Capstone Holding Corp. Stock Price, News & Analysis

Capstone Holding Corp. (NASDAQ:CAPS) has signed a definitive agreement to acquire Carolina Stone Products for $3.9-$4.7 million, representing a 4.7×-5.2× EBITDA multiple. The acquisition, expected to close by August 22, 2025, will be immediately accretive to revenue and EBITDA.

Carolina Stone Products generates approximately $11 million in revenue and $0.75 million in LTM EBITDA, with projected 2026 EBITDA of $1.001 million. The deal marks Capstone's entry into the Southeast market and adds premium brands to its portfolio. The company reported improved Q2 performance with gross margins increasing to 24.4% from 21.4% year-over-year.

Capstone plans at least one additional acquisition by year-end 2025, targeting a ~$100 million revenue run-rate entering 2026. The company maintains a disciplined acquisition pipeline at 4-6× EBITDA valuations with 20-45% non-cash consideration.

Capstone (NASDAQ:CAPS) reported strong Q2 2025 results, highlighted by significant margin expansion and strategic growth initiatives. The company achieved a 310 basis-point improvement in gross margins, reaching 24.4% compared to 21.4% year-over-year.

A key development is the execution of an agreement to acquire a Carolina Based Stone Company, expected to close within 10 days. This immediately accretive acquisition will strengthen Capstone's presence in the Southeast market. The company maintains an SG&A of $8.5 million annualized and targets a $100M revenue run-rate by year-end 2025 or Q1 2026.

Capstone has secured funding through an Equity Line of Credit and convertible note, positioning it for additional acquisitions at 4-6× EBITDA valuations, with 20-45% in non-cash consideration.

Capstone Holding Corp. (NASDAQ:CAPS) reports strong growth for its Aura Natural Landscapes™ brand, driven by increasing demand for outdoor living spaces. The company highlights that 75% of homebuyers now prioritize outdoor spaces, with many allocating 25% of renovation budgets to outdoor projects.

Aura's product line includes natural-stone pavers, steps, treads, pool-coping, and slabs, distributed across a 31-state footprint. The brand's exclusive control over design, pricing, and quality is driving customer retention and larger projects. Notably, 76% of Millennials plan additional outdoor upgrades in the coming year, suggesting sustained growth potential.

Capstone Holding Corp. (NASDAQ:CAPS), a national building products distribution platform, has established a dedicated Corporate Development team to accelerate its acquisition strategy. The new team will focus on sourcing, evaluating, and executing strategic acquisitions across core and adjacent markets.

The company has already demonstrated success with previous acquisitions including Heller's Stone, Northeast Masonry, and HHT's stone division, expanding its Instone platform to 31 states. CEO Matt Lipman emphasized that this strategic move will enable faster and smarter execution of acquisitions, particularly targeting founder-led businesses in high-growth regions.

Capstone Holding Corp. (NASDAQ:CAPS) has secured a $10 million convertible note facility to support its M&A strategy, with an initial draw of $3 million completed on July 29, 2025. The facility includes a 7% annual interest rate, 8.34% original issue discount, and matures on July 29, 2026, with shares convertible at $1.72 per share.

The initial funds will finance the acquisition of a Southeast U.S.-based distributor of thin veneer stone and hardscape materials, currently under a non-binding LOI. This expansion marks Capstone's entry into one of the fastest-growing construction markets, leveraging synergies in distribution and logistics. The company maintains its target of achieving a $100 million revenue run-rate through organic growth and strategic M&A.

Capstone Holding Corp. (NASDAQ:CAPS) has outlined its strategy to modernize the $800 billion building products distribution industry. The company's Instone platform currently operates in 31 states, addressing inefficiencies in a fragmented market of over 7,000 local distributors.

A key differentiator is Capstone's control over its product portfolio, with more than 50% of sales coming from owned or exclusively distributed brands. This control enables consistent pricing, direct inventory management, and quality assurance across regions. The company plans to expand through strategic acquisitions, leveraging its strong cash flow to consolidate the market.

Capstone Holding Corp. (NASDAQ:CAPS) has signed a non-binding letter of intent (LOI) to acquire a Southeast-based distributor of thin veneer stone and hardscape materials. The strategic acquisition marks Capstone's expansion into the Southeastern U.S. market, targeting one of the fastest-growing construction markets in the country.

The target company specializes in serving residential and commercial builders and contractors. The acquisition terms align with Capstone's investment thesis for tuck-in deals, priced at 4x to 6x EBITDA with 20% to 45% non-cash consideration.

Capstone has reaffirmed its full-year targets of achieving a $100 million revenue run rate and $10 million in adjusted EBITDA. The company expects the acquisition to reduce freight costs, improve delivery times, and enhance customer service in the Southern region.

Capstone Holding Corp. (NASDAQ:CAPS), a national building products distribution platform, has published a new Investor FAQ on its website to enhance transparency and communication with shareholders. The FAQ addresses key topics including the company's growth strategy, capital structure, M&A pipeline, and stock-related information such as public float, trading availability, and insider ownership.

CEO Matt Lipman emphasized that this initiative responds to growing investor interest and aims to make Capstone's business story more accessible. The company intends to maintain the FAQ with periodic updates as new developments occur.

Capstone Holding Corp. (NASDAQ:CAPS) has secured a $1 million order for Pangaea Natural Stone through its Instone subsidiary for a luxury resort development in the Mountain States. The company has already delivered $200,000 in shipments, marking its successful entry into this high-value market. The project involves over 30 homes featuring Pangaea Stone, including two new profiles introduced earlier this year. This milestone demonstrates Capstone's strategic expansion into the Southeastern and Mountain States regions, focusing on premium masonry products. CEO Matt Lipman emphasized how this achievement reflects the company's successful growth strategy, while Instone President Kevin Grotke highlighted the positive builder feedback and potential for future regional growth.