Capital Southwest (CSWC) investor relations material

Executive summary

• Pre-tax net investment income was $35.0 million, or $0.57 per share, with total investment income of $61.0 million, supported by strong recurring earnings and robust deal flow in the lower middle market.

• Board declared a $0.58 regular dividend and a $0.06 supplemental dividend for the September quarter, totaling $0.64 per share.

• Total investment portfolio at fair value reached $2.2 billion as of June 30, 2026, with investments in 141 portfolio companies.

• Raised $63.6 million in gross proceeds through the equity ATM program at 141% of NAV per share.

• Shareholder approval is being sought to increase authorized shares, with 89% of votes cast in favor but more participation needed.

Financial highlights

• Total investment income rose to $61.0 million from $57.8 million in the prior quarter, mainly from higher interest and fee income.

• Net asset value (NAV) per share was $16.61 at June 30, 2026, down from $16.69 in the prior quarter.

• Undistributed taxable income (UTI) was $0.87 per share at quarter end.

• Operating expenses (excluding interest) as a percentage of average total assets were 1.36% for the last twelve months.

• Interest expense rose to $18.5 million, reflecting higher average borrowings and rates.

Outlook and guidance

• Origination pipeline remains strong, with $125 million already closed early in the current quarter and expectations to close $250-$300 million in the next 60 days.

• Management highlighted continued investment discipline and strong income generation for shareholders.

• Dividend coverage remains strong, with cumulative pre-tax NII regular dividend coverage of 109% since 2015.

• Management believes liquidity and capital resources are adequate for the next twelve months, supported by cash, credit facilities, and capital markets access.

• Focus remains on senior debt and equity investments in lower middle market companies with EBITDA between $3 million and $25 million.