NASDAQ$CSWC

Capital Southwest Corporation · Q1 2025 earnings

Q1 2025 earnings · · Investor relations

Briefing

Announced financial results for the first fiscal quarter ended June 30, 2024, increased regular dividend to $0.58 per share, and declared a supplemental dividend of $0.06 per share for the quarter ending September 30, 2024.

Capital Southwest Corporation reported a strong first quarter for fiscal year 2025, with pre-tax net investment income of $0.69 per share. The company saw $108 million in originations and the board increased the regular quarterly dividend to $0.58 per share and declared a supplemental dividend of $0.06 per share for the quarter ending September 30, 2024.

  • Total investment portfolio of $1.5 billion, with a credit portfolio of $1.3 billion, 98% of which is in 1st Lien Senior Secured Debt.
  • Pre-Tax Net Investment Income was $31.3 million, or $0.69 per weighted average share outstanding.
  • The Board of Directors approved an increase of the Regular Dividend to $0.58 per share and a Supplemental Dividend of $0.06 per share for the quarter ending September 30, 2024.
  • Net Asset Value (NAV) per Share was $16.60.

Headline financials

Total Revenue

$32.5M

Previous: $12.6M+158.1%
EPS

$0.63

Previous: $0.65-3.1%
Capital Expenditures

-$25K

Previous: -$2K-1150.0%
Free Cash Flow

$14M

Previous: $23.8M-41.2%
Net Income

$14M

Previous: $23.8M-41.1%
Operating Income

$30.8M

Previous: $11.3M+173.6%
Gross Profit

$32.4M

Previous: $12.5M+158.9%
Cash & Equivalents

$33.3M

Previous: $21.3M+56.5%
Total Assets

$1.54B

Previous: $1.34B+15.5%
Stock-Based Comp

$1.22M

Previous: $963K+27.1%

Revenue & EPS history

Capital Southwest · Revenue · Quarterly

$32.5M

Q1 2025+158.1%vs Q1 2024
Beat estimate in 4 of 14 quarters(29%)
ActualEstimate

Revenue by segment

Capital Southwest · $18.3M total across 2 segments · Q1 2023

  • Non-control/Non-affiliate Investments
    $15.7M
  • Affiliate Investments
    $2.51M

Forward guidance

The Board of Directors has increased the regular quarterly dividend to $0.58 per share for the quarter ending September 30, 2024 and declared a supplemental dividend of $0.06 per share for the quarter ending September 30, 2024.

Tailwinds

  • Increased regular quarterly dividend to $0.58 per share.
  • Declared a supplemental dividend of $0.06 per share for the quarter ending September 30, 2024.
  • Intent to continue to distribute quarterly supplemental dividends for the foreseeable future.
  • Balance sheet liquidity at an all time high of $485 million.
  • Raised over $38 million on Equity ATM Program and adding $50 million in new commitments to SPV Credit Facility.

Headwinds

  • Future dividend declarations are at the discretion of the Board of Directors.
  • Dependence on base rates remaining materially above long-term historical averages.
  • Dependence on maintaining a meaningful UTI balance.
  • Net Realized and Unrealized Depreciation: $14.8 million, or 1.0% of total investments at fair value.
  • Current non-accruals with a fair value of $27.8 million, representing 1.9% of the total investment portfolio

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q1 2025

Historical avgQ1 2025

+0.7%

Avg return

Earnings day

+2.4%

Avg return

5 days after

+1.6%

Avg return

30 days after

62%

26 / 42 earnings

Positive

+9.7%

Q2 2021

Best reaction

-13.0%

Q1 2012

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2026+2.4%-1.5%+0.3%
Q3 2026+0.5%+0.2%-3.0%
Q2 2026-2.3%+1.7%+7.0%
Q4 2025-0.2%+2.5%-1.4%
Q3 2025+2.2%+3.1%+0.8%
Q2 2025-4.5%-6.4%-8.9%
Q1 2025-0.7%-2.5%+2.5%
Q4 2024-1.3%-2.0%-2.3%
Q3 2024+2.7%-2.0%-4.8%
Q2 2024+4.0%+3.8%+7.2%
Q1 2024+4.3%+2.0%+1.3%
Q4 2023+1.1%+1.6%+6.1%
Q3 2023+3.6%+2.6%-2.4%
Q2 2023+3.5%+3.5%-2.7%
Q1 2023+0.6%+1.4%-2.4%
Q4 2022+3.2%+5.5%-15.0%
Q3 2022+7.6%+6.3%+0.5%
Q2 2022-8.1%-2.6%-6.0%
Q1 2022+6.9%+5.9%+8.9%
Q4 2021+3.0%+5.2%-2.5%
Q3 2021+3.5%+8.5%+22.0%
Q2 2021+9.7%+17.9%+33.8%
Q1 2021+5.7%+9.5%+10.3%
Q4 2020+3.6%+9.2%-3.1%
Q3 2020-1.1%-2.0%-9.8%
Q2 2020-4.2%-5.0%-0.3%
Q1 2020+0.5%+4.0%+1.7%
Q4 2019-0.2%+0.4%-3.1%
Q3 2019+1.6%+0.5%+0.9%
Q1 2019+0.3%+1.8%+5.4%
Q4 2018+0.0%+10.9%+8.1%
Q3 2018+0.1%+0.7%+7.5%
Q1 2017+0.9%-0.3%+0.2%
Q4 2017+1.7%+2.3%+1.4%
Q3 2016-0.7%-2.5%-1.1%
Q3 2013
Q2 2013+2.9%
Q1 2013
Q4 2012+0.6%
Q3 2012-0.2%
Q2 2012-3.0%
Q1 2012-13.0%
Q4 2011-1.0%
Q4 2010-5.5%

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