Capital Southwest Corporation · NASDAQ:CSWC
Capital Southwest — Q4 2026 Earnings Presentation
26 slides from Capital Southwest's earnings presentation, May 14, 2026
Slide 1: Capital Southwest Corporation Q4 2026 Earnings Presentation
Capital Southwest Corporation Q4 2026 Earnings Presentation May 14, 2026 8333 Douglas Avenue, Suite 1100 | Dallas, Texas 75225 | 214.238.5700 | capitalsouthwest.com
Slide 2: Important Notices
Important Notices • These materials and any presentation of which they form a part are neither an offer to sell, nor a solicitation of an offer to purchase, any securities of Capital Southwest. • These materials and the presentations of which they are a part, and the summaries contained herein, do n
Slide 3: Forward-Looking Statements
Forward-Looking Statements • This presentation contains forward-looking statements relating to, among other things, the business, market conditions, financial condition and results of operations of Capital Southwest (including statements about expected improvements to Capital Southwest's operating l
Slide 4: CSWC Senior Management
CSWC Senior Management Michael S. Sarner President and Chief Executive Officer • Joined Capital Southwest in June 2015 • Former SVP Treasurer at American Capital • 30+ years of financial, treasury and BDC experience Chris T. Rehberger • BA – James Madison | MBA – George Washington Chief Financial Of
Slide 5: Conference Call Participants
Conference Call Participants Michael S. Sarner President and Chief Executive Officer Chris T. Rehberger Chief Financial Officer, Treasurer and Secretary Josh S. Weinstein Senior Managing Director and Chief Investment Officer Amy L. Baker Executive Vice President of Accounting Page 5
Slide 6: CSWC Company Overview
CSWC Company Overview CSWC is a middle-market lending firm focused on supporting the acquisition and growth of middle-market companies across the capital structure • CSWC was formed in 1961, and elected to be regulated as a BDC in 1988 • Publicly-traded on Nasdaq: Common Stock (“CSWC”) • Internally
Slide 7: Lower Middle Market Credit Strategy
Lower Middle Market Credit Strategy CSWC leads financing transactions, primarily backing private equity firms that generally fit the following parameters • Flexible financing solutions to fund growth, changes of control, or other corporate events • Investments are diverse among industries, geographi
Slide 8: Fiscal Year 2026 Highlights
Fiscal Year 2026 Highlights Financial Highlights • Investments at Fair Value of $2.1 B compared to $1.8 B in prior year, an increase of 17% ◦ Committed Investment Originations of $762.3 MM for Fiscal Year 2026 • Investment Income of $232.1 MM compared to $204.4 MM in prior year, an increase of 14% •
Slide 9: Q4 2026 Highlights
Q4 2026 Highlights Financial Highlights • Q4 2026 Pre-Tax Net Investment Income (“NII”) of $35.2 MM or $0.59 per share • Declared a quarterly regular dividend of $0.58 per share, of which $0.1934 per share will be paid monthly for each of April, May, and June 2026 ◦ In addition, declared a quarterly
Slide 10: Q4 2026 Investment Activity
Q4 2026 Investment Activity Investment Activity Highlights • During the quarter, CSWC originated $157.7 MM in total new committed investments ($111.3 MM funded at close) to five new portfolio companies and twelve existing portfolio companies ◦ Committed investments to new portfolio companies consist
Slide 11: NAV per Share Bridge for Quarter Ended 03/31/26
NAV per Share Bridge for Quarter Ended 03/31/26 $17.50 $0.59 $17.00 $16.75 $0.11 $16.69 $(0.58) $0.01 $(0.06) $16.50 $(0.13) $16.00 Investment Portfolio Earnings / Dividends Performance Other Corporate ($0.05) per Share ($0.12) per Share $0.11 per Share $15.50 e h ar e o m d en d d en d a lu e T ax
Slide 12: CSWC Investment Portfolio Composition
CSWC Investment Portfolio Composition Maintaining appropriate portfolio leverage while receiving attractive risk- adjusted returns Investment Portfolio - Statistics (in $000's) 12/31/2025 3/31/2026 Total CSWC Total CSWC Portfolio Portfolio Number of Portfolio Companies 132 131 Total Cost $2,031,166
Slide 13: Quarter-over-Quarter Investment Rating Migration
Quarter-over-Quarter Investment Rating Migration Approximately 88% of all debt investments are currently rated a "1" or "2" as credit portfolio continues to demonstrate solid performance Investment Rating 12/31/2025 3/31/2026 % of % of # of Fair Value # of Fair Value Portfolio Portfolio Companies ($
Slide 14: History of Value Creation
History of Value Creation Total Value (Net Asset Value + Cumulative Dividends Paid) Increase of $20.27 per share since Launching Credit Strategy $40.00 $37.95 $35.40 $35.00 $32.93 $30.06 $30.00 $28.27 $16.90 $14.58 $24.90 $12.27 $25.00 $10.03 $22.71 $21.97 $8.00 $20.90 $6.18 $2.93 $20.00 $18.63 $1.5
Slide 15: Dividend Per Share
Track Record of Consistent Dividends Continues • In the last twelve months ended 3/31/2026, CSWC generated $2.39 per share in Pre-Tax NII and paid out $2.32 per share in Regular Dividends • Cumulative Pre-Tax NII Regular Dividend Coverage of 109% since launch of credit strategy in 2015 • Total of $4
Slide 16: Average Hold Size %
Granular Credit Portfolio Heavily Weighted Towards First Lien Investments 99% of credit portfolio in first lien senior secured loans with an average investment hold size of 0.9% as of 3/31/2026 Credit Portfolio Heavily Weighted to First Lien $2,000 $1,916 6.0% 99% 5.6% $1,750 $1,606 5.0% 99% $1,500
Slide 17: CSWC Portfolio Mix as of March 31, 2026 at Fair Value
CSWC Portfolio Mix as of March 31, 2026 at Fair Value Current Investment Portfolio of approximately $2.1 B continues to be heavily weighted towards first lien loans and diversified across industries Current Investment Portfolio (By Type) Current Investment Portfolio (By Industry) Senior Subordinated
Slide 18: Operating Leverage Trend
Operating Leverage Trend Operating Leverage declined to 1.4% from 1.7% during Fiscal Year 2026 $2,500 7% $2,178 6% $2,000 $1,883 Operating Expenses as % of Avg Assets 4.9% $1,557 5% Total Assets ($MM) $1,500 4.2% $1,258 3.7% 4% $974 $1,000 3.0% 2.8% $736 3% 2.4% $552 $585 2.2% $500 $417 1.9% $326 1.
Slide 19: Significant Unused Debt Capacity with Long-Term Duration
Significant Unused Debt Capacity with Long-Term Duration Debt Obligations Total Commitments Interest Rate Maturity Principal Drawn Undrawn Commitment Corporate Credit Facility $510.0 MM Term SOFR + 2.15% August 2028 $245.0 MM $264.1 MM (1) SPV Credit Facility $200.0 MM Term SOFR + 2.50% March 2029 $
Slide 20: Balance Sheet
Balance Sheet Quarter Ended Quarter Ended Quarter Ended Quarter Ended (In Thousands, except per share amounts) 6/30/2025 9/30/2025 12/31/2025 3/31/2026 Assets Portfolio Investments $1,780,198 $1,877,907 $2,013,205 $2,097,446 Cash & Cash Equivalents 46,889 87,429 42,559 29,045 Restricted Cash 1,650 1
Slide 21: Income Statement
Income Statement Quarter Ended Quarter Ended Quarter Ended Quarter Ended (In Thousands, except per share amounts) 6/30/2025 9/30/2025 12/31/2025 3/31/2026 Investment Income Interest Income $47,115 $48,258 $48,813 $47,834 PIK Interest Income 3,260 2,794 4,585 3,772 Dividend Income 3,677 2,742 3,748 2
Slide 22: Portfolio Statistics
Portfolio Statistics Continuing to build a well performing credit portfolio Quarter Ended Quarter Ended Quarter Ended Quarter Ended (In Thousands) 6/30/2025 9/30/2025 12/31/2025 3/31/2026 Portfolio Statistics Fair Value of Debt Investments $1,613,985 $1,706,251 $1,830,458 $1,916,494 Average Debt Inv
Slide 23: Investment Income Detail
Investment Income Detail Constructing a portfolio of investments with recurring cash yield Quarter Ended Quarter Ended Quarter Ended Quarter Ended (In Thousands) 6/30/2025 9/30/2025 12/31/2025 3/31/2026 Investment Income Breakdown Cash Interest $44,689 $46,823 $46,988 $45,992 Cash Dividends 3,677 2,
Slide 24: Key Financial Metrics
Key Financial Metrics Strong Pre-Tax Net Investment Income and Dividend Yield driven by net portfolio growth and investment performance Quarter Ended Quarter Ended Quarter Ended Quarter Ended 6/30/2025 9/30/2025 12/31/2025 3/31/2026 Key Financial Metrics Pre-Tax Net Investment Income Per Wtd Avg Bas
Slide 25: Interest Rate Sensitivity
Interest Rate Sensitivity Fixed vs. Floating Credit Portfolio Exposure 4.5% 95.5% Fixed Floating Illustrative Annual Illustrative Annual NII Change in Base Interest Rates NII Change ($'s) Change ($ Per Share) (75 bps) (11,380,739) (0.19) (50 bps) (7,587,159) (0.13) (25 bps) (3,793,580) (0.06) 25 bps
Slide 26: Corporate Information
Corporate Information Board of Directors Senior Management Fiscal Year End Inside Director Michael S. Sarner March 31 Michael S. Sarner President & Chief Executive Officer Independent Directors Independent Auditor David R. Brooks Chris T. Rehberger Christine S. Battist Chief Financial Officer, Secre