Capstone Holding revenue surges 60% on strategic acquisition contributions

Capstone Holding (NASDAQ:CAPS), a technology-enabled building products distribution platform optimizing supply chains across the United States and Canada, reported its financial and operating results for the first quarter of 2026 ended March 31, 2026.

The performance was highlighted by a significant top-line expansion and multi-year high gross margins, reflecting the first full quarter of consolidated results from its recent strategic acquisitions.

Total revenue for the first quarter grew 60% year-over-year to $12.6 million, up from the $7.9 million reported during the first quarter of 2025.

The revenue surge was driven by structural volume contributions from the newly integrated Carolina Stone and Canadian Stone Industries (CSI) businesses.

On a pro-forma basis—assuming both acquisitions had been finalized at the start of fiscal year 2025—platform revenue for the period would have tracked at approximately $68 million, compared with the historically reported $46.9 million baseline.

Profitability frameworks also improved significantly during the three-month period.

Capstone's gross profit jumped 124% year-over-year to $3 million.

This outpaced top-line revenue growth to drive a 670-basis-point expansion in gross margin, which landed at 23.5%.

The company noted that this represents its strongest first-quarter gross margin performance in four years, fueled by scaled logistics infrastructure and a higher-margin proprietary stone veneer product mix.

Adjusted EBITDA for the quarter settled at negative $0.9 million, a slight variance from negative $0.6 million in the prior year, though the adjusted EBITDA margin improved to negative 6.9%.

Operating momentum accelerated moving into the spring season.

Management indicated that end-market residential and commercial building conditions improved materially through April and May, supporting clear volume tailwinds.

Backed by this operational cadence, Capstone anticipates crossing into positive adjusted EBITDA territory during the second quarter of 2026.

Consequently, corporate executives reaffirmed Capstone's full-year financial guidance for fiscal 2026.

The company continues to target full-year revenues of $72.1 million, representing an anticipated 54% annual growth rate over fiscal year 2025.

Full-year gross profit is projected to rise 73% to $18.7 million, while full-year adjusted EBITDA is forecasted to reach approximately $3.8 million.