Capstone Holding Corp. Common Stock

Capstone Holding Corp. said its organic distribution revenue grew approximately 7 percent year over year in the second quarter of 2026, even as new-construction building-products spending declined an estimated 8.5 percent over the same period. The company, a national technology-enabled building products distribution platform trading on Nasdaq under the ticker CAPS, outperformed the broader building-products market in both quarters of the first half, holding organic revenue flat in the first quarter before accelerating in the second. Chief Executive Officer Matthew Lipman said the organic growth does not require a proportionate increase in the cost base, as Capstone adds products and brands across its existing customer base and distribution network while expanding installation revenue through existing crews, infrastructure and operating overhead. Capstone reaffirmed its full-year 2026 guidance of $72.1 million in revenue, $18.7 million in gross profit and approximately $3.8 million in Stone Business Adjusted EBITDA, and said current order volumes point to continued strong organic growth in the second half. The company operates across 38 U.S. states and Canada through its Instone platform, which supplies proprietary stone veneer, hardscape materials and modular masonry systems.

Capstone Holding Corp. has published an investor FAQ reporting that approximately 75% of its original convertible note principal has been retired, with about $1.72 million remaining outstanding as of August 25, 2026, and a current share count of approximately 21.75 million shares. The FAQ addresses shareholder questions on dilution, corporate requirements, and the path to operating cash flow funding, following the company's August 17 invitation. CEO Matthew Lipman stated that the operating businesses funded their own obligations in the first half and the company is focused on retiring the remaining balance. In the second quarter, Capstone delivered 67% year-over-year revenue growth and 92% gross profit growth, with positive Stone Business Adjusted EBITDA, and reaffirmed its full-year guidance in its August 12 earnings release.

Capstone Holding Corp. has received an additional 180-day period, until January 4, 2027, to regain compliance with the Nasdaq Capital Market's $1.00 minimum bid price requirement, which is the company's only remaining listing deficiency. The extension is based on Capstone meeting all other applicable listing requirements and its written notice of intent to cure the deficiency, if necessary, through a reverse stock split. Stockholders authorized a reverse split at a ratio between 1-for-5 and 1-for-50 at the annual meeting on June 18, 2026. CEO Matthew Lipman stated the company expects to achieve positive Adjusted EBITDA in the second quarter of 2026 and continues to anticipate growth in gross profit, gross margins, and Adjusted EBITDA through the year.

Capstone Holding Corp. announced that its Carolina Stone subsidiary is expanding into the Wilmington–Myrtle Beach coastal corridor in response to growing demand from builder partners. The expansion brings Capstone's inventory and installation services to the Southeast's most active homebuilding corridor, where more than 230 new-home communities are currently in development. It follows a series of major commercial wins, including the expansion of Carolina Stone's D.R. Horton relationship to 19 communities, which helped drive Capstone's order volume to its strongest level in two years. The new operation is expected to open in August or September 2026, positioning Carolina Stone to capture revenue from active builder projects beginning in the second half of the year.