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--(BUSINESS WIRE)--April 16, 2026--
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
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Revenue $46.9M $72.1M +54%
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Gross Margin 23.0% 26.0% +13%
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Gross Profit $10.8M $18.7M +73%
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EBITDA $0.9M $3.8M +322%
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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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CONTACT: Investor Contact
Investor Relations
Capstone Holding Corp.
investors@capstoneholdingcorp.com
www.capstoneholdingcorp.com
(END) Dow Jones Newswires
April 16, 2026 07:30 ET (11:30 GMT)