Capstone Highlights Platform Strategy to Modernize Building Products Distribution

Rhea-AI Summary

Capstone Holding Corp. (NASDAQ:CAPS) has outlined its strategy to modernize the $800 billion building products distribution industry. The company's Instone platform currently operates in 31 states, addressing inefficiencies in a fragmented market of over 7,000 local distributors.

A key differentiator is Capstone's control over its product portfolio, with more than 50% of sales coming from owned or exclusively distributed brands. This control enables consistent pricing, direct inventory management, and quality assurance across regions. The company plans to expand through strategic acquisitions, leveraging its strong cash flow to consolidate the market.

Positive

• Operating in 31 states, giving one of the broadest distribution footprints in the sector
• Over 50% of product sales come from owned or exclusively distributed brands
• Strong cash flow position supporting strategic acquisition strategy
• Control over supply chain enables consistent pricing and direct inventory management

Negative

• Operating in highly fragmented market with over 7,000 competitors
• Significant capital required for continued market consolidation through acquisitions

NEW YORK CITY, NY / ACCESS Newswire / July 9, 2025 / Capstone Holding Corp. (NASDAQ:CAPS), a national building products distribution platform, today published a new article outlining its approach to solving a long-standing challenge in the $800 billion building products industry: distribution.

While demand across the industry continues to grow steadily in North America and Europe, most manufacturers still rely on a fragmented network of more than 7,000 local distributors - the majority of which lack the scale, logistics infrastructure, and supply chain control needed to serve today's market.

Capstone's Instone platform already distributes in 31 states, giving it one of the broadest footprints in the sector. But what truly sets Capstone apart is that it also controls many of the products it sells. Today, more than half of its product sales come from brands it either owns or distributes exclusively.

"This disconnect - strong demand on one side, an outdated distribution system on the other - has left a real gap in the market," said Matt Lipman, CEO of Capstone Holding Corp. "That's the gap we're here to close."

Controlling its supply enables Capstone to set consistent pricing, manage inventory directly, and guarantee quality across geographies. It also creates operating leverage that benefits both the platform and its customers. Key benefits include more resilient margins, stronger brand loyalty, and the ability to respond quickly to market needs.

The article also details Capstone's approach to scaling its platform through strategic acquisitions. With strong cash flow and a pipeline of founder-led opportunities, the company is well positioned to continue consolidating a fragmented market while improving contractor and dealer experience.

Read the full article on Capstone's website here.

About Capstone Holding Corp.
Capstone Holding Corp. (NASDAQ:CAPS) is a diversified platform of building products businesses focused on distribution, brand ownership, and acquisition. Through its Instone subsidiary, Capstone serves 31 U.S. states, offering proprietary stone veneer, hardscape materials, and modular masonry systems. The company's strategy combines disciplined M&A, operational efficiency, and a growing portfolio of owned brands to build a scalable and durable platform.

Investor Contact:
investors@capstoneholdingcorp.com
www.capstoneholdingcorp.com

SOURCE: Capstone Holding Corp.

View the original press release on ACCESS Newswire

FAQ

What is Capstone Holding Corp's (NASDAQ:CAPS) strategy for the building products industry?

Capstone's strategy focuses on modernizing building products distribution through its Instone platform, which operates in 31 states and controls over 50% of its product sales through owned or exclusively distributed brands.

How large is the building products distribution market that Capstone operates in?

The building products industry that Capstone operates in is valued at $800 billion, with over 7,000 local distributors currently serving the market.

What percentage of Capstone's product sales come from owned or exclusive brands?

More than 50% of Capstone's product sales come from brands it either owns or distributes exclusively.

How does Capstone plan to expand its market presence?

Capstone plans to expand through strategic acquisitions of founder-led companies, supported by its strong cash flow and existing pipeline of opportunities.

What are the key benefits of Capstone's distribution platform?

Key benefits include more resilient margins, stronger brand loyalty, consistent pricing, direct inventory management, quality assurance across regions, and quick response to market needs.