Feb 3, 2026
Capital Southwest (NASDAQ:CSWC) reported fourth-quarter 2025 results that surpassed revenue expectations but fell short on earnings per share. According to the source, the business development company’s revenue grew 18.2% year-over-year to $61.45 million, beating analyst estimates of $58.36 million by 5.3%.
Its GAAP earnings per share were $0.54, which was 8.2% below the consensus estimate of $0.59. The company’s pre-tax profit for the quarter was $34.63 million, representing a 56.4% margin. Capital Southwest‘s market capitalization is $1.35 billion.
In a statement, President and CEO Michael Sarner declared, “The December quarter was another extremely active quarter on the origination front for Capital Southwest, with approximately $244 million of originations in eight new and 16 existing portfolio companies.” He added, “Our portfolio continued to generate significant income for our shareholders, producing $0.60 of pre-tax net investment income per share.”
Sarner detailed the company’s dividfinish and capital activities, stating, “During the quarter, the Board of Directors again declared a regular monthly dividfinish of $0.1934 for each of January, February and March 2026 and a quarterly supplemental dividfinish of $0.06 to be paid in March 2026. On the capitalization front, we continued to efficiently raise equity capital during the quarter, raising approximately $53 million through our Equity ATM Program.”
He also noted a post-quarter development: “Subsequent to quarter finish, we formed a joint venture with another private credit asset manager, which will be an off-balance sheet private fund that primarily invests in first out senior secured debt opportunities in the lower middle market. We are excited about the opportunities this fund will provide shifting forward and believe it will allow Capital Southwest to be competitive on a broader range of investment opportunities.”
Founded in 1961, Capital Southwest is a business development company that provides debt and equity financing to middle-market companies primarily in the United States.
The company has displayn significant long-term revenue growth, with a compounded annual growth rate of 28% over the last five years. However, its annualized revenue growth of 15.9% over the last two years is below this five-year trfinish.
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