Capstone Holding Corp (CAPS) News & EventsCAPSCapstone Holding Corp

Capstone Holding Reports 7.6% Organic Revenue Growth for July and August 2026

Capstone Holding announced preliminary operating results for July and August 2026, highlighting continued organic growth. The results include all three operating businesses on a comparable basis, as if each had been owned throughout both periods, and cover performance through August 31 only. Organic revenue increased 7.6% year over year to approximately $14M in the first two months of the third quarter, while organic gross profit rose 6.5% to $3.5M. The results demonstrate continued progress against Capstone's strategy of generating organic growth through its capital-efficient distribution platform. Through August, year-to-date organic revenue increased 4.6% to approximately $48.1M and organic gross profit rose 6.5% to $12.5M, outpacing revenue growth. Capstone continued to deliver organic revenue growth despite contraction in the broader building-products market. "We felt that more current information would help shareholders understand the Company's position, amid broader uncertainty in the housing and building products market," said Matthew Lipman, CEO. "Our performance in July and August indicates strong progress against our growth and profitability objectives. Year to date, organic gross profit is growing faster than organic revenue. We plan to expand our product portfolio and geographic reach through our existing distribution infrastructure, with the objective of generating additional revenue without a proportionate increase in our cost base."

Capstone Holding Achieves 7% Organic Growth in Q2

Capstone Holding highlighted its ability to deliver organic growth despite weakness in the broader building products market. Capstone's organic distribution revenue grew approximately 7 percent year over year in the second quarter, even as new-construction building-products spending declined an estimated 8.5 percent over the same period. "It is especially important to emphasize that the organic growth we are delivering does not require a proportionate increase in our cost base," said Matthew Lipman, Chief Executive Officer. "We can add products and brands across our existing customer base and distribution network, while expanding installation revenue through existing crews, infrastructure and operating overhead. This is a capital-efficient growth model that will compound as the housing market normalizes."

CEO States Profitability Achieved in Q2, Strong Q3 Outlook

"In the second quarter, we achieved the profitability and EBITDA inflection we guided to in the first quarter. We enter Q3-our strongest selling season-with considerable momentum," said Matthew Lipman, Chief Executive Officer. "Our platform is larger, more productive, and more profitable than it was a year ago. Gross profit continues to outpace revenue growth, a clear sign that our scale is reaching the bottom line. We are now entering the strongest months of our selling season following a historically cold and wet winter. We do so with more products, more locations, and a more efficient platform," Lipman added. "Location nine opens on August 17 with five customers already signed, and Eldorado Stone has expanded into 17 states just ten weeks after launch. Building on the strong momentum established in the second quarter, we believe we are well positioned to execute on our second-half objectives and reaffirm our full-year guidance."