Capital Southwest (CSWC) Q2 2026 earnings summary

Executive summary

• Pre-tax net investment income was $34.0 million ($0.61 per share), with undistributed taxable income rising to $1.13 per share and regular plus supplemental dividends totaling $0.64 per share for the quarter.

• Net asset value per share increased to $16.62 at quarter end, with the investment portfolio at fair value reaching $1.9 billion across 126 companies.

• Raised $350 million in 5.95% notes due 2030 and $40 million through the Equity ATM Program at a premium to NAV.

• Origination activity was strong, with $245.5 million in new commitments across seven new and ten existing portfolio companies.

• Portfolio quality remains high, with 91% in first lien investments and only 1% on non-accrual.

Financial highlights

• Total investment income for the quarter was $56.9 million, up from $55.9 million in the prior quarter.

• Pre-tax net investment income per share was $0.61, with net realized and unrealized losses totaling $6.4 million for the quarter.

• NAV per share was $16.62 at quarter end, up from $16.59 in the prior quarter.

• Dividend coverage ratio for the last twelve months was 104%.

• Regulatory debt to equity ratio ended at 0.91x for the quarter.

Outlook and guidance

• Declared regular monthly dividends of $0.1934 per share for October, November, and December 2025, plus a $0.06 supplemental dividend for December.

• Management expects continued portfolio growth, robust origination, and stable credit quality, supported by strong liquidity and capital resources.

• Confident in the ability to continue distributing supplemental dividends, supported by a strong UTI balance and unrealized appreciation.