Ares Capital Corporation (ARCC) Cash Flow Statement
Where ARCC’s cash came from and went, 2025
December 31, 2025 · U.S. dollars- Cash from operations
- $1.14B −10.9% vs 2024
- Capital expenditures
- $0 0.0% of revenue
- Free cash flow
- $1.14B 50.9% margin
- Returned to shareholders
- $1.26B 111% of free cash flow
- Change in cash
- $64.0M cash at year-end $924.0M
Drawn to scale: where the cash came from and how it was used. Hover for values.
ARCC operating cash flow, capex and free cash flow
ARCC cash flow trends, 2016–2025
| Metric | Trend | Then | Latest | Change |
|---|---|---|---|---|
| Operating cash flow | $707.0M2016 | $1.14B2025 | +5.5%/yr | |
| Capital expenditures | $02016 | $02025 | — | |
| Free cash flow | $707.0M2016 | $1.14B2025 | +5.5%/yr | |
| Free cash flow margin | 95.9%2016 | 50.9%2025 | −45.0 pts | |
| Operating cash flow / net income | 1.492016 | 0.882025 | −0.61 | |
| Dividends paid | $477.0M2016 | $1.26B2025 | +11.4%/yr | |
| Share buybacks (net) | $5.0M2016 | $02023 | −100.0% | |
| Capex / revenue | 0.0%2016 | 0.0%2025 | 0.0 pts |
Change is the average annual growth (CAGR) or the difference between the first and latest year.
ARCC cash flow by activity
ARCC net income vs operating cash flow
Operating cash flow above net income usually means earnings are backed by cash (depreciation and stock-based pay are non-cash expenses).
ARCC cash flow statement
| 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating activities | ||||||||||
| Net income | $1.30B | $1.52B | $1.52B | $600.0M | $1.57B | $484.0M | $793.0M | $858.0M | $667.0M | $474.0M |
| Depreciation & amortization | $34.0M | $27.0M | $26.0M | $26.0M | $29.0M | $23.0M | $18.0M | $18.0M | $1.0M | $1.0M |
| Change in working capital | −$82.0M | $190.0M | $31.0M | −$147.0M | $208.0M | $78.0M | −$39.0M | $16.0M | $3.0M | −$2.0M |
| Other non-cash items | −$109.0M | −$457.0M | −$579.0M | −$1.84B | −$4.26B | −$1.14B | −$1.98B | −$226.0M | −$2.54B | $234.0M |
| Cash from operating activities | $1.14B | $1.28B | $1.00B | −$1.36B | −$2.46B | −$557.0M | −$1.21B | $666.0M | −$1.87B | $707.0M |
| Investing activities | ||||||||||
| Capital expenditures | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Acquisitions & other investing | −$2.86B | −$3.41B | −$489.0M | −$2.10B | −$3.39B | −$1.29B | −$1.89B | −$362.0M | −$182.0M | $236.0M |
| Cash from investing activities | −$2.86B | −$3.41B | −$489.0M | −$2.10B | −$3.39B | −$1.29B | −$1.89B | −$362.0M | −$182.0M | $236.0M |
| Financing activities | ||||||||||
| Dividends paid | −$1.26B | −$1.14B | −$1.03B | −$912.0M | −$694.0M | −$679.0M | −$694.0M | −$656.0M | −$642.0M | −$477.0M |
| Share repurchases & issuance (net) | — | — | $6.44B | $1.00B | $0 | −$100.0M | $64.0M | $0 | $0 | −$5.0M |
| Net borrowing (repayment) | $2.16B | $2.26B | −$388.0M | $1.12B | $2.56B | $1.52B | $1.75B | $351.0M | $981.0M | −$249.0M |
| Shares issued | $928.0M | $1.36B | $1.11B | $1.00B | $819.0M | $4.0M | $64.0M | $0 | $0 | $0 |
| Other financing | −$45.0M | −$59.0M | −$6.41B | −$996.0M | −$64.0M | −$37.0M | −$98.0M | −$19.0M | $1.80B | −$10.0M |
| Cash from financing activities | $1.78B | $2.42B | −$284.0M | $1.21B | $2.62B | $707.0M | $1.09B | −$324.0M | $2.14B | −$741.0M |
| Summary | ||||||||||
| Net change in cash | $64.0M | $296.0M | $227.0M | −$149.0M | $160.0M | $150.0M | −$120.0M | −$20.0M | $93.0M | −$34.0M |
| Cash at end of period | $924.0M | $860.0M | $564.0M | $337.0M | $486.0M | $326.0M | $176.0M | $296.0M | $316.0M | $223.0M |
| Free cash flow | $1.14B | $1.28B | $1.00B | −$1.36B | −$2.46B | −$557.0M | −$1.21B | $666.0M | −$1.87B | $707.0M |
| Free cash flow margin | 50.9% | 54.2% | 48.0% | −113.6% | −146.5% | −103.0% | −146.8% | 75.8% | −191.6% | 95.9% |
| Capex / revenue | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| Operating cash flow / net income | 0.88 | 0.84 | 0.66 | −2.27 | −1.57 | −1.15 | −1.53 | 0.78 | −2.80 | 1.49 |
| Jun '26 | Mar '26 | Dec '25 | Sep '25 | Jun '25 | Mar '25 | Dec '24 | Sep '24 | Jun '24 | Mar '24 | Dec '23 | Sep '23 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating activities | ||||||||||||
| Net income | $171.0M | $92.0M | $293.0M | $404.0M | $361.0M | $241.0M | $357.0M | $394.0M | $322.0M | $449.0M | $413.0M | $500.0M |
| Depreciation & amortization | $10.0M | $10.0M | — | $25.0M | $8.0M | $8.0M | — | $7.0M | $7.0M | $6.0M | $6.0M | $7.0M |
| Change in working capital | $34.0M | −$239.0M | −$38.0M | −$16.0M | $101.0M | −$129.0M | $112.0M | $36.0M | $18.0M | −$5.0M | $53.0M | $58.0M |
| Other non-cash items | $121.0M | $251.0M | −$7.0M | −$48.0M | −$123.0M | $62.0M | −$59.0M | −$100.0M | −$33.0M | −$229.0M | −$170.0M | −$519.0M |
| Cash from operating activities | $336.0M | $114.0M | $248.0M | $365.0M | $347.0M | $182.0M | $410.0M | $337.0M | $314.0M | $221.0M | $302.0M | $46.0M |
| Investing activities | ||||||||||||
| Capital expenditures | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Acquisitions & other investing | $3.0M | $70.0M | −$675.0M | −$1.14B | −$565.0M | −$481.0M | −$678.0M | −$858.0M | −$1.63B | −$242.0M | −$661.0M | −$234.0M |
| Cash from investing activities | $3.0M | $70.0M | −$675.0M | −$1.14B | −$565.0M | −$481.0M | −$678.0M | −$858.0M | −$1.63B | −$242.0M | −$661.0M | −$234.0M |
| Financing activities | ||||||||||||
| Dividends paid | −$345.0M | −$345.0M | −$319.0M | −$320.0M | −$317.0M | −$308.0M | −$303.0M | −$287.0M | −$279.0M | −$270.0M | −$263.0M | −$254.0M |
| Net borrowing (repayment) | −$4.0M | −$97.0M | $394.0M | $1.49B | $158.0M | $116.0M | $300.0M | $454.0M | — | — | — | $150.0M |
| Shares issued | $0 | $0 | $22.0M | $204.0M | $318.0M | $384.0M | $528.0M | $302.0M | $449.0M | $85.0M | $236.0M | $215.0M |
| Other financing | −$18.0M | −$11.0M | $0 | −$15.0M | −$19.0M | −$11.0M | −$21.0M | −$5.0M | $1.25B | $219.0M | $345.0M | −$5.0M |
| Cash from financing activities | −$367.0M | −$453.0M | $97.0M | $1.36B | $140.0M | $181.0M | $504.0M | $464.0M | $1.42B | $34.0M | $318.0M | $106.0M |
| Summary | ||||||||||||
| Net change in cash | −$31.0M | −$269.0M | −$330.0M | $590.0M | −$78.0M | −$118.0M | $236.0M | −$57.0M | $104.0M | $13.0M | −$41.0M | $152.0M |
| Cash at end of period | $624.0M | $655.0M | $924.0M | $1.25B | $664.0M | $742.0M | $860.0M | $624.0M | $681.0M | $577.0M | $564.0M | $605.0M |
| Free cash flow | $336.0M | $114.0M | $248.0M | $365.0M | $347.0M | $182.0M | $410.0M | $337.0M | $314.0M | $221.0M | $302.0M | $46.0M |
| Free cash flow margin | 43.8% | 32.7% | 45.9% | 55.7% | 59.9% | 40.8% | 72.3% | 55.0% | 59.0% | 34.6% | 51.4% | 7.0% |
| Capex / revenue | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| Operating cash flow / net income | 1.96 | 1.24 | 0.85 | 0.90 | 0.96 | 0.76 | 1.15 | 0.86 | 0.98 | 0.49 | 0.73 | 0.09 |
Negative numbers are cash paid out. Quarterly columns are labeled by the month the quarter ended. Figures in U.S. dollars as reported; data from EODHD.
ARCC cash generation
In fiscal 2025 (ended December 31, 2025), Ares Capital generated $1.1 billion of cash from operations (down 10.9%) and spent $0 on capital expenditures, leaving free cash flow of $1.1 billion, 50.9% of revenue. It returned $1.3 billion to shareholders through dividends ($1.3 billion) and net share buybacks ($0). Cash and equivalents rose by $64.0 million over the year.
Related: ARCC income statement, ARCC balance sheet, ARCC dividend history. See the ARCC stock overview for the latest quote and news.
ARCC cash flow FAQ
What is Ares Capital's free cash flow?
Ares Capital's free cash flow was $1.1 billion in fiscal 2025: $1.1 billion of operating cash flow minus $0 of capital expenditures It was $1.3 billion a year earlier..
How much cash does Ares Capital generate from operations?
Ares Capital generated $1.1 billion of cash from operating activities in fiscal 2025, 0.88 times its net income of $1.3 billion.
How much does Ares Capital pay in dividends?
Ares Capital paid $1.3 billion in dividends in fiscal 2025, 110.7% of free cash flow.