Capstone Reports Record Q3 Results With 46% EBITDA Growth and New Acquisition Momentum
Rhea-AI Summary
Capstone Holding Corp (NASDAQ:CAPS) reported record Q3 2025 results with pro forma year-to-date revenue of $41.2M (+19% YoY), pro forma adjusted EBITDA up 46%, and gross profit up 34%. Management completed the Carolina Stone acquisition and announced a second multi-location stone distributor acquisition expected to close before Dec 15, 2025, together adding $26M in annualized revenue and accelerating the path to a $100M run-rate target by early 2026.
Capstone reported integration progress (ERP, logistics, marketing), an active pipeline targeting 4–6x EBITDA valuations with 20–45% non-cash deal consideration, and expects to complete three to four acquisitions in 2026. An investor presentation and Q3 10-Q will be posted on the company website.
Positive
- Pro forma revenue +19% YoY to $41.2M
- Adjusted EBITDA +46% pro forma
- Acquisitions adding $26M annualized revenue
- Integration milestones achieved across ERP and logistics
Negative
- Run-rate target depends on closing announced acquisitions
- 20–45% of deal consideration structured as non-cash components
News Market Reaction
On the day this news was published, CAPS gained 6.93%, reflecting a notable positive market reaction. Argus tracked a peak move of +17.9% during that session. Argus tracked a trough of -24.4% from its starting point during tracking. Our momentum scanner triggered 16 alerts that day, indicating notable trading interest and price volatility. This price movement added approximately $594K to the company's valuation, bringing the market cap to $9M at that time. Trading volume was exceptionally heavy at 6.9x the daily average, suggesting very strong buying interest.
Data tracked by StockTitan Argus on the day of publication.
Pro forma revenue up
NEW YORK CITY, NEW YORK / ACCESS Newswire / November 17, 2025 / Capstone Holding Corp. (NASDAQ:CAPS), a national building products distribution platform, today announced strong financial and strategic highlights for the third quarter of 2025, including significant growth in revenue, gross profit, and adjusted EBITDA.
Capstone announced two acquisitions during the second half, expected to contribute
Key Highlights:
Record Revenue Growth: Pro forma year-to-date revenue increased
19% year-over-year to$41.2 million , driven by the Carolina Stone acquisition and continued organic growth. Pro forma adjusted EBITDA rose46% and gross profit rose34% , reflecting acquisition growth and cost discipline.Strong M&A Momentum: Capstone's anticipated acquisition of a multi-location stone distributor with
$15 million in annual revenue is on track to close before December 15. Combined with Carolina Stone, acquisitions completed in the second half are expected to add$26 million in annualized revenue and position the company for strong post-acquisition growth.Active, Favorable Pipeline: Multiple additional targets are currently under review at attractive 4-6x EBITDA valuations, with 20
-45% of consideration structured in non-cash components. Capstone expects to complete three to four strategic acquisitions in 2026.Improved Industry Outlook: Economic conditions have improved meaningfully, supported by interest rate cuts and a steady recovery in demand. Forecasts point to a rebound in remodeling activity and a persistent housing undersupply, creating strong long-term tailwinds for the sector.
Integration Milestones: Capstone quickly achieved integration milestones with Carolina Stone across ERP, logistics, marketing, and other core functions. This framework positions the company for the rapid post-close integration of its next acquisition, expected to close in early December.
"It was another exciting quarter for Capstone, as we delivered record results across multiple fronts and announced our first two acquisitions," said Matthew Lipman, Chief Executive Officer. "We expect our second acquisition to close before December 15 and to be immediately accretive to both revenue and EBITDA. We are well-positioned to reach our
Access to Full Materials
Following the issuance of Capstone's Q3 10-Q this week, Capstone will post an investor presentation discussing Q3 2025 and its strategic outlook. These materials will be available in the Investor Relations section of www.capstoneholdingcorp.com.
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 (CAPS) pro forma results for Q3 2025?
How much annual revenue will Capstone (CAPS) acquisitions add in 2025?
When does Capstone (CAPS) expect the second acquisition to close?
What is Capstone's (CAPS) revenue run-rate goal and timing?
What deal terms are noted for Capstone (CAPS) acquisition pipeline?
