v3.26.1
INCOME TAXES (Tables)
 12 Months Ended
Mar. 31, 2026
Income Tax Disclosure [Abstract]  
Schedule of Distribution
Our distributions for the tax years ended December 31, 2025, 2024 and 2023 were as follows:

Payment DateCash Dividend per Share
Tax Year Ended December 31, 2025
March 31, 20251
$0.64 
June 30, 20251
0.64 
July 31, 20250.1934 
August 29, 20250.1934 
September 30, 20251
0.2534 
October 31, 20250.1934 
November 28, 20250.1934 
December 31, 20251
0.2534 
$2.56 
Tax Year Ended December 31, 2024
March 31, 20241
$0.63 
June 30, 20241
0.63 
September 30, 20241
0.64 
December 31, 20242
0.63 
$2.53 
Tax Year Ended December 31, 2023
March 31, 20232
$0.58 
June 30, 20232
0.59 
September 30, 20231
0.62 
December 31, 20231
0.63 
$2.42 

1On each of these dates, the dividend paid included a supplemental dividend of $0.06 per share.
2On each of these dates, the dividend paid included a supplemental dividend of $0.05 per share.
The tax character of distributions paid for the tax years ended December 31, 2025 and 2024 was as follows (amounts in thousands):
Twelve Months Ended December 31,
20252024
Ordinary income (1)$140,809 $118,216 
Distributions of long term capital gains— — 
Distributions on tax basis (2)$140,809 $118,216 
(1)Includes qualified dividend income of approximately $36.8 million for the twelve months ended December 31, 2025.
(2)Includes only those distributions which reduce estimated taxable income.
Schedule of Book and Tax Basis Differences Relating to Dividends and Distributions
Book and tax basis differences relating to dividends and distributions to our shareholders and other permanent book and tax differences are typically reclassified among the CSWC’s capital accounts. In addition, the character of income and gains to be distributed is determined in accordance with income tax regulations that may differ from U.S. GAAP; accordingly, for the twelve months ended March 31, 2026 and 2025, CSWC reclassified for book purposes amounts arising from permanent book/tax differences related to the tax treatment of return of capital and/or deemed distributions, tax treatment of investments upon disposition, and non-deductible expenses, as follows (amounts in thousands):

Years Ended March 31,
20262025
Additional capital$(43,945)$(18,532)
Total distributable earnings43,945 18,532 
Schedule of Net Assets Resulting from Operations to Estimated RIC Taxable Income
The following reconciles net increase in net assets resulting from operations to estimated RIC taxable income for the years ended March 31, 2026 and 2025:
Years Ended March 31,
Reconciliation of RIC Distributable Income (1)20262025
Net increase in net assets from operations$112,995 $70,548 
Net unrealized depreciation (appreciation) on investments25,832 (2,423)
Expense/loss recognized for tax on pass-through entities— (80)
Realized (gain) loss book/tax differences(4,775)(10,876)
Capital loss carryover (2)29,255 70,883 
Net operating income - wholly-owned subsidiary(40,127)(14,568)
Dividend income from wholly-owned subsidiary33,223 9,038 
Non-deductible tax expense2,622 1,424 
Loss on extinguishment of debt(4,089)(2,726)
Non-deductible compensation5,137 6,693 
Compensation related book/tax differences2,227 (2,741)
Interest on non-accrual loans6,626 11,999 
Other book/tax differences103 (187)
Estimated distributable income before deductions for distributions$169,029 $136,984 
Distributions (3):
    Ordinary$145,564 $123,569 
Estimated annual RIC undistributed taxable income$23,465 $13,415 

1The calculation of taxable income for each period is an estimate and will not be finally determined until the Company files its tax return each year. Final taxable income may be different than this estimate.
2At March 31, 2026, the Company had long-term capital loss carryforwards of $160.1 million to offset future capital gains. These capital loss carryforwards are not subject to expiration.
3Includes only those distributions which reduce estimated distributable income.
Schedule of Components of Estimated Tax Basis RIC Accumulated Earnings
As of March 31, 2026, 2025 and 2024, the components of estimated RIC accumulated earnings on a tax basis were as follows (amounts in thousands):
Years Ended March 31,
Components of RIC Accumulated Earnings on a Tax Basis1
202620252024
Undistributed ordinary income - tax basis$64,528 $41,594 $28,845 
Undistributed net realized (loss) gain(160,068)(130,951)(60,056)
Unrealized (depreciation) appreciation on investments(98,565)(80,308)(68,529)
Other temporary differences(2,100)(4,201)(9,584)
Components of distributable earnings at year-end$(196,205)$(173,866)$(109,324)

1The calculation of taxable income for each period is an estimate and will not be finally determined until the Company files its tax return each year. Final taxable income may be different than this estimate.
Schedule of Deferred Tax Assets and Liabilities
The following table sets forth the significant components of the deferred tax assets and liabilities as of March 31, 2026 and March 31, 2025 (amounts in thousands):
March 31, 2026March 31, 2025
Deferred tax asset:
Net operating loss carryforwards$443 $253 
Interest2,541 1,811 
Total deferred tax asset2,984 2,064 
Deferred tax liabilities:
Net unrealized appreciation on investments(12,907)(15,054)
Net basis differences in portfolio investments(2,584)(3,790)
Total deferred tax liabilities(15,491)(18,844)
Total net deferred tax (liabilities) assets$(12,507)$(16,780)
Schedule of Significant Components of Income Tax Provision The following table sets forth the significant components of income tax provision as of March 31, 2026, 2025 and 2024 (amounts in thousands):
Years Ended March 31,
Components of Income Tax Provision202620252024
Excise tax$2,499 $1,351 $872 
Tax (benefit) provision related to Taxable Subsidiary(1,501)841 22 
Other123 73 50 
Total income tax provision$1,121 $2,265 $944 
Schedule of Federal and State Income Taxes Paid
The following table is a reconciliation of the federal and state income taxes paid, net of refunds received, for the years ended March 31, 2026, 2025 and 2024 (in thousands):

Years Ended March 31,
202620252024
Federal$12,136 $1,251 $1,052 
State(1)
182 192 124 
Total$12,318 $1,443 $1,176 
(1)There were no jurisdictions for which the annual income taxes paid (net of refunds received) represent 5% or more of the Company's total annual income taxes paid (net of refunds received).