Capstone Reports Q2 2025 Results: Gross Margin Up to 24.4%; First Acquisition Nears Close
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脳 EBITDA valuations, with 20-45% in non-cash consideration.
Capstone (NASDAQ:CAPS) ha pubblicato solidi risultati per il 2掳 trimestre 2025, caratterizzati da una notevole espansione dei margini e da iniziative strategiche di crescita. L'azienda ha ottenuto un
Un elemento chiave 猫 l'esecuzione di un accordo per acquisire una Carolina Based Stone Company, con chiusura prevista entro 10 giorni. Questa acquisizione, immediatamente accretiva, rafforzer脿 la presenza di Capstone nel mercato sudorientale. L'azienda mantiene un SG&A di $8,5 milioni annualizzati e punta a un run-rate dei ricavi di $100M entro la fine del 2025 o nel primo trimestre 2026.
Capstone ha assicurato finanziamenti tramite una linea di credito azionaria e una nota convertibile, posizionandosi per ulteriori acquisizioni a valutazioni di 4-6脳 EBITDA, con il 20-45% del corrispettivo in strumenti non monetari.
Capstone (NASDAQ:CAPS) inform贸 s贸lidos resultados del 2T 2025, destacando una importante expansi贸n de m谩rgenes e iniciativas estrat茅gicas de crecimiento. La compa帽铆a logr贸 una mejora de 310 puntos b谩sicos en los m谩rgenes brutos, alcanzando el 24,4% frente al 21,4% interanual.
Un desarrollo clave es la firma de un acuerdo para adquirir una Carolina Based Stone Company, cuya cierre se espera en 10 d铆as. Esta adquisici贸n, inmediatamente acreedora, fortalecer谩 la presencia de Capstone en el mercado del sureste. La compa帽铆a mantiene un SG&A de $8,5 millones anualizados y apunta a un run-rate de ingresos de $100M para finales de 2025 o el 1T de 2026.
Capstone ha asegurado financiaci贸n mediante una l铆nea de cr茅dito accionaria y una nota convertible, posicion谩ndose para compras adicionales a valoraciones de 4-6脳 EBITDA, con un 20-45% de la contraprestaci贸n en forma no monetaria.
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Capstone (NASDAQ:CAPS) a publi茅 de solides r茅sultats au T2 2025, marqu茅s par une expansion significative des marges et des initiatives strat茅giques de croissance. La soci茅t茅 a enregistr茅 une am茅lioration des marges brutes de 310 points de base, atteignant 24,4% contre 21,4% d'une ann茅e sur l'autre.
Fait cl茅 : la conclusion d'un accord pour acqu茅rir une Carolina Based Stone Company, dont la cl么ture est attendue sous 10 jours. Cette acquisition imm茅diatement accr茅ditive renforcera la pr茅sence de Capstone dans le march茅 du Sud-Est. La soci茅t茅 maintient un SG&A de 8,5 M$ annualis茅s et vise un run-rate de revenus de 100 M$ d'ici la fin 2025 ou le T1 2026.
Capstone s'est assur茅e des financements via une ligne de cr茅dit en actions et une note convertible, se positionnant pour d'autres acquisitions 脿 des valorisations de 4-6脳 EBITDA, avec 20鈥�45 % de la contrepartie en instruments non mon茅taires.
Capstone (NASDAQ:CAPS) meldete starke Ergebnisse f眉r Q2 2025, gepr盲gt von einer deutlichen Margenausweitung und strategischen Wachstumsma脽nahmen. Das Unternehmen erzielte eine Verbesserung der Bruttomarge um 310 Basispunkte und erreichte 24,4% gegen眉ber 21,4% im Vorjahresvergleich.
Ein wichtiger Schritt ist der Abschluss eines Vertrags zur 脺bernahme einer Carolina Based Stone Company, der voraussichtlich innerhalb von 10 Tagen abgeschlossen wird. Diese sofort ertragssteigernde Akquisition wird Capstones Pr盲senz im S眉dosten st盲rken. Das Unternehmen h盲lt ein SG&A von $8,5 Mio. annualisiert und strebt einen $100M Umsatz-Run-Rate bis Ende 2025 oder Q1 2026 an.
Capstone hat Finanzierung 眉ber eine Equity Line of Credit und eine Wandelanleihe gesichert und ist damit f眉r weitere 脺bernahmen zu Bewertungen von 4鈥�6脳 EBITDA aufgestellt, wobei 20鈥�45% der Gegenleistung nicht in bar erfolgen kann.
- Gross margin expanded significantly by 310 basis points to 24.4%
- First acquisition agreement executed, immediately accretive to revenue and EBITDA
- Secured flexible funding through ELOC and convertible note without high-interest debt
- Multiple acquisition targets under review at attractive 4-6脳 EBITDA valuations
- Q3 order volume expected to rebound with market normalization
- Potential dilution risk from convertible note and ELOC funding structure
- Acquisition strategy execution risk with multiple targets planned
Insights
Capstone's Q2 shows improving profitability with gross margin expansion to 24.4%; pending acquisition should accelerate growth trajectory.
Capstone's Q2 2025 results demonstrate tangible progress on the company's dual-track strategy of margin expansion and acquisition-driven growth. The 310 basis-point improvement in gross margin (from 21.4% to 24.4%) signals successful execution on the organic growth front, driven by increased sales of higher-margin owned brands and disciplined cost management.
The imminent closing of the Carolina-based stone company acquisition represents a significant milestone. This transaction appears strategically sound as it: 1) provides immediate revenue and EBITDA accretion, 2) establishes a foothold in the high-growth Southeast market, and 3) expands the distribution platform for Instone, Capstone's existing business. The geographic expansion into North Carolina creates a gateway for further regional penetration.
On the capital structure front, Capstone has wisely positioned itself with flexible funding options through an Equity Line of Credit and convertible note. This approach allows for acquisition funding without immediate dilution or high-interest debt burden, preserving financial flexibility as they pursue additional targets.
The acquisition pipeline appears robust with multiple targets under consideration at attractive 4-6脳 EBITDA multiples. The company's strategy of structuring deals with 20-45% non-cash consideration helps preserve capital while maintaining an accretive acquisition model. With at least one more acquisition projected by year-end, Capstone is executing a methodical roll-up strategy in the fragmented stone products industry.
The company's $8.5 million annualized SG&A indicates disciplined overhead management, which should support operating leverage as revenue scales toward their stated $100M run-rate target by Q1 2026. While specific revenue and EBITDA figures weren't disclosed for Q2, the margin expansion and acquisition strategy suggest Capstone is positioning for accelerated financial performance in coming quarters, particularly if projected interest rate cuts materialize to boost demand in late 2025.
NEW YORK, NY / / August 15, 2025 / Capstone Holding Corp. (NASDAQ:CAPS) today announced its second quarter 2025 financial results and strategic highlights, including substantial gross margin expansion and that it has executed an agreement today that it expects to close in the next 10 days for its first acquisition. The acquisition of a Carolina Based Stone Company will be immediately accretive and extend the company's reach into the high-growth Southeast market and expand Instone's distribution platform.
Q2 2025 results reflect continued execution on the Company's strategy of organic growth, margin expansion, and earnings-accretive acquisitions. The team is focused on delivering on our target of a
First Acquisition Nears Close: The acquisition agreement for a Carolina Based Stone Company has been executed and is expected to close in the next 10 days. It will be immediately accretive to both revenue and EBITDA. This strategic transaction strengthens Capstone's market presence in North Carolina - a gateway to the high-growth Southeast region - and adds premium brands with strong margin expansion potential to the Company's portfolio.
Strong Margin Growth: Gross margins expanded from
21.4% to24.4% year-over-year, reflecting both increased sales of owned brands and disciplined cost management. This 310 basis-point margin expansion highlights Capstone's ability to drive profitability. SG&A remains on track at approximately$8.5 million annualized, supporting the Company's EBITDA growth objectives.Active, Favorable Pipeline: Multiple additional acquisition targets are under review at attractive 4-6脳 EBITDA valuations, with 20
-45% of each deal's consideration in non-cash consideration. At least one more acquisition is projected to close by year-end 2025, further supporting Capstone's growth pipeline.Flexible Capital Ready: Capstone has secured an Equity Line of Credit (ELOC) and a convertible note, ensuring acquisition funding is available without reliance on high-interest debt or immediate equity dilution. This funding flexibility positions the Company to pursue earnings-accretive acquisitions that enhance both revenue growth and EBITDA performance.
Instone Positioned for Second-Half Upside: Q3 order volume is expected to rebound as market conditions normalize. Projected late-2025 interest rate cuts could give demand an extra lift. Product rollouts and new territory expansion continue to build momentum.
"It was an exciting quarter for Capstone. We're advancing our acquisition of a Carolina Based Stone Company - a transaction that will be immediately accretive to revenue and EBITDA - and will expand our footprint into one of the fastest-growing markets in the country," said Matthew Lipman, Chief Executive Officer. "We also grew gross margin to
Access to Full Materials
Capstone has posted an investor presentation and audio commentary discussing Q1 2025 and its strategic outlook. These materials are available in the Investor Relations section of .
About Capstone Holding Corp.
Capstone Holding Corp. (NASDAQ: CAPS) is a diversified platform of building products businesses focused on distribution, brand ownership, and acquisition. Through its Instone subsidiary, Capstone serves 31 U.S. states, offering proprietary stone veneer, hardscape materials, and modular masonry systems. The company's strategy combines disciplined M&A, operational efficiency, and a growing portfolio of owned brands to build a scalable and durable platform.
Investor Contact:
Investor Relations
Capstone Holding Corp.
Forward-Looking Statements
This press release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. These statements relate to future events and performance, including guidance regarding revenue and EBITDA targets, M&A strategy, use of capital, and operating outlook. Actual results may differ materially from those projected due to a range of factors, including but not limited to acquisition timing, macroeconomic conditions, and execution risks. Please review the Company's filings with the SEC for a full discussion of risk factors. Capstone undertakes no obligation to revise forward-looking statements except as required by law.
SOURCE: Capstone Holding Corp.
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