Capital Southwest ( (CSWC) ) has released its Q2 earnings. Here is a breakdown of the information Capital Southwest presented to its investors.
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Capital Southwest Corporation, a Dallas-based business development company, specializes in providing flexible financing solutions to support the acquisition and growth of middle market businesses. In its latest earnings report for the second fiscal quarter ended September 30, 2025, Capital Southwest announced a robust performance with a total investment portfolio valued at $1.9 billion and a credit portfolio of $1.7 billion, predominantly comprising 1st lien senior secured debt. The company reported a pre-tax net investment income of $34.0 million, or $0.61 per share, and paid total dividends of $0.6402 per share for the quarter.
Key financial highlights include $241.5 million in new committed credit investments and a weighted average yield on debt investments of 11.5%. The company also experienced net realized and unrealized depreciation of $6.4 million, primarily due to net depreciation in the credit portfolio. Capital Southwest maintained a strong balance sheet with $87.4 million in cash and cash equivalents and a net asset value per share of $16.62.
Strategically, Capital Southwest raised $350 million through its inaugural index-eligible unsecured bond transaction and continued to efficiently raise equity capital, generating approximately $40 million through its Equity ATM Program. The company also received a $40 million leverage commitment from the SBA for its SBIC II subsidiary.
Looking ahead, Capital Southwest remains focused on its origination activities and capital management strategies, with continued emphasis on supporting the growth of its portfolio companies and optimizing its investment portfolio.