The following is a summary of the Capital Southwest (CSWC) Q3 2025 Earnings Call Transcript:

Financial Performance:

• Pre-tax net investment income was $30.7 million, or $0.64 per share.

• Total investment income increased to $52 million, up from $48.7 million in the prior quarter.

• Paid a regular dividend of $0.58 per share and increased the supplemental dividend to $0.06 per share.

• Expects a further $0.10 to $0.15 per share increase in UTI balance at the end of the March quarter from potential realized gains.

Business Progress:

• Issued $230 million in convertible notes and redeemed $140 million of January 2026 notes.

• Received a green light from the SBA for a second SBIC license, expected approval imminently.

• Equity portfolio marked at 143% of cost, showing significant unrealized gains indicative of growth potential from lower middle market businesses.

Opportunities:

• Robust deal flow in the lower middle market with strong relationships across 80 unique private equity firms.

• Portfolio diversification across industries provides stability and risk mitigation.

• Increased visibility on potential exits could lead to meaningful realized gains later in 2025.

Risks:

• Competitive market environment with some spread compression on new deals.

• Anticipated effects of tariffs and immigration policies on portfolio companies with government contracts or those impacted by international trade.

Tips: For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.