Cardiff Oncology shares plunge after Q2 earnings miss
NEW YORK - Ares Capital Corporation (NASDAQ:ARCC) reported second quarter 2025 earnings that fell short of analyst expectations on Tuesday.
The company’s shares slipped 0.22% in pre-market trading following the announcement.
The business development company posted core earnings per share of $0.50 for the quarter, missing the analyst consensus of $0.51. Total (EPA:TTEF) investment income came in at $745 million, slightly below the consensus estimate of $748.83 million. Revenue was down compared to the $755 million reported in the same quarter last year.
Despite the earnings miss, Ares Capital maintained its quarterly dividend at $0.48 per share for the third quarter of 2025, payable on September 30 to stockholders of record as of September 15.
"We reported another solid quarter with strong levels of core earnings and growth in our net asset value reflecting the positioning and performance of our investment portfolio," said Kort Schnabel, Chief Executive Officer of Ares Capital. "Looking forward, we are seeing a pickup in market transaction activity, and we believe we are well positioned to benefit due to our deep relationships and extensive market coverage."
During the quarter, Ares Capital made new investment commitments of approximately $2.6 billion, of which about $2.0 billion were funded. The company exited approximately $2.0 billion of investment commitments in the same period.
The company continued to strengthen its capital position, with Scott Lem, Chief Financial Officer, noting: "With approximately $6.5 billion of available liquidity, pro-forma for our post-quarter end financing activities, our balance sheet continues to support the growth of our existing portfolio companies and enables us to be proactive across the direct lending market."
As of June 30, 2025, Ares Capital had $447 million in cash and cash equivalents and $14.1 billion in total aggregate principal amount of debt outstanding.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.