Capstone Releases Q3 Investor Presentation and Transcript Highlighting Strong Growth and Acquisition Momentum

Rhea-AI Summary

Capstone (NASDAQ:CAPS) published its Q3 2025 investor presentation and management transcript, highlighting record quarterly performance and acquisition momentum on November 19, 2025.

Key metrics: pro forma YTD revenue $41.2M (+19% YoY), gross profit +34%, and pro forma adjusted EBITDA +46%. Management expects an additional $26M of annualized revenue from recent deals and a $15M multi-location acquisition targeted to close before Dec 15, 2025. Capstone said these items support an accelerated path to a $100M pro forma revenue run-rate in early 2026 and noted completed integrations for Carolina Stone and non-cash GAAP items that affected reported EPS but not cash or operations.

Positive

• Pro forma YTD revenue of $41.2M (+19% YoY)
• Gross profit increased 34%
• Pro forma adjusted EBITDA rose 46%
• $26M expected annualized revenue from recent acquisitions
• $15M multi-location acquisition targeted to close before Dec 15, 2025
• Visible path to a $100M pro forma revenue run-rate in early 2026

Negative

• Reported EPS was affected by certain non-cash GAAP share conversion items

Insights

Strategic Growth Analyst

Capstone shows clear acquisition-driven revenue acceleration and a stated path to a $100M run-rate by early 2026.

Capstone reports pro forma year-to-date revenue of $41.2M and cites 19% Y/Y pro forma revenue growth, with gross profit up 34% and pro forma adjusted EBITDA up 46%. The company expects ~$26M in annualized acquired revenue from recent deals and targets a $100M pro forma revenue run-rate in early 2026, indicating a strategy that pairs bolt-on M&A with organic growth.

The growth story hinges on closing and integrating add-on acquisitions and converting announced revenue into run-rate performance; notably a multi-location stone distributor with $15M annual revenue is on track to close before December 15. Monitor the completion of these closes, the timing of revenue recognition, and whether gross-margin expansion sustains as scale increases over the next 6–12 months.

Finance & Integration Analyst

Reported metrics show margin expansion and accretive M&A progress, with non-cash GAAP items noted but said to not affect operations or cash.

Key disclosed financials include pro forma revenue $41.2M, pro forma revenue growth 19%, gross profit increase 34%, and pro forma adjusted EBITDA growth 46%. Management highlighted completed ERP and operations integration for Carolina Stone and expects three to four additional accretive acquisitions next year, which supports faster margin realization when new deals close.

Watch for three concrete near-term items: the closing of the $15M multi-location acquisition before December 15, realization of the stated $26M in annualized acquired revenue, and quarterly disclosures showing whether GAAP EPS effects tied to share conversions remain non-cash. Short-term horizon: next quarter results and the December close; medium horizon: early 2026 run-rate confirmation.

New materials offer deeper insight into Q3 growth drivers, margin expansion, and Capstone's accelerating path toward a $100M run-rate.

NEW YORK CITY, NEW YORK / ACCESS Newswire / November 19, 2025 / Capstone Holding Corp. (NASDAQ:CAPS), a national building products distribution platform, today published its full third-quarter 2025 investor presentation and management transcript. The new materials provide additional insight into the Company's performance following its previously announced record Q3 results.

"We received strong investor interest following our Q3 results, and we are pleased to provide a complete presentation and transcript to give shareholders a deeper look," said Matthew Lipman, Chief Executive Officer of Capstone. "With an expected $26 million in acquired revenue coming online, we enter the new quarter well-positioned for continued growth."

Key Highlights:

• Record Growth Across Core Metrics: Pro forma year-to-date revenue grew 19% year-over-year to $41.2 million. Gross profit increased 34%, and pro forma adjusted EBITDA rose 46%. These results reflect the successful execution of the Company's strategy of disciplined acquisitions and steady organic growth.

• Visible Path Toward $100M Run-Rate: Capstone's third-quarter results demonstrate its accelerated trajectory toward a $100 million pro forma revenue run-rate in early 2026, supported by organic growth, recently announced acquisitions, and a strong pipeline of additional targets.

• Strong Acquisition Momentum: Capstone's second acquisition, a multi-location stone distributor with $15 million in annual revenue, remains on track to close before December 15. Together with Carolina Stone, recent acquisitions are expected to add approximately $26 million in annualized revenue. The Company continues to review a robust pipeline of additional targets and expects to complete three to four accretive acquisitions in the new year.

• Integration Milestones Completed: Carolina Stone has been fully integrated across ERP systems, logistics, marketing operations, and field functions. This integration framework positions Capstone for rapid post-close alignment of its next acquisitions, supporting faster scaling and margin realization.

• Supportive Industry Conditions: The Company is positioned to benefit from strengthening demand, supported by improving remodeling activity, easing interest rates, and a persistent housing undersupply across the United States. These conditions reinforce a favorable multi-year outlook for stone, hardscape, and exterior building-products distribution.

"The story of our last two quarters is one of improving gross margins, record results across every core metric, and a proven ability to execute on both our acquisition and organic growth strategy," Lipman continued. "Looking ahead, we have our sights set on our $100 million revenue run-rate target, and we remain confidently on track to achieve it on schedule."

Capstone also noted that certain non-cash GAAP items related to previously disclosed share conversions affected reported EPS, but did not impact the Company's operations, cash position, or the strong underlying results delivered this quarter.

Capstone maintains a clean and transparent capital structure, with preferred securities that do not create dilution at current levels and a common share base that remains closely aligned with long-term value creation.

Access to Further Materials

The Q3 investor presentation and complete management transcript are now available in the Investor Relations section of the Company's website.

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 32 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 were Capstone's Q3 2025 pro forma revenue and growth rate (CAPS)?

Capstone reported pro forma YTD revenue of $41.2M, a 19% year-over-year increase.

How much annualized revenue will Capstone's recent acquisitions add (CAPS)?

Recent acquisitions are expected to add approximately $26M in annualized revenue.

When is Capstone's $15M multi-location acquisition expected to close (CAPS)?

The $15M acquisition is on track to close before December 15, 2025.

What runway did Capstone provide for reaching a $100M revenue run-rate (CAPS)?

Capstone said its Q3 results and pipeline support reaching a $100M pro forma run-rate in early 2026.

Did Capstone disclose any accounting items affecting EPS in Q3 2025 (CAPS)?

Yes; certain non-cash GAAP share conversion items affected reported EPS but did not impact cash or operations.

Where can investors find Capstone's Q3 2025 presentation and transcript (CAPS)?

The Q3 investor presentation and full management transcript are available in the company's Investor Relations section on its website.