Capstone Holding (CAPS) investor relations material

Executive summary

• First nine months of 2026 outperformed relevant housing markets despite higher interest rates and an expected housing recovery that did not materialize.

• Q3 revenue rose 46% YoY to $20.0M; operating income was $406K, including one-time tariff-related credits.

• FY2026 revenue and Stone Business Adjusted EBITDA guidance were reduced as higher rates weighed on housing activity.

• Acquisition contributions drove most sales growth; recurring losses, debt maturities and limited holding-company cash remain constraints.

Financial highlights

• Q3 gross profit rose 76% YoY to $5.7M; GAAP net loss narrowed to $632K from $2.0M.

• Q3 Stone Business Adjusted EBITDA increased 83% to $1.5M, or 7.7% of revenue, from $0.8M and 6.2%.

• 9M revenue rose 57% to $54.1M and gross profit rose 91% to $14.7M; net loss narrowed to $3.9M from $4.4M.

• 9M operating loss narrowed to $659K from $2.5M; operating cash outflow was $2.7M.

• 9M Stone Business Adjusted EBITDA was $2.8M.

Outlook and guidance

• FY2026 guidance: revenue ~$70M, gross profit ~$18.6M and Stone Business Adjusted EBITDA $3.2–3.3M, versus prior guidance of $72.1M, $18.7M and $3.8M.

• Expected FY2026 Stone Business Adjusted EBITDA margin is 4.6%–4.8%, down from 5.2%.

• EBITDA bridge includes ~$0.5M lower-revenue impact, offset by $0.4M of one-time tariff refunds, with $0.4–0.5M of higher operating costs.

• Updated EBITDA outlook assumes 9M Adjusted EBITDA of $2.8M and Q4 of $0.45–0.57M.

• Beacon Bank & Trust was finalizing a U.S. revolver extension through December 2029, but it was not approved or signed by the filing date.