CAPS News & Events

Capstone Holding (CAPS) announced a series of commercial wins through its Carolina Stone subsidiary, including the expansion of its D.R. Horton (DHI) relationship to 19 communities in Raleigh and a new leading national homebuilder relationship in Charlotte, for which Capstone won all of the builder's regional stone installation work. The Company also secured a ~$1M multifamily project in the Charlotte metropolitan area. The awards have driven order volume to its strongest level in two years. Revenue from the new awards is expected to begin in the fourth quarter of 2026 and continue through subsequent quarters, adding revenue visibility and opportunities for scope expansion. The Company expects the awards to strengthen its pipeline and support continued gross margin expansion as it progresses toward its FY2026 financial targets.

The company said, "Business momentum in April and May indicates that end-market conditions have improved materially, and Capstone reaffirms FY2026 guidance of $72.1 million in revenue, $18.7 million in gross profit, and approximately $3.8 million in Adjusted EBITDA, an approximate 4x increase year-over-year, with positive Adjusted EBITDA expected in Q2." CEO Matthew Lipman added, ""End-market conditions are improving, and our platform now has the scale to drive accelerating earnings growth in the quarters ahead. We believe the platform we have built positions Capstone to grow toward $100 million in revenue over time."

Reports Q1 revenue $12.6M vs. $7.9M last year. "It was a historically challenging winter for seasonal businesses, but our results reinforce the resilience of the platform we've built," said Matthew Lipman, Chief Executive Officer of Capstone. "Gross profit grew more than twice as fast as revenue, reflecting the pricing discipline and margin expansion we've prioritized across the business. We've seen strong project and customer momentum in April and May, and we remain firmly on track to achieve our FY2026 targets and to turn Adjusted EBITDA positive in Q2."

Capstone Holding published an investor FAQ on the Company's website detailing recent progress on its convertible debt, working capital facilities, and FY2026 outlook. A key disclosure in the FAQ is that as of May 1, approximately 72% of the original convertible-note principal has been converted, leaving $1.9M outstanding. The FAQ addresses questions submitted by shareholders following the Company's April 16, 2026 earnings release and reaffirms the Company's FY2026 outlook: revenue of $72.1M, up 54%; gross profit of approximately $18.7M, up 73%; and EBITDA of approximately $3.8M, an approximate 322% increase year-over-year. A positive EBITDA run-rate is expected beginning in Q2.