Capital Southwest Reports Strong Fiscal Q3 2026 Results
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Capital Southwest ( (CSWC) ) has shared an update.
On February 2, 2026, Capital Southwest reported results for its third fiscal quarter ended December 31, 2025, highlighted by a $2.0 billion total investment portfolio, of which $1.8 billion was in credit investments with 99% in first-lien senior secured debt and $182.7 million in equity. The company generated pre-tax net investment income of $34.6 million, or $0.60 per share, maintained low non-accruals at 1.5% of the portfolio by fair value, and paid total dividends of $0.64 per share for the quarter, including regular monthly and supplemental payouts, while NAV per share inched up to $16.75, supported by equity issuance at a premium and net appreciation on investments. Activity remained robust with $244 million in new commitments across eight new and 16 existing portfolio companies, $89.1 million in repayments and exits, and a modest $1.9 million in net realized and unrealized depreciation; management also disclosed that it raised about $53 million via its equity ATM program and, after quarter-end, formed a joint venture with a private credit manager to pursue off-balance-sheet first-out senior secured debt opportunities in the lower middle market, enhancing its ability to compete for a broader range of deals. Liquidity remained solid at quarter-end, with $42.6 million in cash, $395.2 million of unused borrowing capacity, and a regulatory debt-to-equity ratio of 0.89 to 1, underpinned by expanded and extended corporate and SPV credit facilities and a diversified stack of convertible notes, unsecured notes and SBA debentures.
The most recent analyst rating on (CSWC) stock is a Buy with a $24.50 price target. To see the full list of analyst forecasts on Capital Southwest stock, see the CSWC Stock Forecast page.
Spark’s Take on CSWC Stock
According to Spark, TipRanks’ AI Analyst, CSWC is a Neutral.
Capital Southwest’s overall stock score is driven by strong profitability and attractive valuation, despite technical indicators suggesting potential price pullback. The earnings call provided positive insights into strategic initiatives, although challenges like negative cash flows and spread compression remain.
To see Spark’s full report on CSWC stock, click here.
More about Capital Southwest
Capital Southwest Corporation is an internally managed business development company listed on Nasdaq that provides flexible financing solutions, primarily first-lien senior secured debt and equity co-investments, to support the acquisition and growth of middle-market and lower middle-market businesses. The Dallas-based firm focuses on private credit, maintaining a predominantly senior secured credit portfolio alongside a smaller equity portfolio, funded through a mix of credit facilities, unsecured notes and SBA debentures.
Average Trading Volume: 608,579
Technical Sentiment Signal: Buy
Current Market Cap: $1.35B
Find detailed analytics on CSWC stock on TipRanks’ Stock Analysis page.
