Capstone Holding Corp. (NASDAQ:CAPS) reported fiscal 2025 revenue of $46.9 million, with gross margin improving to 23.0% from 21.3% a year earlier, according to a company statement. Despite the growth, the stock trades at $0.59, down 73% over the past year, leaving the company with a market capitalization of about $5.35 million.
Looking ahead, the building products distributor issued guidance for fiscal 2026, forecasting revenue of $72.1 million, a 54% increase, and EBITDA of around $3.8 million, up from $0.9 million in 2025. The company expects to achieve a positive EBITDA run rate starting in the second quarter of 2026, marking a turnaround from negative EBITDA of $2.31 million over the past twelve months and earnings per share of -$1.00.
Gross profit for 2025 totaled $10.8 million, rising 12.8% year-over-year. For 2026, Capstone anticipates gross profit of $18.7 million, up 73%, with gross margin projected to reach 26.0%.
During 2025, Capstone completed two acquisitions—Carolina Stone in August and Canadian Stone Industries in December—adding roughly $26 million in annualized revenue. These deals expanded the company from a single subsidiary to three operating units across nine locations. However, the company continues to manage tight liquidity, with a debt-to-equity ratio of 0.92 and a current ratio of 0.95, as it integrates these businesses.
Capstone now operates in 38 U.S. states and Canada and entered fiscal 2026 with pro forma revenue of approximately $68 million, reflecting full-year contributions from its acquisitions.
“It was a transformational year for Capstone,” said Matthew Lipman, Chief Executive Officer. “Synergies from our recent acquisitions are enabling margin growth and operating leverage across the platform.”
The company identified about $480,000 in annual cost savings from consolidating facilities and also secured a distribution partnership for Eldorado Stone through Westlake Royal Building Products.
Management said its revenue outlook reflects a full year of contributions from acquired operations and expansion into new regions. Capstone believes it has a pathway to surpass $100 million in revenue, supported by its acquisition pipeline and distribution agreements.
In other developments, the company recently obtained distribution rights for Eldorado Stone, which is expected to contribute around $5 million in annual revenue by the third quarter of 2027. It also integrated KLAD Envelope Solutions to strengthen relationships with commercial architects and designers.
Capstone introduced a new natural stone firepit product at the iLandscape Show in Illinois, expanding its outdoor living offerings. Additionally, the company launched a cost reduction initiative, cutting $2 million in overhead expenses to accelerate profitability, and reached a fee waiver and deferral agreement with Brookstone Partners IAC for 2026, eliminating $400,000 in management and consulting fees.
These steps highlight Capstone’s ongoing efforts to improve efficiency and strengthen its market position.