Capstone Holding Implements Cost Rationalization Program, Saving $2 Million Annually
Capstone Holding announced the execution of a cost rationalization program accelerating the Company's transition to positive free cash flow and EBITDA. The initiatives remove approximately $2M in annualized corporate overhead expenses, effective immediately. "2026 is the year we translate the $70 million run-rate platform we've built into a durable profitability engine," said Matthew Lipman, CEO. "By reducing corporate overhead by $2M, we are immediately positioning the Company for sustainable, cash-generative growth. We have a clear line of sight to a positive EBITDA run-rate." The Company has eliminated non-core investor relations and consulting expenditures. This results in an immediate ~$1.7M reduction in operating expenses, directly accretive to the bottom line. Lipman has voluntarily reduced his annual base cash salary to $1.00 for the next year, aligning executive remuneration directly with common shareholder equity appreciation. Management targets these cost reductions to establish a positive Corporate EBITDA run-rate beginning in Q2, independent of revenue growth, materially strengthening Capstone's financial profile against macroeconomic volatility.
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Capstone Holding (CAPS) Launches $2M Cost-Cutting Program Aiming for Positive Free Cash Flow
- Cost-Cutting Initiative: Capstone Holding's newly launched cost-cutting program will eliminate approximately $2 million in annual corporate overhead, aiming to position the company for sustainable cash-generative growth and enhance financial health.
- Operating Expense Reduction: By cutting non-core investor relations and consulting expenditures, the company achieves an immediate reduction of about $1.7 million in operating expenses, directly contributing to improved profitability.
- Executive Compensation Adjustment: CEO Matthew Lipman has voluntarily reduced his annual base salary to $1.00, aligning executive remuneration directly with common shareholder equity appreciation, thereby boosting shareholder confidence.
- Profitability Outlook: Management expects the cost-cutting measures to start showing results by Q2 2026, when the company anticipates achieving a positive EBITDA run rate, independent of revenue growth.
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