Capital Southwest Corporation (CSWC) is a leading publicly traded business development company that specializes in providing customized financing solutions for middle-market enterprises. With a diversified investment portfolio that spans debt and equity across critical sectors including healthcare, technology, and manufacturing, CSWC aims to deliver attractive risk-adjusted returns to its investors. The company leverages its extensive industry knowledge and strategic networks to not only foster operational efficiencies within its portfolio but also drive sustainable growth, positioning itself as a vital partner in the dynamic business environment.
| Revenue (TTM) | $247.42M |
| Gross Profit (TTM) | $247.42M |
| EBITDA | $223.97M |
| Operating Margin | 86.60% |
| Return on Equity | 10.40% |
| Return on Assets | 5.96% |
| Revenue/Share (TTM) | $4.09 |
| Book Value | $16.64 |
| Price-to-Book | 1.40 |
| Price-to-Sales (TTM) | 6.25 |
| EV/Revenue | 20.58 |
| EV/EBITDA | — |
| Quarterly Earnings Growth (YoY) | -24.90% |
| Quarterly Revenue Growth (YoY) | 17.90% |
| Shares Outstanding | $66.50M |
| Float | $64.44M |
| % Insiders | 2.66% |
| % Institutions | 27.78% |
Volatility is currently expanding
Capital Southwest NASDAQ: CSWC reported second-quarter fiscal 2027 pre-tax net investment income of $37.2 million, or $0.58 per share, supported by higher cash interest income and fee income as the business development company expanded its investment portfolio.
DALLAS, Nov. 02, 2026 (GLOBE NEWSWIRE) -- Capital Southwest Corporation (“Capital Southwest,” “CSWC” or the “Company”) (Nasdaq: CSWC), an internally managed business development company focused on providing flexible financing solutions to support the acquisition and growth of middle market businesses, today announced its financial results for the second fiscal quarter ended September 30, 2026. Second Quarter Fiscal Year 2027 Financial Highlights Total Investment Portfolio at Fair Value: $2.4 billion Credit Portfolio at Fair Value of $2.2 billion 99% 1st Lien Senior Secured Debt $376.8 million in new committed credit investments during the quarter Weighted Average Yield on Debt Investments: 10.9% Current non-accruals with a fair value of $34.8 million, representing 1.4% of the total investment portfolio, and a cost basis of $85.5 million, representing 3.5% of the total investment portfolio Equity Portfolio at Fair Value of $192.3 million, excluding investment in CapTrin Partners, LLC ("CapTrin") and Desert Star 2026 LLC ("Desert Star"), CSWC's unconsolidated joint ventures ("JV equity") $14.2 million in new equity co-investments during the quarter CSWC Joint Venture ("JV") Equity Investments at Fair Value: $36.4 million Investment in CapTrin at fair value of $28.4 million CapTrin portfolio at fair value of $126.7 million Investment in Desert Star at fair value of $7.9 million $25.0 million in new commitment to Desert Star during the quarter Desert Star portfolio at fair value of $128.2 million Pre-Tax Net Investment Income: $37.2 million, or $0.58 per weighted average common share outstanding Estimated Undistributed Taxable Income ("UTI"): $0.92 per share as of September 30, 2026 LTM Operating Leverage: 1.4% as of September 30, 2026 Dividends: Paid Total Dividends for the quarter ended September 30, 2026 of $0.64 Paid $0.58 per share Regular Quarterly Dividend ($0.1934 per share in each of July, August and September 2026) Paid $0.06 per share Supplemental Quarterly Dividend in September 2026 Net Realized and Unrealized Depreciation: $13.4 million, or 0.6% of total investments at fair value $1.7 million of net appreciation related to the equity portfolio $14.6 million of net depreciation related to the credit portfolio $0.5 million net realized and unrealized income tax provision Balance Sheet: Cash and Cash Equivalents: $48.0 million Total Net Assets: $1.1 billion Net Asset Value (“NAV”) per Share: $16.64 In commenting on the Company's results, Michael Sarner, President and Chief Executive Officer, stated, “Capital Southwest delivered the largest origination quarter in our history, with approximately $391 million of originations across 14 new and 16 existing portfolio companies.
Capital Southwest is an internally managed BDC focused on first-lien lending to lower middle market, sponsor-backed companies. CSWC trades at a significant premium to NAV, enabling accretive share issuance, but this premium is narrowing, posing a risk to future capital flexibility. Dividend coverage is thin, with pretax NII covering nearly all but not the full dividend, relying on spillover income and equity gains to bridge the gap.
Capital Southwest's 1.35x P/NAV premium is largely justified by its internal management. Low software exposure and a 'high margin of safety' portfolio make it a lower-risk BDC than most of its peers. Equity co-investments and modest leverage support NAV stability and extra dividends.
Capital Southwest (CSWC) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
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Capital Southwest (CSWC) has an impressive earnings surprise history and currently possesses the right combination of the two key ingredients for a likely beat in its next quarterly report.
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DALLAS, Oct. 15, 2026 (GLOBE NEWSWIRE) -- Capital Southwest Corporation (“Capital Southwest”) (Nasdaq: CSWC), an internally managed business development company focused on providing flexible financing solutions to support the acquisition and growth of middle market businesses, is pleased to announce its preliminary operating results for the second quarter of its 2027 fiscal year (quarter ended September 30, 2026) and its second quarter 2027 earnings release and conference call schedule.
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