The Core EPS miss and rising non-accruals (2.1% vs 1.8%) are modest negatives, but net investment income growth and stable dividend support the BDC thesis. Watch the Q2 earnings call for color on unrealized losses and credit quality trends in the portfolio.
Price Chart
Executive Summary
ARCC reported Q1 2026 Core EPS of $0.47, slightly below the $0.50 in Q1 2025 and the $0.48 Street consensus, while net investment income grew to $398M from $365M YoY. The dividend was maintained at $0.48 per share, but a large $412M net unrealized loss drove GAAP net income down sharply to $0.13 per share from $0.36 a year ago, and net asset value per share fell to $19.59 from $19.94.
Key Financial Metrics
Key Facts
- Core EPS of $0.47 vs $0.48 consensus (miss of ~2.1%) and down from $0.50 in Q1 2025
- Net investment income rose to $398M ($0.55/share) from $365M ($0.54/share) YoY
- GAAP net income plunged to $92M ($0.13/share) from $241M ($0.36/share) due to $412M net unrealized losses on investments
- Net asset value per share declined to $19.59 from $19.94 at year-end 2025
- Dividend maintained at $0.48 per share for Q2 2026, payable June 30
- Non-accruals as a percentage of total investments at amortized cost rose to 2.1% from 1.8% at year-end 2025
- Portfolio investments at fair value held roughly flat at $29.5B vs $29.5B at year-end 2025
- SMBC Funding Facility expanded from $1.1B to $1.6B total commitment with improved pricing
Financial Impact
Core EPS $0.47 vs $0.48 consensus (miss of ~$0.01); net investment income $398M vs $365M YoY; GAAP net income $92M vs $241M YoY
Risk Factors
- Further unrealized losses could pressure NAV and GAAP earnings
- Rising non-accruals (2.1% of portfolio at cost) signal potential credit deterioration
- Interest rate sensitivity: 71% floating-rate portfolio could see income decline if rates fall
- Core EPS below dividend ($0.47 vs $0.48) may raise sustainability questions over time
Market Snapshot
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001628280-26-027685 |
| Document: arcc-20260428.htm | 0001628280-26-027685 |
| Document: 0001628280-26-027685-index-headers.html | 0001628280-26-027685 |
| Document: 0001628280-26-027685-index.html | 0001628280-26-027685 |
| Document: 0001628280-26-027685.txt | 0001628280-26-027685 |
| 8-K Data (Synthetic) | 0001628280-26-027685 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Aug 9, 2026 7w ago | Institutional Cluster | $19.98 $19.74 | ▼ −1.23% | ▼ −0.31% | $18.86 (−5.61%) |
Jul 22, 2026 10w ago | 8-K | $18.61 $19.78 | ▲ +6.29% | ▲ +2.98% | $18.86 (+1.34%) |
Jun 22, 2026 14w ago | 8-K | $17.89 $18.98 | ▲ +6.09% | ▲ +4.93% | $18.86 (+5.42%) |
Jun 6, 2026 16w ago | 8-K | $18.77 $18.56 | ▼ −1.12% | ▼ −2.75% | $18.86 (+0.48%) |
May 26, 2026 18w ago | 8-K | $18.82 $18.05 | ▼ −4.09% | ▼ −2.14% | $18.86 (+0.21%) |
May 15, 2026 20w ago | DEFA14A | $18.72 $18.62 | ▼ −0.53% | ▼ −2.12% | $18.86 (+0.75%) |
May 15, 2026 20w ago | DEFA14A | $18.72 $18.62 | ▼ −0.53% | ▼ −2.12% | $18.86 (+0.75%) |
May 11, 2026 20w ago | 8-K | $18.77 $18.57 | ▼ −1.09% | ▲ +0.64% | $18.86 (+0.48%) |
Apr 28, 2026 22w ago | 8-K | $18.67 $18.86 | ▲ +1.02% | ▼ −4.44% | $18.86 (+1.02%) |
Apr 28, 2026 22w ago | 8-K | $18.92 $18.86 | ▼ −0.32% | ▼ −5.77% | $18.86 (−0.32%) |
US Market Status
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