Slide 1 — Cover Page
Good morning, and thank you for joining us.
I’m Matthew Lipman, CEO of Capstone Holding Corp., ticker CAPS.
Capstone is built to deliver, positioned to acquire, and ready to scale. Today’s presentation covers our Q3 year-to-date results, the integration of our acquisitions, and our outlook as we move toward 2026.
Slide 2 — Preamble Disclosure
This content is fully qualified by the legal disclosures that follow.
Our goal today is simple: to give you a clear, transparent view of how we are operating the business, what is driving our performance, and how we are executing our strategy.
We operate in a dynamic environment—rates, demand, and policy continue to shift. What we share today reflects our best current estimates and we will adjust as conditions evolve.
Despite uncertainty, we must plan, invest, and build. This presentation lays out that roadmap.
Slide 3 — Legal Notice
Please review the full legal disclosures. This presentation contains forward-looking statements and non-GAAP financial metrics. Actual results may differ materially.
Slide 5 — Agenda
Today we’ll walk through our 2025 goals and progress, the acquisition strategy and pipeline, year-to-date platform performance, integration milestones, and our outlook for 2026.
Slide 6 — Executive Summary: YTD Results
Year-to-date performance reflects strong integration and disciplined execution.
- Revenue up 19% YoY, driven by the Carolina Stone acquisition.
- Gross profit up 34%, with margin expansion from 21.7% to 24.4%.
- Adjusted EBITDA up 46%.
The platform is scaling toward our $100 million trajectory.
Slide 7 — Executive Summary: Acquisition Strategy & Progress
Capstone is continuing to execute on its strategy towards its goal of $100 million in revenue. By the end of 2025 we will have executed on two acquisitions adding ~$26 million of revenue:
- Carolina Stone — closed August 2025
- Multi-location distributor — targeted to close December 2025
Pipeline remains active with strong synergies and disciplined pricing.
These acquisitions, further demonstrate our ability to source, structure, and close transactions that accelerate scale and earnings.
Slide 8 — Executive Summary: Outlook
The world changed from our initial expectations – 2025 included delayed rate cuts, tariff uncertainty, and slower sales cadence.
Still, we will have executed on 2 acquisitions adding revenue and delivered margin growth.
Going into 2026, we’ve seen two rate cuts already, and it looks like more are coming. As the economic environment improves, we’re set up to grow organically, expand earnings, and keep moving forward on acquisitions.
Slide 10 — Acquisition Strategy
Our acquisition strategy remains unchanged.
Tuck-ins to expand our platform and add earnings momentum.
Sister companies with product/channel synergy to unlock cost savings and mutual growth.
Longer-term, New platforms to drive diversification.
Valuations remain attractive at 4–6× EBITDA, typically with 20–45% non-cash consideration.
We are delivering on our promise to remain disciplined on pricing, structure, and fit.
Slide 11 — Progress Update: Platform
We’re executing on the build-out of our North American platform. Instone, Carolina Stone, and the expected fourth-quarter acquisition come together to form a true multi-regional distributor with scale.
We also have the foundation in place to complete three to four additional acquisitions in 2026.
Most importantly, we now have the execution capabilities to capitalize on these investments. The integration work at Carolina Stone — ERP, logistics, marketing — is complete, and that same playbook will allow us to quickly align our next acquisition
Slide 12 — Acquisition Funnel Insight
Our M&A pipeline remains strong.
Market conditions are producing realistic seller expectations and limited competition.
Some of the best targets are waiting for the market to improve, and Capstone is nurturing those relationships.
The timing of new acquisition announcements is always speculative. With that said, it is highly unlikely we will announce another deal in 2025. We expect to close our previously announced transaction by December 15th. We are targeting 3 to 4 deals next year and hope to announce one that meets our criteria in the near future.
Slide 14 — Stone Business YTD 2025 Performance
Carolina Stone acquisition closed in August 2025; expanding our footprint into the Southeast U.S.
It helped support pro forma revenue growth, up 19% YoY to $41.2 M.
Adjusted EBITDA increased 46% YoY, reflecting acquisition growth and cost discipline.
As we stated we believe the macro environment is setting up to support organic revenue and earnings growth in 2026
Certain product groups at our operating subsidiaries experienced growth while others declined a bit. At the beginning of the year, given the economic outlook, we had hoped that market conditions would allow for significant organic growth. That has not been the case as interest rates declined much more slowly than anticipated and tariffs led to uncertainty.
At Carolina Stone, the markets they serve did experience growth. We expect to use that as a beachhead to drive organic growth in growing markets like the Southeast. We continue to look for acquisitions in the Southeast as we believe market growth is likely to continue in the region and it will be amongst the stronger regions in the country.
Slide 15 — Stone Business: YTD Financial Table
On this page you’ll find a summary of our year to date results for our operating business. I would however like to take the opportunity to give you some insight into how we look at liquidity and capital structure.
We believe it is important to manage liquidity carefully at our operating subsidiaries. As part of closing our upcoming acquisition, we expect to enhance the liquidity profile of our operating businesses using lower cost bank debt.
Holding company liquidity is driven by liquidity in the operating companies. We intentionally keep minimal excess cash at the Holdco level, as those funds are better used within the operating companies to reduce interest expense.
We expect the primarily use the proceeds of equity funding to make acquisitions. With rate cuts coming more slowly than expected in 2025, the macro environment has been more challenging for the building products sector. We believe that has created a wider window for Capstone to pursue well-priced acquisitions.
Public companies in our sector are typically trading for 8 to 12 times EBITDA. We are making acquisitions at 4 to 6 times EBITDA or at book value. Typically, consideration is 25% to 45% non-cash. This private to public arbitrage is what will drive significant long-term equity value for our investors. We understand the cost of short-term dilution, but we are buying real cash generating assets which should offset the effects of share issuance.
Refer to the 10-Q for more detail.
Slide 16 — Stone Business Q3 Results
On this page you’ll find a summary of our Q3 results for our operating business
Refer to the 10-Q for more detail.
Slide 17 — Corporate Costs
As a public company, Capstone incurs corporate costs beyond those of its subsidiaries.
Fixed costs include leadership, board, legal, and compliance.
Variable costs like IR and marketing can be scaled upwards or downwards as needed.
When valuing our core business,
we believe many corporate costs—including Capstone overhead—are non-essential to our subsidiaries’ s operations.
Notably, this quarter we experienced several non-recurring, acquisition-related, and non-cash financing costs. Combined, these totaled around $1.5M of expense. These costs had a meaningful negative impact on Net Income this quarter; however, as we grow, recurring operating performance will become clearer and less overshadowed by non-recurring or non-cash items.
Slide 18 — Capstone Standalone YTD Results
On this page you’ll find a summary of our year to date results the parent company
Capstone corporate expenses are not expected to scale quickly as we grow, allowing Capstone to expand profitably as it executes its strategy.
The year includes a number of non-recurring, non cash and acquisition related expenses, such as higher investor relations spend, transaction expenses and a non-cash loss on the extinguishment of debt.
Refer to the 10-Q for more detail.
Slide 19 — Capstone Standalone Q3 Detail
On this page you’ll find a summary of our Q3 results the parent company
Refer to the 10-Q for more detail.
Slide 20 — 2026: Positioned For Scalable Growth
We are finishing 2025 with two completed acquisitions and material progress toward our long-term objectives.
As we enter 2026, we have an integrated, multi-regional platform; strong momentum in owned brands; improved sourcing and logistics; and a disciplined acquisition pipeline—all positioning the company for scalable growth and continued earnings expansion.
Slide 21 — Key Principles
These are our key principles—a promise to our investors:
We will be transparent.
We will always tell you how we are doing.
We will be accountable.
We’ll make commitments and share targets—some may be stretch goals—
but we will put our full effort behind them.
And we will be adaptable.
Markets change. Conditions change.
Capstone, ticker C-A-P-S, is executing with discipline, we are focused on organic growth, accretive M&A, and a clear path to the $100M revenue run-rate goals.
Thank you for your time. Please reach out at investors@capstoneholdingcorp.com.