CSWC · Capital Southwest Corporation

Capital Southwest’s Q4 FY2026 results reflect operational resilience amid a declining interest rate environment: pre-tax net investment income rose modestly to $35.2 million ($0.59/share), driven by higher average debt investments outstanding and stable portfolio yield discipline, even as weighted average yield on debt investments declined to 10.8% due to lower base rates. The $0.64 total quarterly dividend — comprising $0.58 regular and $0.06 supplemental — was supported by $1.07 per share of estimated undistributed taxable income, signaling strong earnings coverage and tax-efficient distribution capacity. Portfolio growth accelerated meaningfully, with $157.7 million in new committed investments across five new and twelve existing portfolio companies, contributing to a 17% annual increase in total investment portfolio fair value to $2.1 billion. Credit quality remained robust, with non-accruals confined to $22.7 million (1.1% of portfolio), and the equity co-investment program contributed $0.1 million of net appreciation — partially offsetting $7.9 million of net depreciation in the credit portfolio. Liquidity strengthened materially: $25.5 million raised via the Equity ATM Program at a 138% NAV premium, combined with $364.2 million of unused credit capacity and $29.0 million in cash, positions CSWC to capitalize on deployment opportunities. Management highlighted CapTrin Partners’ subsequent $150 million revolving credit facility as an enhancement to lower middle market competitiveness — underscoring strategic execution on joint venture expansion and capital structure optimization.