Ares Capital earnings fell short of analyst estimates in the third quarter of 2026, with GAAP net income of $0.44 per share against an estimate of $0.47. The middle-market lender also declared an unchanged dividend of $0.48 per share.

Key Takeaways

  • Net investment income declined to $328 million from $338 million a year earlier.
  • CEO Kort Schnabel said slower transaction activity led to a more measured pace of originations.
  • The investment backlog stood at approximately $2.5 billion, up meaningfully from the prior quarter.

Ares Capital earnings decline from a year earlier

For the quarter ended September 30, GAAP earnings per share and core earnings per share both declined from the third quarter of 2025. Core EPS is a separate measure from GAAP net income per share.

Ares Capital provides financing to middle-market companies, investing in instruments including senior secured loans, subordinated debt and equity. The company released its quarterly results on October 27.

ItemDetails
GAAP net income per shareQ3 2026: $0.44; Q3 2025: $0.57
Core EPSQ3 2026: $0.46; Q3 2025: $0.50
Net investment incomeQ3 2026: $328 million; Q3 2025: $338 million

Slower originations and a larger backlog

Schnabel said slower transaction activity led to a more measured pace of originations during the quarter, while the investment backlog increased meaningfully from the preceding quarter. A backlog represents potential investment activity, not completed investments.

The CEO also described credit quality as stable and said levels of non-accruing loans and problem assets were historically low. Floating-rate securities represented 70% of the portfolio.

At September 30, total assets were $30.596 billion, down from $31.235 billion at the end of 2025. Stockholder equity fell to $13.946 billion from $14.318 billion over the same period.

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