Capital Southwest Stock Price, News & Analysis

Capital Southwest Corporation (NASDAQ:CSWC) has provided debt financing for Surge Private Equity's acquisition of White Plains Linen (WPL), a commercial laundry services provider, in a transaction valued at over $50 million.

Founded in 1938, WPL serves the New York metropolitan area's hospitality industry with textile rental and laundry services. The company demonstrates strong business fundamentals with an 86% recurring revenue rate. This acquisition marks Surge's fifteenth platform investment and sixth acquisition in the NYC commercial services sector.

Capital Southwest (Nasdaq: CSWC), a business development company, reported strong financial results for Q1 FY2026 ended June 30, 2025. The company's total investment portfolio reached $1.8 billion, with a credit portfolio of $1.6 billion comprising 99% first lien senior secured debt. Key highlights include pre-tax net investment income of $32.7 million ($0.61 per share) and a weighted average yield on debt investments of 11.8%.

During the quarter, CSWC originated $115.2 million in new commitments and received $80.6 million from portfolio exits, generating $27.1 million in net realized gains. The company maintained strong portfolio quality with non-accruals at just 0.8% of the total portfolio. CSWC declared monthly dividends of $0.1934 per share for July, August, and September 2025, plus a $0.06 supplemental dividend, totaling $0.64 per share for the quarter.

Capital Southwest (Nasdaq: CSWC), a business development company, has released preliminary estimates for Q1 2026 (ended June 30, 2025). The company expects pre-tax net investment income of $0.60-$0.61 per share and net investment income of $0.58-$0.59 per share.

The company's estimated net asset value per share ranges from $16.55 to $16.65. Non-accruals represent 2.6% of the portfolio at cost and 0.8% at fair value. Final Q1 2026 results will be released on August 6, 2025, followed by a webcast on August 7, 2025.

Capital Southwest (Nasdaq: CSWC), an internally managed business development company, has received an affirmation of its BBB- investment grade long-term issuer rating from Fitch Ratings, with a stable outlook. The rating agency also affirmed the company's senior secured debt rating of BBB.

The ratings affirmation is supported by several key factors, including Capital Southwest's focus on senior secured portfolios, diverse funding profile, robust asset coverage cushion, and consistent operating performance. This rating reinforces the company's strong position in providing flexible financing solutions to middle market businesses.

Capital Southwest (NASDAQ: CSWC) announced a transition from quarterly to monthly dividend payments starting July 2025. The company declared monthly regular dividends of $0.1934 per share for July, August, and September 2025, totaling $0.58 for the quarter. Additionally, a supplemental dividend of $0.06 per share was declared for September 2025, bringing the total quarterly dividend to $0.64 per share. The company's CEO Michael Sarner emphasized this change as a shareholder-friendly initiative, citing strong earnings generation and portfolio credit quality. Capital Southwest maintains a dividend reinvestment plan (DRIP) allowing registered stockholders to automatically reinvest dividends into additional shares.

Capital Southwest (CSWC) reported strong financial results for Q4 and FY2025. The total investment portfolio reached $1.8 billion, with a credit portfolio of $1.6 billion (99% 1st Lien Senior Secured Debt). Q4 highlights include pre-tax net investment income of $28.5 million ($0.56 per share) and new committed credit investments of $146.2 million. The company paid total dividends of $0.64 per share, including a $0.58 regular dividend and $0.06 supplemental dividend. The weighted average yield on debt investments was 11.7%, with current non-accruals at 1.7% of the total portfolio. For FY2025, investment revenue increased 15% to $204.4 million, and the portfolio grew by 21%. The company maintained an operating leverage of 1.7% and ended with a NAV per share of $16.70.

Capital Southwest (Nasdaq: CSWC) has announced its dividend distributions for the quarter ending June 30, 2025. The business development company declared two dividends:

• A regular dividend of $0.58 per share
• A supplemental dividend of $0.06 per share

Both dividends share the same important dates:

• Ex-Dividend Date: June 13, 2025
• Record Date: June 13, 2025
• Payment Date: June 30, 2025

The company maintains a dividend reinvestment plan (DRIP) for registered stockholders who hold shares with Equiniti Trust Company. Under this plan, stockholders who opt in by the dividend record date will have their dividends automatically reinvested into additional shares of Capital Southwest common stock. The Board reviews taxable income estimates when declaring dividends, which may differ from net investment income under accounting principles.

Capital Southwest (Nasdaq: CSWC) announced that its subsidiary, Capital Southwest SBIC II, LP, has received a Small Business Investment Company (SBIC) license from the U.S. Small Business Administration. This marks the company's second SBIC license, following its first in April 2021.

The new license enables SBIC II to issue SBA-guaranteed debentures up to $175 million, bringing Capital Southwest's total SBIC program borrowing capacity to $350 million. These debentures feature semi-annual interest payments and ten-year maturity, with interest rates fixed at a spread over ten-year U.S. Treasury Notes.

The company received exemptive relief from the SEC, allowing the exclusion of SBA-guaranteed debentures from senior securities in asset coverage requirements.

Capital Southwest (Nasdaq: CSWC) has released preliminary operating results for Q4 FY2025 (ended March 31, 2025). The company incurred $2.8 million ($0.05 per share) in one-time expenses related to their former CEO's departure.

Key preliminary estimates include:

• Pre-tax net investment income: $0.55-0.56 per share
• Net investment income: $0.54-0.55 per share
• Adjusted pre-tax net investment income (excluding one-time expenses): $0.60-0.61 per share
• Adjusted net investment income: $0.59-0.60 per share
• Net asset value per share: $16.65-16.75
• Non-accruals: 3.5% of portfolio at cost, 1.7% at fair value

The company will release final Q4 2025 results on May 14, 2025, after market close, followed by a webcast on May 15, 2025.