CSWC 10-Q: NAV $16.64, $0.58 Pre-Tax NII, Non-Accruals Tick Up to 1.4%
CSWC sits 18% above its 52-week low of $19.91.
Summary
Capital Southwest's 10-Q confirms the already-announced $0.58 pre-tax NII and shows NAV easing to $16.64 as unrealized depreciation and a higher non-accrual rate offset portfolio growth; the convertible-note conversion dispute remains the key overhang.
Key Events · Earnings and Guidance · CSWC
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Q2 Pre-Tax NII $0.58, Covers Dividend
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 — matching the $0.58-$0.59 range pre-announced October 15.
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NAV Slips to $16.64 on Unrealized Losses
NAV per share fell to $16.64 from $16.69 at March 31, 2026, as $27.0 million of six-month net unrealized depreciation offset earnings; total net assets were $1,106.4 million.
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Non-Accruals Rise to 1.4% of Portfolio
Investments on non-accrual status were 1.4% of the portfolio at fair value and 3.5% at cost, up from 1.1% and 2.4% at March 31, 2026; the portfolio grew to $2.41 billion across 153 companies.
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Convertible Note Conversion Dispute Overhang
The filing discloses that certain 2029 Convertible Note holders are asserting a conversion-rate adjustment; an unfavorable resolution would materially reduce NAV and net investment income and dilute existing shareholders.
Analysis · CSWC · Unknown
The headline earnings were pre-announced October 15 and confirmed in today's 8-K, so the quarter's numbers themselves are not new. What the 10-Q adds is balance-sheet detail: NAV slipped to $16.64 from $16.69 at March 31 as $27.0 million of net unrealized depreciation over six months offset retained earnings, while non-accrual investments rose to 1.4% of the portfolio at fair value (3.5% at cost) from 1.1% (2.4%). Leverage remains comfortable at 198% asset coverage, and the portfolio kept growing to $2.41 billion across 153 companies, supported by the sale of 2.7 million ATM shares at $24.50. Most important for the thesis is the previously flagged dispute with 2029 convertible noteholders over a conversion-rate adjustment; the filing states that an adverse outcome would cut NAV and NII and dilute existing holders.
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.
Measured one observation per ticker per day, after exclusions. Current figures: Filing Impact Tracker · open dataset
At the time of this filing, CSWC was trading at $23.43 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.