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CSWC Reports $2 Billion Total Investment Portfolio

Capital Southwest Corporation ("Capital Southwest," "CSWC" or the "Company") (NASDAQ: CSWC) has released its financial results for the third fiscal quarter ended December 31, 2025. Here are the significant figures from the report:

  • Total Investment Portfolio: $2.0 billion
  • Credit Portfolio: $1.8 billion
    • 99% 1st lien senior secured debt
    • $241.4 million in new committed credit investments during the quarter
    • Weighted average yield on debt investments: 11.3%
    • Current non-accruals with a fair value of $29.2 million, representing 1.5% of the total investment portfolio
  • Equity Portfolio: $182.7 million

    • $2.6 million in new equity co-investments during the quarter
  • Pre-tax net investment income: $34.6 million, or $0.60 per weighted average common share outstanding

  • Estimated undistributed taxable income ("UTI"): $1.02 per share as of December 31, 2025

  • Dividends:

  • Paid regular monthly dividends of $0.1934 per share for each of October, November, and December 2025 and $0.06 per share supplemental dividend in December 2025
  • Total dividends for the quarter ended December 31, 2025, of $0.64 per share

  • Net realized and unrealized depreciation: $1.9 million, or 0.1% of total investments at fair value

  • $9.2 million of net appreciation related to the equity portfolio
  • $8.7 million of net depreciation related to the credit portfolio
  • $2.4 million net realized and unrealized income tax provision

  • Balance sheet:

  • Cash and cash equivalents: $42.6 million
  • Total net assets: $995.6 million
  • Net asset value (“NAV”) per share: $16.75

  • Total investment income: $61.4 million, compared to $56.9 million in the prior quarter

  • Total operating expenses (excluding interest expense): $8.8 million, compared to $6.9 million in the prior quarter

  • Interest expense: $18.1 million, compared to $16.0 million in the prior quarter

  • Total pre-tax net investment income: $34.6 million, compared to $34.0 million in the prior quarter

  • Total net realized and unrealized losses on investments: $1.9 million, compared to $6.4 million of total net realized and unrealized losses in the prior quarter

  • NAV at December 31, 2025: $16.75 per share, compared to $16.62 per share in the prior quarter

  • Liquidity and capital resources:

  • Approximately $42.6 million in unrestricted cash and money market balances
  • $395.2 million of unused capacity under the corporate credit facility and the SPV credit facility

  • Total debt outstanding on the corporate credit facility: $210.0 million

  • Total debt outstanding on the SPV credit facility: $104.0 million
  • $224.2 million, net of amortized debt issuance costs, of the 5.125% convertible notes due November 2029
  • $343.6 million, net of amortized debt issuance costs, of the 5.950% notes due 2030
  • $190.6 million, net of unamortized debt issuance costs, of SBA debentures

  • Share Repurchase Program:

  • During the quarter ended December 31, 2025, the company did not repurchase any shares of the company’s common stock under the share repurchase program

  • Regular monthly dividends of $0.1934 per share and quarterly supplemental dividend of $0.06 per share for quarter ended March 31, 2026

  • Total regular dividends per share for quarter ending March 31, 2026: $0.58
  • Total supplemental dividend per share for quarter ending March 31, 2026: $0.06
  • Total dividends per share for quarter ending March 31, 2026: $0.64 Today the company's shares have moved -0.17% to a price of $23.68. If you want to know more, read the company's complete 8-K report here.
The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.

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