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Capital Southwest

Capital Southwest (CSWC) Q3 2026 Earnings

Reported Feb 2, 2026 at 4:08 PM ET · SEC Source

Q3 26 EPS

$0.60

BEAT +0.67%

Est. $0.60

Q3 26 Revenue

$61.4M

BEAT +6.17%

Est. $57.9M

vs S&P Since Q3 26

-5.5%

TRAILING MARKET

CSWC +2.0% vs S&P +7.5%

Market Reaction

Did CSWC Beat Earnings? Q3 2026 Results

Capital Southwest delivered a convincing beat across the board in its fiscal third quarter, posting earnings per share of $0.60 against a consensus estimate of $0.60, a 0.67% positive surprise, while total investment income of $61.45 million cleared … Read more Capital Southwest delivered a convincing beat across the board in its fiscal third quarter, posting earnings per share of $0.60 against a consensus estimate of $0.60, a 0.67% positive surprise, while total investment income of $61.45 million cleared analyst expectations of $57.88 million by 6.17% and surged 48.7% year over year. The primary engine behind the strong top line was aggressive portfolio expansion, with the company originating $244 million in new commitments during the quarter and growing its total investment portfolio to approximately $2.01 billion across 132 portfolio companies. Higher interest income from the enlarged average portfolio, combined with elevated arranger and prepayment fees, drove the revenue outperformance, even as rising average borrowings pushed interest expense to $18.05 million. Looking ahead, Capital Southwest launched a joint venture with another private credit manager targeting first-out senior secured debt in the lower middle market, a move analysts viewed as a meaningful competitive differentiator, and the board maintained its combined quarterly dividend of $0.64 per share, backed by $1.02 per share in estimated undistributed taxable income.

Key Takeaways

  • • Increase in average cost basis of investments driving higher interest income
  • • Increase in arranger fees and prepayment fees received during the quarter
  • • 99% first lien senior secured debt portfolio with weighted average yield of 11.3%
  • • $244 million in new committed investments across 24 portfolio companies
  • • Equity ATM Program raised $52.6 million at 127% of NAV per share
  • • Operating leverage of 1.7% as a percentage of average assets
24/7 Wall St

CSWC YoY Financials

Q3 2026 vs Q3 2025, source: SEC Filings

24/7 Wall St

CSWC Revenue by Segment

With YoY comparisons, source: SEC Filings

Q1 26 Q4 26

“The December quarter was another extremely active quarter on the origination front for Capital Southwest, with approximately $244 million of originations in eight new and 16 existing portfolio companies. Our portfolio continued to generate significant income for our shareholders, producing $0.60 of pre-tax net investment income per share. During the quarter, the Board of Directors again declared a regular monthly dividend of $0.1934 for each of January, February and March 2026 and a quarterly supplemental dividend of $0.06 to be paid in March 2026. On the capitalization front, we continued to efficiently raise equity capital during the quarter, raising approximately $53 million through our Equity ATM Program. Subsequent to quarter end, we formed a joint venture with another private credit asset manager, which will be an off-balance sheet private fund that primarily invests in first out senior secured debt opportunities in the lower middle market. We are excited about the opportunities this fund will provide moving forward and believe it will allow Capital Southwest to be competitive on a broader range of investment opportunities.”

— Michael Sarner, Q3 2026 Earnings Press Release

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