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Capital Southwest

Capital Southwest (CSWC) Q4 2026 Earnings

Reported May 13, 2026 at 4:15 PM ET · SEC Source

Q4 26 EPS

$0.59

BEAT +1.72%

Est. $0.58

Q4 26 Revenue

$57.8M

MISS 6.76%

Est. $62.0M

Full Year 2026 Results

FY 26 EPS

$2.39

FY 26 Revenue

$232.1M

Did CSWC Beat Earnings? Q4 2026 Results

Capital Southwest Corporation delivered steady Q4 fiscal 2026 results, posting earnings of $0.59 per share on total investment income of $57.77 million, as disciplined expense management helped offset a sequential decline in revenue from $61.45 milli… Read more Capital Southwest Corporation delivered steady Q4 fiscal 2026 results, posting earnings of $0.59 per share on total investment income of $57.77 million, as disciplined expense management helped offset a sequential decline in revenue from $61.45 million driven by lower arranger fees and base rate compression that pushed weighted average yields on debt investments down to 10.81% from 11.28%. Pre-tax net investment income rose modestly to $35.22 million from $34.63 million the prior quarter, reflecting a sharp drop in operating expenses to $5.26 million from $8.76 million on reduced bonus accruals. For the full fiscal year ended March 31, 2026, total investment income climbed 13.5% to $232.10 million, supported by a 17% expansion in the total investment portfolio to approximately $2.10 billion in fair value. NAV per share edged down to $16.69, while non-accruals held at a modest 1.1% of portfolio fair value. Looking ahead, the company declared a forward quarterly dividend of $0.64 per share and signaled confidence in its newly formed CapTrin Partners joint venture, which closed a $150 million credit facility with capacity to expand to $350 million.

Key Takeaways

  • • Growth in average debt investments outstanding driving higher investment income
  • • 99% first lien senior secured credit portfolio providing stable income
  • • Weighted average yield on debt investments of 10.8%
  • • Decline in operating leverage to 1.4% from 1.7% year-over-year
  • • Lower base interest rates reducing weighted average interest rate on debt from 5.65% to 5.50%
  • • Non-accruals at only 1.1% of total portfolio at fair value
  • • Cumulative weighted average IRR of 12.8% on 113 portfolio exits since credit strategy launch

CSWC Forward Guidance & Outlook

Capital Southwest expressed continued optimism about its ability to compete for lower middle market opportunities through its newly formed CapTrin Partners joint venture with Trinity Capital, which closed a $150 million revolving credit facility subsequent to quarter end with accordion capacity to $350 million. The company declared forward dividends of $0.64 per share for the quarter ending June 30, 2026 ($0.58 regular plus $0.06 supplemental). The portfolio remains 95.5% floating rate, with management disclosing that a 75 basis point decrease in base rates would reduce annual NII by approximately $11.4 million ($0.19 per share). Key risks flagged include tariff and trade policy uncertainty, potential economic downturn impacts on portfolio companies, and interest rate environment changes.

24/7 Wall St

CSWC YoY Financials

Q4 2026 vs Q4 2025, source: SEC Filings

24/7 Wall St

CSWC Revenue by Segment

With YoY comparisons, source: SEC Filings

Q1 26 Q4 26

“The March quarter was another strong quarter for Capital Southwest, with approximately $158 million of originations in five new and 12 existing portfolio companies. Our portfolio continued to generate significant income for our shareholders, producing $0.59 of pre-tax net investment income per share.”

— Michael Sarner, Q4 2026 Earnings Press Release

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