CAPS
CapstoneADocument history
Earnings documents stored for CAPS.
Investor releaseQuarter not tagged2026-05-20Capstone Reports Q1 2026 Results: Revenue Up 60%, Gross Profit Up 124%, Best Q1 Gross Margin in Four Years
Business Wire
Capstone Reports Q1 2026 Results: Revenue Up 60%, Gross Profit Up 124%, Best Q1 Gross Margin in Four Years
Gross margin expanded 670 bps to 23.5% against one of the harshest winters in recent memory for seasonal businesses NEW YORK, May 20, 2026--(BUSINESS WIRE)--Capstone Holding Corp. (NASDAQ: CAPS), a tech-enabled building products distribution platform, today reported financial and operating results for the first quarter of 2026. Q1 revenue grew 60% year-over-year to $12.6 million, gross profit grew 124% to $3.0 million, and gross margin expanded 670 basis points to 23.5%—the strongest first-quarter gross margin Capstone has reported in four years. Results reflect the first full quarter of contribution from Carolina Stone and Canadian Stone Industries (CSI). On a pro-forma basis, giving effect to the Carolina Stone and CSI acquisitions as if they had been owned for all of FY2025, platform revenue would have been approximately $68 million, compared with $46.9 million as reported. Business momentum in April and May indicates that end-market conditions have improved materially, and Capstone reaffirms FY2026 guidance of $72.1 million in revenue (+54%), $18.7 million in gross profit (+73%), and approximately $3.8 million in Adjusted EBITDA, an approximate 4x increase year-over-year, with positive Adjusted EBITDA expected in Q2. Financial Summary "It was a historically challenging winter for seasonal businesses, but our results reinforce the resilience of the platform we’ve built," said Matthew Lipman, Chief Executive Officer of Capstone. "Gross profit grew more than twice as fast as revenue, reflecting the pricing discipline and margin expansion we’ve prioritized across the business. We’ve seen strong project and customer momentum in April and May, and we remain firmly on track to achieve our FY2026 targets and to turn Adjusted EBITDA positive in Q2." First Quarter 2026 Highlights: Revenue Growth (+60%): Q1 revenue increased to $12.6 million from $7.9 million in Q1 2025, driven by the first full-quarter contribution from Carolina Stone and CSI and continued organic momentum across the legacy Instone business. Gross Profit Growth (+124%): Gross profit more than doubled to $3.0 million from $1.3 million, growing approximately 2x faster than revenue and reflecting accretive contribution from acquired subsidiaries and a higher-margin product mix. Gross Margin Expansion (+670 bps—Best Q1 in Four Years): Gross margin expanded to 23.5% from 16.8%, pacing toward the FY2026...
Investor releaseQuarter not tagged2026-05-16Capstone Holding Corp. Provides Filing Timeline for Q1 2026 Results
Business Wire
Capstone Holding Corp. Provides Filing Timeline for Q1 2026 Results
The Company remains encouraged by recent business momentum and expects to file its Form 10-Q and related investor materials by May 20, 2026. NEW YORK, May 15, 2026--(BUSINESS WIRE)--Capstone Holding Corp. (NASDAQ: CAPS), a tech-enabled building products distribution platform, today announced that it will delay the filing of its Quarterly Report on Form 10-Q for the quarter ended March 31, 2026, to allow additional time to finalize its quarterly financial statements and complete the related interim review. The Company currently expects to file the Form 10-Q and publish related investor materials no later than Wednesday, May 20, 2026. Capstone remains encouraged by recent business momentum and looks forward to discussing its first quarter performance and outlook with shareholders. The Company is filing a Notification of Late Filing on Form 12b-25 with the Securities and Exchange Commission. About Capstone Holding Corp. Capstone Holding Corp. (NASDAQ: CAPS) is a national, technology-enabled building products distribution platform optimizing supply chains across 38 U.S. states and Canada. Through its Instone operating platform and inventory portal, the Company aggregates and delivers proprietary stone veneer, hardscape materials, and modular masonry systems. Capstone’s model combines digital infrastructure, owned-inventory logistics, and disciplined acquisitions to drive scalable margin expansion and operating leverage across its growing platform. Forward-Looking Statements This press release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. These statements relate to future events and performance, including guidance regarding revenue and EBITDA targets, M&A strategy, use of capital, and operating outlook. Actual results may differ materially from those projected due to a range of factors, including but not limited to the Company’s liquidity and access to capital; its ability to comply with, or obtain waivers of, financial covenants; the refinancing or repayment of indebtedness as it matures; conditions that may raise substantial doubt about the Company’s ability to continue as a going concern; acquisition timing and integration; macroeconomic conditions; and other execution risks. Please review the Company’s filings with the SEC, including the Quarterly Report on Form 10-Q for the quarter ended March 31, 202...
Investor releaseQuarter not tagged2026-04-21Capstone Announces Investor FAQ Focused on 2026 Guidance and Earnings
Business Wire
Capstone Announces Investor FAQ Focused on 2026 Guidance and Earnings
Company invites shareholder submissions; FAQ to expand on growth trajectory, margin profile, and path to profitability NEW YORK, April 21, 2026--(BUSINESS WIRE)--Capstone Holding Corp. (NASDAQ: CAPS), a tech-enabled building products distribution platform, will publish an investor FAQ during the week of May 4, addressing key questions from its shareholder base. The FAQ will provide additional detail on the Company’s recent earnings and 2026 guidance, which includes 54% revenue growth and approximately 4x EBITDA growth. Ahead of publication, Capstone is inviting shareholders to submit questions by emailing [email protected]. Submissions will be reviewed by the Company’s leadership team, with a selection of responses included in the published FAQ. "We’ve seen strong engagement from shareholders following our recent earnings update," said Matthew Lipman, Chief Executive Officer of Capstone. "This FAQ is an opportunity to address the questions we’re hearing most often and provide additional clarity on our 2026 outlook—including our expected revenue growth, margin expansion, and path to sustained profitability." "We are already seeing strong traction in both sales momentum and gross margin expansion, consistent with our 2026 outlook," Lipman added. "The upcoming FAQ will provide additional detail on these trends." In advance of the investor FAQ, shareholders are encouraged to review the Company’s Earnings Power presentation, available on Capstone’s website. About Capstone Holding Corp. Capstone Holding Corp. (NASDAQ: CAPS) is a national, technology-enabled building products distribution platform optimizing supply chains across 38 U.S. states and Canada. Through its Instone operating platform and inventory portal, the Company aggregates and delivers proprietary stone veneer, hardscape materials, and modular masonry systems. Capstone’s model combines digital infrastructure, owned-inventory logistics, and disciplined acquisitions to drive scalable margin expansion and operating leverage across its growing platform. Forward-Looking Statements This press release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. These statements relate to future events and performance, including guidance regarding revenue and EBITDA targets, M&A strategy, use of capital, and operating outlook. Actual results may diff...
Investor releaseQuarter not tagged2026-04-16Capstone Reports FY2025 Results and Guides to 54% Revenue Growth and 4x EBITDA Growth in 2026
Business Wire
Capstone Reports FY2025 Results and Guides to 54% Revenue Growth and 4x EBITDA Growth in 2026
FY2025 gross margin expands to 23% on $46.9M revenue; FY2026 guidance calls for $72.1M of revenue, ~$18.7M of gross profit (+73%), and a positive EBITDA run-rate starting in Q2 NEW YORK, April 16, 2026--(BUSINESS WIRE)--Capstone Holding Corp. (NASDAQ: CAPS), a tech-enabled building products distribution platform, today announced financial and operating results for the fourth quarter and full year ended December 31, 2025. The Company closed FY2025 with ~$46.9 million in revenue and gross margin expanding to 23.0%, reflecting acquisition-driven scale and a higher-margin product mix. For FY2026, Capstone expects revenue to rise 54% to $72.1 million, gross margin to reach 26%, and EBITDA to increase more than fourfold to approximately $3.8 million, driven by operating leverage, product expansion, and geographic expansion. Financial Summary In FY2026, Capstone expanded from a single-subsidiary distributor to a nine-location platform spanning 38 U.S. states and Canada, completing two acquisitions that added approximately $26 million in annualized revenue. With integration substantially complete, the Company enters 2026 positioned to convert platform scale into earnings growth. "It was a transformational year for Capstone," said Matthew Lipman, Chief Executive Officer. "Synergies from our recent acquisitions are enabling margin growth and operating leverage across the platform. With a full year of contributions from these assets, along with our product and geographic expansion, we expect 2026 to deliver a sharp increase in both revenue and EBITDA." Full-Year 2025 Highlights: Revenue Growth: FY2025 revenue of ~$46.9 million reflects partial-year contributions from Carolina Stone (August close) and Canadian Stone Industries (December close), positioning the Company at ~$68 million in pro forma revenue entering 2026. Margin Expansion: Gross profit increased 12.8% year-over-year, with gross margin expanding 170 basis points to 23.0%, reflecting structural improvements in sourcing and product mix. Disciplined M&A and Integration: Completed two acquisitions, expanding from one to three operating subsidiaries and from four to nine locations, establishing a North American platform spanning 38 U.S. states and Canada. Acquired businesses were integrated immediately upon close, with early synergies supporting margin expansion and operating efficiency. Expanded Brand Portfolio...
Investor releaseQuarter not tagged2025-11-17Capstone Reports Record Q3 Results With 46% EBITDA Growth and New Acquisition Momentum
ACCESS Newswire
Capstone Reports Record Q3 Results With 46% EBITDA Growth and New Acquisition Momentum
Pro forma revenue up 19% YoY; $26M in acquired annual revenue accelerates Capstone's path toward a $100M run-rate by early 2026 NEW YORK CITY, NEW YORK / ACCESS Newswire / November 17, 2025 / Capstone Holding Corp. (NASDAQ:CAPS), a national building products distribution platform, today announced strong financial and strategic highlights for the third quarter of 2025, including significant growth in revenue, gross profit, and adjusted EBITDA. Capstone announced two acquisitions during the second half, expected to contribute $26 million in annualized revenue and accelerate progress toward the company's $100 million run-rate target for 2026. Continued organic growth and efficiency initiatives further strengthened profitability and expanded margins quarter over quarter. Key Highlights: Record Revenue Growth: Pro forma year-to-date revenue increased 19% year-over-year to $41.2 million, driven by the Carolina Stone acquisition and continued organic growth. Pro forma adjusted EBITDA rose 46% and gross profit rose 34%, reflecting acquisition growth and cost discipline. Strong M&A Momentum: Capstone's anticipated acquisition of a multi-location stone distributor with $15 million in annual revenue is on track to close before December 15. Combined with Carolina Stone, acquisitions completed in the second half are expected to add $26 million in annualized revenue and position the company for strong post-acquisition growth. Active, Favorable Pipeline: Multiple additional targets are currently under review at attractive 4-6x EBITDA valuations, with 20-45% of consideration structured in non-cash components. Capstone expects to complete three to four strategic acquisitions in 2026. Improved Industry Outlook: Economic conditions have improved meaningfully, supported by interest rate cuts and a steady recovery in demand. Forecasts point to a rebound in remodeling activity and a persistent housing undersupply, creating strong long-term tailwinds for the sector. Integration Milestones: Capstone quickly achieved integration milestones with Carolina Stone across ERP, logistics, marketing, and other core functions. This framework positions the company for the rapid post-close integration of its next acquisition, expected to close in early December. "It was another exciting quarter for Capstone, as we delivered record results across multiple fronts and announced our first two acqu...
TranscriptFY2025 Q32025-11-17FY2025 Q3 earnings call transcript
Earnings source - 11 paragraphs
FY2025 Q3 earnings call transcript
Good morning, and thank you for joining us. I'm Matthew Lipman, CEO of Capstone Holding Corp., ticker C-A-P-S, CAPS. Capstone is built to deliver, positioned to acquire, and ready to scale. Today's presentation covers our Q3 year-to-date results, the integration of our acquisitions, and our outlook as we move forward towards 2026. This content is fully qualified by the legal disclosures that follow. Our goal today is simple, to give you a clear, transparent view of how we are operating the business, what is driving our performance, and how we are executing our strategy. We operate in a dynamic environment. Interest rates, consumer demand, and policy continue to shift. What we share today reflects our best current estimates, and we will adjust as conditions evolve. Despite uncertainty, we must plan, invest, and build. This presentation lays out that roadmap. Please review the full legal disclosures.
This presentation contains forward-looking statements and non-GAAP financial metrics. Actual results may differ materially. Today, we'll walk through our 2025 goals and progress, the acquisition strategy and pipeline, year-to-date platform performance, integration milestones, and our outlook for 2026. Year-to-date performance reflects strong integration and disciplined execution. Revenue is up 19% year-over-year, driven by the Carolina Stone Products acquisition. Gross profit is up 34%, with margin expansion from 21.7%-24.4%, driven largely by sourcing improvements and a stronger product mix. Our adjusted EBITDA is up by 46%, reflecting acquisition growth and cost discipline. Our platform is scaling towards its $100 million trajectory. Capstone is continuing to execute on its strategy towards its goal of $100 million in revenue. By the end of 2025, we'll have executed on two acquisitions, adding $26 million in revenue.
The Carolina Stone acquisition, which closed in August of 2025, and a multi-location distributor targeted to close in December of 2025. Our pipeline remains active with strong synergies and disciplined pricing. These acquisitions further demonstrate our ability to source, structure, and close transactions that accelerate scale and earnings. The world changed from our initial expectations. 2025 included delayed rate cuts, tariff uncertainty, and a slower sales cadence. Still, we will have executed on two acquisitions, adding revenue and delivered margin growth. Going into 2026, we've seen two rate cuts already, and it looks like more are coming. As the economic environment improves, we're set up to grow organically, expand earnings, and keep moving forward on acquisitions. Our acquisition strategy remains unchanged.
Tuck-ins to expand our platform and add earnings momentum, sister companies with product and channel synergy to unlock cost savings and mutual growth, and longer-term, new platforms to drive diversification. Valuations remain attractive at 4-6x EBITDA, typically with 20%-45% non-cash consideration. We are delivering on our promise to remain disciplined on pricing, structure, and fit. We're executing on the build-out of our North American platform. Instone, Carolina Stone, and the expected fourth quarter acquisition come together to form a true multi-regional distributor with scale. We also have the foundation in place to complete 3-4 acquisitions in 2026. More importantly, now we have the execution capability to capitalize on these investments. The integration work at Carolina Stone, ERP, logistics, and marketing is complete, and that same playbook will allow us to quickly align our next acquisition. Our M&A pipeline remains strong.
Market conditions are producing realistic seller expectations and limited competition. Some of the best targets are waiting for the market to improve, and Capstone is nurturing those relationships. The timing of new acquisition announcements is always speculative. With that said, it is highly unlikely we will announce another deal in 2025. We do expect to close our previously announced acquisition by December 15th, and we are targeting 3-4 deals next year and hope to announce one that meets our criteria in the near future. The Carolina Stone acquisition closed in August 2025, expanding our footprint into the Southeast U.S. It helped support pro forma revenue growth, up 19% year-over-year to $41.2 million, and adjusted EBITDA increased 46% year-over-year, reflecting acquisition growth and cost discipline.
As we stated, we believe the macroeconomic environment is setting up to help support organic revenue and earnings growth in 2026. Certain products at our operating subsidiaries experienced growth while others declined a bit. At the beginning of the year, given the economic outlook, we had hoped that market conditions would allow for significant organic growth. That has not been the case as interest rates declined much more slowly than anticipated and tariffs led to uncertainty. At Carolina Stone, the markets they serve did experience growth. We expect to use that as a beachhead to drive organic growth into growing markets like the Southeast. We continue to look for acquisitions in the Southeast as we believe market growth is likely to continue in the region, and it will be amongst the stronger regions in the country. On this page, you'll find a summary of our year-to-date results for our operating business.
I would, however, like to take the opportunity to give you some insight into how we look at liquidity and the capital structure. We believe it is important to manage liquidity carefully at our operating subsidiaries. As part of closing our upcoming acquisition, we expect to enhance the liquidity profile of our operating businesses using lower cost bank debt. Holding company liquidity is driven by liquidity in the operating companies. We intentionally keep minimal cash at the holdco as those funds are better used within the operating companies to reduce interest expense. We expect the primary use of proceeds of equity funding is to make acquisitions. With rate cuts coming more slowly than expected in 2025, the macroeconomic environment has been more challenging for our sector. We believe that has created a wider window for Capstone to pursue well-priced acquisitions.
Public companies in our sector typically are trading for 8-12x EBITDA. We are making acquisitions at 4-6x EBITDA or at book value. Typically, consideration is 25%-45% non-cash. This private to public arbitrage is what will drive significant long-term equity value for our investors. We understand the cost of short-term dilution, but we are buying real cash-generating assets, which should offset the effects of share issuance. Please refer to the 10-Q for more detail on our results. On this page, you'll find a summary of our Q3 results for our operating business. Please refer to our 10-Q for more detail. As a public company, Capstone incurs corporate costs beyond those of its subsidiaries. Fixed costs, including leadership, board, legal, and compliance, and variable costs, like investor relations and marketing, can be scaled upwards or downwards as needed.
When valuing our core business, we believe many corporate costs, including Capstone overhead, are not essential to our subsidiaries' operations. Notably, this quarter, we experienced a number of non-recurring acquisition-related and non-cash financing costs. Combined, these totaled around $1.5 million of expense. These costs had a meaningful negative impact on net income this quarter. However, as we grow, recurring operating performance will become cleaner and less overshadowed by non-recurring and non-cash items. On this page, you'll find a summary of our year-to-date results for the parent company. Capstone corporate expenses are not expected to scale quickly as we grow, allowing Capstone to expand profitability as it executes its strategy. This year includes a number of non-recurring non-cash and acquisition-related expenses, such as higher investor relations spend, transaction expenses, and a non-cash loss on the extinguishment of debt. Please refer to the 10-Q for more detail.
On this page, you'll find a summary of our Q3 results for our parent company. Please refer to the 10-Q for more detail. We are finishing 2025 with two completed acquisitions and material progress towards our long-term objectives. As we enter 2026, we have an integrated multi-regional platform, strong momentum in our own brands, improved sourcing logistics, and a disciplined acquisition pipeline, all positioning the company for scalable growth and continued earnings expansion. These are our key principles, our promise to our investors. We will be transparent. We will always tell you how we are doing. We will be accountable. We'll make commitments and share targets. Some might be stretch goals, but we will put our full effort behind them, and we will be adaptable. Markets change and conditions change. Capstone, ticker CAPS, is executing with discipline.
We are focused on organic growth, accretive M&A, and a clear path towards the $100 million revenue run rate goals. Thank you for your time.
Investor releaseQuarter not tagged2025-08-15Capstone Reports Q2 2025 Results: Gross Margin Up to 24.4%; First Acquisition Nears Close
ACCESS Newswire
Capstone Reports Q2 2025 Results: Gross Margin Up to 24.4%; First Acquisition Nears Close
NEW YORK, NY / ACCESS Newswire / August 15, 2025 / Capstone Holding Corp. (NASDAQ:CAPS) today announced its second quarter 2025 financial results and strategic highlights, including substantial gross margin expansion and that it has executed an agreement today that it expects to close in the next 10 days for its first acquisition. The acquisition of a Carolina Based Stone Company will be immediately accretive and extend the company's reach into the high-growth Southeast market and expand Instone's distribution platform. Q2 2025 results reflect continued execution on the Company's strategy of organic growth, margin expansion, and earnings-accretive acquisitions. The team is focused on delivering on our target of a $100M revenue run-rate by year-end 2025 or Q1 2026. First Acquisition Nears Close: The acquisition agreement for a Carolina Based Stone Company has been executed and is expected to close in the next 10 days. It will be immediately accretive to both revenue and EBITDA. This strategic transaction strengthens Capstone's market presence in North Carolina - a gateway to the high-growth Southeast region - and adds premium brands with strong margin expansion potential to the Company's portfolio. Strong Margin Growth: Gross margins expanded from 21.4% to 24.4% year-over-year, reflecting both increased sales of owned brands and disciplined cost management. This 310 basis-point margin expansion highlights Capstone's ability to drive profitability. SG&A remains on track at approximately $8.5 million annualized, supporting the Company's EBITDA growth objectives. Active, Favorable Pipeline: Multiple additional acquisition targets are under review at attractive 4-6× EBITDA valuations, with 20-45% of each deal's consideration in non-cash consideration. At least one more acquisition is projected to close by year-end 2025, further supporting Capstone's growth pipeline. Flexible Capital Ready: Capstone has secured an Equity Line of Credit (ELOC) and a convertible note, ensuring acquisition funding is available without reliance on high-interest debt or immediate equity dilution. This funding flexibility positions the Company to pursue earnings-accretive acquisitions that enhance both revenue growth and EBITDA performance. Instone Positioned for Second-Half Upside: Q3 order volume is expected to rebound as market conditions normalize. Projected late-2025 interest rate...