Loading...
•
Dec 31, 2025
Capital Southwest Q3 2026 Earnings Report
Capital Southwest reported strong financial results for the third fiscal quarter ended December 31, 2025, with significant increases in total investment income and net investment income, alongside growth in its investment portfolio and net asset value per share.
Key Takeaways
Capital Southwest Corporation announced robust financial results for the third fiscal quarter ended December 31, 2025, with total investment income reaching $61.4 million and net investment income at $36.985 million. The company's total investment portfolio grew to $2.0 billion, and its net asset value per share increased to $16.75. New committed credit investments totaled $241.4 million, and the company continued its dividend payments, including a supplemental dividend.
Total investment income for the quarter was $61.4 million, an increase from $56.9 million in the prior quarter, driven by higher average cost basis of investments and increased arranger and prepayment fees.
Net investment income for the quarter stood at $36.985 million, up from $30.316 million in the prior year, reflecting strong operational performance.
The total investment portfolio reached $2.0 billion, with $241.4 million in new committed credit investments and $2.6 million in new equity co-investments during the quarter.
Net asset value per share increased to $16.75 from $16.62 in the prior quarter, primarily due to common stock issuance at a premium and net appreciation on investments.
Revenue by Segment
Forward Guidance
Capital Southwest anticipates continued growth and competitive positioning through strategic investments and capital management. The company expects to leverage its joint venture and Equity ATM Program to support future investment opportunities and maintain shareholder returns.
Positive Outlook
- Formation of a joint venture with a private credit asset manager is expected to provide competitive advantages and broader investment opportunities.
- The Equity ATM Program successfully raised $52.6 million in gross proceeds, enhancing capital flexibility.
- Continued declaration of regular monthly dividends and supplemental dividends demonstrates commitment to shareholder returns.
- The company's internally managed structure and permanent capital base provide flexibility for long-term growth and support of portfolio companies.
- The SBIC licenses allow for obtaining leverage through SBA-guaranteed debentures, supporting investment activities.
Challenges Ahead
- The company recognized a realized loss on extinguishment of debt of $2.2 million during the quarter.
- Net realized and unrealized depreciation on investments totaled $1.9 million, or 0.1% of total investments at fair value.
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
Loading earnings performance data...
Loading earnings reaction data...