Capstone Holding (CAPS) Q4 2025 earnings summary

Executive summary

• Achieved significant expansion in 2025, growing from 4 to 9 locations and entering 38 U.S. states and Canada through two acquisitions.

• Revenue increased to $68M pro forma in 2025, with over 1,000 active customers and three operating subsidiaries.

• Integration of acquisitions and expanded brand portfolio, including Eldorado Stone, positioned for accelerated growth.

• Entering 2026 with a scalable platform, broader geographic reach, and a clear path to $100M+ revenue.

Financial highlights

• FY2025 revenue grew 4.5% year-over-year to $46.9M; gross profit rose 12.8% to $10.8M, with gross margin expanding 170 bps to 23%.

• FY2026 budget projects revenue of $72.1M (up 54%), gross profit of $18.7M, and gross margin of 26%.

• Adjusted EBITDA margin expected to more than double from 2.1% in 2025 to 5.2% in 2026; EBITDA for FY2025 was $0.9M, with FY2026 guidance at $3.8M.

• Non-GAAP net loss for the Stone Business was $(2.1)M in 2025, impacted by one-time costs and a $6.2M goodwill impairment.

Outlook and guidance

• 2026 focus on execution: new product launches, geographic expansion into PNW and SE, and facility consolidation.

• Revenue growth driven by full-year contributions from acquisitions, organic growth, and new product launches.

• Platform positioned to capture upside as end-market conditions improve, with margin expansion and scalable growth levers.

• Macro assumptions: gradual improvement in housing and renovation demand, supportive interest rate environment, and continued housing undersupply.

• FY2026 expects positive EBITDA run-rate starting in Q2.