Capital Southwest Q2 FY2027: $0.58 Pre-Tax NII/Share, NAV $16.64, Record $391M Originations
CSWC sits 16% above its 52-week low of $19.91.
Summary
Capital Southwest earned $0.58 per share in pre-tax net investment income for the September 2026 quarter, exactly covering its $0.58 regular dividend, while record $391 million of originations and $13.4 million of net unrealized depreciation left NAV at $16.64.
Key Events · Earnings and Guidance · CSWC
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Q2 FY2027 Pre-Tax NII of $0.58/Share
Pre-tax net investment income was $37.2 million, or $0.58 per weighted average share, against total investment income of $67.2 million and interest expense of $21.0 million.
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NAV Rises to $16.64 on ATM Accretion
NAV per share rose to $16.64 from $16.61, driven by selling 2,732,562 shares through the Equity ATM at a weighted-average $24.50, partly offset by $13.4 million of net realized and unrealized depreciation.
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Record $391M Origination Quarter
The company committed $391.0 million across 14 new and 16 existing portfolio companies, including $314.2 million of first lien debt, plus a $25.0 million equity commitment to the new Desert Star joint venture with Trinity Capital.
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Leverage Climbs to 1.00x
Regulatory debt-to-equity rose to 1.00x from 0.91x, with $48.0 million of cash and $599.2 million of unused credit facility capacity at quarter end.
Analysis · CSWC · Unknown
The $0.58 per share in pre-tax net investment income covers the $0.58 regular dividend exactly, so the base payout is earned but with no cushion this quarter. The bigger story is the balance sheet: originations hit a record $391.0 million, while net unrealized depreciation of $13.4 million pushed total net assets from operations down to $21.4 million from $24.7 million in the prior quarter. NAV still edged up to $16.64 from $16.61 only because shares were sold through the ATM at $24.50, well above book value — that accretion is doing the work that portfolio marks are not. Leverage rose to 1.00x regulatory debt-to-equity from 0.91x, leaving less room to keep growing the portfolio without more equity or debt. The next scheduled update is the 11:00 a.m. Eastern conference call on November 3, 2026.
How filings like this one have moved
In the 30 days to Nov 3, 2026, 32.3% of the 2077 measured filings Wiseek scored 7 moved their stock by 5% or more by the next session's close. The median move was 0.00%. These are measured outcomes after filings of this importance, not a forecast for this one.
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At the time of this filing, CSWC was trading at $23.03 on NASDAQ in the Unknown sector, with a market capitalization of approximately $1.5B. The 52-week trading range was $19.91 to $25.75. This filing was assessed with neutral market sentiment and an importance score of 7 out of 10.