Ares Capital Corporation(ARCC)

$20.13—

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Ares Capital Corporation(ARCC)

NASDAQ

$20.13—

Chart Studio

ARCC(ARCC)

ARCC

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8/14/26

ARES CAPITAL (ARCC)

Friday

10:08 AM

Thesis: The narrative is shifting positively due to strong performance metrics from portfolio companies and strategic expansion into new markets, indicating robust growth potential.

Revenue Outlook

Metric	FY2025	FY2026E	FY2027E
Revenue	$2.2B	$3.1B	$3.2B
Rev. Growth	-5.3%	+38.1%	+3.1%
EPS	$1.86	$1.91	$1.93
EPS Growth	-23.8%	+2.4%	+1.4%
P/E (fwd)	10.9×	10.6×	10.4×

★ Analysts see FY2026 revenue reaching $3.1B — +38.1% growth in a single year.

Why Revenue Could Explode

1ARCC's recent expansion into European middle-market lending could increase its addressable market by 20%, enhancing growth prospects.
2A significant increase in portfolio company revenues, averaging 15% YoY, indicates strong underlying business performance.
3Potential regulatory changes could allow for increased leverage, enhancing returns on equity.
4A recent uptick in middle-market M&A activity, up 30% YoY, could lead to increased deal flow for ARCC.
5Increased demand for middle-market financing as economic recovery accelerates
6Growth in private equity investments in the wake of rising interest rates
7Changes in interest rates impacting net interest margins
8Credit market conditions affecting borrowing costs and default rates

FY2025 Snapshot

Revenue: $2.2B
Rev. Growth: -5.3%
Gross Margin: 67.2%
Op. Margin: 62.4%
Net Margin: 57.9%
Net Income: $1.3B
NI Growth: -14.7%
EPS: $1.86
1Y Return: -0.9%

ARCC Chart

My Notes

"Management noted, 'Our diversified portfolio and strategic market expansions position us well for continued growth.'"
Moat: ARCC's established reputation and extensive network provide a durable competitive advantage in sourcing high-quality deals.
dividend - ARCC offers attractive dividend yields, appealing to income-focused investors.
Rising interest rates can enhance ARCC's net interest margins, but they may also increase borrowing costs for its portfolio companies…
Watch on earnings: High Yield Credit Spreads (BAMLH0A0HYM2), Federal Funds Rate (FEDFUNDS), Net Asset Value (NAV) per share.

One Sentence Summary:

The bull case is simple: analysts see revenue climbing from $3.1B to $3.2B as arcc's recent expansion into european middle-market lending could increase its addressable market by 20%.

Auto-composed from Stock Alarm intelligence, financial statements, and analyst estimates. Not investment advice.

Writing up the research note…

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Metric

FY2025

FY2026E

FY2027E

P/E (fwd)

10.9×

10.6×

10.4×

Why Revenue Could Explode

1ARCC's recent expansion into European middle-market lending could increase its addressable market by 20%, enhancing growth prospects.

2A significant increase in portfolio company revenues, averaging 15% YoY, indicates strong underlying business performance.

3Potential regulatory changes could allow for increased leverage, enhancing returns on equity.

4A recent uptick in middle-market M&A activity, up 30% YoY, could lead to increased deal flow for ARCC.

5Increased demand for middle-market financing as economic recovery accelerates

6Growth in private equity investments in the wake of rising interest rates

7Changes in interest rates impacting net interest margins

8Credit market conditions affecting borrowing costs and default rates

My Notes

"Management noted, 'Our diversified portfolio and strategic market expansions position us well for continued growth.'"

Moat: ARCC's established reputation and extensive network provide a durable competitive advantage in sourcing high-quality deals.

dividend - ARCC offers attractive dividend yields, appealing to income-focused investors.

Rising interest rates can enhance ARCC's net interest margins, but they may also increase borrowing costs for its portfolio companies…

Watch on earnings: High Yield Credit Spreads (BAMLH0A0HYM2), Federal Funds Rate (FEDFUNDS), Net Asset Value (NAV) per share.