Capstone Showcases Strong Product Launches and Organic Growth Momentum at Hardscape North America

Rhea-AI Summary

Capstone Holding Corp (NASDAQ:CAPS) showcased two new outdoor hardscape and landscape products at Hardscape North America on November 4, 2025, with early dealer and contractor demand.

Key points: Capstone reported record revenue momentum and Q2 2025 gross-margin expansion to 24.4% from 21.4% a year earlier, and reaffirmed a $100 million annualized revenue run-rate target for 2026. The Aura Natural Landscapes brand is cited as a growth driver amid forecasts for a remodeling rebound in 2026.

Positive

• $100M annualized revenue run-rate target for 2026
• Gross margin rose to 24.4% in Q2 2025 from 21.4% prior year
• Two new product launches generating strong dealer and contractor demand
• Aura Natural Landscapes brand showing continued organic growth momentum

Negative

• None.

Insights

Market Strategist

Capstone shows measurable commercial momentum: product traction, margin expansion, and a reiterated revenue run-rate target.

Capstone Holding Corp. reports two new hardscape product launches that drew immediate demand from dealers, distributors, and contractors, reinforcing organic top-line growth and supported by multiple acquisitions.

The company disclosed a clear profitability improvement with gross margin rising to 24.4% in Q2 2025 from 21.4% year-over-year; management also reaffirmed a target of a $100 million annualized revenue run-rate for 2026. These are explicit operating facts that point to improved unit economics and scale benefits, but the announcement contains no sales figures for the new SKUs or quantified contribution from acquisitions.

Watch the realized revenue path to the $100 million run-rate and whether margins hold in the next reported quarter; the most relevant near-term datapoints are the next quarterly revenue, gross-margin, and any disclosure of incremental volumes from the new products to be reported in upcoming earnings.

Product & Channel Analyst

Product launches and brand momentum support Capstone’s stated recovery play in outdoor living.

Aura Natural Landscapes™ is singled out as a growth driver for Instone, and management links strong booth interest at Hardscape North America to dealer and contractor pull-through; this signals distribution validation for the new SKUs.

Dependencies include actual dealer reorder rates and installation throughput rather than initial show interest. The company cites an industry forecast that remodeling demand should rebound in 2026, but the only concrete operational metrics disclosed here are record organic revenue growth narratives and the margin uplift to 24.4%. Key monitorables are reorder cadence from dealer partners, SKU-level sell-through, and quarterly organic revenue trends over the next two reported periods.

Accelerating organic growth and product expansion underscore Capstone's momentum; the company remains on target for a $100 million revenue run-rate.

NEW YORK, NY / ACCESS Newswire / November 4, 2025 / Capstone Holding Corp. (NASDAQ:CAPS), a national building products distribution platform, successfully debuted two new outdoor hardscape and landscape products at Hardscape North America, the industry's leading trade show. The launches drew strong demand from dealers, distributors, and contractors - reinforcing Capstone's position to lead the next wave of remodeling activity.

The new product introductions further demonstrate Capstone's organic growth momentum, building on a year of record revenue and gross-margin expansion.

Key Highlights:

• Successful Product Rollouts: Capstone's two new products, launched at the industry's leading tradeshow, are generating strong demand from dealers, distributors, and contractors.

• Favorable Market Outlook: Remodeling demand is projected to rebound in 2026, and Capstone is positioned to capture a leading share of that growth.¹

• Owned Brand Momentum: Aura Natural Landscapes™ continues to deliver strong growth for Instone, reflecting rising demand for outdoor living products.

• Record Growth Trajectory: Supported by strong organic performance and multiple accretive acquisitions, Capstone remains on track to achieve its $100 million annualized revenue run-rate target for 2026.

"Remodeling demand is expected to rebound sharply in the coming year," said Matthew Lipman, CEO of Capstone Holding Corp. "With strong new product launches and growth from Aura, we're prepared to capture a leading share of that demand. It's our strategy working exactly as intended: acquisitions complemented by organic momentum."

Zonda, a national leader in housing market research, forecasts a rebound in remodeling spending as interest rates continue to moderate. In their latest report, the firm projects that deferred demand will begin translating into a substantial recovery in the year ahead.²

Much of that renewed activity will center on outdoor living. Three-quarters of homebuyers now prioritize outdoor spaces, and many plan to allocate roughly a quarter of their renovation budgets to them.³ Capstone is already seeing this trend reflected in the strong performance of its Aura Natural Landscapes™ brand.

The company's new product launches at Hardscape North America, the industry's leading trade show, continued that momentum. Early enthusiasm from dealers and contractors adds to what is tracking to be a record year of organic revenue growth for Instone, Capstone's operating subsidiary.

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.

¹https://zondahome.com/preview-the-latest-building-products-outlook-forecast/
²https://zondahome.com/preview-the-latest-building-products-outlook-forecast/
³https://www.thisoldhouse.com/home-finances/outdoor-living-trends#:~:text=With%20the%20rise%20in%20popularity,to%20Brown%20Jordan%20Outdoor%20Kitchens

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 did Capstone (CAPS) announce at Hardscape North America on November 4, 2025?

Capstone debuted two new outdoor hardscape and landscape products that drew strong demand from dealers, distributors, and contractors.

What revenue target did Capstone (CAPS) reaffirm for 2026?

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

How did Capstone's gross margin change in Q2 2025?

Gross margin expanded to 24.4% in Q2 2025 from 21.4% in the prior-year period.

Which Capstone brand is cited as driving organic growth in 2025?

The Aura Natural Landscapes brand is cited as delivering strong growth for Instone, Capstone's operating subsidiary.

How is Capstone positioned for expected remodeling demand in 2026?

Company says its product launches, Aura growth, and recent acquisitions position it to capture a leading share of a projected remodeling rebound in 2026.