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

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

	FY2025	FY2026 Guidance	YoY Growth
Revenue	$46.9M	$72.1M	+54%
Gross Margin	23.0%	26.0%	+13%
Gross Profit	$10.8M	$18.7M	+73%
EBITDA	$0.9M	$3.8M	+322%

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: Built a portfolio of premium brands with national and regional coverage, including the recently awarded Eldorado Stone distribution from Westlake Royal Building Products, enabling cross-sell opportunities and a higher-margin product mix.

FY2026 Financial Guidance:

Revenue: $72.1 Million (+54%): Revenue growth reflects a full year of contributions from acquired subsidiaries, continued organic growth including the Eldorado Stone distribution, and expansion into new geographies and customer segments.
EBITDA: ~$3.8 Million (Inflection to Profitability): EBITDA is expected to reach approximately $3.8 million, driven by fixed-cost leverage, improved product mix, and operating efficiencies. The Company expects to achieve a positive EBITDA run-rate beginning in the second quarter.
Gross Margin: 26.0% (+300 bps): Gross profit expected to nearly double to ~$18.7 million. New product launches, including Eldorado Stone and Nature's Edge, and owned-brand expansion support continued margin improvement while increasing revenue per customer and per delivery route without incremental investment.
Cost Savings and Efficiency: Approximately $480,000 in identified annual cost savings from facility consolidation, with additional upside from logistics optimization and inventory centralization. AI-driven initiatives are expected to drive further efficiency gains by year-end 2026.
Growth Trajectory: Clear path to $100 million or more in revenue, supported by platform scale, acquisition pipeline, recently awarded distribution partnerships including Eldorado Stone, and continued operational execution.

"The new year is expected to deliver significant growth in profitability for Capstone, supported by strong organic sales and margin expansion," Lipman added. "Coast-to-coast coverage and an expanded portfolio of premium brands are driving strong inbound demand. Early 2026 results point to an accelerated earnings trajectory for the business."

Access to Full Materials

Following the filing of Capstone's annual report on Form 10-K, the Company will post an investor presentation discussing its full-year results, strategic priorities, and detailed financial outlook. These materials will be available in the Investor Relations section of www.capstoneholdingcorp.com.

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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Investor Contact

Investor Relations

Capstone Holding Corp.

investors@capstoneholdingcorp.com

www.capstoneholdingcorp.com

Capstone Reports FY2025 Results and Guides to 54% Revenue Growth and 4x EBITDA Growth in 2026