Q2 2026 Earnings Show NAV Decline, Lower EPS Year-Over-Year Amid Unrealized Losses
ARCC is trading near its 52-week low of $17.4 (9.1% above the low).
Summary
Ares Capital reported Q2 2026 earnings with a notable year-over-year decline in net income per share and a decrease in NAV, driven by unrealized investment losses and some non-accrual loans.
Key Events · Earnings and Guidance · ARCC
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Net Income Per Share Declines Year-over-Year
Net income per common share for Q2 2026 was $0.24, an increase from $0.13 in Q1 2026, but significantly lower than $0.52 reported in Q2 2025.
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Net Asset Value (NAV) Per Share Decreases
NAV per share decreased to $19.35 as of June 30, 2026, from $19.94 at December 31, 2025.
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Ongoing Unrealized Losses on Investments
The company recorded net unrealized losses of $183 million for the three months ended June 30, 2026, contributing to $595 million in net unrealized losses for the six months ended June 30, 2026.
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Loans on Non-Accrual Status
Several loans were identified as being on non-accrual status as of June 30, 2026, indicating potential credit quality concerns within the portfolio.
Analysis · ARCC · Unknown
Ares Capital's Q2 2026 results show a continued decline in Net Asset Value (NAV) per share and a significant year-over-year drop in net income per share, indicating ongoing challenges in its investment portfolio. While net income per share improved from Q1 2026, the overall trend reflects pressure from unrealized losses and non-accrual loans. The company maintains substantial unfunded commitments, highlighting future capital deployment potential but also potential risk if credit quality deteriorates further.
At the time of this filing, ARCC was trading at $18.99 on NASDAQ in the Unknown sector, with a market capitalization of approximately $13.7B. The 52-week trading range was $17.40 to $23.12. This filing was assessed with negative market sentiment and an importance score of 7 out of 10.