Capstone Holding (CAPS) Company Report

Capstone is focusing on a technology platform to drive scale, integration, and profitability in the building products sector, with a goal to become a "full stack" AI company, expecting this to enable faster integration of acquisitions and immediate profitability uplift.
The company is targeting a $100 million revenue run-rate and 10% EBITDA margins at its operating subsidiaries, with a positive corporate EBITDA run-rate expected to begin in Q2 2026.
To strengthen its financial profile and improve earnings visibility, Capstone implemented a $2.0 million annualized cost reduction and the CEO voluntarily reduced his cash salary to $1.00.
Management's primary focus for regaining compliance with Nasdaq's $1 minimum bid requirement is through executing its operating and financial strategy for organic price appreciation, considering a reverse stock split as a secondary contingency.
Growth in 2026 is anticipated from both organic growth and targeted, accretive acquisitions, building on over $25 million in revenue added through acquisitions in 2025.

Jan 28, 2026, 12:30 PM

Capstone Holding Corp. receives Nasdaq deficiency notice

CAPS

Delisting/Listing Issues

Capstone Holding Corp. (CAPS) received a deficiency letter from Nasdaq on January 7, 2026, due to its common stock trading below the minimum $1.00 per share bid price requirement for 30 consecutive business days.
This deficiency violates Nasdaq Listing Rule 5550(a)(2).
The notice has no immediate effect on the listing, and the company's common stock will continue to trade on The Nasdaq Capital Market.
Capstone Holding Corp. has 180 calendar days, until July 6, 2026, to regain compliance with the Minimum Bid Price Requirement.

Jan 9, 2026, 10:15 PM

Capstone Holding Corp. Outlines 2026 Strategy and Revenue Targets

CAPS

Guidance Update

M&A

Revenue Acceleration/Inflection

Capstone Holding Corp. released its 2026 strategy update on December 15, 2025.
The company has achieved $70M in pro forma revenue as of December 2025 and is targeting a $100M revenue run rate by 2026.
Recent acquisitions of Carolina Stone Products (August 2025) and Canadian Stone Industries (December 2025) in H2 2025 added $26M in revenue and expanded the company's North American coverage.
Capstone aims to achieve ~10% EBITDA Margins by leveraging organic growth, focusing on higher-margin offerings, and strategic acquisitions.

Dec 15, 2025, 12:30 PM

Capstone Holding Corp. Closes Canadian Stone Industries Acquisition

CAPS

M&A

New Projects/Investments

Guidance Update

Capstone Holding Corp. closed the acquisition of Canadian Stone Industries (CSI) on December 1, 2025.
The acquisition is expected to add $15 million in annual revenue and be immediately accretive to revenue and EBITDA.
This transaction accelerates Capstone's progress toward its $100 million run-rate revenue target for early 2026.
The purchase price for the Share Purchase Transaction included C$6,200,000 in cash, promissory notes totaling C$3,600,000, and potential earn-out payments up to C$3,000,000.

Dec 2, 2025, 1:20 PM

Capstone Holding Corp. Reports Record Q3 Results and Acquisition Momentum

CAPS

Earnings

M&A

Guidance Update

Capstone Holding Corp. announced strong financial results for the third quarter of 2025, with pro forma year-to-date revenue increasing 19% year-over-year to $41.2 million and adjusted EBITDA rising 46%.
The company completed or is on track to complete two acquisitions in the second half of 2025, including Carolina Stone, which are expected to add a combined $26 million in annualized revenue.
These strategic moves are accelerating Capstone's progress toward its target of achieving a $100 million revenue run-rate by early 2026.

Nov 17, 2025, 4:12 PM

Capstone Holding Corp. Completes Acquisition of Carolina Stone Holdings

CAPS

M&A

Debt Issuance

Capstone Holding Corp. completed the acquisition of Carolina Stone Holdings, LLC on August 22, 2025.
The aggregate purchase price for the acquisition included $2,625,000 in cash (with $2,501,500 transferred initially) and a $1,250,000 seller note, plus an earn-out agreement.
The cash portion of the acquisition was financed by senior secured convertible notes, from which the company received $2,680,000 in net proceeds from the initial closing.
The 8-K filing includes audited financial statements of Carolina Stone Holdings for the year ended December 31, 2024, and unaudited financial statements for the six months ended June 30, 2025, as well as pro forma combined financial statements for these periods.

Nov 7, 2025, 9:15 PM

Capstone Holding Corp. Retires Debt with Non-Dilutive Preferred Equity Issuance

CAPS

Debt Issuance

M&A

Capstone Holding Corp. announced on October 1, 2025, the exchange of $1.9 million in debt for a newly issued series of non-convertible preferred equity.
This strategic deleveraging retires 100% of the targeted debt, lowering 2026 interest expense by more than $170k, and strengthens the company's balance sheet.
The preferred equity is non-dilutive to common shareholders, as no new common shares were issued, preserving value for existing shareholders.
The Series Z 8% Non-Convertible Preferred Stock accrues cumulative dividends at an 8% coupon, payable in cash or through the issuance of additional preferred shares (PIK).