Capstone Holding Corp (CAPS)

The company's stock price has experienced a significant decrease, falling by 54.86% over the last six months and 74.01% over the last year. Capstone has been actively pursuing acquisitions to expand its platform, including an agreement to acquire Carolina Stone Distributors, Inc. In August 2025, Capstone Holding reported mixed results for its fiscal Q2 2025 earnings, with a 0.3% revenue decline and a widening net loss of $700,000, despite an improved per-share loss. The company also reported record Q3 2025 results with pro forma year-to-date revenue of $41.2 million (up 19% year-over-year) and pro forma adjusted EBITDA up 46%. In November 2025, Capstone showcased two new outdoor hardscape and landscape products at Hardscape North America, which generated early dealer and contractor demand. Capstone reaffirmed its 2025 financial targets of a $100 million run-rate revenue and $10 million adjusted EBITDA, driven by organic growth and accretive acquisitions. In November 2025, Capstone Holding Corp. inadvertently sent its Q3 2025 earnings press release to its email distribution list before its official issuance.

Capstone Holding Corp.'s products and services experience demand seasonality. Its subsidiary, Instone, typically observes seasonality in the first quarter (Q1), with order volumes expected to rebound in the third quarter (Q3). The company is positioned to benefit from a projected multi-year exterior and outdoor remodeling demand cycle, with significant growth anticipated in 2026 and 2027.

Capstone Holding Corp. is a building products distribution company focused on serving residential and commercial construction markets across the United States. The company distributes masonry stone products, including manufactured and natural stone cladding, landscape products, stone veneers, and modular masonry fireplaces. Capstone operates through its subsidiary, Instone, a national wholesale distributor of thin veneer stone and related masonry products. The company shifted its focus to building products distribution in February 2022 and is now categorized within the Industrials sector and the Trading Companies & Distributors industry.

Capstone Holding Corp. primarily operates in the Midwest and Northeast United States. Its subsidiary, Instone, has a building products distribution network that services 31 to 32 U.S. states.

Capstone Holding Corp.'s brand reputation in the past year appears to be generally positive, driven by strategic growth and product innovation. The company has actively showcased strong product launches and organic growth momentum, particularly at events like Hardscape North America in November 2025, where new outdoor hardscape and landscape products garnered early demand. While the Q2 2025 earnings report mentioned "market challenges including operational inefficiencies and rising net losses contributed to negative investor sentiment", this appears to be more related to financial performance and investor confidence rather than a direct impact on the company's brand reputation among customers or in the broader market for its products.

Brookstone Partners, a private equity sponsor, is the majority shareholder, owning over 77% of the company's common equity. Matthew Lipman serves as the Chief Executive Officer, and Michael Toporek is the Chairman, both associated with Brookstone Partners. Individual insiders collectively own 13% of the company. Major institutional owners of Capstone Holding Corp. include World Investment Advisors, Citadel Advisors Llc, Two Sigma Securities, Llc, Two Sigma Investments, Lp, Tower Research Capital LLC (TRC), UBS Group AG, Bank Of America Corp /de/, and Morgan Stanley.