As of December 31, 2025, Capital Southwest’s total investment portfolio stood at $2.0 billion, comprised of a $1.8 billion credit portfolio and a $182.7 million equity portfolio. The credit portfolio was 99% first-lien senior secured debt with a weighted average yield of 11.3%, while current non-accruals totaled $29.2 million, or 1.5% of the portfolio’s fair value. Net realized and unrealized depreciation amounted to $1.9 million, representing just 0.1% of total investments, driven by $9.2 million of net appreciation in equity holdings offset by $8.7 million of credit portfolio depreciation.

During the quarter, the company originated $244.0 million in new commitments, including $197.3 million of first-lien senior secured debt across eight new portfolio companies and $2.1 million in equity co-investments, as well as $44.6 million of add-on financings to 16 existing portfolio companies. Proceeds from six prepayments and exits totaled $89.1 million, generating a net realized loss of $0.2 million. Subsequent to quarter-end, Capital Southwest raised approximately $53 million through its Equity ATM Program and launched an off-balance sheet joint venture targeting first-out senior secured debt opportunities in the lower middle market.

Third quarter pre-tax net investment income totaled $34.6 million, or $0.60 per weighted average common share, driven by $61.4 million of investment income and offset by $26.9 million of combined interest and operating expenses. The Board declared regular monthly dividends of $0.1934 per share for each of January, February and March 2026, plus a $0.06 supplemental dividend, bringing total distributions for the December quarter to $0.64 per share. Estimated undistributed taxable income stood at $1.02 per share as of December 31, 2025.

At quarter-end, unrestricted cash and money market balances were $42.6 million, with $395.2 million of unused capacity under the Corporate and SPV credit facilities and a regulatory debt-to-equity ratio of 0.89 to 1. Total debt outstanding included $210.0 million on the Corporate Credit Facility, $104.0 million on the SPV Credit Facility, $224.2 million of convertible notes due 2029, $343.6 million of notes due 2030 and $190.6 million of SBA Debentures. NAV per share was $16.75, up from $16.62 in the prior quarter, reflecting equity issuances at a premium and net appreciation on investments.