NASDAQ$CSWC

Capital Southwest Corporation · Q2 2025 earnings

Q2 2025 earnings · · Investor relations

Briefing

Announced financial results for the second fiscal quarter ended September 30, 2024.

Capital Southwest reported a strong quarter with pre-tax net investment income of $0.64 per share. The company originated $89.8 million in new commitments and declared a regular dividend of $0.58 per share and a supplemental dividend of $0.05 per share for the quarter ending December 31, 2024.

  • Total investment portfolio reached $1.5 billion, with a credit portfolio of $1.4 billion, 98% of which is 1st Lien Senior Secured Debt.
  • Pre-Tax Net Investment Income was $30.0 million, or $0.64 per weighted average share outstanding.
  • The company paid a regular dividend of $0.58 per share and a supplemental dividend of $0.06 per share.
  • Net Asset Value (NAV) per Share was $16.59.

Headline financials

Total Revenue

$20.9M

Previous: $14.3M+46.5%
EPS (adj)

$0.66

Previous: $0.69-4.3%
Capital Expenditures

-$522K

Previous: -$2K-26000.0%
Free Cash Flow

$22.2M

Previous: $22.6M-2.0%
Net Income

$22.7M

Previous: $22.6M+0.3%
Operating Income

$19.1M

Previous: $12.8M+48.7%
Gross Profit

$20.6M

Previous: $14.2M+45.2%
Cash & Equivalents

$47.2M

Previous: $23M+105.2%
Total Assets

$1.6B

Previous: $1.42B+13.2%
Stock-Based Comp

$1.54M

Previous: $1.24M+24.4%

Revenue & EPS history

Capital Southwest · Revenue · Quarterly

$20.9M

Q2 2025+46.5%vs Q2 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

Capital Southwest anticipates robust net portfolio growth for the quarter ending December 31, 2024, driven by delayed deal closings and a strong backlog of deals in diligence. The Board of Directors has declared a regular dividend of $0.58 per share and a supplemental dividend of $0.05 per share for the quarter ending December 31, 2024.

Tailwinds

  • Strong performance of the portfolio.
  • Expects very robust net portfolio growth for the quarter ending December 31, 2024.
  • Regular dividend of $0.58 per share declared for the quarter ending December 31, 2024.
  • Supplemental dividend of $0.05 per share declared for the quarter ending December 31, 2024.
  • Intent to continue to distribute quarterly supplemental dividends for the foreseeable future.

Headwinds

  • Future dividend declarations are at the discretion of the Board of Directors.
  • Decrease in investment income was primarily attributable to a decrease in distributions received from our equity investments.
  • Decrease in investment income was primarily attributable to a decrease in amendment and prepayment fees received during the quarter.
  • Net Realized and Unrealized Depreciation: $8.5 million, or 0.6% of total investments at fair value.
  • The decrease in NAV per share from the prior quarter is primarily due to net realized and unrealized losses on investments.

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 Q2 2025

Historical avgQ2 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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