UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 (State or other jurisdiction of incorporation or organization) 8333 Douglas Avenue, Suite 1100, Dallas, Texas 75225 (Address of principal executive offices) (Zip Code) (I.R.S. Employer Identification No.) OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHAN ...

Financial Data and Key Metrics Changes - The company reduced the investment portfolio weighted average debt to EBITDA from 3.5 times to 3.4 times [4] - The investment revenue pick rate decreased from 7.6% to 5.8% [4] - The non-accrual rate improved from 1.7% to 0.8% of the investment portfolio at fair value [4] - Pre-tax net investment income was reported at $0.61 per share, with total investment income increasing to $55.9 million from $52.4 million in the prior quarter [18] - The company's NAV per share decreased from $16.70 to $16.59 [21] Business Line Data and Key Metrics Changes - The company generated $27.2 million in realized gains from two equity investment exits during the quarter [5] - The on-balance sheet credit portfolio grew year-over-year by 21% to $1.6 billion [10] - 100% of new portfolio company debt originations were first lien senior secured [10] - The equity co-investment portfolio consisted of 80 investments with a total fair value of $166 million, representing 9% of the total portfolio [12] Market Data and Key Metrics Changes - The company reported $115 million in total new commitments to three new portfolio companies and 12 existing portfolio companies [6] - Approximately 55% of total capital commitments during the quarter were follow-on offerings in performing portfolio companies [7] - The company noted a distinct pickup in the volume and quality of deals in the past six weeks [8] Company Strategy and Development Direction - The company transitioned its regular dividend payment frequency from quarterly to monthly, declaring a total of $0.58 in regular dividends for the quarter [5] - The company received final approval from the SBA for its second SBIC license, allowing access to $175 million in additional SBA debentures [6] - The company aims to maintain a conservative leverage approach while being opportunistic in raising secured and unsecured debt capital [23] Management's Comments on Operating Environment and Future Outlook - Management noted a competitive landscape in the lower middle market, with banks and non-bank lenders being aggressive in deploying capital [26] - The company anticipates significant activity in terms of new platform company originations and add-on activity in the existing portfolio [8] - Management expressed confidence in maintaining dividends based on the current UTI balance of $1 per share and expectations of continued gains from the equity portfolio [20] Other Important Information - The company reported a robust balance sheet liquidity with approximately $444 million in cash and undrawn leverage commitments [21] - The regulatory leverage ended the quarter at a debt to equity ratio of 0.82 to 1, down from 0.89 to 1 in the prior quarter [23] Q&A Session Summary Question: Can you talk about the competitive landscape right now? - Management noted a supply-demand dynamic with a scarcity of quality assets and aggressive competition from banks and non-bank lenders [26][27] Question: What underpins your optimism in the M&A market? - Management highlighted a strong pipeline with $110 million of originations already closed and additional deals pending [36][37] Question: What is the outlook on operating leverage? - Management indicated that operating leverage is expected to trend down to 1.4% to 1.5% by the end of the fiscal year [40][41] Question: How do you view the competitive pressure from banks? - Management acknowledged that banks are currently competitive, which is driving lower spreads, but noted that this could change [52][53] Question: Any updates on adding an asset manager vehicle within the BDC? - Management confirmed ongoing efforts to enhance earnings and origination capabilities, potentially through strategic initiatives [56] Question: Can you provide a breakout between new versus add-on opportunities? - Management indicated a robust quarter with approximately 75% of originations being new opportunities [62]

Capital Southwest Corporation Q1 2026 Earnings Presentation August 7, 2025 8333 Douglas Avenue, Suite 1100 | Dallas, Texas 75225 | 214.238.5700 | capitalsouthwest.com Important Notices Page 3 • This presentation contains forward-looking statements relating to, among other things, the business, market conditions, financial condition and results of operations of Capital Southwest, the anticipated investment strategies and investments of Capital Southwest, and future market demand. Any statements that are not ...

Capital Southwest (CSWC) came out with quarterly earnings of $0.59 per share, in line with the Zacks Consensus Estimate . This compares to earnings of $0.63 per share a year ago. These figures are adjusted for non-recurring items. A quarter ago, it was expected that this business development company would post earnings of $0.62 per share when it actually produced earnings of $0.54, delivering a surprise of -12.9%.Over the last four quarters, the company has surpassed consensus EPS estimates just once.Capita ...

Group 1 - Samuel Smith has extensive experience in dividend stock research and investment, having served as lead analyst and Vice President at notable firms [1] - He is a Professional Engineer and Project Management Professional, holding degrees in Civil Engineering & Mathematics and a Masters in Engineering with a focus on applied mathematics and machine learning [1] - Samuel leads the High Yield Investor investing group, collaborating with Jussi Askola and Paul R. Drake to balance safety, growth, yield, and value in investment strategies [2] Group 2 - High Yield Investor provides real-money core, retirement, and international portfolios, along with regular trade alerts and educational content [2] - The service includes an active chat room for investors to engage and share insights [2]

Core Insights - Capital Southwest (NASDAQ: CSWC) is highlighted as a leading Business Development Company (BDC) suitable for investment, particularly due to its internally-managed structure [1] - Recent months have seen significant uncertainty for investors as the stock price of CSWC has declined [1] Company Overview - CSWC is recognized for its strong focus on dividend investing, which is considered an accessible path to achieving financial freedom [1] - The company operates in various sectors including technology, real estate, software, finance, and consumer staples, which form the core of its investment portfolio [1] Investment Strategy - The article emphasizes the importance of dividend investing as a strategy for building long-term wealth and financial stability [1] - Insights are shared to demystify the process of dividend investing, making it more approachable for potential investors [1]

Group 1 - iREIT+HOYA Capital focuses on income-producing asset classes that provide sustainable portfolio income, diversification, and inflation hedging [1] - Monthly recurring income streams are beneficial for dividend investors, particularly for those replacing job income, as they help match regular expenses [2] Group 2 - The article emphasizes the importance of performing due diligence and drawing personal conclusions before making investment decisions [4] - Seeking Alpha highlights that past performance does not guarantee future results and that views expressed may not reflect the platform's overall stance [5]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Texas 814-00061 75-1072796 (Commission File Number) (IRS Employer Identification No.) (State or Other Jurisdiction of Incorporation) 8333 Douglas Avenue, Suite 1100 Dallas, Texas 75225 Date of report (Date of earliest event reported): July 15, 2025 (Address of Principal Executive Offices) (Zip Code) CAPITAL SOUTHWEST CORPORATION Registrant's t ...

DALLAS, July 15, 2025 (GLOBE NEWSWIRE) -- Capital Southwest Corporation (“Capital Southwest”) (Nasdaq: CSWC), an internally managed business development company focused on providing flexible financing solutions to support the acquisition and growth of middle market businesses, is pleased to announce its preliminary operating results for the first quarter of its 2026 fiscal year (quarter ended June 30, 2025) and its first quarter 2026 earnings release and conference call schedule. Capital Southwest’s prelimi ...

Group 1 - The current market environment favors income investors as growth stocks are being prioritized over value stocks [1] - Many technology stocks are experiencing high valuations, prompting a shift towards income-generating investments for recurring cash flow [1] - The focus is on defensive stocks with a medium- to long-term investment horizon [1]