Capital Southwest Corporation (CSWCZ) q2 2026 Earnings Report

Executive Summary

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.

Key Performance Indicators

Revenue

56.95M

QoQ: -26.88% | YoY:48.23%

Net Income

31.98M

QoQ: 18.45% | YoY:41.00%

EPS

0.57

QoQ: 14.00% | YoY:18.75%

Revenue Trend

Margin Analysis

Key Insights

Financial Highlights

Key Performance Metrics (Q2 2026) – Revenue: $56.945 million (YoY +48.23%, QoQ -26.88%); Net Income: $31.984 million (YoY +41.00%, QoQ +18.45%); EPS: $0.57 (YoY +18.75%, QoQ +14.00%); Net Margin: 56.17% (31.984m / 56.945m); Operating Cash Flow: -$71.224 million; Free Cash Flow: -$71.083 million; Cash and Cash Equivalents: $87.429 million; Total Assets: $2.021 billion; Total Liabilities: $1.074 billion; Total Equity: $947.004 million; Total Debt: $394.759 million; Net Debt: $307.330 million; Financing Activities: +$111.845 million; Investment Activity: Purchases $237.711 million; Sales/Maturities $145.663 million; Other Investing Activities $91.826 million; Net Cash from Investing Activities: -$0.081 million; Common Stock Issued: $39.699 million; Weighted Avg Shares Outstanding: 55.544 million (Diluted 64.831 million).

Income Statement

Metric	Value	YoY Change	QoQ Change
Revenue	56.95M	48.23%	-26.88%
Net Income	31.98M	41.00%	18.45%
EPS	0.57	18.75%	14.00%

Key Financial Ratios

Net Income vs. Revenue

Expense Breakdown

Competitive Position

Company	Gross Margin	Operating Margin	Return on Equity	P/E Ratio

Period	Revenue ($M)	EPS ($)	YoY Growth	Report
Q2 2026	56.95	0.57	+48.2%	View
Q1 2026	77.88	0.59	+114.8%	View
Q4 2025	88.44	1.33	+180.8%	View
Q3 2025	41.33	0.34	-14.9%	View
Q2 2025	38.42	0.48	-10.2%	View

Capital Southwest (CSWCZ) Q2 2026 Earnings Report

Earnings Highlights

Capital Southwest Corporation (CSWCZ) QQ2 2026 Results – Profitability Strength with Robust Liquidity Position in a Dynamic Mid‑Market Credit Environment

Executive Summary

Key Performance Indicators

Revenue

Net Income

EPS

Revenue Trend

Margin Analysis

Key Insights

Financial Highlights

Income Statement

Key Financial Ratios

Net Income vs. Revenue

Expense Breakdown

Management Commentary

Forward Guidance

Competitive Position

Gross Profit Margin

Operating Profit Margin

Return on Equity

P/E Ratio Comparison

Investment Outlook

Key Investment Factors

Growth Potential

Profitability Risk

Financial Position

SWOT Analysis

Strengths

Weaknesses

Opportunities

Threats

Historical Earnings Comparison

Capital Southwest (CSWCZ) Q2 2026 Earnings Report

Earnings Highlights

Executive Summary

Key Performance Indicators

Revenue

Net Income

EPS

Revenue Trend

Margin Analysis

Key Insights

Financial Highlights

Income Statement

Key Financial Ratios

Net Income vs. Revenue

Expense Breakdown

Management Commentary

Forward Guidance

Competitive Position

Gross Profit Margin

Operating Profit Margin

Return on Equity

P/E Ratio Comparison

Investment Outlook

Key Investment Factors

Growth Potential

Profitability Risk

Financial Position

SWOT Analysis

Strengths

Weaknesses

Opportunities

Threats

Historical Earnings Comparison

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