Capital Southwest (CSWC)
NASDAQ:CSWC
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Earnings Data
Report Date
Aug 10, 2026After Close (Confirmed)
Period Ending
2027 (Q1)Consensus EPS Forecast
0.56Last Year’s EPS
0.59Same Quarter Last Year
Moderate Buy
Based on 1 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call conveyed a broadly positive operational and financial performance: strong portfolio growth (17%), solid investment income growth (14% YoY), industry-leading 40% ROE, improving credit metrics (nonaccruals down to 1.1%), a growing UTI balance ($1.07/share) and diversified capital raising. Challenges were largely tactical or market-driven (quarterly NAV dip, a single meaningful write-down, a modest quarter-to-quarter investment income decline due to lower SOFR, and a moderated close rate). Overall, the positive developments — including robust capital raises, conservative underwriting, liquidity strength, and expected realized gains — materially outweigh the contained headwinds reported on the call.Company Guidance
Portfolio Growth
Investment portfolio grew approximately $300 million or 17% year-over-year from $1.8 billion to $2.1 billion, driven by $762 million in new committed investment originations during fiscal 2026.
Investment Income and NII
Investment income increased $28 million or 14% year-over-year from $204 million to $232 million for fiscal 2026; pretax net investment income for the quarter was $35.2 million or $0.59 per share.
Strong Return on Equity
Delivered an industry-leading 40% return on equity for shareholders in fiscal year 2026.
Credit Quality and Underwriting Metrics
Credit portfolio exhibits conservative underwriting: weighted average leverage through security of 3.6x, weighted average interest coverage of 3.5x, loans represent on average 43% of enterprise value, and 99% of credit portfolio is first-lien senior secured.
Low and Improving Nonaccruals
Nonaccruals at fair value declined to 1.1% from 1.7% year-over-year and from 1.5% the prior quarter, reflecting improved credit performance and active portfolio management.
Equity Appreciation and UTI Growth
Equity co-investment portfolio fair value $181 million (9% of portfolio) marked at 126% of cost, generating $37.8 million of unrealized appreciation ($0.62 per share). Undistributed taxable income (UTI) rose to $1.07 per share from $0.79 (≈$0.28 increase or ~35%) driven by $36.9 million in realized gains over the last 12 months.
Capital Raising and Liquidity
Raised over $465 million in new debt capital commitments (including a $350 million 5.9% bond), over $160 million gross equity via ATM at a weighted average price ~1.3x NAV, and maintained approximately $394 million in cash and undrawn commitments plus $42 million SBA availability, representing >1.3x coverage of $329 million unfunded commitments.
Joint Venture (CapTrin) Progress
CapTrin Partners JV reached ~ $85 million in assets, closed a $150 million revolving credit facility post-quarter, and targets 13%–14% returns when fully ramped, expected to materially contribute to returns within 6–18 months as it scales.
Conservative New Deal Underwriting
New platform originations in the quarter had weighted average senior leverage of 2.7x and loan-to-value of 33% (12-month averages 3.1x and 35%), and 100% of new portfolio company debt originations in the quarter were first-lien senior secured.
Dividend Stability and Coverage
Total dividends increased slightly from $2.54 to $2.56 per share year-over-year despite a ~60 basis point decline in SOFR; board declared $0.58 per share regular quarterly (paid monthly) plus $0.06 supplemental, with cumulative dividend coverage since credit strategy launch of 109%.
Operating Efficiency and Team Build-Out
LTM operating leverage improved to 1.4% from 1.7% quarter-over-quarter and remains well below industry median (~2.7%), while headcount increased from ~27 to 36 (plus 7 more expected), supporting materially higher deal flow (run rate increased from ~800 to ~1,400 deals/year).
CSWC Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
CSWC Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
May 13, 2026 | $23.25 | $23.82 | +2.43% |
Feb 02, 2026 | $22.32 | $22.45 | +0.56% |
Nov 03, 2025 | $19.14 | $18.70 | -2.25% |
Aug 06, 2025 | $20.58 | $20.46 | -0.57% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does Capital Southwest (CSWC) report earnings?
Capital Southwest (CSWC) is schdueled to report earning on Aug 10, 2026, After Close (Confirmed).
What is Capital Southwest (CSWC) earnings time?
Capital Southwest (CSWC) earnings time is at Aug 10, 2026, After Close (Confirmed).
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is CSWC EPS forecast?
CSWC EPS forecast for the fiscal quarter 2027 (Q1) is 0.56.