CSWC Capital Southwest Corporation

Capital Southwest Corporation (“Capital Southwest”) (Nasdaq: CSWC), an internally managed business development company focused on providing flexible financing solutions to support the acquisition and growth of middle market businesses, is pleased to announce its preliminary operating results for the fourth quarter of its 2025 fiscal year (quarter ended March 31, 2025) and its fourth quarter 2025 earnings release and conference call schedule.

During the quarter ended March 31, 2025, Capital Southwest incurred $2.8 million, or $0.05 per share, of one-time net expenses related to the departure of our former President and Chief Executive Officer.

Capital Southwest’s preliminary estimate of its fourth quarter 2025 pre-tax net investment income is in the range of $0.55 to $0.56 per share. The preliminary estimate of Capital Southwest’s net investment income for the same period is in the range of $0.54 to $0.55 per share.

Capital Southwest’s preliminary estimate of its fourth quarter 2025 adjusted pre-tax net investment income, excluding the one-time net expenses noted above, is in the range of $0.60 to $0.61 per share.(1) The preliminary estimate of its adjusted net investment income for the same period, excluding the one-time net expenses noted above, is in the range of $0.59 to $0.60 per share.(1)

Additionally, Capital Southwest’s preliminary estimate of its net asset value per share as of March 31, 2025 is in the range of $16.65 to $16.75. Capital Southwest’s preliminary estimate of its non-accruals as a percentage of the total investment portfolio at cost and fair value is 3.5% and 1.7%, respectively.

Capital Southwest will release its finalized fourth quarter 2025 results on Wednesday, May 14, 2025 after the market closes. In conjunction with the release, Capital Southwest has scheduled a live webcast on Thursday, May 15, 2025 at 11:00 a.m., Eastern Time. Investors may participate in the webcast.(2)

By Webcast: Connect to the webcast using the Investor Relations section of Capital Southwest's website at www.capitalsouthwest.com, or by going to the following website: https://edge.media-server.com/mmc/p/s389iru5. Please log in at least 10 minutes in advance to register and download any necessary software. A replay of the webcast will be available on Capital Southwest's website shortly after the call.

Live Call Participation:Participants who want to join the call and ask a question must register using the following URL: https://register-conf.media-server.com/register/BI8f006b736d2d44a6968a9f8113c60e06. Once registered, participants will receive the dial-in numbers and a unique PIN number. When participants dial in, they will input their PIN and be placed into the call. Registration is still possible even after the event has started.

About Capital SouthwestCapital Southwest Corporation (Nasdaq: CSWC) is a Dallas, Texas-based, internally managed business development company with approximately $1.7 billion in investments at fair value as of December 31, 2024. Capital Southwest is a middle market lending firm focused on supporting the acquisition and growth of middle market businesses with $5 million to $50 million investments across the capital structure, including first lien, second lien and non-control equity co-investments. As a public company with a permanent capital base, Capital Southwest has the flexibility to be creative in its financing solutions and to invest to support the growth of its portfolio companies over long periods of time.

Forward-Looking StatementsThis press release contains forward-looking statements and provides historical information with respect to the business and investments of Capital Southwest, including, but not limited to, the preliminary estimates of the fourth quarter of its 2025 fiscal year financial information and results, which are based on current information available to Capital Southwest as of the date hereof. The preliminary estimates of the fourth quarter of its 2025 fiscal year financial information and estimated results furnished above are based on Capital Southwest management’s preliminary determinations and current expectations, and such information is inherently uncertain. The preliminary estimates may not align with Capital Southwest’s actual results of operations for the period, which will not be known until Capital Southwest completes its customary year-end closing and review procedures and third-party audit, including the determination of the fair value of Capital Southwest’s portfolio investments. As a result, actual results could differ materially from the current preliminary estimates based on adjustments made during Capital Southwest’s year-end closing and review procedures and third-party audit, and Capital Southwest’s reported information in its Annual Report on Form 10-K for the year ended March 31, 2025 may differ from this information, and any such differences may be material. In addition, the information furnished above does not include all of the information regarding Capital Southwest’s financial condition and results of operations for the quarter and year ended March 31, 2025 that may be important to readers. As a result, readers are cautioned not to place undue reliance on the information furnished in this press release and should view this information in the context of Capital Southwest’s full fourth quarter of 2025 and fiscal year 2025 results when such results are disclosed by Capital Southwest in its Annual Report on Form 10-K for the year ended March 31, 2025. The information furnished in this press release is based on current expectations of Capital Southwest’s management that involve substantial risks and uncertainties that could cause actual results to differ materially from the results expressed in, or implied by, such information.

Forward-looking statements are statements that are not historical statements and can often be identified by words such as "will," "believe," "expect" and similar expressions and variations or negatives of these words. These statements are based on management's current expectations, assumptions and beliefs. They are not guarantees of future results and are subject to numerous risks, uncertainties and assumptions that could cause actual results to differ materially from those expressed in any forward-looking statement. These risks include risks related to: changes in the markets in which Capital Southwest invests; changes in the financial, capital, and lending markets; changes in the interest rate environment and its impact on Capital Southwest’s business and its portfolio companies; regulatory changes; tax treatment; Capital Southwest’s ability to operate its wholly owned subsidiary Capital Southwest SBIC I, LP, as a small business investment company; an economic downturn and its impact on the ability of Capital Southwest’s portfolio companies to operate and the investment opportunities available to it; the impact of supply chain constraints and labor shortages on Capital Southwest’s portfolio companies; and the elevated levels of inflation and its impact on Capital Southwest’s portfolio companies and the industries in which it invests.

Readers should not place undue reliance on any forward-looking statements and are encouraged to review Capital Southwest's Annual Report on Form 10-K for the year ended March 31, 2024 and any subsequent filings, including the "Risk Factors" sections therein, with the Securities and Exchange Commission for a more complete discussion of the risks and other factors that could affect any forward-looking statements. Except as required by the federal securities laws, Capital Southwest does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, changing circumstances or any other reason after the date of this press release.

Investor Relations Contact:Michael S. Sarner, President and Chief Executive Officer214-884-3829

(1) Adjusted pre-tax net investment income and adjusted net investment income are non-GAAP measures. These non-GAAP measures are included to supplement the Company’s financial information presented in accordance with GAAP and because the Company believes such measures are useful indicators of operations and enhance investors’ ability to analyze trends in the Company’s business exclusive of the one-time net expenses related to the departure of Capital Southwest’s former President and Chief Executive Officer. However, these non-GAAP measures have limitations and should not be considered in isolation or as a substitute for analysis of the Company’s financial results as reported under GAAP.

These non-GAAP measures are not in accordance with, or an alternative to, measures prepared in accordance with GAAP and may be different from non-GAAP measures used by other companies. In addition, these non-GAAP measures are not based on any comprehensive set of accounting rules or principles. These measures should only be used to evaluate the Company’s results of operations in conjunction with their corresponding GAAP measures. Pursuant to the requirements of Item 10(e) of Regulation S-K, as promulgated under the Securities Exchange Act of 1934, as amended, the Company has provided a reconciliation of these non-GAAP measures in the above disclosure.

(2) No information contained on our website or disclosed on the May 15, 2025 conference call, including the webcast, is incorporated by reference into this press release or any of our filings with the SEC, and you should not consider that information to be part of this press release or any other such filing.