New outdoor living product debuts to strong contractor demand at industry trade shows; recent project wins add immediate cash-generative revenue to the platform

Capstone Holding Corp. (NASDAQ:CAPS), a tech-enabled building products distribution platform, today announced the successful launch of a new natural stone firepit product at the iLandscape Show in Illinois. The product will next be showcased at the Northeast Hardscape Expo, following strong contractor demand at its debut. The launch builds on Capstone's recent revenue- and EBITDA-driving project and customer wins by expanding the Company's portfolio of retail-ready SKUs that generate strong repeat order volume.

"The reception to this launch reinforces what we're seeing across our business: contractors are responding to an active project cycle, and that's translating into strong demand and order volume for Capstone," said Kevin Grotke, President of Instone.

"So far in 2026, we've converted a series of customer wins that add immediate, scalable EBITDA growth. Now, we're seeing strong near-term demand for our portfolio of retail products," added Matthew Lipman, Chief Executive Officer of Capstone. "These signals reinforce our confidence in the growth and earnings trajectory of the business."

Metric	Detail
Product Launch	Aura natural stone firepit debuted to strong contractor demand at iLandscape Show; next featured at Northeast Hardscape Expo
Order Volume	Repeat purchasing and strong order volume across distributor network
Recent Project Wins	300,000+ sq ft annualized demand — immediately revenue- and EBITDA-accretive
Outdoor Living Growth	Capstone has expanding retail-ready SKU portfolio in one of the fastest-growing segments of home construction
Demand Cycle	Multi-year demand cycle emerging, as deferred project activity converts into accelerating order volume for Capstone
Path to Profitability	Positive EBITDA run-rate targeted Q2 2026; Earnings Power Presentation expected in coming weeks

Key Highlights:

Expanded SKU Portfolio: New product adds to Capstone's growing lineup of retail-ready SKUs with a proven ability to generate strong order volume and repeat purchasing across its distributor network.
Platform-Wide Sales Momentum: Capstone recently announced new customer and project wins that add substantial project-backed, cash-generative volume to the Company's platform.
Outdoor Living Category Growth: Capstone's expanding portfolio of retail-ready outdoor living SKUs strengthens the Company's leadership in one of the fastest-growing segments of home construction and remodeling.
Multi-Year Demand Cycle Emerging: Deferred project activity is beginning to convert into a multi-year demand cycle across the building products sector, creating a favorable growth environment for Capstone.

The Aura natural stone firepit is the latest addition to Capstone's portfolio of SKUs designed to drive retail sell-through across its distributor network. Together with the garden path steppers introduced last year, the products expand Capstone's presence in the outdoor living category, one of the fastest-growing segments of home construction and remodeling.

"We continue to see strong growth in this customer segment, which we're meeting with new best-in-class products. The immediate feedback from customers and suppliers at iLandscape is that the demand outlook for 2026 is turning very positive," Grotke continued.

Capstone expects to publish an Earnings Power Presentation in the coming weeks, outlining its organic growth momentum and management's vision for building a full-stack AI leader in the building products sector.

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 acquisition timing, macroeconomic conditions, and execution risks. Please review the Company's filings with the SEC for a full discussion of risk factors. Capstone undertakes no obligation to revise forward-looking statements except as required by law.

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Capstone Expands Retail Portfolio as Order Volume Accelerates; Contractor Demand Drives Repeat Revenue and EBITDA Growth