Capital Southwest (CSWCZ) Financials

Capital Southwest (CSWC) Quarterly Financial Performance Overview

Capital Southwest has demonstrated consistent revenue growth and stable earnings over the past several quarters. The primary source of revenue remains other interest income, which has increased steadily from approximately $17.7 million in Q3 2022 to nearly $48.6 million in Q4 2025. Total revenue rose correspondingly, reaching $52.4 million in the most recent quarter.

• Total interest income has grown significantly over the analyzed period, showing strong core earnings potential.
• Net income attributable to common shareholders increased from $2.5 million in early 2023 to over $17.1 million in Q4 2025, reflecting improving profitability.
• Basic earnings per share rose from $0.49 in Q1 2023 to $0.54 in Q4 2025, indicating earnings growth on a per-share basis despite some share dilution.
• Strong issuance of common equity and debt financing in recent quarters has supported growth initiatives and liquidity.
• Consistent payment of dividends around $0.63 per share in the most recent quarters suggests stable shareholder returns.
• Non-interest income, while a smaller part of total revenue, appears volatile but generally stable between $2.6 million and $6.7 million per quarter.
• The company has managed operating expenses prudently, maintaining non-interest expenses within a predictable range despite fluctuating revenues.
• Other adjustments to consolidated net income have been sizable and negative in multiple quarters (e.g., -$10.3 million in Q4 2025), which lowered consolidated net income and may reflect unusual or nonrecurring items.
• Net cash from operating activities has been negative for several recent quarters, indicating cash flow challenges from core operations.
• Total liabilities have increased considerably over the past two years, reaching about $959 million by Q3 2025, which raises concerns about leverage and financial risk.

Summary: Capital Southwest is experiencing improving revenue and net income trends primarily fueled by growth in interest income. While profitability on a per-share basis has improved, certain negative non-cash adjustments and ongoing negative operating cash flows warrant caution. The company’s rising liabilities also highlight increased leverage. For investors, the stock shows potential upside but with considerations around cash flow management and balance sheet strength.