Capital Southwest Corporation (CSWCZ) delivered a compelling QQ2 2026 performance characterized by strong net income and earnings per share growth driven by fee-related and realization-driven components within its asset management and credit investment activities. Revenue for the quarter stood at $56.945 million, yielding a net income of $31.984 million and an EPS of $0.57, translating to a net income margin of approximately 56%. YoY revenue growth of about 48% and a 41% YoY rise in net income reflect favorable portfolio activity and ongoing demand for capital solutions in the middle market. However, the company reported negative operating cash flow of $71.2 million in the period, primarily due to significant non-cash items and working capital movements, requiring continued reliance on financing activities to support portfolio deployment and liquidity.