Capital Southwest Corporation (CSWCZ) reported QQ1 2026 results with strong profitability and a sizable investment base, underscored by an EBITDA margin of 58.7% and a net income margin of 34.7%. Revenue of $77.88 million reflected a 114.8% year-over-year increase, while quarterly figures showed a sequential revenue decline of 11.9% versus the prior quarter. Net income rose 92.4% year over year but declined sharply QoQ due to seasonal/portfolio factors and non-operating items, posting $27.00 million and basic/diluted EPS of $0.50/$0.59 respectively. The company’s balance sheet shows substantial invested assets (~$1.78 billion) and a solid equity base ($916.5 million), with total assets at $1.882 billion and total liabilities of $965.9 million. Cash and cash equivalents stood at $46.9 million, while total debt was $394.6 million and net debt $347.7 million. The current ratio is modest at roughly 0.20, suggesting near-term liquidity dynamics that may reflect portfolio deployment and financing structure typical for asset managers operating with asset-backed financing and interval liquidity needs. Overall, CSWCZ demonstrates durable profitability and capital deployment capacity in a challenging rate environment, though QoQ volatility and balance-sheet liquidity warrants monitoring for near-term risk management.