{"success":true,"data":{"pressRelease":{"id":"145268","rtpr_id":"nBw1Grkcva-20260916","ticker":"CAPS","exchange":"NASDAQ","all_tickers":["CAPS"],"title":"Capstone Outperforms Building Products Market as Organic Growth Accelerates","author":"Business Wire","published_at":"2026-09-16T13:00:01.812Z","article_body":"Capstone Outperforms Building Products Market as Organic Growth Accelerates\n\nOrganic distribution revenue grew 7% in Q2 against a contracting\nbuilding-products market; Capstone’s capital-efficient platform supports\ngrowth without a proportionate increase in the cost base.\n\nCapstone Holding Corp. (NASDAQ: CAPS), a national, technology-enabled building\nproducts distribution platform, today highlighted its ability to deliver\norganic growth despite weakness in the broader building products market.\nCapstone’s organic distribution revenue grew approximately 7 percent year\nover year in the second quarter, even as new-construction building-products\nspending declined an estimated 8.5 percent over the same period.\n\nZonda, a leading provider of housing market data and research, found that\nbuilding-products spending fell throughout the first half of 2026 amid high\nmortgage rates and persistent inflation. Capstone outperformed the market in\nboth quarters, maintaining organic revenue in the first quarter before\naccelerating growth in the second. The results establish a track record of\norganic outperformance through challenging market conditions.\n\n“It is especially important to emphasize that the organic growth we are\ndelivering does not require a proportionate increase in our cost base,” said\nMatthew Lipman, Chief Executive Officer. “We can add products and brands\nacross our existing customer base and distribution network, while expanding\ninstallation revenue through existing crews, infrastructure and operating\noverhead. This is a capital-efficient growth model that will compound as the\nhousing market normalizes.”\n\nKey Highlights:\n\n\n * Organic Revenue Growth: Capstone’s organic distribution revenue grew\napproximately 7% year over year in the second quarter despite continued\nweakness in the building-products market.\n\n * End Market Outperformance: Capstone outperformed the building-products market\nin both quarters of the first half, maintaining organic revenue in Q1 before\naccelerating growth in Q2.\n\n * Capital-Efficient Growth: Capstone is growing through its existing customer\nbase, distribution network and operating infrastructure, without a\nproportionate increase in its cost base.\n\n * Housing Market Upside: A normalization in construction and remodeling activity\nwill provide an additional tailwind to the organic growth Capstone is already\ngenerating.\n\n * Second-Half Momentum: Current order volumes point to continued strong organic\ngrowth in the second half of 2026.\n\nCapstone is now in its peak selling period, and current order volumes point to\ncontinued strong organic growth. The Company recently reaffirmed its full-year\n2026 guidance of $72.1 million in revenue, $18.7 million in gross profit and\napproximately $3.8 million in Stone Business Adjusted EBITDA.\n\nFor additional updates, visit Capstone's Investor Relations website at\nwww.capstoneholdingcorp.com\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.capstoneholdingcorp.com&esheet=54605362&newsitemid=20260916020380&lan=en-US&anchor=www.capstoneholdingcorp.com&index=1&md5=724d13b483057fd33634f910c5480179)\n.\n\nAbout Capstone Holding Corp.\n\nCapstone Holding Corp. (NASDAQ: CAPS) is a national, technology-enabled\nbuilding products distribution platform optimizing supply chains across 38\nU.S. states and Canada. Through its Instone operating platform and inventory\nportal, the Company aggregates and delivers proprietary stone veneer,\nhardscape materials, and modular masonry systems. Capstone’s model combines\ndigital infrastructure, owned-inventory logistics, and disciplined\nacquisitions to drive scalable margin expansion and operating leverage across\nits growing platform.\n\nNon-GAAP Financial Measures\n\nThis press release references Stone Business Adjusted EBITDA, a non-GAAP\nfinancial measure that presents the results of the Company’s operating\nsubsidiaries and excludes Capstone standalone corporate costs. Stone Business\nAdjusted EBITDA is not a measure of financial performance under GAAP and\nshould not be considered an alternative to net income (loss) or any other\nperformance measure derived in accordance with GAAP. Stone Business Adjusted\nEBITDA may not be comparable to similarly titled measures used by other\ncompanies. This press release also references organic distribution revenue,\nwhich is revenue of the legacy Instone operations excluding Carolina Stone,\nacquired August 22, 2025, and Fraser Canyon, acquired December 1, 2025. For\nthe three months ended June 30, 2026, GAAP revenue was $21.5 million, of which\nCarolina Stone contributed approximately $3.2 million and Fraser Canyon\napproximately $4.5 million. For the three months ended June 30, 2025, GAAP\nrevenue was $12.9 million, all from the legacy Instone operations.\n\nThe Company defines “Stone Business Adjusted EBITDA” as earnings (loss)\nbefore interest expense, income taxes, depreciation and amortization expense,\nmanagement fees incurred by Instone payable to Capstone and Brookstone,\nInstone board fees, share-based compensation, change in fair value of\ncontingent consideration, loss on extinguishment of debt, and transaction\ncosts.\n\nA reconciliation of Stone Business Adjusted EBITDA to Capstone consolidated\ncomprehensive income (loss), the GAAP measure from which it is derived, for\nthe three and six months ended June 30, 2026 and 2025 is included in the\nCompany’s second quarter 2026 investor presentation, available in the\nInvestor Relations section of www.capstoneholdingcorp.com\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.capstoneholdingcorp.com&esheet=54605362&newsitemid=20260916020380&lan=en-US&anchor=www.capstoneholdingcorp.com&index=2&md5=dd4b5ef05781c7df6e8870a8439d42bb)\n. That reconciliation identifies the items by which comprehensive income\n(loss) differs from net income (loss).\n\nThe Company has not provided a quantitative reconciliation of forward-looking\nStone Business Adjusted EBITDA guidance to forward-looking GAAP net income\n(loss) because the individual reconciling items — including interest\nexpense, income taxes, depreciation and amortization, share-based\ncompensation, change in fair value of contingent consideration, loss on\nextinguishment of debt, and transaction costs — cannot be predicted with\nreasonable certainty without unreasonable effort. The unavailable reconciling\nitems could have a significant impact on the Company’s GAAP results.\n\nForward-Looking Statements\n\nThis press release contains forward-looking statements as defined by the\nPrivate Securities Litigation Reform Act of 1995. These statements relate to\nfuture events and performance, including guidance regarding revenue, gross\nprofit and Stone Business Adjusted EBITDA, M&A strategy, use of capital,\nand operating outlook. Actual results may differ materially from those\nprojected due to a range of factors, including but not limited to the\nCompany’s liquidity and access to capital; its ability to comply with, or\nobtain waivers of, financial covenants; the refinancing or repayment of\nindebtedness as it matures; conditions that may raise substantial doubt about\nthe Company’s ability to continue as a going concern; acquisition timing and\nintegration; macroeconomic conditions; and other execution risks. Please\nreview the Company’s filings with the SEC, including the Quarterly Report on\nForm 10-Q for the quarter ended June 30, 2026, for a full discussion of these\nand other risk factors. Capstone undertakes no obligation to revise\nforward-looking statements except as required by law.\n\n\n\nView source version on businesswire.com:\nhttps://www.businesswire.com/news/home/20260916020380/en/\n(https://www.businesswire.com/news/home/20260916020380/en/)\n\nInvestor Contact \n\nInvestor Relations\n\nCapstone Holding Corp.\n\ninvestors@capstoneholdingcorp.com \n(mailto:investors@capstoneholdingcorp.com) \nwww.capstoneholdingcorp.com\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.capstoneholdingcorp.com&esheet=54605362&newsitemid=20260916020380&lan=en-US&anchor=www.capstoneholdingcorp.com&index=3&md5=45bd1960ffd553d6517de9536d2beee6)\n\n\nCopyright Business Wire 2026","article_body_html":"","raw_payload":{"data":{"id":"nBw1Grkcva-20260916","title":"Capstone Outperforms Building Products Market as Organic Growth Accelerates","author":"Business Wire","ticker":"CAPS","created":"2026-09-16T13:00:01.812Z","tickers":["CAPS"],"exchange":"NASDAQ","article_body":"Capstone Outperforms Building Products Market as Organic Growth Accelerates\n\nOrganic distribution revenue grew 7% in Q2 against a contracting\nbuilding-products market; Capstone’s capital-efficient platform supports\ngrowth without a proportionate increase in the cost base.\n\nCapstone Holding Corp. (NASDAQ: CAPS), a national, technology-enabled building\nproducts distribution platform, today highlighted its ability to deliver\norganic growth despite weakness in the broader building products market.\nCapstone’s organic distribution revenue grew approximately 7 percent year\nover year in the second quarter, even as new-construction building-products\nspending declined an estimated 8.5 percent over the same period.\n\nZonda, a leading provider of housing market data and research, found that\nbuilding-products spending fell throughout the first half of 2026 amid high\nmortgage rates and persistent inflation. Capstone outperformed the market in\nboth quarters, maintaining organic revenue in the first quarter before\naccelerating growth in the second. The results establish a track record of\norganic outperformance through challenging market conditions.\n\n“It is especially important to emphasize that the organic growth we are\ndelivering does not require a proportionate increase in our cost base,” said\nMatthew Lipman, Chief Executive Officer. “We can add products and brands\nacross our existing customer base and distribution network, while expanding\ninstallation revenue through existing crews, infrastructure and operating\noverhead. This is a capital-efficient growth model that will compound as the\nhousing market normalizes.”\n\nKey Highlights:\n\n\n * Organic Revenue Growth: Capstone’s organic distribution revenue grew\napproximately 7% year over year in the second quarter despite continued\nweakness in the building-products market.\n\n * End Market Outperformance: Capstone outperformed the building-products market\nin both quarters of the first half, maintaining organic revenue in Q1 before\naccelerating growth in Q2.\n\n * Capital-Efficient Growth: Capstone is growing through its existing customer\nbase, distribution network and operating infrastructure, without a\nproportionate increase in its cost base.\n\n * Housing Market Upside: A normalization in construction and remodeling activity\nwill provide an additional tailwind to the organic growth Capstone is already\ngenerating.\n\n * Second-Half Momentum: Current order volumes point to continued strong organic\ngrowth in the second half of 2026.\n\nCapstone is now in its peak selling period, and current order volumes point to\ncontinued strong organic growth. The Company recently reaffirmed its full-year\n2026 guidance of $72.1 million in revenue, $18.7 million in gross profit and\napproximately $3.8 million in Stone Business Adjusted EBITDA.\n\nFor additional updates, visit Capstone's Investor Relations website at\nwww.capstoneholdingcorp.com\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.capstoneholdingcorp.com&esheet=54605362&newsitemid=20260916020380&lan=en-US&anchor=www.capstoneholdingcorp.com&index=1&md5=724d13b483057fd33634f910c5480179)\n.\n\nAbout Capstone Holding Corp.\n\nCapstone Holding Corp. (NASDAQ: CAPS) is a national, technology-enabled\nbuilding products distribution platform optimizing supply chains across 38\nU.S. states and Canada. Through its Instone operating platform and inventory\nportal, the Company aggregates and delivers proprietary stone veneer,\nhardscape materials, and modular masonry systems. Capstone’s model combines\ndigital infrastructure, owned-inventory logistics, and disciplined\nacquisitions to drive scalable margin expansion and operating leverage across\nits growing platform.\n\nNon-GAAP Financial Measures\n\nThis press release references Stone Business Adjusted EBITDA, a non-GAAP\nfinancial measure that presents the results of the Company’s operating\nsubsidiaries and excludes Capstone standalone corporate costs. Stone Business\nAdjusted EBITDA is not a measure of financial performance under GAAP and\nshould not be considered an alternative to net income (loss) or any other\nperformance measure derived in accordance with GAAP. Stone Business Adjusted\nEBITDA may not be comparable to similarly titled measures used by other\ncompanies. This press release also references organic distribution revenue,\nwhich is revenue of the legacy Instone operations excluding Carolina Stone,\nacquired August 22, 2025, and Fraser Canyon, acquired December 1, 2025. For\nthe three months ended June 30, 2026, GAAP revenue was $21.5 million, of which\nCarolina Stone contributed approximately $3.2 million and Fraser Canyon\napproximately $4.5 million. For the three months ended June 30, 2025, GAAP\nrevenue was $12.9 million, all from the legacy Instone operations.\n\nThe Company defines “Stone Business Adjusted EBITDA” as earnings (loss)\nbefore interest expense, income taxes, depreciation and amortization expense,\nmanagement fees incurred by Instone payable to Capstone and Brookstone,\nInstone board fees, share-based compensation, change in fair value of\ncontingent consideration, loss on extinguishment of debt, and transaction\ncosts.\n\nA reconciliation of Stone Business Adjusted EBITDA to Capstone consolidated\ncomprehensive income (loss), the GAAP measure from which it is derived, for\nthe three and six months ended June 30, 2026 and 2025 is included in the\nCompany’s second quarter 2026 investor presentation, available in the\nInvestor Relations section of www.capstoneholdingcorp.com\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.capstoneholdingcorp.com&esheet=54605362&newsitemid=20260916020380&lan=en-US&anchor=www.capstoneholdingcorp.com&index=2&md5=dd4b5ef05781c7df6e8870a8439d42bb)\n. That reconciliation identifies the items by which comprehensive income\n(loss) differs from net income (loss).\n\nThe Company has not provided a quantitative reconciliation of forward-looking\nStone Business Adjusted EBITDA guidance to forward-looking GAAP net income\n(loss) because the individual reconciling items — including interest\nexpense, income taxes, depreciation and amortization, share-based\ncompensation, change in fair value of contingent consideration, loss on\nextinguishment of debt, and transaction costs — cannot be predicted with\nreasonable certainty without unreasonable effort. The unavailable reconciling\nitems could have a significant impact on the Company’s GAAP results.\n\nForward-Looking Statements\n\nThis press release contains forward-looking statements as defined by the\nPrivate Securities Litigation Reform Act of 1995. These statements relate to\nfuture events and performance, including guidance regarding revenue, gross\nprofit and Stone Business Adjusted EBITDA, M&A strategy, use of capital,\nand operating outlook. Actual results may differ materially from those\nprojected due to a range of factors, including but not limited to the\nCompany’s liquidity and access to capital; its ability to comply with, or\nobtain waivers of, financial covenants; the refinancing or repayment of\nindebtedness as it matures; conditions that may raise substantial doubt about\nthe Company’s ability to continue as a going concern; acquisition timing and\nintegration; macroeconomic conditions; and other execution risks. Please\nreview the Company’s filings with the SEC, including the Quarterly Report on\nForm 10-Q for the quarter ended June 30, 2026, for a full discussion of these\nand other risk factors. Capstone undertakes no obligation to revise\nforward-looking statements except as required by law.\n\n\n\nView source version on businesswire.com:\nhttps://www.businesswire.com/news/home/20260916020380/en/\n(https://www.businesswire.com/news/home/20260916020380/en/)\n\nInvestor Contact \n\nInvestor Relations\n\nCapstone Holding Corp.\n\ninvestors@capstoneholdingcorp.com \n(mailto:investors@capstoneholdingcorp.com) \nwww.capstoneholdingcorp.com\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.capstoneholdingcorp.com&esheet=54605362&newsitemid=20260916020380&lan=en-US&anchor=www.capstoneholdingcorp.com&index=3&md5=45bd1960ffd553d6517de9536d2beee6)\n\n\nCopyright Business Wire 2026"},"type":"article","timestamp":"2026-09-16T13:00:02.956456271Z","server_sent_at_ms":1789563602956},"received_at":"2026-09-16T13:00:03.014Z","source_url":"https://www.businesswire.com/news/home/20260916020380/en/"},"analysis":{"id":"134106","press_release_id":"145268","analysis_json":{"industry":{"label":"Trading Companies & Distributors","sector":"Industrials"},"redFlags":["Risk-factor boilerplate references conditions that may raise substantial doubt about the Company's ability to continue as a going concern, plus liquidity, refinancing and financial-covenant risks","Headline GAAP revenue growth is heavily acquisition-driven (Carolina Stone $3.2M, Fraser Canyon $4.5M of $21.5M) versus ~7% organic growth","Stone Business Adjusted EBITDA is a non-GAAP measure with no quantitative reconciliation provided for forward guidance"],"eventType":"operations_update","narrative":"Capstone's organic distribution revenue grew approximately 7% year over year in Q2 2026, even as building-products spending fell an estimated 8.5% per Zonda data — outperforming the market in both first-half quarters.\n\nGAAP revenue for the quarter was $21.5 million versus $12.9 million a year earlier, with recent acquisitions Carolina Stone and Fraser Canyon contributing roughly $3.2 million and $4.5 million, respectively.\n\nCEO Matthew Lipman emphasized the growth is capital-efficient, adding products and installation revenue through existing crews, infrastructure and overhead rather than a proportionate cost increase.\n\nThe company reaffirmed 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, with current order volumes pointing to continued strong organic growth in the second half.","sentiment":"bullish","agentHooks":{"shouldPost":false,"suggestedAngle":"Micro-cap distributor gaining share in a contracting building-products market with capital-efficient organic growth; guidance reaffirmed into peak selling season."},"keyFigures":{"revenue":21500000,"guidance":"FY2026 reaffirmed: revenue $72.1M, gross profit $18.7M, Stone Business Adjusted EBITDA ~$3.8M","revenueYoy":"~7% (organic distribution revenue growth)","customDimensions":{"gross_profit_guidance":18700000,"prior_year_gaap_revenue":12900000,"building_products_market_change":"-8.5%","fraser_canyon_q2_revenue_contribution":4500000,"carolina_stone_q2_revenue_contribution":3200000,"stone_business_adjusted_ebitda_guidance":3800000}},"quotedText":"We can add products and brands\nacross our existing customer base and distribution network, while expanding\ninstallation revenue through existing crews, infrastructure and operating\noverhead.","namedEntities":{"people":[{"name":"Matthew Lipman","role":"Chief Executive Officer"}],"products":["Instone operating platform","inventory portal","stone veneer","hardscape materials","modular masonry systems"],"companies":[{"name":"Capstone Holding Corp.","ticker":"CAPS","relationship":"filer"},{"name":"Zonda","relationship":"housing market data provider cited for industry spending decline"},{"name":"Instone","relationship":"operating platform / subsidiary"},{"name":"Carolina Stone","relationship":"acquired subsidiary (acquired August 22, 2025)"},{"name":"Fraser Canyon","relationship":"acquired subsidiary (acquired December 1, 2025)"},{"name":"Brookstone","relationship":"related entity referenced in non-GAAP measure definitions"}],"dollarAmounts":[{"amount":"$21.5 million","context":"Q2 2026 GAAP revenue"},{"amount":"$12.9 million","context":"Q2 2025 GAAP revenue"},{"amount":"$72.1 million","context":"reaffirmed FY2026 revenue guidance"},{"amount":"$18.7 million","context":"reaffirmed FY2026 gross profit guidance"},{"amount":"$3.8 million","context":"reaffirmed FY2026 Stone Business Adjusted EBITDA guidance"},{"amount":"$3.2 million","context":"Carolina Stone Q2 2026 revenue contribution"},{"amount":"$4.5 million","context":"Fraser Canyon Q2 2026 revenue contribution"}]},"materialImpact":{"score":2,"reasoning":"A promotional operational update re-highlighting already-reported Q2 results: organic distribution revenue grew ~7% against an estimated 8.5% decline in building-products spending, and full-year 2026 guidance was reaffirmed rather than raised. No new financial disclosure beyond the quarter ended June 30, 2026, so impact is modest despite the positive tone."},"tickerRelevance":{"others":[],"primary":"CAPS"},"globalImportance":16,"audienceRelevance":14,"eventTypeSecondary":["guidance_update"],"importanceComponents":{"tickerTier":"micro-cap","eventGravity":"operational-update-with-guidance-reaffirmation","sectorWeight":"housing-sensitive distribution cycle","householdBrandBoost":false,"marketCapAdjustment":"small-cap discount applied","retailFavoriteBoost":false}},"event_type":"operations_update","event_type_secondary":["guidance_update"],"sentiment":"bullish","material_impact_score":2,"narrative":"Capstone's organic distribution revenue grew approximately 7% year over year in Q2 2026, even as building-products spending fell an estimated 8.5% per Zonda data — outperforming the market in both first-half quarters.\n\nGAAP revenue for the quarter was $21.5 million versus $12.9 million a year earlier, with recent acquisitions Carolina Stone and Fraser Canyon contributing roughly $3.2 million and $4.5 million, respectively.\n\nCEO Matthew Lipman emphasized the growth is capital-efficient, adding products and installation revenue through existing crews, infrastructure and overhead rather than a proportionate cost increase.\n\nThe company reaffirmed 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, with current order volumes pointing to continued strong organic growth in the second half.","key_figures":{"revenue":21500000,"guidance":"FY2026 reaffirmed: revenue $72.1M, gross profit $18.7M, Stone Business Adjusted EBITDA ~$3.8M","revenueYoy":"~7% (organic distribution revenue growth)","customDimensions":{"gross_profit_guidance":18700000,"prior_year_gaap_revenue":12900000,"building_products_market_change":"-8.5%","fraser_canyon_q2_revenue_contribution":4500000,"carolina_stone_q2_revenue_contribution":3200000,"stone_business_adjusted_ebitda_guidance":3800000}},"named_entities":{"people":[{"name":"Matthew Lipman","role":"Chief Executive Officer"}],"products":["Instone operating platform","inventory portal","stone veneer","hardscape materials","modular masonry systems"],"companies":[{"name":"Capstone Holding Corp.","ticker":"CAPS","relationship":"filer"},{"name":"Zonda","relationship":"housing market data provider cited for industry spending decline"},{"name":"Instone","relationship":"operating platform / subsidiary"},{"name":"Carolina Stone","relationship":"acquired subsidiary (acquired August 22, 2025)"},{"name":"Fraser Canyon","relationship":"acquired subsidiary (acquired December 1, 2025)"},{"name":"Brookstone","relationship":"related entity referenced in non-GAAP measure definitions"}],"dollarAmounts":[{"amount":"$21.5 million","context":"Q2 2026 GAAP revenue"},{"amount":"$12.9 million","context":"Q2 2025 GAAP revenue"},{"amount":"$72.1 million","context":"reaffirmed FY2026 revenue guidance"},{"amount":"$18.7 million","context":"reaffirmed FY2026 gross profit guidance"},{"amount":"$3.8 million","context":"reaffirmed FY2026 Stone Business Adjusted EBITDA guidance"},{"amount":"$3.2 million","context":"Carolina Stone Q2 2026 revenue contribution"},{"amount":"$4.5 million","context":"Fraser Canyon Q2 2026 revenue contribution"}]},"model_name":"glm-5.3-flash","prompt_hash":"sha256:727b4b9429a443af","schema_hash":"sha256:05005c02d9cffac9","created_at":"2026-09-16T13:01:46.665Z","global_importance":16,"audience_relevance":14,"importance_components":{"tickerTier":"micro-cap","eventGravity":"operational-update-with-guidance-reaffirmation","sectorWeight":"housing-sensitive distribution cycle","householdBrandBoost":false,"marketCapAdjustment":"small-cap discount applied","retailFavoriteBoost":false}},"durationMs":53471,"modelName":"glm-5.3-flash"}}