Capital Southwest Corporation Q3 2026 Earnings Presentation February 3, 2026 8333 Douglas Avenue, Suite 1100 | Dallas, Texas 75225 | 214.238.5700 | capitalsouthwest.com Important Notices Page 2 • These materials and any presentation of which they form a part are neither an offer to sell, nor a solicitation of an offer to purchase, any securities of Capital Southwest. • These materials and the presentations of which they are a part, and the summaries contained herein, do not purport to be complete and no obl ...

Capital Southwest (CSWC) came out with quarterly earnings of $0.64 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 $0.58 per share when it actually produced earnings of $0.57, delivering a surprise of -1.72%.Over the last four quarters, the company has not been able to surpass consensus EPS estimates.C ...

Investment Portfolio - The total fair value of the investment portfolio increased to $2,013.2 million as of December 31, 2025, up from $1,785.3 million as of March 31, 2025[314]. - The company had investments in 132 portfolio companies with an aggregate cost of $2,031.2 million as of December 31, 2025, compared to 121 companies with a cost of $1,779.4 million as of March 31, 2025[314]. - Debt investments at fair value bearing a floating rate were $1,739.7 million, representing 95.0% of total debt investments as of December 31, 2025[314]. - Investments on non-accrual status represented approximately 1.5% of the total investment portfolio's fair value as of December 31, 2025, compared to 1.7% as of March 31, 2025[310]. - The percentage of portfolio at fair value secured by first lien increased to 90.0% as of December 31, 2025, from 88.9% as of March 31, 2025[315]. Financial Performance - Total investment income for the three months ended December 31, 2025, was $61,447,000, an increase of 18.2% compared to $51,973,000 in 2024[326]. - Net investment income for the three months ended December 31, 2025, was $36,985,000, reflecting a 22.0% increase from $30,316,000 in the same period of 2024[326]. - Total investment income for the nine months ended December 31, 2025, was approximately $174.3 million, a $22.3 million, or 14.7%, increase compared to the same period in 2024[340]. - Net investment income for the nine months ended December 31, 2025, was $100.9 million, an increase of $10.5 million, or 11.6%, compared to the same period in 2024[339]. - The net increase in net assets from operations for the three months ended December 31, 2025, was $32,896,000, a 102.2% increase from $16,268,000 in 2024[326]. Debt and Interest - The weighted average annual effective yield on debt investments was 11.3% as of December 31, 2025, down from 11.7% as of March 31, 2025[315]. - Total interest expense for the three months ended December 31, 2025, was $18.0 million, an increase of $3.3 million from $14.7 million in the same period of 2024[330]. - Interest income for the three months ended December 31, 2025, totaled $53.4 million, up from $46.1 million in the prior year, driven by a 22.5% increase in the average monthly cost basis of debt investments[328]. - Interest expense for the nine months ended December 31, 2025, was $49.3 million, an increase of $9.6 million from $39.7 million in the prior year[343]. - A hypothetical 75 basis point increase in interest rates could increase net investment income by $11.1 million[379]. Operational Metrics - The ratio of last twelve months (LTM) operating expenses, excluding interest expense, as a percentage of LTM average total assets was 1.67% as of December 31, 2025, compared to 1.61% as of December 31, 2024[305]. - The weighted average EBITDA of portfolio companies was $16,065 as of December 31, 2025, down from $18,499 as of March 31, 2025[315]. - The weighted average leverage of portfolio companies was not disclosed, but 14 companies were excluded from calculations due to non-meaningful debt to adjusted EBITDA ratios as of December 31, 2025[320]. Cash and Liquidity - As of December 31, 2025, the company had $42.6 million in cash and cash equivalents and $395.2 million of unused capacity under its credit facilities[355]. - The company had $210.0 million in borrowings outstanding under its Corporate Credit Facility as of December 31, 2025[356]. - The company anticipates continuing to fund its investment activities through existing cash, cash flows from operations, and future issuances of debt and equity[351]. Equity and Commitments - The Company established an Equity ATM Program with a maximum offering price increased to $1.0 billion as of May 21, 2024, from $650.0 million[366]. - As of December 31, 2025, the Company sold a total of 39,333,069 shares under the Equity ATM Program, raising $844.6 million in gross proceeds[367]. - The Company had approximately $284.6 million in currently unfunded commitments as of December 31, 2025[370]. - Total contractual obligations amounted to $1,365.5 million as of December 31, 2025, with significant payments due in 1-3 years totaling $327.5 million[372]. Market and Economic Conditions - The company is closely monitoring macro-economic risks, including commodity inflation and geopolitical instability, which may impact portfolio companies[318]. - The Federal Reserve decreased interest rates by 0.25% in September, October, and December of 2025, affecting the Company's gross investment income[377]. Joint Ventures and New Initiatives - The Company formed a joint venture on January 22, 2026, with a private credit asset manager, focusing on first out senior secured debt opportunities[374].

DALLAS, Feb. 02, 2026 (GLOBE NEWSWIRE) -- Capital Southwest Corporation (“Capital Southwest,” “CSWC” or the “Company”) (Nasdaq: CSWC), an internally managed business development company focused on providing flexible financing solutions to support the acquisition and growth of middle market businesses, today announced its financial results for the third fiscal quarter ended December 31, 2025. Third Quarter Fiscal Year 2026 Financial Highlights Total Investment Portfolio: $2.0 billion Credit Portfolio of $1.8 ...

DALLAS, Jan. 30, 2026 (GLOBE NEWSWIRE) -- Capital Southwest Corporation (“Capital Southwest” or the “Company”) (Nasdaq: CSWC), an internally managed business development company focused on providing flexible financing solutions to support the acquisition and growth of middle market businesses, announced today the U.S. federal income tax treatment of its 2025 dividends. U.S. Federal Income Tax Treatment of 2025 Dividends Capital Southwest paid dividends totaling $2.56 per share that are attributable to the t ...

Core Viewpoint - Capital Southwest Corporation has formed a joint venture with another private credit asset manager to create an off-balance sheet private fund focused on first out senior secured debt opportunities in the lower middle market [1][2]. Group 1: Joint Venture Details - The joint venture will be equally owned by Capital Southwest and its partner, with each holding a 50% equity interest [2]. - Investment and operational decisions will be made by a board of managers with equal representation from both partners [2]. Group 2: Strategic Implications - The joint venture is expected to enhance Capital Southwest's competitiveness in securing high-quality lower middle market opportunities by providing more flexible capital solutions [3]. - It will allow the company to allocate portions of larger transactions to the joint venture, maintaining portfolio granularity while broadening the range of platform companies pursued [3]. Group 3: Company Overview - Capital Southwest Corporation is a Dallas-based business development company with approximately $1.9 billion in investments at fair value as of September 30, 2025 [4]. - The company focuses on supporting the acquisition and growth of middle market businesses with investments ranging from $5 million to $50 million across various capital structures [4].

Core Insights - Capital Southwest Corporation has announced the hiring of Ryan Mullins as Managing Director, enhancing its investment team with his extensive experience in direct lending and a strong network [1][2] Company Overview - Capital Southwest Corporation is a Dallas-based business development company with approximately $1.9 billion in investments at fair value as of September 30, 2025 [3] - The company focuses on providing flexible financing solutions to support the acquisition and growth of middle market businesses, specifically targeting investments between $5 million and $50 million across various capital structures [3] Leadership and Experience - Ryan Mullins brings over 15 years of experience in the industry, including more than 10 years in private credit, having previously held positions at Peak Rock Capital, Atalaya Capital Management, and Elm Park Capital [2] - His addition is expected to significantly contribute to Capital Southwest's ability to source attractive lower middle market opportunities [2]

Group 1 - The article highlights the experience of Rida Morwa, a former investment and commercial banker with over 35 years in the industry, focusing on high-yield investment strategies since 1991 [1] - The Investing Group High Dividend Opportunities, led by Rida Morwa, aims to provide sustainable income through various high-yield investments with a targeted safe yield of over 9% [1] - The service includes features such as a model portfolio with buy/sell alerts, preferred and baby bond portfolios for conservative investors, and regular market updates, emphasizing community and education [1] Group 2 - The article mentions that recommendations are closely monitored, and buy/sell alerts are issued exclusively for members [3]

Financial Results - Capital Southwest Corporation announced preliminary estimates of its financial condition and results of operations for the fiscal quarter ended December 31, 2025[4]. - The press release detailing these estimates was issued on January 15, 2026[4]. - The report indicates that the information disclosed will be deemed "filed" for purposes of the Securities Exchange Act of 1934[5]. - The financial statements and exhibits related to the report include a press release and an interactive data file[6]. Company Information - The company is listed on The Nasdaq Global Select Market under the trading symbol CSWC[3]. - Michael S. Sarner serves as the President and Chief Executive Officer of Capital Southwest Corporation[9].

Core Viewpoint - Capital Southwest Corporation has announced preliminary operating results for the third quarter of its 2026 fiscal year, indicating positive financial performance and upcoming earnings release details [1][4]. Financial Performance - The preliminary estimate of Capital Southwest's third quarter 2026 pre-tax net investment income is projected to be between $0.59 and $0.60 per share [2]. - The estimated net investment income for the same period is expected to range from $0.63 to $0.64 per share [2]. - The preliminary estimate of net asset value per share as of December 31, 2025, is between $16.72 and $16.77 [3]. - Non-accruals as a percentage of the total investment portfolio are estimated at 3.2% at cost and 1.5% at fair value [3]. Upcoming Events - Capital Southwest will finalize and release its third quarter 2026 results on February 2, 2026, after market close [4]. - A live webcast for investors is scheduled for February 3, 2026, at 11:00 a.m. Eastern Time [4][5].