Capital Southwest (NASDAQ:CSWC) Announces Earnings Results

02 Feb 2026, 17:20 by Amy Steele · The Cerbat Gem

Capital Southwest (NASDAQ:CSWC – Get Free Report) posted its earnings results on Monday. The asset manager reported $0.64 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.57 by $0.07, Zacks reports. The business had revenue of $61.45 million for the quarter, compared to analysts’ expectations of $57.37 million. Capital Southwest had a net margin of 39.79% and a return on equity of 13.64%. During the same quarter in the prior year, the business earned $0.63 EPS.

Capital Southwest Trading Down 1.2%

Shares of CSWC traded down $0.29 during trading on Monday, reaching $23.15. 822,725 shares of the company traded hands, compared to its average volume of 668,234. The stock has a market cap of $1.33 billion, a PE ratio of 14.38 and a beta of 0.76. Capital Southwest has a twelve month low of $17.46 and a twelve month high of $23.86. The company has a quick ratio of 0.16, a current ratio of 0.16 and a debt-to-equity ratio of 0.26. The stock has a 50-day simple moving average of $22.39 and a 200-day simple moving average of $22.05.

Capital Southwest Announces Dividend

The business also recently declared a monthly dividend, which will be paid on Tuesday, March 31st. Investors of record on Friday, March 13th will be issued a $0.1934 dividend. This represents a c) annualized dividend and a dividend yield of 10.0%. The ex-dividend date of this dividend is Friday, March 13th. Capital Southwest’s dividend payout ratio (DPR) is currently 144.10%.

Wall Street Analyst Weigh In

CSWC has been the subject of several research analyst reports. Raymond James Financial cut Capital Southwest from an “outperform” rating to a “market perform” rating in a report on Tuesday, October 7th. Loop Capital restated a “buy” rating and issued a $23.00 price target on shares of Capital Southwest in a research report on Wednesday, November 5th. Noble Financial raised shares of Capital Southwest to a “buy” rating in a research note on Wednesday, November 5th. Weiss Ratings upgraded shares of Capital Southwest from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Wednesday, January 28th. Finally, Capital One Financial set a $22.00 target price on shares of Capital Southwest in a report on Tuesday, November 4th. Seven investment analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. Based on data from MarketBeat, the stock has an average rating of “Moderate Buy” and an average price target of $23.64.

Read Our Latest Analysis on CSWC

Institutional Trading of Capital Southwest

Institutional investors and hedge funds have recently bought and sold shares of the business. CIBC Bancorp USA Inc. purchased a new stake in Capital Southwest in the 3rd quarter valued at about $273,000. Sunbelt Securities Inc. increased its stake in Capital Southwest by 21.1% during the 3rd quarter. Sunbelt Securities Inc. now owns 45,100 shares of the asset manager’s stock valued at $986,000 after buying an additional 7,871 shares during the period. CANADA LIFE ASSURANCE Co raised its stake in shares of Capital Southwest by 35.1% in the 3rd quarter. CANADA LIFE ASSURANCE Co now owns 68,944 shares of the asset manager’s stock worth $1,512,000 after buying an additional 17,926 shares in the last quarter. Caxton Associates LLP increased its stake in Capital Southwest by 84.2% in the 3rd quarter. Caxton Associates LLP now owns 26,267 shares of the asset manager’s stock worth $574,000 after purchasing an additional 12,010 shares in the last quarter. Finally, Triumph Capital Management purchased a new position in Capital Southwest during the 3rd quarter worth approximately $28,000. Hedge funds and other institutional investors own 23.42% of the company’s stock.

Capital Southwest News Summary

Here are the key news stories impacting Capital Southwest this week:

Positive Sentiment: Active originations and portfolio growth: CSWC committed roughly $241–244M of new credit investments in Q3, bringing its total investment portfolio to ~$2.0B and generating a weighted average yield on debt investments of 11.3%; pre‑tax net investment income was $34.6M (≈ $0.60 pre‑tax per share). Capital Southwest Announces Financial Results (GlobeNewswire)
Positive Sentiment: Dividend and capital return: Board declared regular monthly dividends of $0.1934 and a supplemental $0.06 (total $0.64 for the quarter), which supports income investors. Dividend Detail (GlobeNewswire)
Neutral Sentiment: Revenue beat: Total investment income/revenue came in at ~$61.4M, above consensus (~$57–58M), showing topline strength even as other metrics were mixed. Revenue Beat (Yahoo Finance)
Neutral Sentiment: Capital & liquidity: CSWC raised ~$52.6M via its Equity ATM and had ~$42.6M cash plus ~ $395M unused credit capacity — provides deployment flexibility but implies modest share issuance. Equity ATM & Liquidity (GlobeNewswire)
Negative Sentiment: EPS miss and expense/interest pressure: Reported diluted earnings per share (~$0.54) missed street estimates (~$0.57–$0.58); operating expenses and interest expense rose (bonuses and higher average borrowings), which weighed on EPS. Earnings Release / EPS Detail (Company PDF)
Negative Sentiment: Credit and mark‑to‑market items: Net depreciation on credit investments (~$8.7M) and $29.2M of current non‑accruals (≈1.5% of portfolio) signal modest credit noise that could concern some investors. Credit Items & Quiver Summary
Negative Sentiment: Institutional positioning and legacy liabilities: Recent filings/analytics show significant institutional reweighting and elevated total liabilities; combined with the EPS miss, that helps explain near‑term downward pressure. Institutional Activity & Analyst Context (Quiver)

Capital Southwest Company Profile

(Get Free Report)

Capital Southwest (NASDAQ: CSWC) is a publicly traded investment firm structured as a business development company (BDC) that provides customized financing solutions to middle-market companies across the United States. The firm offers a spectrum of debt and equity capital, including senior secured loans, mezzanine debt, and both preferred and common equity investments. By partnering with corporate management teams, Capital Southwest seeks to support growth initiatives, recapitalizations, acquisitions, and ownership transitions.

Founded in 1961 and headquartered in Dallas, Texas, Capital Southwest has cultivated a track record of long-term partnerships with privately held businesses and select public companies.