Capstone reports 54% revenue growth guidance for 2026

Capstone Holding Corp. (NASDAQ: CAPS) reported fiscal year 2025 revenue of $46.9 million and issued guidance for fiscal 2026 calling for revenue to increase 54% to $72.1 million, according to a company statement.

The building products distribution company said its gross margin expanded to 23% in fiscal 2025, up from prior year levels. For fiscal 2026, Capstone projects gross margin will reach 26% and EBITDA will increase to approximately $3.8 million from $0.9 million in fiscal 2025.

The company completed two acquisitions during fiscal 2025, adding Carolina Stone in August and Canadian Stone Industries in December. These transactions added approximately $26 million in annualized revenue and expanded Capstone's operations from one subsidiary to three, with locations spanning 38 U.S. states and Canada.

"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."

Capstone reported gross profit of $10.8 million in fiscal 2025 and expects gross profit to reach $18.7 million in fiscal 2026, representing 73% growth. The company anticipates achieving a positive EBITDA run-rate beginning in the second quarter of fiscal 2026.

The company identified approximately $480,000 in annual cost savings from facility consolidation and expects additional efficiency gains from logistics optimization and inventory centralization initiatives.

Capstone operates through its Instone platform, distributing stone veneer, hardscape materials and modular masonry systems across North America.

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