Monitor the conference call on May 14 for commentary on portfolio yield trajectory and originations pipeline. The sequential decline in weighted average yield (10.8% vs 11.3%) and investment income warrants attention, though the portfolio continues to grow and non-accruals remain low. The CapTrin JV credit facility provides additional origination capacity for lower middle market opportunities.
Price Chart
Executive Summary
Capital Southwest reported fiscal Q4 2026 (quarter ended March 31, 2026) results with pre-tax net investment income of $35.2M ($0.59 per share), slightly above the prior quarter's $34.6M ($0.60 per share). Total investment income declined sequentially to $57.8M from $61.4M due to lower arranger fees and a decrease in weighted average yield on debt investments (10.8% vs 11.3% in Q3). The portfolio grew 17% YoY to $2.1B, and the company maintained its regular quarterly dividend of $0.58 per share plus a $0.06 supplemental dividend. Non-accruals remained low at 1.1% of portfolio fair value.
Key Financial Metrics
Key Facts
- Pre-tax net investment income of $35.2M ($0.59 per share) vs $34.6M ($0.60 per share) in prior quarter
- Total investment income declined to $57.8M from $61.4M in prior quarter, driven by lower arranger fees and lower base rates
- Weighted average yield on debt investments decreased to 10.8% from 11.3% in prior quarter
- Total investment portfolio grew 17% YoY to $2.1B at fair value
- Net asset value per share declined to $16.69 from $16.75 in prior quarter
- Net realized and unrealized losses on investments of $7.1M for the quarter
- Non-accruals at 1.1% of portfolio fair value ($22.7M)
- Regular quarterly dividend maintained at $0.58 per share; supplemental dividend of $0.06 per share declared
- Raised $25.5M in gross proceeds through Equity ATM Program at weighted-average price of $23.13 per share (138% of NAV)
- Subsequent to quarter end, CapTrin joint venture closed a $150M revolving credit facility with accordion up to $350M
Financial Impact
Quarterly pre-tax NII of $35.2M ($0.59/share) vs consensus of $0.56/share; investment income of $57.8M vs consensus of $62.0M — revenue miss partially offset by lower expenses
Risk Factors
- Declining base interest rates compressing portfolio yield and net investment income
- Net realized and unrealized losses of $7.1M in the quarter, driven by credit portfolio depreciation
- NAV per share declining sequentially ($16.69 vs $16.75)
- Equity ATM program dilutes existing shareholders, though at premium to NAV
Market Snapshot
Documents Analyzed
This report is based on 7 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0000017313-26-000030 |
| Document: q42026earningspresentati.htm | 0000017313-26-000030 |
| Document: cswc-20260513.htm | 0000017313-26-000030 |
| Document: 0000017313-26-000030-index-headers.html | 0000017313-26-000030 |
| Document: 0000017313-26-000030-index.html | 0000017313-26-000030 |
| Document: 0000017313-26-000030.txt | 0000017313-26-000030 |
| 8-K Data (Synthetic) | 0000017313-26-000030 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 15, 2026 12d ago | 8-K | $23.08 $22.37 | ▼ −3.08% | ▼ −2.65% | $22.79 (−1.26%) |
Oct 15, 2026 12d ago | Press Release | $23.08 $22.37 | ▼ −3.08% | ▼ −2.65% | $22.79 (−1.26%) |
Sep 10, 2026 6w ago | Press Release | $24.19 $23.42 | ▼ −3.18% | ▼ −2.96% | $22.79 (−5.79%) |
Aug 25, 2026 9w ago | DEFA14A | $25.24 $24.74 | ▼ −1.98% | ▼ −1.86% | $22.79 (−9.71%) |
Aug 21, 2026 9w ago | Institutional Cluster | $24.96 $25.47 | ▲ +2.04% | ▲ +1.57% | $22.79 (−8.69%) |
Aug 7, 2026 11w ago | 8-K | $25.14 $24.64 | ▼ −1.99% | ▼ −1.94% | $22.79 (−9.35%) |
Aug 4, 2026 12w ago | DEFA14A | $24.42 $25.11 | ▲ +2.83% | ▲ +2.47% | $22.79 (−6.67%) |
Aug 4, 2026 12w ago | DEFA14A | $24.42 $25.11 | ▲ +2.83% | ▲ +2.47% | $22.79 (−6.67%) |
Aug 3, 2026 12w ago | Press Release | $24.72 $25.05 | ▲ +1.33% | ▲ +1.43% | $22.79 (−7.81%) |
Jul 30, 2026 12w ago | DEFA14A | $23.59 $25.13 | ▲ +6.53% | ▲ +3.02% | $22.79 (−3.39%) |
US Market Status
Subscribe to SecBot
Get Real-Time SEC Filing Intelligence
Comprehensive SEC filing analysis delivered the moment filings hit EDGAR. Sentiment scoring, impact analysis, and actionable insights for every material event.
Create a free account Live analysis, Telegram alerts, watchlists and the MCP server for subscribers