CAPITAL SOUTHWEST CORP (CSWC) SEC Filings & Earnings Calls

Preliminary estimates subject to change; final results may differ materially.

“Preliminary estimates may not align with actual results; adjustments during quarter-end closing could cause material differences.”

Increased leverage from new notes issuance; interest expense will rise.

“Creation of a Direct Financial Obligation or an Obligation Under an Off-Balance Sheet Arrangement.” · word for word

Increased debt capacity may lead to higher leverage, but extended maturity reduces near-term refinancing risk.

“Extended maturity from 2028 to 2031 and reduced unused commitment fees.”

Potential dilution risk from future equity issuance.

“increase the number of authorized shares of common stock from 75.0 million to 135.0 million” · word for word

Credit Risk from Non-Accrual Investments

“As of June 30, 2026, investments on non-accrual status represented approximately 1.1 % of our total investment portfolio at fair value and approximately 2.9 % at cost.” · word for word

Interest Rate Risk

“The majority of investments bear interest at a rate that may be determined by reference to Secured Overnight Financing Rate (SOFR) or Prime.” · word for word

Leverage Risk

“Total borrowings increased to $1,238,000 (in thousands) as of June 30, 2026.”

Non-accruals increased in cost basis to 2.9% of portfolio, though fair value remains low at 1.1%

“non-accruals with a fair value of $23.4 million, representing 1.1% of the total investment portfolio, and a cost basis of $65.7 million, representing 2.9%” · word for word

Net realized and unrealized depreciation of $10.9 million, primarily from equity portfolio markdowns

“Net Realized and Unrealized Depreciation : $10.9 million, or 0.5% of total investments at fair value” · word for word

Competition risk

“Many of our competitors are substantially larger and have considerably greater financial, technical and marketing resources than we do. Furthermore, our competitors may have a lower cost of funds and many have access to funding sources that are not available to us.” · word for word

Regulatory risk

“Certain of our competitors are not subject to the regulatory restrictions and valuation requirements that the 1940 Act imposes on us as a BDC.”

Key person risk

“The departure of our key investment and operations personnel could cause our operating results to suffer.” · word for word

Interest rate sensitivity: yield decline due to base rate cuts

“decrease in the weighted average yield on debt investments, primarily due to a decrease in base rates” · word for word

Non-accruals remain low but present

“non-accruals with a fair value of $22.7 million, representing 1.1% of the total investment portfolio” · word for word

Preliminary estimates subject to change

“actual results could differ materially from the current preliminary estimates based on adjustments made during year-end closing”

Non-accruals at fair value of $29.2M, representing 1.5% of total portfolio.

“Current non-accruals with a fair value of $29.2 million, representing 1.5% of the total investment portfolio.” · word for word

Credit risk from portfolio companies

“As of December 31, 2025, investments on non-accrual status represented approximately 1.5% of our total investment portfolio's fair value and approximately 3.2% of its cost.” · word for word

Macroeconomic and geopolitical risks

“We continue to observe certain macro-economic risks and uncertainties, including those relating to commodity inflation and elements of geopolitical instability (including the conflicts in Europe and the Middle East and U.S. and China relations). Changes to trade policies, including the imposition of new tariffs, could disrupt supply chains and may negatively” · word for word

Interest rate risk

“Interest expense increased 22.7% YoY to $18.0 million for Q3 FY2026, driven by higher average borrowings and a higher weighted average interest rate.”

Preliminary estimates subject to quarter-end adjustments; actual results may differ materially.

“preliminary estimates may not align with actual results of operations for the period”

Credit portfolio depreciation of $10.3M partially offset by equity appreciation

“$10.3 million of net depreciation related to the credit portfolio” · word for word

Interest expense increased due to higher average borrowings

“interest expense was $16.0 million, compared to $15.3 million in the prior quarter” · word for word

Interest Rate Decline Risk

“Weighted average annual effective yield on debt investments (b) 11.5% (Sep 30, 2025) vs 11.7% (Mar 31, 2025)” · word for word

Portfolio Credit Risk

“As of September 30, 2025, investments on non-accrual status represented approximately 1.0% of our total investment portfolio's fair value and approximately 2.6% of its cost.” · word for word

Macroeconomic and Tariff Risk

“Changes to trade policies, including the imposition of new tariffs, could disrupt supply chains and may negatively impact the financial condition of certain of our portfolio companies as well as the macro-economic environment.” · word for word