Capstone Holding Corp.: Q3 FY2025 earnings call

What management said about Q3 FY2025, from the documents filed with the SEC on 17 November 2025: press release. Guidance figures: 2 new, 2 kept. The quarter’s numbers.

Key takeaways

Revenue grew on acquisitions and organic gains: Pro forma year-to-date revenue rose 19% year over year to $41.2 million, which the company attributes to the Carolina Stone acquisition and continued organic growth. Source
Adjusted EBITDA and gross profit rose: Pro forma adjusted EBITDA rose 46% and gross profit rose 34%. The company attributes this to acquisition growth and cost discipline. Source
Second deal set to close before December 15: A multi-location stone distributor with $15 million in annual revenue is on track to close before December 15, according to management. Source
Economic conditions improved: Management said economic conditions have improved meaningfully, supported by interest rate cuts and a steady recovery in demand. Source

“It was another exciting quarter for Capstone, as we delivered record results across multiple fronts and announced our first two acquisitions”
Matthew Lipman, Chief Executive Officer

Guidance

Area	Period	Figure	Against last quarter
Operating company revenue run rate Source	By early 2026	$100 million	Kept
Strategic acquisitions Source	2026	3 to 4 strategic acquisitions	New
Annualized revenue from acquisitions Source	Carolina Stone and second-half acquisitions	$26 million	New
Acquisition pricing and consideration Source	Pipeline targets under review	4 - 6x EBITDA; 20 - 45% of consideration non-cash	Kept

What changed from last quarter

Guidance kept: The $100 million run-rate target is unchanged in amount; its date moved from end of 2025 to early 2026, per the documents. Source
New guidance: A target of three to four strategic acquisitions in 2026 appears in this release; the prior release did not give that figure. Source
New: Carolina Stone acquisition is cited as a driver of year-to-date pro forma revenue growth, following second-half acquisitions. Source
New: The company reports integration milestones with Carolina Stone across ERP, logistics, marketing and other core functions. Source
New: The footprint is described as 32 U.S. states; the prior release described 31 states. Source

Results and growth drivers

Revenue grew on acquisitions and organic gains: Pro forma year-to-date revenue rose 19% year over year to $41.2 million, which the company attributes to the Carolina Stone acquisition and continued organic growth. Source
Adjusted EBITDA and gross profit rose: Pro forma adjusted EBITDA rose 46% and gross profit rose 34%. The company attributes this to acquisition growth and cost discipline. Source
Margins expanded quarter over quarter: Management said organic growth and efficiency initiatives further strengthened profitability and expanded margins compared with the prior quarter. Source

Acquisitions and pipeline

Second deal set to close before December 15: A multi-location stone distributor with $15 million in annual revenue is on track to close before December 15, according to management. Source
Carolina Stone integration framework in place: Management said the integration framework used for Carolina Stone is designed to support the rapid post-close integration of the next acquisition. Source
Further targets under review: Multiple additional acquisition targets are under review, according to the release. Source

“We expect our second acquisition to close before December 15 and to be immediately accretive to both revenue and EBITDA.”
Matthew Lipman, Chief Executive Officer

Industry demand conditions

Economic conditions improved: Management said economic conditions have improved meaningfully, supported by interest rate cuts and a steady recovery in demand. Source
Remodeling rebound and housing shortage cited: Forecasts cited in the release point to a rebound in remodeling activity and a persistent housing undersupply, which management describes as long-term tailwinds for the sector. Source

Products, brands and footprint

Instone serves 32 states: Instone serves 32 U.S. states with proprietary stone veneer, hardscape materials and modular masonry systems, per the company's description. Source
Strategy combines M&A and owned brands: The company describes its strategy as combining disciplined M&A, operational efficiency and a growing portfolio of owned brands. Source

“We are well-positioned to reach our $100 million revenue run-rate target by early 2026.”
Matthew Lipman, Chief Executive Officer

Investor materials and timing

Investor presentation to follow 10-Q: After the Q3 10-Q is issued, the company will post an investor presentation covering Q3 2025 and its strategic plans. Source

Coming up, as management said on 17 November 2025

Second acquisition closing before December 15: Management expects the second acquisition to close before December 15. Source
Rapid integration after early-December close: Management expects the next acquisition to close in early December and to be integrated quickly after closing. Source
Investor presentation after 10-Q: The company will post an investor presentation discussing Q3 2025 after the Q3 10-Q is issued. Source
Three to four acquisitions planned for 2026: The company expects to complete three to four strategic acquisitions during 2026. Source

Figures management reported

Figure	Reported
States served Source	32 U.S. states

Earlier plans management reported on

On track: The company describes the $15 million annual revenue acquisition as on track to close before December 15. Source
Not stated: Management restated the $100 million run-rate target as reachable by early 2026. The prior release gave end of 2025 as the date; no status was stated. Source

Other quarters

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.

As filed with the SEC

Open the filing on EDGAR

Capstone Reports Record Q3 Results With 46% EBITDA Growth and New Acquisition Momentum

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

November 17, 2025 - New York, NY - 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.

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.

Contacts
Capstone Holding Corp.
investors@capstoneholdingcorp.com www.capstoneholdingcorp.com