ARCC) vs competitors — business, growth, and fundamentals comparison against the closest industry rivals.
Verify the primary filings, follow material updates, and answer the remaining questions.
Ares Capital Corporation (ARCC) SEC filings — annual & quarterly reports (10-K, 10-Q)
Jul 29, 2026·SEC
Jul 22, 2026·SEC
Jun 22, 2026·SEC
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Ares Capital Corporation (ARCC) stock FAQ — growth, dividends, profitability & financials explained
Ares Capital Corporation (ARCC) saw revenue decline by 11.8% over the past year.
Yes, Ares Capital Corporation (ARCC) is profitable, generating $960.0M in net income for fiscal year 2025 (57.9% net margin).
Yes, Ares Capital Corporation (ARCC) pays a dividend with a yield of 9.44%. This makes it attractive for income-focused investors.
Ares Capital Corporation (ARCC) has a return on equity (ROE) of 9.4%. This is below average, suggesting room for improvement.
Ares Capital Corporation (ARCC) has a net interest margin (NIM) of 4.6%. This indicates healthy earnings from lending activities.
Ares Capital Corporation (ARCC) has an efficiency ratio of 4.8%. This is excellent, indicating strong cost control.
