Capstone Reaffirms $100 Million 2026 Run-Rate Target with Acquisition Closing by December 15th

Rhea-AI Summary

Capstone Holding Corp (NASDAQ:CAPS) said it expects to close an acquisition of a multi-location stone distributor with $15 million in annual revenue by December 15, 2025, a deal the company says will be immediately accretive to revenue and EBITDA.

The transaction is described as a strategic fit that expands Capstone's footprint and premium brand portfolio and supports the company's reaffirmed $100 million run-rate revenue target for 2026. The release also reported record gross-margin expansion in Q2 2025 to 24.4% from 21.4% year-over-year.

Positive

• $15M annual revenue asset to close by Dec 15, 2025
• Acquisition sizes at ~15% of the $100M run-rate target
• Gross margin expanded to 24.4% from 21.4% (+300 bps)

Negative

• Acquisition not closed yet; completion expected by Dec 15, 2025

Acquisition of $15M stone distributor on track to close before December 15; the multi-location business will add revenue, EBITDA, and scale in a fast-growing category.

NEW YORK CITY, NEW YORK / ACCESS Newswire / November 10, 2025 / Capstone Holding Corp. (NASDAQ:CAPS), a national building products distribution platform, today announced that it expects to close its acquisition of a multi-location stone distributor with $15 million in annual revenue by December 15, significantly expanding Capstone's footprint.

The deal, first announced in October, is expected to be immediately accretive to both revenue and EBITDA, accelerating Capstone's growth trajectory. It further advances the company's progress toward its $100 million run-rate revenue target for 2026.

Key Highlights:

• Transaction on Target: The acquisition is on track to close by early December, after a brief extension of exclusivity from the seller.

• Strategic Fit: Adds a multilocation distributor to expand Capstone's footprint and premium brand portfolio, reinforcing scale and market leadership.

• Market Tailwinds: Recent industry research projects a 4.1% CAGR in stone product demand over the next five years, driven by increased adoption among developers and homeowners.

• Accelerated Growth Trajectory: Positions the company on track to reach its $100 million run-rate revenue goal by early 2026.

"We're very excited about this deal as it nears the finish line. It's another example of our ability to add revenue and EBITDA to the platform with discipline and strong strategic fit," said Matt Lipman, CEO of Capstone Holding Corp. "We expect to deliver record revenue and gross margins in 2025, carrying momentum into an even stronger 2026."

This acquisition comes amid strong growth in demand for stone products and complements Capstone's earlier acquisitions of HHT's Stone Business, Heller's Stone, and Carolina Stone. With a scaled presence in one of the building industry's fastest-growing categories, Capstone is well positioned to capture further growth in the quarters ahead.

Capstone reaffirms its $100 million run-rate revenue target for 2026. The company also reported record gross-margin expansion in Q2 2025, rising to 24.4% from 21.4% in the prior-year period.

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

Investor Relations
Capstone Holding Corp.
investors@capstoneholdingcorp.com
www.capstoneholdingcorp.com

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.

SOURCE: Capstone Holding Corp.

View the original press release on ACCESS Newswire

FAQ

What acquisition did Capstone (CAPS) announce on November 10, 2025?

Capstone announced it expects to acquire a multi-location stone distributor with $15 million in annual revenue, targeting close by December 15, 2025.

How does the $15M acquisition affect Capstone's $100M 2026 run-rate target (CAPS)?

Company says the acquisition is immediately accretive and helps advance the reaffirmed $100 million run-rate revenue goal for 2026.

What margin improvement did Capstone report ahead of the acquisition (CAPS)?

Capstone reported Q2 2025 gross-margin expansion to 24.4% from 21.4% year‑over‑year.

When will the Capstone (CAPS) acquisition close and is it guaranteed?

The company expects the deal to close by December 15, 2025; the transaction remains subject to completion before that date.

Will the stone distributor acquisition be accretive to Capstone (CAPS) earnings?

Capstone stated the acquisition is expected to be immediately accretive to both revenue and EBITDA.