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Financial Data and Key Metrics Changes - The company reported stable core earnings of $0.50 per share, consistent with the prior quarter, representing an annualized return on equity of 10% [9] - GAAP net income per share was $0.52 for the quarter, compared to $0.36 in the prior quarter and $0.52 in the same quarter last year [18] - The total portfolio at fair value increased to $27.9 billion from $27.1 billion at the end of the previous quarter and up from $25 billion a year ago [19][26] Business Line Data and Key Metrics Changes - The company originated over $2.5 billion of new investment commitments, with incumbent borrowers accounting for 74% of commitments [25] - Net fundings of $644 million were more than double the prior quarter's level, contributing to a 3% quarter-over-quarter increase in the overall size of the portfolio at fair value [26] - The weighted average LTM EBITDA growth of portfolio companies was 13%, up from 12% last quarter [28] Market Data and Key Metrics Changes - The second quarter saw a temporary slowdown in transaction activity due to policy-driven volatility, but activity began to normalize later in the quarter [10][11] - Nearly three-quarters of gross commitments were from incumbent relationships, indicating a stabilizing force in the market [11] - The company is seeing transaction activity recovering to pre-tariff levels, with a healthy backlog of $2.6 billion as of July 24, 2025 [29] Company Strategy and Development Direction - The company aims to maintain its position as a valuable partner in varying market conditions, focusing on expanding commitments with existing borrowers while also exploring new opportunities [12][15] - The strategy includes being active across lower, core, and upper middle markets, with a notable focus on larger borrowers amid market uncertainty [13][14] - The company emphasizes portfolio diversification to mitigate risks from negative credit events [26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to navigate evolving market conditions and capitalize on emerging opportunities, despite a modest uptick in non-accruals [16][29] - The company is optimistic about the potential for increased transaction activity in the second half of the year, supported by a growing number of opportunities reviewed [12][29] - Management noted that the health of the portfolio remains strong, with borrower leverage levels below the five-year average [16][28] Other Important Information - The company declared a third-quarter dividend of $0.48 per share, marking the sixteenth consecutive year of stable or increasing regular dividends [23] - The company has a significant amount of dry powder, with liquidity totaling nearly $6.5 billion, positioning it well for future investments [22] Q&A Session Summary Question: Can you talk about any improvement in terms spreads and upfront fees? - Management noted that while there was some volatility in terms, spreads have stabilized over the last few quarters, with a mix of activity seen in the market [33][34] Question: Can you discuss the off-balance sheet vehicles and their growth potential? - Management indicated that both vehicles are strategically important and may grow from current levels [36][37] Question: How are you balancing leverage versus issuing new equity? - Management emphasized the importance of maintaining flexibility and noted that current leverage levels provide room to capitalize on market opportunities [41][42] Question: Can you provide insights on the increase in non-accruals? - Management acknowledged a slight increase in non-accruals but stated that it is not indicative of broader economic trends, attributing it to idiosyncratic factors [46][49] Question: What is the impact of tariffs on portfolio companies? - Management reported improved sentiment regarding the ability of portfolio companies to mitigate tariff impacts, with exposure now at a low single-digit percentage [80][82]

Financial Data and Key Metrics Changes - The company reported stable core earnings of $0.50 per share, consistent with the prior quarter, representing an annualized return on equity of 10% [8] - GAAP net income per share was $0.52 for Q2 2025, compared to $0.36 in the prior quarter and $0.52 in Q2 2024 [17] - The total portfolio at fair value increased to $27.9 billion from $27.1 billion at the end of Q1 2025 and from $25 billion a year ago [18] Business Line Data and Key Metrics Changes - The company originated over $2.5 billion of new investment commitments, with incumbent borrowers accounting for 74% of commitments [24] - Net fundings were $644 million, more than double the prior quarter's level, contributing to a 3% quarter-over-quarter increase in the overall size of the portfolio at fair value [25] - The weighted average LTM EBITDA growth of portfolio companies was 13%, up from 12% last quarter [27] Market Data and Key Metrics Changes - The second quarter saw a temporary slowdown in transaction activity due to policy-driven volatility, but activity began to rebuild towards the end of the quarter [10] - The company noted that June accounted for nearly half of the quarter's transaction activity, indicating potential momentum for the second half of the year [13] - The backlog as of July 24, 2025, stood at $2.6 billion, with total commitments for Q3 to date at $1.1 billion [29] Company Strategy and Development Direction - The company aims to maintain its position as a valuable partner in varying market conditions, leveraging its broad portfolio and extensive market relationships [11] - The focus remains on expanding commitments with existing borrowers while also growing presence among non-sponsored borrowers in targeted industries [12] - The company is strategically positioned to provide capital to larger borrowers, as demonstrated by its role in the largest private credit LBO on record with Dun and Bradstreet [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to navigate evolving market conditions and capitalize on emerging opportunities, citing a resilient business model [16] - The company is optimistic about the normalization of transaction activity and the consistency of core earnings exceeding the dividend [29] - Management noted that the overall health of the portfolio remains strong, with borrower leverage levels below the five-year average [15] Other Important Information - The company has maintained stable or increasing regular quarterly dividends for 64 consecutive quarters, with a declared Q3 2025 dividend of $0.48 per share [22] - The company estimates a taxable income spillover of $878 million or $1.29 per share available for distribution to stockholders in 2025 [22] Q&A Session Summary Question: Can you talk about any improvement in terms spreads and upfront fees? - Management noted that while there was some volatility in terms, spreads have stabilized over the last several quarters, with a mix of activity seen in the market [33][34] Question: Can you discuss the ability to expand off-balance sheet vehicles like SDLP and Ivy Hill? - Management indicated that both vehicles are strategically important and may grow from current levels [36] Question: How are you balancing leverage versus issuing new equity? - Management emphasized the importance of maintaining flexibility and noted that current leverage levels provide room to capitalize on future opportunities [40][41] Question: Can you provide insight into the increase in non-accruals? - Management acknowledged a slight uptick in non-accruals but emphasized that these are idiosyncratic cases and not indicative of broader trends [46][48] Question: What is the impact of tariffs on portfolio companies? - Management reported improved sentiment regarding tariff impacts, with a reduction in high-risk names in the portfolio [80][82]

Financial Performance - GAAP Net Income Per Share for Q2 2025 was $052, matching Q2 2024, but up from $036 in Q1 2025[12] - Core EPS for Q2 2025 was $050, consistent with Q1 2025, but down from $061 in Q2 2024[12] - Net Investment Income Per Share for Q2 2025 was $049, down from $054 in Q1 2025 and $062 in Q2 2024[12] - Net Asset Value Per Share increased to $1990 in Q2 2025, compared to $1982 in Q1 2025 and $1961 in Q2 2024[12] - Investment income for the three months ended June 30, 2025, was $745 million, compared to $732 million for the three months ended March 31, 2025[23] Portfolio Composition and Activity - Total Fair Value of Investments reached $27886 million in Q2 2025, up from $27130 million in Q1 2025 and $24973 million in Q2 2024[13] - Gross Commitments were $2573 million in Q2 2025, lower than $3453 million in Q1 2025 and $3857 million in Q2 2024[13] - Exits of Commitments were $1963 million in Q2 2025, compared to $2857 million in Q1 2025 and $1376 million in Q2 2024[13] - First Lien Senior Secured Loans constituted 59% of the portfolio at fair value as of June 30, 2025[19] - As of July 24, 2025, Ares Capital had a backlog of approximately $26 billion[68]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ý QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____ to _____ Commission File No. 814-00663 ARES CAPITAL CORPORATION (Exact name of Registrant as specified in its charter) (State or other jurisdiction of (I.R.S. Emplo ...

Exhibit 99.1 ARES CAPITAL CORPORATION ANNOUNCES JUNE 30, 2025 FINANCIAL RESULTS AND DECLARES THIRD QUARTER 2025 DIVIDEND OF $0.48 PER SHARE DIVIDEND DECLARATIONS New York, NY — July 29, 2025 — Ares Capital Corporation ("Ares Capital") (NASDAQ: ARCC) announced that its Board of Directors has declared a third quarter 2025 dividend of $0.48 per share. The third quarter 2025 dividend is payable on September 30, 2025 to stockholders of record as of September 15, 2025. JUNE 30, 2025 FINANCIAL RESULTS Ares Capital ...

Core Insights - Ares Capital (ARCC) is expected to report quarterly earnings of $0.51 per share, reflecting a decline of 16.4% year-over-year, with revenues forecasted at $746.71 million, a decrease of 1.1% compared to the previous year [1] - The consensus EPS estimate has remained unchanged over the past 30 days, indicating analysts' reassessment of their projections [1][2] Earnings Estimates - Analysts project 'Dividend income' to be $143.98 million, slightly up from $143.00 million reported in the same quarter last year [4] - 'Other Income' is estimated at $16.80 million, compared to $15.00 million in the same quarter of the previous year [4] - 'Capital Structuring Service Fees' are expected to reach $46.86 million, down from $58.00 million year-over-year [5] - 'Interest Income from Investments' is projected at $536.84 million, slightly lower than the $539.00 million reported in the same quarter last year [5] Market Performance - Ares Capital shares have increased by 7% over the past month, outperforming the Zacks S&P 500 composite, which rose by 5.7% [5] - The company holds a Zacks Rank 4 (Sell), indicating expectations of underperformance relative to the overall market in the near future [5]

Core Viewpoint - Ares Capital (ARCC) is highlighted as a compelling investment opportunity due to its high dividend yield, strong market position, and attractive valuation, especially while trading below $25 [1]. Group 1: Dividend Performance - Ares Capital offers a substantial dividend yield of 8.36%, with an average yield of 9.32% over the past decade [3][4]. - The company has maintained or increased its dividend for over 15 consecutive years, with a 20% increase in the dividend payout over the last five years [3][4]. Group 2: Market Growth - The business development company (BDC) sector, where Ares Capital operates, is experiencing rapid growth, particularly in direct lending to middle-market businesses with annual revenues between $10 million and $1 billion [5][6]. - The private credit market has nearly tripled to around $2 trillion over the last decade, with projections suggesting it could grow to $2.8 trillion by 2028 [6]. Group 3: Industry Leadership - Ares Capital is the largest publicly traded BDC in the U.S., with a market capitalization close to $16 billion [8]. - The company has delivered an average annual total return of 13% since its IPO in 2004, significantly outperforming the S&P 500 [8]. - Ares Capital's portfolio consists of 566 companies valued at $27.1 billion, with a focus on senior secured loans, which make up approximately 68% of the portfolio [9]. Group 4: Valuation - Ares Capital's forward price-to-earnings ratio is 11.3, about half that of the S&P 500, indicating a compelling valuation relative to its growth potential and dividend yield [12].

Group 1 - Business Development Companies (BDCs) are attractive to investors due to their potential for double-digit dividend yields alongside value stability or gradual growth [1] - Theoretically, if BDCs can maintain approximately 10% distributions without structural price or Net Asset Value (NAV) decay, they present a compelling investment opportunity [1] Group 2 - Roberts Berzins has over a decade of experience in financial management, aiding top-tier corporates in shaping financial strategies and executing large-scale financings [1] - Berzins has contributed to institutionalizing the Real Estate Investment Trust (REIT) framework in Latvia to enhance liquidity in pan-Baltic capital markets [1] - His policy-level work includes developing national State-Owned Enterprise (SOE) financing guidelines and frameworks to channel private capital into affordable housing [1]

Group 1 - Samuel Smith has extensive experience in dividend stock research and investment, having served as lead analyst and Vice President at notable firms [1] - He is a Professional Engineer and Project Management Professional with degrees in Civil Engineering & Mathematics and a Master's in Engineering focused on applied mathematics and machine learning [1] - Samuel leads the High Yield Investor investing group, collaborating with Jussi Askola and Paul R. Drake to balance safety, growth, yield, and value in investment strategies [2] Group 2 - High Yield Investor provides real-money core, retirement, and international portfolios, along with regular trade alerts and educational content for investors [2] - The service includes an active chat room for like-minded investors to share insights and strategies [2]