Capstone Holding Corp. Financials

CAPS

Source SEC Filings (10-K/10-Q) Data as of Mar 31, 2026 Currency USD FYE December

This page shows Capstone Holding Corp. (CAPS) financial statements, including the income statement, balance sheet, cash flow statement, and key financial ratios. View 12 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).

Rhea AI CAPS FY2025 2026-05-20

Capstone’s FY2025 deterioration came from a cost and cash-conversion breakdown below gross profit, not from lost sales.

With revenue nearly unchanged between FY2024 and FY2025, gross margin still improved from 21.3% to 23.0%. Yet free cash flow swung from $3.7M to -$4.5M, meaning the breakdown happened after gross profit—consistent with heavier SG&A, higher interest, and more cash tied up in inventory and receivables.

The capital structure improved on paper in FY2025 because equity turned positive and debt-to-equity moved to 0.8x, helped by $12.1M of financing inflow. But liquidity remained thin: cash was only $727K and the current ratio sat at 1.0x, leaving little room for timing slips in receivables or inventory.

Inventory and receivables together rose by about $9.5M in FY2025, while operating cash flow fell to -$4.4M. Because capital spending was only $122K, the cash burn was not driven by heavy equipment investment; it came mainly from working-capital build and losses.

Financial Health Signals

Financial health score pending refresh

We are recalculating Capstone Holding Corp.'s peer-relative financial health score against the latest fiscal year. It will appear here once the refresh completes. The signals and metrics below are current.

Altman Z-Score Distress

-5.68

Capstone Holding Corp. scores -5.68, below the 1.81 distress threshold. The score is driven primarily by a large market capitalization ($4.0M) relative to total liabilities ($38.9M). This indicates elevated financial distress risk and warrants close attention to liquidity and debt levels.

Distress-screening estimate for non-financial companies. Not computed for banks or insurers, where the Altman model does not apply.

Piotroski F-Score Partial

2/8

Capstone Holding Corp. passes 2 of 8 computable financial strength tests (1 of the nine could not be computed from available data). 1 of 4 profitability signals pass, no leverage/liquidity signals pass (rising debt, declining liquidity, or share dilution), 1 of 2 efficiency signals pass.

Earnings Quality Low Quality

0.21x

For every $1 of reported earnings, Capstone Holding Corp. generates $0.21 in operating cash flow (-$4.4M OCF vs -$21.2M net income). This low ratio suggests earnings are primarily driven by accounting accruals rather than cash generation, which may not be sustainable.

Interest Coverage At Risk

-2.8x

Capstone Holding Corp. earns $-2.8 in operating income for every $1 of interest expense (-$11.0M vs $3.9M). This narrow margin raises concern about the company's ability to service its debt if operating income declines.

Key Financial Metrics

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Earnings & Revenue

Revenue

$46.9M

YoY+4.5%

Capstone Holding Corp. generated $46.9M in revenue in fiscal year 2025. This represents an increase of 4.5% from the prior year.

EBITDA

-$10.6M

YoY-3130.2%

Capstone Holding Corp.'s EBITDA was -$10.6M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization. This represents a decrease of 3130.2% from the prior year.

Net Income

-$21.2M

YoY-728.3%

Capstone Holding Corp. reported -$21.2M in net income in fiscal year 2025. This represents a decrease of 728.3% from the prior year.

EPS (Diluted)

N/A

Cash & Balance Sheet

Free Cash Flow

-$4.5M

YoY-222.5%

Capstone Holding Corp. generated -$4.5M in free cash flow in fiscal year 2025, representing cash available after capex. This represents a decrease of 222.5% from the prior year.

Cash & Debt

$727K

YoY+6509.1%

5Y CAGR+0.8%

10Y CAGR-25.5%

Capstone Holding Corp. held $727K in cash against $9.0M in long-term debt as of fiscal year 2025.

Dividends Per Share

N/A

Shares Outstanding

5Y CAGR-26.5%

10Y CAGR-14.2%

Capstone Holding Corp. had 9M shares outstanding in fiscal year 2025.

Margins & Returns

Gross Margin

23.0%

YoY+1.7pp

Capstone Holding Corp.'s gross margin was 23.0% in fiscal year 2025, indicating the percentage of revenue retained after direct costs. This is up 1.7 percentage points from the prior year.

Operating Margin

-23.4%

YoY-22.0pp

Capstone Holding Corp.'s operating margin was -23.4% in fiscal year 2025, reflecting core business profitability. This is down 22.0 percentage points from the prior year.

Net Margin

-45.3%

YoY-39.6pp

Capstone Holding Corp.'s net profit margin was -45.3% in fiscal year 2025, showing the share of revenue converted to profit. This is down 39.6 percentage points from the prior year.

Return on Equity

-170.5%

10Y CAGR-103.9pp

Capstone Holding Corp.'s ROE was -170.5% in fiscal year 2025, measuring profit generated per dollar of shareholder equity.

Capital Allocation

R&D Spending

N/A

Share Buybacks

N/A

Capital Expenditures

$122K

YoY+1.7%

10Y CAGR+20.4%

Capstone Holding Corp. invested $122K in capex in fiscal year 2025, funding long-term assets and infrastructure. This represents an increase of 1.7% from the prior year.

CAPS Income Statement

Metric	FY25	FY24	FY23	FY18	FY17	FY16
Revenue	$46.9M+4.5%	$44.9M-7.2%	$48.4M	N/A	$0	N/A
Cost of Revenue	$36.1M+2.2%	$35.3M-8.9%	$38.7M	N/A	N/A	N/A
Gross Profit	$10.8M+12.8%	$9.6M-0.4%	$9.6M	N/A	N/A	N/A
R&D Expenses	N/A	N/A	N/A	$52K-95.0%	$1.0M-0.2%	$1.0M
SG&A Expenses	$14.4M+40.8%	$10.2M-6.1%	$10.9M+1861.6%	$554K-13.6%	$641K+18.0%	$543K
Operating Income	-$11.0M-1621.9%	-$638K+49.2%	-$1.3M-793.9%	$181K-89.2%	$1.7M	N/A
Interest Expense	$3.9M+162.0%	$1.5M-11.3%	$1.7M	N/A	N/A	N/A
Income Tax	$7.2M+1523.5%	$442K+88.9%	$234K+350.0%	$52K+44.4%	$36K+164.3%	-$56K
Net Income	-$21.2M-728.3%	-$2.6M+32.9%	-$3.8M-1105.0%	$380K-78.3%	$1.8M+364.7%	-$663K
EPS (Diluted)	N/A	$-34.87+4.2%	$-36.39	N/A	N/A	N/A

Metric	Q1'26	Q4'25	Q3'25	Q2'25	Q1'25	Q4'24	Q3'24	Q2'24
Revenue	$12.6M+1.3%	$12.5M-8.6%	$13.7M+6.2%	$12.9M+62.7%	$7.9M-23.4%	$10.3M-16.3%	$12.3M-4.4%	$12.9M
Cost of Revenue	$9.7M+2.9%	$9.4M-9.7%	$10.4M+7.0%	$9.7M+47.9%	$6.6M-20.3%	$8.2M-11.6%	$9.3M-7.9%	$10.1M
Gross Profit	$3.0M-3.6%	$3.1M-5.3%	$3.3M+4.0%	$3.1M+136.2%	$1.3M-35.9%	$2.1M-30.9%	$3.0M+8.3%	$2.8M
R&D Expenses	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
SG&A Expenses	$4.5M-8.1%	$4.9M+44.2%	$3.4M-0.6%	$3.4M+23.1%	$2.8M+13.9%	$2.4M-6.4%	$2.6M-6.2%	$2.8M
Operating Income	-$1.5M+82.5%	-$8.5M-1010.7%	-$768K-195.4%	-$260K+81.8%	-$1.4M-310.3%	-$348K-184.3%	$413K+2850.0%	$14K
Interest Expense	$892K-65.0%	$2.6M+329.6%	$594K+35.0%	$440K+46.7%	$300K-10.4%	$335K-10.4%	$374K-5.1%	$394K
Income Tax	$2K	N/A	N/A	N/A	$0-100.0%	$420K+8300.0%	$5K+400.0%	$1K
Net Income	-$1.9M+88.6%	-$16.8M-733.6%	-$2.0M-187.7%	-$700K+59.5%	-$1.7M-56.7%	-$1.1M-3344.1%	$34K+108.9%	-$381K
EPS (Diluted)	N/A	N/A	$-0.35-169.2%	$-0.13+72.3%	$-0.47	N/A	$-6.33+24.9%	$-8.43

CAPS Balance Sheet

Metric	FY25	FY24	FY23	FY18	FY17	FY16
Total Assets	$51.4M+8.8%	$47.2M-10.4%	$52.7M+3468.1%	$1.5M-5.9%	$1.6M+32.7%	$1.2M
Current Assets	$23.0M+79.7%	$12.8M-25.1%	$17.1M+1087.9%	$1.4M+4.7%	$1.4M+65.6%	$829K
Cash & Equivalents	$727K+6509.1%	$11K-78.8%	$52K-96.1%	$1.3M+5.2%	$1.3M+82.7%	$698K
Inventory	$17.1M+77.1%	$9.6M-29.9%	$13.8M	N/A	N/A	N/A
Accounts Receivable	$4.9M+76.1%	$2.8M+7.0%	$2.6M	N/A	N/A	N/A
Goodwill	$18.5M-20.7%	$23.3M0.0%	$23.3M	N/A	N/A	N/A
Total Liabilities	$38.9M-22.6%	$50.3M0.0%	$50.3M+1747.3%	$2.7M+11.2%	$2.4M+87.7%	$1.3M
Current Liabilities	$23.2M+85.1%	$12.6M-21.4%	$16.0M+6392.7%	$246K+23.6%	$199K-34.5%	$304K
Long-Term Debt	$9.0M+43.0%	$6.3M+23.6%	$5.1M+106.6%	$2.5M+10.0%	$2.2M+124.9%	$1.0M
Total Equity	$12.5M+507.2%	-$3.1M-225.5%	$2.4M+295.9%	-$1.2M-41.5%	-$879K-620.5%	-$122K
Retained Earnings	-$218.0M-11.2%	-$196.1M-2.9%	-$190.6M+0.6%	-$191.8M-0.2%	-$191.4M-0.9%	-$189.6M

Metric	Q1'26	Q4'25	Q3'25	Q2'25	Q1'25	Q4'24	Q3'24	Q2'24
Total Assets	$53.8M+4.7%	$51.4M-12.1%	$58.5M+12.7%	$51.9M-0.6%	$52.2M+10.6%	$47.2M	N/A	N/A
Current Assets	$26.0M+13.0%	$23.0M+20.3%	$19.1M+15.6%	$16.5M-1.1%	$16.7M+30.5%	$12.8M	N/A	N/A
Cash & Equivalents	$419K-42.4%	$727K-0.4%	$730K-5.6%	$773K-55.7%	$1.7M+15754.5%	$11K-15.4%	$13K	N/A
Inventory	$18.1M+5.8%	$17.1M+40.2%	$12.2M+26.9%	$9.6M-2.0%	$9.8M+1.5%	$9.6M	N/A	N/A
Accounts Receivable	$6.9M+41.8%	$4.9M-15.7%	$5.8M+5.2%	$5.5M+21.4%	$4.5M+63.6%	$2.8M	N/A	N/A
Goodwill	$18.5M0.0%	$18.5M-29.1%	$26.0M+11.8%	$23.3M0.0%	$23.3M0.0%	$23.3M	N/A	N/A
Total Liabilities	$42.6M+9.4%	$38.9M+24.3%	$31.3M+22.3%	$25.6M+1.5%	$25.2M-49.8%	$50.3M	N/A	N/A
Current Liabilities	$27.4M+18.1%	$23.2M+16.0%	$20.0M+18.0%	$17.0M+15.8%	$14.7M+16.8%	$12.6M	N/A	N/A
Long-Term Debt	$8.8M-2.8%	$9.0M+25.1%	$7.2M+24.1%	$5.8M-22.7%	$7.5M+19.3%	$6.3M	N/A	N/A
Total Equity	$11.2M-9.9%	$12.5M-54.1%	$27.2M+3.4%	$26.3M-2.6%	$27.0M+982.0%	-$3.1M-59.0%	-$1.9M-107.9%	-$925K
Retained Earnings	-$220.0M-0.9%	-$218.0M-8.3%	-$201.2M-1.0%	-$199.2M-0.4%	-$198.5M-1.2%	-$196.1M	N/A	N/A

CAPS Cash Flow Statement

Metric	FY25	FY24	FY23	FY18	FY17	FY16
Operating Cash Flow	-$4.4M-215.5%	$3.8M+131.6%	$1.6M+2400.0%	$66K+104.2%	-$1.6M-24.0%	-$1.3M
Capital Expenditures	$122K+1.7%	$120K-42.3%	$208K	N/A	N/A	N/A
Free Cash Flow	-$4.5M-222.5%	$3.7M+156.7%	$1.4M	N/A	N/A	N/A
Investing Cash Flow	-$6.9M-5660.8%	-$120K+42.3%	-$208K	$0	$0	$0
Financing Cash Flow	$12.1M+423.8%	-$3.7M-164.8%	-$1.4M	$0-100.0%	$2.1M+126.0%	$946K
Dividends Paid	N/A	N/A	N/A	N/A	N/A	N/A
Share Buybacks	N/A	N/A	N/A	N/A	N/A	N/A

Metric	Q1'26	Q4'25	Q3'25	Q2'25	Q1'25	Q4'24	Q3'24	Q2'24
Operating Cash Flow	-$2.8M-564.0%	-$420K	$0+100.0%	-$1.7M+24.1%	-$2.3M-183.0%	$2.7M+23.0%	$2.2M+1976.6%	$107K
Capital Expenditures	$29K-75.8%	$120K	$0+100.0%	-$15K-188.2%	$17K-10.5%	$19K+195.0%	-$20K-195.2%	$21K
Free Cash Flow	-$2.8M-421.9%	-$540K	$0+100.0%	-$1.7M+24.0%	-$2.3M-184.2%	$2.7M+23.3%	$2.2M+2460.5%	$86K
Investing Cash Flow	-$29K+99.4%	-$4.5M-83.4%	-$2.4M-16360.0%	$15K+188.2%	-$17K+10.5%	-$19K-195.0%	$20K+195.2%	-$21K
Financing Cash Flow	$2.5M-49.4%	$5.0M+107.2%	$2.4M+225.1%	$737K-81.7%	$4.0M+247.9%	-$2.7M-21.9%	-$2.2M-1821.6%	-$116K
Dividends Paid	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Share Buybacks	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A

CAPS Financial Ratios

Metric	FY25	FY24	FY23	FY18	FY17	FY16
Gross Margin	23.0%+1.7pp	21.3%+1.4pp	19.9%	N/A	N/A	N/A
Operating Margin	-23.4%-22.0pp	-1.4%+1.2pp	-2.6%	N/A	N/A	N/A
Net Margin	-45.3%-39.6pp	-5.7%+2.2pp	-7.9%	N/A	N/A	N/A
Return on Equity	-170.5%	N/A	-156.7%	N/A	N/A	N/A
Return on Assets	-41.3%-35.9pp	-5.4%+1.8pp	-7.2%-33.0pp	25.7%-86.1pp	111.9%+167.9pp	-56.1%
Current Ratio	0.99-0.0	1.02-0.0	1.07-4.8	5.85-1.1	6.90+4.2	2.73
Debt-to-Equity	0.73+2.8	-2.07-4.2	2.10+4.1	-1.99+0.6	-2.56+5.6	-8.20
FCF Margin	-9.7%-17.9pp	8.3%+5.3pp	3.0%	N/A	N/A	N/A

Metric	Q1'26	Q4'25	Q3'25	Q2'25	Q1'25	Q4'24	Q3'24	Q2'24
Gross Margin	23.5%-1.2pp	24.7%+0.9pp	23.8%-0.5pp	24.3%+7.6pp	16.8%-3.3pp	20.1%-4.2pp	24.3%+2.8pp	21.4%
Operating Margin	-11.8%+56.5pp	-68.4%-62.7pp	-5.6%-3.6pp	-2.0%+16.1pp	-18.1%-14.7pp	-3.4%-6.7pp	3.4%+3.2pp	0.1%
Net Margin	-15.2%+119.4pp	-134.6%-119.8pp	-14.8%-9.3pp	-5.5%+16.4pp	-21.9%-11.2pp	-10.7%-11.0pp	0.3%+3.2pp	-3.0%
Return on Equity	-17.1%+117.8pp	-134.8%-127.4pp	-7.4%-4.8pp	-2.7%+3.8pp	-6.4%	N/A	N/A	N/A
Return on Assets	-3.6%+29.1pp	-32.7%-29.2pp	-3.4%-2.1pp	-1.4%+2.0pp	-3.3%-1.0pp	-2.3%	N/A	N/A
Current Ratio	0.95-0.0	0.99+0.0	0.95-0.0	0.97-0.2	1.14+0.1	1.02	N/A	N/A
Debt-to-Equity	0.78+0.1	0.73+0.5	0.27+0.0	0.22-0.1	0.28+2.3	-2.07	N/A	N/A
FCF Margin	-22.3%-18.0pp	-4.3%-4.3pp	0.0%+13.5pp	-13.5%+15.4pp	-28.9%-55.3pp	26.3%+8.4pp	17.9%+17.2pp	0.7%

Note: The current ratio is below 1.0 (0.99), indicating current liabilities exceed current assets, which may suggest potential short-term liquidity concerns.

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Frequently Asked Questions

What is Capstone Holding Corp.'s annual revenue?

Capstone Holding Corp. (CAPS) reported $46.9M in total revenue for fiscal year 2025. This represents a 4.5% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.

How fast is Capstone Holding Corp.'s revenue growing?

Capstone Holding Corp. (CAPS) revenue grew by 4.5% year-over-year, from $44.9M to $46.9M in fiscal year 2025.

Is Capstone Holding Corp. profitable?

No, Capstone Holding Corp. (CAPS) reported a net income of -$21.2M in fiscal year 2025, with a net profit margin of -45.3%.

What is Capstone Holding Corp.'s EBITDA?

Capstone Holding Corp. (CAPS) had EBITDA of -$10.6M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization.

How much debt does Capstone Holding Corp. have?

As of fiscal year 2025, Capstone Holding Corp. (CAPS) had $727K in cash and equivalents against $9.0M in long-term debt.

What is Capstone Holding Corp.'s gross margin?

Capstone Holding Corp. (CAPS) had a gross margin of 23.0% in fiscal year 2025, indicating the percentage of revenue retained after direct costs of goods sold.

What is Capstone Holding Corp.'s operating margin?

Capstone Holding Corp. (CAPS) had an operating margin of -23.4% in fiscal year 2025, reflecting the profitability of core business operations before interest and taxes.

What is Capstone Holding Corp.'s net profit margin?

Capstone Holding Corp. (CAPS) had a net profit margin of -45.3% in fiscal year 2025, representing the share of revenue converted into profit after all expenses.

What is Capstone Holding Corp.'s return on equity (ROE)?

Capstone Holding Corp. (CAPS) has a return on equity of -170.5% for fiscal year 2025, measuring how efficiently the company generates profit from shareholder equity.

What is Capstone Holding Corp.'s free cash flow?

Capstone Holding Corp. (CAPS) generated -$4.5M in free cash flow during fiscal year 2025. This represents a -222.5% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.

What is Capstone Holding Corp.'s operating cash flow?

Capstone Holding Corp. (CAPS) generated -$4.4M in operating cash flow during fiscal year 2025, representing cash generated from core business activities.

What are Capstone Holding Corp.'s total assets?

Capstone Holding Corp. (CAPS) had $51.4M in total assets as of fiscal year 2025, including both current and long-term assets.

What are Capstone Holding Corp.'s capital expenditures?

Capstone Holding Corp. (CAPS) invested $122K in capital expenditures during fiscal year 2025, funding long-term assets and infrastructure.

How many shares does Capstone Holding Corp. have outstanding?

Capstone Holding Corp. (CAPS) had 9M shares outstanding as of fiscal year 2025.

What is Capstone Holding Corp.'s current ratio?

Capstone Holding Corp. (CAPS) had a current ratio of 0.99 as of fiscal year 2025, which is below 1.0, which may suggest potential liquidity concerns.

What is Capstone Holding Corp.'s debt-to-equity ratio?

Capstone Holding Corp. (CAPS) had a debt-to-equity ratio of 0.73 as of fiscal year 2025, measuring the company's financial leverage by comparing total debt to shareholder equity.

What is Capstone Holding Corp.'s return on assets (ROA)?

Capstone Holding Corp. (CAPS) had a return on assets of -41.3% for fiscal year 2025, measuring how efficiently the company uses its assets to generate profit.

What is Capstone Holding Corp.'s cash runway?

Based on fiscal year 2025 data, Capstone Holding Corp. (CAPS) had $727K in cash against an annual operating cash burn of $4.4M. This gives an estimated cash runway of approximately 2 months at the current burn rate. Cash runway measures how long a company can continue operating before running out of cash, assuming no additional funding.

What is Capstone Holding Corp.'s Altman Z-Score?

Capstone Holding Corp. (CAPS) has an Altman Z-Score of -5.68, placing it in the Distress Zone (elevated bankruptcy risk). The Z-Score combines five financial ratios (working capital, retained earnings, EBIT, market capitalization, and revenue relative to total assets) to predict the likelihood of bankruptcy. Scores above 2.99 indicate financial safety while scores below 1.81 suggest financial distress. Learn more in our complete guide to financial health indicators.

What is Capstone Holding Corp.'s Piotroski F-Score?

Capstone Holding Corp. (CAPS) has a Piotroski F-Score of 2 out of 8 computable signals; 1 of the nine could not be computed from available data, so the full-scale strength rating is not shown. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7 to 9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.

Are Capstone Holding Corp.'s earnings high quality?

Capstone Holding Corp. (CAPS) has an earnings quality ratio of 0.21x, considered low quality (accrual-driven). This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.

Can Capstone Holding Corp. cover its interest payments?

Capstone Holding Corp. (CAPS) has an interest coverage ratio of -2.8x, meaning it can struggle to cover its interest obligations. This ratio divides operating income by interest expense. Ratios above 5x indicate strong debt-servicing ability, while ratios below 2x suggest the company may face difficulty meeting interest payments if earnings decline. Learn more in our complete guide to financial health indicators.