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

Insights

Strategic M&A Analyst

Record quarter, clear M&A momentum; near-term revenue runway now measurable.

Capstone delivered pro forma year-to-date revenue of $41.2 million and reported pro forma adjusted EBITDA growth of 46%, with gross profit up 34%. The company announced two second-half acquisitions that together add $26 million of annualized revenue and expect to hit a $100 million run-rate by early 2026. Integration progress with Carolina Stone across ERP, logistics, and marketing is cited as complete for initial milestones.

The business mechanism is straightforward: acquisition-driven top-line scale plus reported organic gains improved unit economics and margins. The stated pipeline targets valuations at 4-6x EBITDA with 20-45% of consideration in non-cash components, which can preserve cash while enabling faster roll-ups. Key risks remain execution of announced deals and realizing stated accretion; the company highlights an in-process deal expected to close before December 15, which materially underpins the near-term run-rate claim.

Watchable items and horizon: confirm the closing of the pending acquisition by December 15, review the filed $ figures and adjusted-EBITDA reconciliation in the posted Q3 10-Q, and monitor completion of the three-to-four deals the company expects in 2026. These items provide the clearest, short-term validation of the asserted path to a $100 million run-rate.

Pro forma revenue up 19% YoY; $26M in acquired annual revenue accelerates Capstone's path toward a $100M run-rate by early 2026

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 $26 million in annualized revenue and accelerate progress toward the company's $100 million run-rate target for 2026. Continued organic growth and efficiency initiatives further strengthened profitability and expanded margins quarter over quarter.

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 rose 46% and gross profit rose 34%, 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 $100 million revenue run-rate target by early 2026."

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?

Pro forma year-to-date revenue was $41.2M (+19% YoY); pro forma adjusted EBITDA rose 46% and gross profit rose 34%.

How much annual revenue will Capstone (CAPS) acquisitions add in 2025?

Capstone said acquisitions completed in H2 2025, including Carolina Stone and a second target, are expected to add $26M in annualized revenue.

When does Capstone (CAPS) expect the second acquisition to close?

Management expects the multi-location stone distributor acquisition to close before December 15, 2025.

What is Capstone's (CAPS) revenue run-rate goal and timing?

Capstone expects to reach a $100M revenue run-rate by early 2026 aided by acquisitions and organic growth.

What deal terms are noted for Capstone (CAPS) acquisition pipeline?

Targets are being reviewed at 4–6x EBITDA valuations with 20–45% of consideration in non-cash components.