{"success":true,"data":{"pressRelease":{"id":"155497","rtpr_id":"nBw1dyBGPa-20260929","ticker":"CAPS","exchange":"NASDAQ","all_tickers":["CAPS"],"title":"Capstone Retires Approximately 85% of Convertible Note Principal, Reducing Remaining Balance to $1 Million","author":"Business Wire","published_at":"2026-09-29T13:00:04.397Z","article_body":"Capstone Retires Approximately 85% of Convertible Note Principal, Reducing\nRemaining Balance to $1 Million\n\nFirst of two convertible notes fully retired as Company advances toward\neliminating remaining convertible debt.\n\nCapstone Holding Corp. (NASDAQ: CAPS), a national, technology-enabled building\nproducts distribution platform, today announced that it has retired\napproximately 85% of its original $6.82 million in convertible note principal,\nreducing the remaining balance to $1 million.\n\nThe Company has fully retired the first of its two convertible notes,\noriginally issued in July 2025, and has reduced the principal balance on its\nremaining convertible debt to $1,000,000, through conversions of the notes.\nOnly the October 2025 note remains outstanding.\n\n“We remain focused on two priorities: eliminating the remaining convertible\ndebt and continuing to strengthen the underlying business,” said Matthew\nLipman, Chief Executive Officer. “We have made substantial progress on\nboth—retiring approximately 85% of the original principal while delivering\nour strongest quarter in years. As we continue to execute, we believe Capstone\nis well-positioned to create greater long-term equity value.”\n\nKey Highlights:\n\n * Strengthened Capital Structure: Approximately 85% of Capstone’s original\n$6.82 million in convertible note principal has now been retired,\nsubstantially reducing the convertible debt overhang.\n * First Convertible Note Fully Retired: The July 2025 convertible note has been\nfully retired, leaving only the October 2025 note outstanding.\n * Remaining Balance of $1 Million: Outstanding convertible note principal has\ndeclined to $1,000,000, down from $1.90 million at June 30, 2026.\n * Operating Momentum: Capstone delivered its strongest quarter in years, with\nsecond-quarter revenue increasing 67% year over year to $21.5 million, gross\nprofit increasing 92% to $6.0 million, and gross margin expanding 357 basis\npoints to 27.9%.\n“This is an exciting period for Capstone,” Lipman continued. “Our\norganic growth continues to significantly outpace the broader building\nproducts market\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fcapstoneholdingcorp.com%2Fcapstone-outperforms-building-products-market-as-organic-growth-accelerates%2F&esheet=54612357&newsitemid=20260929005033&lan=en-US&anchor=continues+to+significantly+outpace+the+broader+building+products+market&index=2&md5=305e66c161518db66ffe79035e57c99e)\n, and we are now in our peak selling period.”\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=54612357&newsitemid=20260929005033&lan=en-US&anchor=www.capstoneholdingcorp.com&index=3&md5=8f4021b9be4ec8b82a89b8e53c0923ec)\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\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, the retirement or refinancing of the Company’s convertible notes,\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/20260929005033/en/\n(https://www.businesswire.com/news/home/20260929005033/en/)\n\nInvestor Contact\nInvestor Relations\nCapstone Holding Corp.\ninvestors@capstoneholdingcorp.com (mailto:investors@capstoneholdingcorp.com) \nwww.capstoneholdingcorp.com\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.capstoneholdingcorp.com&esheet=54612357&newsitemid=20260929005033&lan=en-US&anchor=www.capstoneholdingcorp.com&index=4&md5=4fc7c9f67f63003401a4a1c09c534988)\n\n\nCopyright Business Wire 2026","article_body_html":"","raw_payload":{"data":{"id":"nBw1dyBGPa-20260929","title":"Capstone Retires Approximately 85% of Convertible Note Principal, Reducing Remaining Balance to $1 Million","author":"Business Wire","ticker":"CAPS","created":"2026-09-29T13:00:04.397Z","tickers":["CAPS"],"exchange":"NASDAQ","article_body":"Capstone Retires Approximately 85% of Convertible Note Principal, Reducing\nRemaining Balance to $1 Million\n\nFirst of two convertible notes fully retired as Company advances toward\neliminating remaining convertible debt.\n\nCapstone Holding Corp. (NASDAQ: CAPS), a national, technology-enabled building\nproducts distribution platform, today announced that it has retired\napproximately 85% of its original $6.82 million in convertible note principal,\nreducing the remaining balance to $1 million.\n\nThe Company has fully retired the first of its two convertible notes,\noriginally issued in July 2025, and has reduced the principal balance on its\nremaining convertible debt to $1,000,000, through conversions of the notes.\nOnly the October 2025 note remains outstanding.\n\n“We remain focused on two priorities: eliminating the remaining convertible\ndebt and continuing to strengthen the underlying business,” said Matthew\nLipman, Chief Executive Officer. “We have made substantial progress on\nboth—retiring approximately 85% of the original principal while delivering\nour strongest quarter in years. As we continue to execute, we believe Capstone\nis well-positioned to create greater long-term equity value.”\n\nKey Highlights:\n\n * Strengthened Capital Structure: Approximately 85% of Capstone’s original\n$6.82 million in convertible note principal has now been retired,\nsubstantially reducing the convertible debt overhang.\n * First Convertible Note Fully Retired: The July 2025 convertible note has been\nfully retired, leaving only the October 2025 note outstanding.\n * Remaining Balance of $1 Million: Outstanding convertible note principal has\ndeclined to $1,000,000, down from $1.90 million at June 30, 2026.\n * Operating Momentum: Capstone delivered its strongest quarter in years, with\nsecond-quarter revenue increasing 67% year over year to $21.5 million, gross\nprofit increasing 92% to $6.0 million, and gross margin expanding 357 basis\npoints to 27.9%.\n“This is an exciting period for Capstone,” Lipman continued. “Our\norganic growth continues to significantly outpace the broader building\nproducts market\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fcapstoneholdingcorp.com%2Fcapstone-outperforms-building-products-market-as-organic-growth-accelerates%2F&esheet=54612357&newsitemid=20260929005033&lan=en-US&anchor=continues+to+significantly+outpace+the+broader+building+products+market&index=2&md5=305e66c161518db66ffe79035e57c99e)\n, and we are now in our peak selling period.”\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=54612357&newsitemid=20260929005033&lan=en-US&anchor=www.capstoneholdingcorp.com&index=3&md5=8f4021b9be4ec8b82a89b8e53c0923ec)\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\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, the retirement or refinancing of the Company’s convertible notes,\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/20260929005033/en/\n(https://www.businesswire.com/news/home/20260929005033/en/)\n\nInvestor Contact\nInvestor Relations\nCapstone Holding Corp.\ninvestors@capstoneholdingcorp.com (mailto:investors@capstoneholdingcorp.com) \nwww.capstoneholdingcorp.com\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.capstoneholdingcorp.com&esheet=54612357&newsitemid=20260929005033&lan=en-US&anchor=www.capstoneholdingcorp.com&index=4&md5=4fc7c9f67f63003401a4a1c09c534988)\n\n\nCopyright Business Wire 2026"},"type":"article","timestamp":"2026-09-29T13:00:06.295958697Z","server_sent_at_ms":1790686806295},"received_at":"2026-09-29T13:00:06.348Z","source_url":"https://www.businesswire.com/news/home/20260929005033/en/"},"analysis":{"id":"144227","press_release_id":"155497","analysis_json":{"industry":{"label":"Trading Companies & Distributors","sector":"Industrials"},"redFlags":["debt retired via conversions of the notes, implying equity dilution","forward-looking statements reference liquidity risk, covenant compliance, and potential substantial doubt about going concern"],"eventType":"debt_offering","narrative":"Capstone Holding has retired approximately 85% of its original $6.82 million in convertible note principal, cutting the outstanding balance to $1 million.\n\nThe July 2025 convertible note is now fully retired, leaving only the October 2025 note outstanding; the remaining balance declined from $1.90 million at June 30, 2026 through conversions of the notes.\n\nThe company paired the debt update with operating momentum, citing Q2 revenue up 67% year over year to $21.5 million, gross profit up 92% to $6.0 million, and gross margin up 357 basis points to 27.9%.\n\nNote that the debt reduction was achieved through conversions, which implies equity dilution, and the release's forward-looking statements reference liquidity and going-concern risk factors.","sentiment":"bullish","agentHooks":{"shouldPost":true,"suggestedAngle":"Convertible overhang nearly cleared (85% retired) alongside a 67% revenue growth quarter -- but conversions mean dilution and going-concern language lingers."},"keyFigures":{"customDimensions":{"notes_retired":"July 2025 note fully retired; October 2025 note remains outstanding","principal_retired_pct":"approximately 85%","balance_at_june_30_2026":1900000,"original_note_principal":6820000,"remaining_note_principal":1000000}},"quotedText":"We remain focused on two priorities: eliminating the remaining convertible debt and continuing to strengthen the underlying business","namedEntities":{"people":[{"name":"Matthew Lipman","role":"CEO"}],"products":["Instone operating platform","stone veneer","hardscape materials","modular masonry systems"],"companies":[{"name":"Capstone Holding Corp.","ticker":"CAPS","relationship":"filer"}],"dollarAmounts":[{"amount":"$6.82 million","context":"original convertible note principal"},{"amount":"$1 million","context":"remaining convertible note principal"},{"amount":"$1,000,000","context":"outstanding convertible note principal after retirement"},{"amount":"$1.90 million","context":"convertible note principal at June 30, 2026"},{"amount":"$21.5 million","context":"Q2 revenue"},{"amount":"$6.0 million","context":"Q2 gross profit"}]},"materialImpact":{"score":3,"reasoning":"Retiring ~85% of the original $6.82M convertible note principal substantially reduces the debt overhang and removes one of two notes entirely, a meaningful balance-sheet improvement for a small-cap. However, the retirement came via equity conversions (implying dilution) and the dollar amounts are modest."},"tickerRelevance":{"others":[],"primary":"CAPS"},"globalImportance":25,"audienceRelevance":20,"eventTypeSecondary":["dilution"],"importanceComponents":{"tickerTier":"micro-cap","eventGravity":"balance-sheet deleveraging via note conversions","dilutionImplication":true,"goingConcernLanguage":true}},"event_type":"debt_offering","event_type_secondary":["dilution"],"sentiment":"bullish","material_impact_score":3,"narrative":"Capstone Holding has retired approximately 85% of its original $6.82 million in convertible note principal, cutting the outstanding balance to $1 million.\n\nThe July 2025 convertible note is now fully retired, leaving only the October 2025 note outstanding; the remaining balance declined from $1.90 million at June 30, 2026 through conversions of the notes.\n\nThe company paired the debt update with operating momentum, citing Q2 revenue up 67% year over year to $21.5 million, gross profit up 92% to $6.0 million, and gross margin up 357 basis points to 27.9%.\n\nNote that the debt reduction was achieved through conversions, which implies equity dilution, and the release's forward-looking statements reference liquidity and going-concern risk factors.","key_figures":{"customDimensions":{"notes_retired":"July 2025 note fully retired; October 2025 note remains outstanding","principal_retired_pct":"approximately 85%","balance_at_june_30_2026":1900000,"original_note_principal":6820000,"remaining_note_principal":1000000}},"named_entities":{"people":[{"name":"Matthew Lipman","role":"CEO"}],"products":["Instone operating platform","stone veneer","hardscape materials","modular masonry systems"],"companies":[{"name":"Capstone Holding Corp.","ticker":"CAPS","relationship":"filer"}],"dollarAmounts":[{"amount":"$6.82 million","context":"original convertible note principal"},{"amount":"$1 million","context":"remaining convertible note principal"},{"amount":"$1,000,000","context":"outstanding convertible note principal after retirement"},{"amount":"$1.90 million","context":"convertible note principal at June 30, 2026"},{"amount":"$21.5 million","context":"Q2 revenue"},{"amount":"$6.0 million","context":"Q2 gross profit"}]},"model_name":"glm-5.3-flashx","prompt_hash":"sha256:727b4b9429a443af","schema_hash":"sha256:05005c02d9cffac9","created_at":"2026-09-29T13:00:35.735Z","global_importance":25,"audience_relevance":20,"importance_components":{"tickerTier":"micro-cap","eventGravity":"balance-sheet deleveraging via note conversions","dilutionImplication":true,"goingConcernLanguage":true}},"durationMs":7356,"modelName":"glm-5.3-flashx"}}