Capital Southwest

Capital Southwest (CSWC) Q4 2025 Earnings

Reported May 14, 2025 at 4:13 PM ET · SEC Source

Q4 25 EPS

$0.56

MISS 8.20%

Est. $0.61

Q4 25 Revenue

$52.4M

MISS 0.58%

Est. $52.7M

vs S&P Since Q4 25

+0.1%

BEATING MARKET

CSWC +25.6% vs S&P +25.5%

Full Year 2025 Results

FY 25 EPS

$2.50

MISS 0.69%

Est. $2.52

FY 25 Revenue

$204.4M

MISS 0.33%

Est. $205.1M

Market Reaction

Did CSWC Beat Earnings? Q4 2025 Results

Capital Southwest delivered a mixed fiscal fourth quarter, falling short of Wall Street expectations on both the top and bottom lines as one-time costs tied to a CEO departure weighed on results. The business development company posted earnings per s… Read more Capital Southwest delivered a mixed fiscal fourth quarter, falling short of Wall Street expectations on both the top and bottom lines as one-time costs tied to a CEO departure weighed on results. The business development company posted earnings per share of $0.56, missing the $0.61 consensus estimate by 8.20%, while revenue of $52.41 million came in well below the $87.31 million analysts had anticipated, a 39.98% shortfall, despite revenue climbing 26.8% year-over-year. The primary culprit was $2.80 million in non-recurring expenses related to the departure of its former President and CEO; stripped of those charges, adjusted pre-tax net investment income would have matched the $0.61 per share consensus precisely. Beneath the headline misses, the company's fundamentals showed momentum, with its total investment portfolio growing 21% year-over-year to approximately $1.80 billion at fair value and NAV per share edging up to $16.70. Looking ahead, Capital Southwest secured a second SBIC license and expanded its credit facility to $510 million, reinforcing its capacity to sustain supplemental dividends backed by $0.79 per share in undistributed taxable income.

Key Takeaways

  • Increase in average cost basis of investments held driving higher interest income
  • 21% growth in total investment portfolio fair value year-over-year to $1.8 billion
  • 99% first lien senior secured debt portfolio composition
  • 15% increase in total investment income for fiscal year 2025
  • Efficient equity capital raising at 138% premium to NAV through ATM program
  • Cumulative weighted average IRR of 13.2% on 96 portfolio company exits since 2015
24/7 Wall St

CSWC YoY Financials

Q4 2025 vs Q4 2024, 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 $150 million of new committed originations. Our portfolio continued to generate significant income for our shareholders, producing $0.61 of adjusted pre-tax net investment income per share, or $0.56 of pre-tax net investment income per share, for the quarter.”

— Michael Sarner, Q4 2025 Earnings Press Release