Capstone's 2026 Outlook Reaffirms $100M Run-Rate Target and Outlines Path to 10% EBITDA Margins

Rhea-AI Summary

Capstone (NASDAQ:CAPS) published a 2026 outlook on December 15, 2025, reaffirming a $100 million run-rate revenue target for 2026 and a plan to reach 10% EBITDA margins through organic growth, operating leverage, and targeted acquisitions.

Key facts: Capstone added $26 million in revenue via recent acquisitions, operates nine warehouses with coast-to-coast coverage, completed same-day ERP and WMS onboarding for Canadian Stone Industries (CSI), and expects 3–4 targeted acquisitions in 2026 focused on route density and installation services.

Positive

• $100M run-rate revenue target for 2026
• Target to achieve 10% EBITDA margin via operating leverage
• Acquisitions added $26M in revenue to date
• 3–4 targeted acquisitions expected in 2026 for route density and installation

Negative

• None.

Key Figures

Run-rate revenue target $100 million Targeted run-rate for 2026

EBITDA margin target 10% Long-term EBITDA margin objective

Acquisition-added revenue $26 million Revenue added through recent acquisitions

Warehouses 9 National platform warehouse count

Planned acquisitions 3–4 Expected acquisitions in 2026

Current share price $0.868 Price before 2026 outlook release

52-week high $16.18 52-week high share price

52-week low $0.725 52-week low share price

Market Reality Check

$0.7835 Last Close

Volume Volume 255,968 is 0.51x the 20-day average of 506,733, indicating subdued trading interest pre-outlook. low

Technical Shares at $0.868 are trading below the 200-day MA of $1.61 and 94.64% under the $16.18 52-week high.

Peers on Argus

CAPS gained 3.33% while peers were mixed: CAPT +5.32%, RETO -0.37%, SMID -5.42%, LOMA +0.31%, NITO -2.42%. The move appears stock-specific, not a broad building-materials trade.

Historical Context

Date	Event	Sentiment	Move	Catalyst
Dec 09	Integration update	Positive	+4.0%	Completed CSI integration and reiterated $100M run-rate revenue target.
Dec 02	Acquisition close	Positive	-3.0%	Closed CSI acquisition adding ~$15M revenue and expanding footprint.
Nov 24	Industry outlook	Positive	+8.3%	Highlighted Zonda and Bain demand forecasts and reaffirmed $100M run-rate.
Nov 19	Investor presentation	Positive	-1.6%	Published Q3 deck with $41.2M YTD revenue and strong EBITDA growth.
Nov 17	Earnings & M&A	Positive	+6.9%	Reported record Q3 results and $26M of additional annualized deal revenue.

Pattern Detected

Recent positive operational and acquisition updates often led to gains, but two bullish announcements saw mild selloffs, indicating mixed follow-through on good news.

Recent Company History

Over the past month, Capstone has repeatedly emphasized scale-up and a path toward a $100M revenue run-rate. Q3 2025 results showed pro forma YTD revenue of $41.2M, gross profit up 34%, and adjusted EBITDA up 46%. Subsequent deals, including Canadian Stone Industries, added roughly $26M of revenue and expanded coverage to 32 states and Canada. Industry research from Zonda and Bain highlighted supportive remodeling demand. Today’s outlook continues this narrative, reaffirming the $100M target and adding a path to 10% EBITDA margins.

Market Pulse Summary

The stock moved -8.3% in the session following this news. A negative reaction despite upbeat guidance would fit prior instances where strong updates did not prevent short-term weakness. The stock trades far below its $16.18 52-week high, so dilution, leverage, and execution concerns from recent SEC filings could outweigh optimism about a $100M run-rate and 10% EBITDA margin ambitions, prompting skepticism about the pace and quality of future growth.

Key Terms

ebitda financial

"The Company outlined its path to 10% EBITDA margins through a combination..."

EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It measures a company's profitability by focusing on the money it makes from its core operations, ignoring expenses like taxes and accounting adjustments. Investors use EBITDA to compare how well different companies are performing financially, as it provides a clearer picture of operational success without the influence of financial structure or accounting choices.

erp technical

"including fully onboarding CSI onto the Company's ERP and warehouse management systems..."

ERP, or Enterprise Resource Planning, is a comprehensive software system that helps organizations manage and integrate core business processes such as finance, supply chain, and human resources in one unified platform. For investors, ERP systems can indicate how efficiently a company operates; strong and well-integrated systems often suggest good management and potential for sustainable growth.

warehouse management systems technical

"onboarding CSI onto the Company's ERP and warehouse management systems on day one."

Software that organizes and controls how goods are received, stored, moved and shipped inside a warehouse, tracking inventory locations and worker tasks much like a GPS and schedule for a busy delivery hub. Investors care because a good system cuts operating costs, reduces lost or delayed orders, and lets a business handle more sales without big new warehouses or staff—directly affecting profit margins, cash flow and growth potential.

AI-generated analysis. Not financial advice.

Record 2025 performance, rapid CSI integration, and improving demand conditions support profitable growth trajectory.

NEW YORK CITY, NEW YORK / ACCESS Newswire / December 15, 2025 / Capstone Holding Corp. (NASDAQ:CAPS), a national building products distribution platform, today published its 2026 outlook presentation, reaffirming its $100 million run-rate revenue target for 2026 and detailing a disciplined strategy to translate scale into margin expansion. The Company outlined its path to 10% EBITDA margins through a combination of organic growth, operating leverage, and targeted acquisitions.

Having grown from a single-site distributor into a national platform with nine warehouses and coast-to-coast coverage, Capstone now shifts its focus from expansion to monetizing scale - driving margin performance and building a durable profitability engine.

"We have added $26 million in revenue through disciplined, immediately accretive acquisitions, putting us firmly on track toward $100 million in run-rate revenue," said Matthew Lipman, Chief Executive Officer of Capstone. "We enter 2026 with an improving macro backdrop and significant sales, marketing, and operational leverage driven by our scale. Our focus now is building a durable profitability engine."

Key Highlights:

• Record Performance: In 2025, Capstone reported record gross margin expansion, driven by mix optimization, focus on services, and disciplined cost management. The Company also delivered record revenues, EBITDA, and gross profits.

• Proven Execution: Management has scaled Capstone from a single-site business into a national platform serving thousands of customers across the U.S. and Canada, executing consistently while maintaining high operational discipline.

• Aligned, Value-Focused Ownership: High insider ownership aligns leadership with shareholders. Leadership is deeply focused on disciplined capital allocation, earnings growth, and compounding long-term per-share value creation.

• Strong Market Tailwinds: Industry research from Bain & Company and Zonda indicates that deferred construction and remodeling demand is expected to drive a significant growth cycle, with spend disproportionately captured by large, scaled operators like Capstone.

• Bridging to Profitable Growth: Through operating leverage, a growing organic growth engine, and a strategic focus on higher-margin architectural products and installation services, Capstone is building a profitability engine with line of sight to a 10% EBITDA margin.

The investor presentation follows Capstone's rapid and successful integration of Canadian Stone Industries (CSI), including fully onboarding CSI onto the Company's ERP and warehouse management systems on day one. Early integration progress has generated strong engagement from suppliers and customers, reinforcing expectations that the transaction will accelerate project activity and deliver immediate value across the platform.

The Company expects to complete three to four targeted acquisitions in 2026, focused on route density, installation capabilities, and value-added services. Each dollar deployed is expected to generate immediate operating leverage and contribute toward Capstone's 10% EBITDA margin objective.

"With the CSI acquisition and integration, we are closing 2025 on a strong note. The year marked several important milestones in the growth of our platform and positions us well on our path to $100 million in run-rate revenue and profitable growth." Lipman added. "As many competitors end the year constrained, Capstone is ready to accelerate growth."

Capstone encourages shareholders to review its 2026 outlook presentation, available on the Company's website. Additional details are available in the Company's Form 8-K.

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 and Canada, 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 is Capstone's 2026 revenue target (CAPS)?

Capstone reaffirmed a $100 million run-rate revenue target for 2026.

How does Capstone plan to reach 10% EBITDA margins for 2026 (CAPS)?

The company plans to combine organic growth, operating leverage, and targeted acquisitions to reach 10% EBITDA margins.

How much revenue did recent Capstone acquisitions add (CAPS)?

Capstone said acquisitions have added $26 million in revenue to date.

What integration progress did Capstone report after the CSI acquisition (CAPS)?

Capstone completed day-one onboarding of CSI onto its ERP and warehouse management systems, citing early supplier and customer engagement.

How many warehouses does Capstone operate and what coverage does it have (CAPS)?

Capstone operates nine warehouses and reports coast-to-coast coverage across the U.S. and Canada.

How many acquisitions does Capstone expect to complete in 2026 (CAPS) and what are the priorities?

The company expects to complete 3–4 targeted acquisitions in 2026 focused on route density, installation capabilities, and value-added services.