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CSWC

Capital Southwest Corporation

CSWC

Capital Southwest Corporation • NASDAQ
$21.52 ▼ -0.23% (-0.05)
Market Cap $1.24 B
52w High $23.86
52w Low $17.46
Dividend Yield 2.68%
P/E 13.45
Volume 241.10K
Outstanding Shares 57.47M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q2-2026 $52.399M ▼ $6.91M ▼ $25.619M ▼ 48.892% ▼ $0.57 ▲ $31.221M ▼
Q1-2026 $53.7M ▲ $7.966M ▼ $27.001M ▲ 50.281% ▲ $0.5 ▲ $32.154M ▲
Q4-2025 $46.016M ▲ $8.745M ▲ $17.561M ▲ 38.163% ▼ $0.34 $23.735M ▲
Q3-2025 $41.33M ▲ $6.969M ▲ $16.268M ▼ 39.361% ▼ $0.34 ▼ $21.239M ▼
Q2-2025 $40.212M $6.105M $22.684M 56.411% $0.48 $22.839M

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q2-2026 $87.429M ▲ $2.021B ▲ $1.074B ▲ $947.004M ▲
Q1-2026 $46.889M ▲ $1.882B ▲ $965.938M ▲ $916.474M ▲
Q4-2025 $36.013M ▼ $1.789B ▲ $958.623M ▲ $830.442M ▲
Q3-2025 $47.237M $1.604B $813.24M $791.258M
Q2-2025 $47.237M $1.604B $813.24M $791.258M

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q2-2026 $25.619M ▼ $-71.224M ▼ $-81K ▲ $111.845M ▲ $40.54M ▲ $-71.305M ▼
Q1-2026 $27.001M ▲ $30.493M ▲ $-141K ▼ $-26.684M ▼ $3.668M ▼ $30.352M ▲
Q4-2025 $17.561M ▲ $-62.874M ▲ $3.75M ▲ $67.982M ▼ $8.858M ▲ $-61.604M ▲
Q3-2025 $16.268M ▼ $-165.824M ▼ $-748K ▼ $155.348M ▲ $-11.224M ▼ $-166.572M ▼
Q2-2025 $22.684M $-23.831M $-497K $38.266M $13.938M $-24.328M

Five-Year Company Overview

Income Statement

Income Statement Revenue and core operating profits have climbed steadily over the past few years, which suggests the lending engine is scaling well and spreads are holding up. However, reported earnings per share have been quite bumpy, reflecting the reality of a BDC business: gains and losses on investments, credit events, and valuation swings can move the bottom line around from year to year. Overall, the trend points to a stronger, larger platform, but with earnings that can be volatile rather than smooth and predictable.

Balance Sheet

Balance Sheet The balance sheet shows a clear pattern of growth: the investment portfolio, total assets, debt, and equity have all expanded meaningfully over time. Leverage has increased along with that growth, which is normal for a lender but does raise sensitivity to credit quality and interest rate conditions. Cash on hand is relatively small, implying the company prefers to keep capital deployed in loans and investments rather than idle, which boosts income but leaves less of a liquidity cushion if markets tighten.

Cash Flow

Cash Flow Operating and free cash flow have been consistently negative, which looks unusual at first glance but is typical for a growing BDC. Cash is flowing out into new loans and equity stakes faster than it is coming back in, so the business relies on external funding—mainly debt and equity capital—to support portfolio growth and shareholder distributions. The upside is faster expansion of the investment book; the trade-off is a greater dependence on continued access to capital markets and stable credit conditions.

Competitive Edge

Competitive Edge Capital Southwest appears to have a solid niche in the lower middle market, where relationships and structuring skill matter more than sheer scale. The internally managed model better aligns management with shareholders and keeps fees leaner than many externally managed peers. Dual SBIC licenses give access to attractive, government-backed leverage that many competitors do not enjoy, supporting returns. The focus on first-lien, senior secured lending and repeat business with private equity sponsors suggests a conservative credit posture combined with a strong, relationship-driven deal pipeline. Key competitive risks are intense competition for quality deals, pressure on loan yields, and the ever-present risk of credit downturns.

Innovation and R&D

Innovation and R&D In a financial firm like this, “innovation” is mostly about process rather than technology labs. Capital Southwest’s strengths lie in disciplined, data-supported underwriting, tailored capital structures, and a long-cultivated network of sponsors and intermediaries that feed proprietary deal flow. Its equity co-investment strategy lets it share in upside, not just collect interest, and its flexible toolkit of debt and equity instruments helps it craft customized solutions for smaller companies. Management has also floated the idea of monetizing the investment platform to earn fee income, which, if executed carefully, could open a new revenue stream without abandoning the core BDC model.

Summary

Capital Southwest comes across as a steadily growing, specialized lender with a clear focus on the lower middle market and a business model built around disciplined credit work and strong sponsor relationships. The income statement shows improving scale but naturally choppy earnings, the balance sheet reflects deliberate use of leverage to grow the portfolio, and cash flows highlight a growth-first, capital-intensive approach typical of BDCs. The internally managed structure, SBIC licenses, and conservative credit focus help form a meaningful competitive moat, while process and product innovation provide some edge in a crowded field. Future outcomes will hinge on disciplined underwriting as the cycle turns, the health of portfolio companies, and management’s ability to balance growth, risk, and shareholder returns over time.

NEWS

November 19, 2025 · 4:01 PM UTC

Capital Southwest Announces Monthly Regular Dividends for the Quarter Ending March 31, 2026 and Quarterly Supplemental Dividend Payable on March 31, 2026

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November 3, 2025 · 4:01 PM UTC

Capital Southwest Announces Financial Results for Second Fiscal Quarter Ended September 30, 2025

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October 15, 2025 · 4:01 PM UTC

Capital Southwest Announces Preliminary Estimate of Second Quarter 2026 Operating Results and Earnings Release and Conference Call Schedule

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September 9, 2025 · 6:28 PM UTC

Capital Southwest Corporation Prices Public Offering of $350 million 5.950% Notes due 2030

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