What is Capstone?
Capstone is a growing platform of building products companies, focused on serving residential and commercial construction markets across the United States.
At its core, Capstone is a national distribution business — but unlike traditional distributors, we own or exclusively control more than half the products we sell. Our current offerings include stone veneer, landscape stone, and modular masonry fireplaces, which our operating subsidiary, Instone, distributes across 31 states.
To date, Capstone has grown through a mix of organic expansion and well-timed acquisitions. Our acquisitions have accelerated revenue growth and improved operating leverage across the platform.
How is Capstone different from other building products distribution businesses?
Most distributors in this space are small, regional middlemen. They move products from manufacturers to dealers without much control over pricing, inventory, or customer experience. Capstone is different by design.
Through Instone, our operating subsidiary, we already distribute across 31 states, giving us one of the widest footprints in the market. But more importantly, we control most of the products we sell. More than half of our revenue comes from owned or exclusively distributed brands, allowing us to set pricing, manage inventory directly, and ensure consistent quality across regions.
That control creates real advantages: better margins for us, more reliable access for our customers, and a more scalable platform as we continue to implement our growth strategy including through future acquisitions. Put simply, we’re trying to build the distribution platform that building product suppliers and contractors will find best addresses their needs.
What is Capstone’s strategy for growth?
Capstone’s growth strategy centers on three core levers: acquisition, ownership, and efficiency.
- Acquisition: Capstone is actively consolidating a fragmented distribution market by acquiring small and midsize businesses that lack scale but have strong local relationships. Each acquisition enhances our geographic reach or deepens our presence in key markets — helping us optimize the Instone network and extend the benefits of better technology, logistics, and operational support to more partners.
- Ownership: More than half of Capstone’s product sales come from brands we own or control, like Toro, Pangaea, and Aura. These exclusive arrangements allow for higher margins, tighter supply chain control, and a meaningful competitive advantage. Our ability to “control the shelf” gives us a clear edge over traditional distributors.
- Efficiency: We lead operational improvements — from digital dealer tools to more frequent deliveries — that make a real impact for the businesses we acquire and the customers they serve. For our platform, these efficiencies reduce inventory risk and free up working capital across the system.
With capital in place to pursue additional earnings-accretive acquisitions, we expect Capstone to expand meaningfully in the year ahead and deliver a strong return on invested capital. We currently do not have any binding commitments for, or readily available sources of, additional financing. We cannot guarantee that we will be able to secure the additional cash or working capital we may require to fund our growth strategy.
Is Capstone just another meme stock?
Absolutely not.
Capstone is a real operating company with a clear strategy, an experienced leadership team, and a strong track record of disciplined execution. We operate four warehouses, manage an average of $10 million in inventory, and generate over $40 million in annual revenue. This is a business with real infrastructure and real cash flow.
It may be drawing attention from a broader audience of retail investors, and price volatility can sometimes obscure the fundamentals. But make no mistake: this is a private equity-backed company, actively acquiring businesses with meaningful growth targets and a large, established customer base.
Capstone owns brands. We generate cash. And we have a multi-year M&A roadmap backed by a sponsor with deep operational experience. The business is solving real problems in a real industry — and doing so with margin expansion, earnings growth, and smart capital allocation at the center of its model.
Why this market — building products distribution?
Because the market is large and fragmented.
The building products industry in North America and Europe is an $800 billion market that over cycles grows steadily at 5–9 percent every year. But the distribution layer (the critical link between manufacturer and contractor) is significantly outdated.
Most of the 7,000+ distributors in the U.S. are small, local businesses that lack modern logistics, digital tools, or brand control. That creates a messy experience for buyers: inconsistent pricing, long lead times, and unpredictable quality depending on the market.
By owning brands and consolidating distribution under one efficient, integrated platform, we’re solving a well-known pain point. And we’re building a business with real pricing power, scale advantages, and expanding margins.
In short, building products distribution offers a rare combination of market size, fragmentation, and fixable inefficiency. Capstone is built to fix it.
How are the acquisitions being funded, and what is the company’s capital plan?
Capstone plans to fund acquisitions through a disciplined, flexible capital strategy designed to support growth without sacrificing long-term shareholder value. This includes a recently secured Equity Line of Credit (ELOC), an on-demand capital facility that will allow us to act quickly on M&A opportunities.
To be clear, this is not a blanket equity issuance or a signal of ongoing dilution. The ELOC will be is used selectively for working capital and acquisitions in combination with other financing with every effort to preserve long term shareholder value.
Our strategy will allow Capstone to pursue high-quality targets at attractive valuations while preserving balance sheet flexibility and protecting existing shareholders. It reflects the company’s broader capital philosophy: scale efficiently, grow earnings, and maintain alignment with investors.
Who is Brookstone Partners?
Brookstone Partners is Capstone’s private equity sponsor and majority shareholder, currently owning more than 77% of the company’s common equity. The firm has over two decades of experience building and scaling companies in the industrials and building products sectors.
Brookstone brings deep operational expertise, strategic discipline, and long-term alignment to Capstone’s platform. They’ve worked closely with entrepreneurial management teams across their portfolio, and play an active role in Capstone’s strategy, capital planning, and M&A execution.
What is Capstone Therapeutics, and why does it sometimes come up?
Capstone Therapeutics was originally a biotechnology company focused on developing therapeutic peptides. In December 2021, the company discontinued its drug development business and changed its name to Capstone Holding Corp., reflecting a strategic pivot into the building products distribution industry.
This transition was led by Brookstone Partners, a private equity firm headed by Capstone’s current CEO Matthew Lipman and Chairman Michael Toporek. Brookstone acquired a controlling stake in Capstone Therapeutics and used it as a vehicle to take its building materials platform public.
Despite the name change and business shift, some financial platforms and databases still reference “Capstone Therapeutics” due to outdated records. We are actively working with these platforms to correct any lingering references.
What is Capstone’s actual public float, and why do some platforms show a higher number?
Some platforms and trading dashboards display the total shares outstanding, which is approximately 5.2 million. However, that figure includes insider holdings and shares subject to lockups — including equity held by Capstone’s sponsor, Brookstone Partners, which owns more than 77% of the company.
The actual number of shares available for public trading (the true float) is approximately 1.6 million. While this may differ from figures shown on some retail platforms, we are working to ensure data consistency across investor tools and to maintain clear visibility into our public float.
Why have there been trading restrictions or limited access to $CAPS on some brokerage platforms?
Some brokerages may impose temporary restrictions, such as limited trading access, on stocks with lower public float or elevated trading activity. These actions are determined by internal thresholds at individual platforms and are not specific to Capstone.
Capstone has made no changes to its operations, compliance status, or capital structure that would warrant such restrictions. We remain in good standing and continue to focus on fundamentals: disciplined execution, earnings growth, and long-term value creation.
As the company continues to grow and its shareholder base expands, we expect many of these platform-specific limitations to ease over time.
Is ownership confident in the company’s trajectory?
Yes — and they’re showing it by holding, not selling. As of the latest filings, insiders have sold zero shares. Brookstone Partners, Capstone’s private equity sponsor and largest shareholder, owns over 77% of the company and remains deeply involved in strategic decisions.
The leadership team, including CEO Matt Lipman, has decades of experience scaling industrial and building products businesses. They’ve built this platform deliberately, with discipline and long-term value creation in mind. Insider confidence isn’t just rhetorical; it’s on the cap table.
Investor Contact:
investors@capstoneholdingcorp.com
Forward-Looking Statements
This press release contains certain “forward-looking statements”. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company’s current expectations and projections about future events. Investors can find many (but not all) of these statements by the use of words such as “may,” “will,” “expect,” “anticipate,” “estimate,” “intend,” “plan,” “believe,” or other similar expressions. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent events or circumstances, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure investors that such expectations will turn out to be correct, and the Company cautions that actual results may differ materially from anticipated results. Additional factors are discussed in the Company’s public filings with the Securities and Exchange Commission, available for review at www.sec.gov.