Capital Southwest Corporation posted a strong quarterly bottom line in QQ2 2026, with net income of $31.98 million and earnings per share of $0.57, representing year-over-year net income growth of approximately 41% and a quarter-over-quarter EPS uptick of about 14%. Revenue for the quarter totaled $56.95 million, up 48% YoY but down 27% QoQ, reflecting the inherent seasonality and deployment cadence typical of asset-management and credit-focused businesses under the CSWC platform. Despite the top-line variability, the company delivered a solid net margin (net income as a share of revenue) of roughly 56%. Free cash flow remained negative (-$71.08 million) and operating cash flow was also negative (-$71.22 million), driven by working capital dynamics, significant non-cash items, and investing activity, underscoring that accounting profitability did not translate into positive cash generation in the period.