← Hercules Capital overview

Hercules Capital vs Ares Capital: why the prices moved differently

Weekly · monthly · quarterly news summaries, side by side in time

Hercules Capital, Inc. (HTGC)

Q3 2026
▲2

Hercules Delivers Record Quarter, Raises Payout, Keeps Funding Growth

  • Record Q2 results and dividend increase Hercules reported record second-quarter originations, revenue of $149.1 million and net income of $130.2 million, and raised its regular quarterly dividend to $0.47 plus a $0.07 supplemental payout. Strong earnings and more cash returned to shareholders support the stock.

    This is the core positive fundamental driver of the period.

  • Two large note offerings raise debt costs Hercules priced $325 million of 6.300% notes due 2031 and an upsized $400 million of 6.70% notes due 2029, mainly to repay existing borrowings and fund investments. More debt at higher rates lifts interest expense, but extends maturities and supports lending capacity.

    These financings are the main capital-structure events and carry both risk and benefit.

  • New and expanded loan commitments Hercules provided a $50 million term loan to Dyne Therapeutics with options for more, and is part of the debt financing for Capitolis' $220 million raise. New commitments generate fee income and grow the portfolio, though they also add credit exposure.

    Shows the origination pipeline that powers Hercules' earnings.

  • Analyst estimates point to flat near-term EPS Ahead of earnings, analysts expect $0.49 per share, flat versus a year ago, on revenue of $142.2 million. The stock slipped 1.25% that day and carries a Hold rank, a reminder that growth may pause even after a strong quarter.

    Provides the main counterweight to the bullish record-quarter narrative.

August 2026
▲2

Hercules Delivers Record Quarter, Raises Payout, Keeps Funding Growth

  • Record Q2 results and dividend increase Hercules reported record second-quarter originations, revenue of $149.1 million and net income of $130.2 million, and raised its regular quarterly dividend to $0.47 plus a $0.07 supplemental payout. Strong earnings and more cash returned to shareholders support the stock.

    This is the core positive fundamental driver of the period.

  • Two large note offerings raise debt costs Hercules priced $325 million of 6.300% notes due 2031 and an upsized $400 million of 6.70% notes due 2029, mainly to repay existing borrowings and fund investments. More debt at higher rates lifts interest expense, but extends maturities and supports lending capacity.

    These financings are the main capital-structure events and carry both risk and benefit.

  • New and expanded loan commitments Hercules provided a $50 million term loan to Dyne Therapeutics with options for more, and is part of the debt financing for Capitolis' $220 million raise. New commitments generate fee income and grow the portfolio, though they also add credit exposure.

    Shows the origination pipeline that powers Hercules' earnings.

  • Analyst estimates point to flat near-term EPS Ahead of earnings, analysts expect $0.49 per share, flat versus a year ago, on revenue of $142.2 million. The stock slipped 1.25% that day and carries a Hold rank, a reminder that growth may pause even after a strong quarter.

    Provides the main counterweight to the bullish record-quarter narrative.

Latest
▲2

Hercules Delivers Record Quarter, Raises Payout, Keeps Funding Growth

  • Record Q2 results and dividend increase Hercules reported record second-quarter originations, revenue of $149.1 million and net income of $130.2 million, and raised its regular quarterly dividend to $0.47 plus a $0.07 supplemental payout. Strong earnings and more cash returned to shareholders support the stock.

    This is the core positive fundamental driver of the period.

  • Two large note offerings raise debt costs Hercules priced $325 million of 6.300% notes due 2031 and an upsized $400 million of 6.70% notes due 2029, mainly to repay existing borrowings and fund investments. More debt at higher rates lifts interest expense, but extends maturities and supports lending capacity.

    These financings are the main capital-structure events and carry both risk and benefit.

  • New and expanded loan commitments Hercules provided a $50 million term loan to Dyne Therapeutics with options for more, and is part of the debt financing for Capitolis' $220 million raise. New commitments generate fee income and grow the portfolio, though they also add credit exposure.

    Shows the origination pipeline that powers Hercules' earnings.

  • Analyst estimates point to flat near-term EPS Ahead of earnings, analysts expect $0.49 per share, flat versus a year ago, on revenue of $142.2 million. The stock slipped 1.25% that day and carries a Hold rank, a reminder that growth may pause even after a strong quarter.

    Provides the main counterweight to the bullish record-quarter narrative.

Ares Capital Corporation (ARCC)

Q3 2026
▼3

Private credit stress tests ARCC's dividend as defaults rise

  • Rising non-accruals and dividend coverage gap Loans not paying interest rose to 2.4% of the portfolio from 1.8%, and core earnings of $0.47 fell short of the $0.48 dividend. That makes the payout less safe and pressures ARCC's price.

    This is the core new credit-quality deterioration directly threatening ARCC's dividend.

  • Record private credit defaults and sector dividend cuts Private credit defaults hit a record 6%, and peer Blue Owl cut its dividend. This raises fears ARCC may follow, weighing on its shares even though ARCC kept its own dividend steady.

    Sector-wide default record and a peer dividend cut are new negative signals for ARCC's payout.

  • Falling loan rates squeeze income ARCC's average loan rate dropped to 10.3% from higher levels, and peers show similar declines. Lower rates mean less interest income, making it harder to cover the dividend and pressuring the stock.

    Declining portfolio yield is a new earnings headwind for ARCC.

  • New $750M bond issue at higher cost ARCC priced $750 million of 6.250% notes due 2033 to repay bank debt. It locks in higher borrowing costs but extends maturities and keeps liquidity strong, so the effect on the stock is mixed.

    This new financing event affects ARCC's capital costs and liquidity.

August 2026
▼3

Private credit stress tests ARCC's dividend as defaults rise

  • Rising non-accruals and dividend coverage gap Loans not paying interest rose to 2.4% of the portfolio from 1.8%, and core earnings of $0.47 fell short of the $0.48 dividend. That makes the payout less safe and pressures ARCC's price.

    This is the core new credit-quality deterioration directly threatening ARCC's dividend.

  • Record private credit defaults and sector dividend cuts Private credit defaults hit a record 6%, and peer Blue Owl cut its dividend. This raises fears ARCC may follow, weighing on its shares even though ARCC kept its own dividend steady.

    Sector-wide default record and a peer dividend cut are new negative signals for ARCC's payout.

  • Falling loan rates squeeze income ARCC's average loan rate dropped to 10.3% from higher levels, and peers show similar declines. Lower rates mean less interest income, making it harder to cover the dividend and pressuring the stock.

    Declining portfolio yield is a new earnings headwind for ARCC.

  • New $750M bond issue at higher cost ARCC priced $750 million of 6.250% notes due 2033 to repay bank debt. It locks in higher borrowing costs but extends maturities and keeps liquidity strong, so the effect on the stock is mixed.

    This new financing event affects ARCC's capital costs and liquidity.

Latest
▼3

Private credit stress tests ARCC's dividend as defaults rise

  • Rising non-accruals and dividend coverage gap Loans not paying interest rose to 2.4% of the portfolio from 1.8%, and core earnings of $0.47 fell short of the $0.48 dividend. That makes the payout less safe and pressures ARCC's price.

    This is the core new credit-quality deterioration directly threatening ARCC's dividend.

  • Record private credit defaults and sector dividend cuts Private credit defaults hit a record 6%, and peer Blue Owl cut its dividend. This raises fears ARCC may follow, weighing on its shares even though ARCC kept its own dividend steady.

    Sector-wide default record and a peer dividend cut are new negative signals for ARCC's payout.

  • Falling loan rates squeeze income ARCC's average loan rate dropped to 10.3% from higher levels, and peers show similar declines. Lower rates mean less interest income, making it harder to cover the dividend and pressuring the stock.

    Declining portfolio yield is a new earnings headwind for ARCC.

  • New $750M bond issue at higher cost ARCC priced $750 million of 6.250% notes due 2033 to repay bank debt. It locks in higher borrowing costs but extends maturities and keeps liquidity strong, so the effect on the stock is mixed.

    This new financing event affects ARCC's capital costs and liquidity.