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  • Professor Andrea M. Armani, University of Southern California
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  • Professor Stefan Witte, Delft University of Technology

Capstone Demonstrates the Power of Scale in Building Products

Strategic acquisitions, owned brands, and operational discipline drive Capstone's progress toward $100M revenue run-rate

NEW YORK CITY, NEW YORK / ACCESS Newswire / October 9, 2025 / Capstone Holding Corp. (NASDAQ: CAPS), a national building products distribution platform, today published an update on its growth strategy and how it is successfully capturing the advantages that come with scale in the building products sector.

Capstone's disciplined acquisitions have expanded its national footprint, strengthened supply chains, and improved margins across its portfolio. Its newly announced LOI builds on this track record and further accelerates progress toward a $100 million run-rate revenue target.

Key Highlights:

  • Strong Track Record: Capstone has completed a series of accretive acquisitions, including HHT's stone business, Heller's stone, Northeast Masonry, and Carolina Stone; the company now has a dense distribution network spanning 31 states.

  • Margin Expansion: Capstone reported 24.4% gross margin growth in Q2, reflecting efficiencies from scale, owned brands, and tighter control over pricing and supply chains.

  • Brand Ownership: More than half of Capstone's sales now come from its proprietary lines, including Toro Stone and Pangaea, which deliver stronger margins and defensible market share.

  • Operational Efficiency: A modernized distribution network and Instone's dealer portal continue to streamline inventory management, shorten lead times, and reduce working capital needs.

  • New LOI Signed: Capstone recently announced a non-binding LOI to acquire a multi-location stone distributor with approximately $15 million in annual revenue.

"Our model is simple," said Matt Lipman, Chief Executive Officer of Capstone Holding Corp. "We're identifying strategic assets, plugging them into a more efficient distribution backbone, and growing our margins through economies of scale and owned brands."

Through its acquisitions, Capstone is building one of the few scaled platforms in the building products sector. Scale delivers meaningful competitive advantages in this industry, yet most players remain too small and fragmented to capture them. Capstone's disciplined approach to M&A and integration has allowed it to stand apart.

"As we continue to build scale, our focus remains on growth that's both sustainable and value-accretive," Lipman said. "The acquisition of Carolina Stone is a clear example of that approach. Today, we're positioned to capture the full benefits of scale in a sector where size truly matters."

Read the full strategic update on Capstone'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 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

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