Capstone Holding Corp. · NASDAQ:CAPS
Capstone — Q1 2026 Earnings Presentation
27 slides from Capstone's earnings presentation, May 2026
Slide 1: Capstone Holding Corp. Platform Built. Margins Expanding. Growth Accelerating.
CAPSTONE HOLDING CORP. PLATFORM BUILT. MARGINS EXPANDING. GROWTH ACCELERATING. CAPS | Nasdaq May 2026
Slide 2: Preamble Disclosure & Disclaimer
Preamble Disclosure & Disclaimer The following content is completely qualified by the legal disclosures included in the Appendix. Our goal is to share with you some of our strategic thinking and financial analysis we are using to guide the growth of our business. The content is in line with our prin
Slide 3: Q1 '26 Highlights: Margin Expansion Accelerates
Q1 ‘26 Highlights: Margin Expansion Accelerates REVENUE GROSS PROFIT GROSS MARGIN POINTS +60% +124% +6.7% $7.9M → $12.6M YoY $1.3M → $3.0M YoY 16.8% → 23.5% YoY Carolina Stone + CSI delivered first full Gross profit growing 2x faster than Gross margin quickly pacing towards FY26 quarter of contribut
Slide 4: Structural Drivers of Margin Expansion
Structural Drivers of Margin Expansion GROSS MARGIN TRAJECTORY GROWTH LEVERS FY VS. Q1 PRICING DISCIPLINE 28 26.0% 26 More disciplined pricing across the platform improved 23.0% 23.5% realized margins on the products Capstone sells. 24 22 21.3% 20 18.9% PRODUCT MIX 18 16.8% Higher-margin products an
Slide 5: Capstone Resilient Against Harsh Weather
Capstone Resilient Against Harsh Weather NORTHEAST MIDWEST CANADA CAROLINAS Instone / New England Instone / Alsip & Midwest Distribution Canadian Stone Industries Carolina Stone TEMP Δ PRECIP Δ TEMP Δ PRECIP Δ TEMP Δ PRECIP Δ TEMP Δ PRECIP Δ -3.0°F +45% -3.8°F +38% -3.5°F +53% -4.0°F +30% Feb 22-24
Slide 6: Q1 Trajectory Supports Full-Year Guidance
Q1 Trajectory Supports Full-Year Guidance Metric Q1 2025 Q1 2026 YoY Growth FY 2026 Guidance Revenue $7.9M $12.6M +60% $72.1M Gross Profit $1.3M $3.0M +124% $18.7M Gross Margin 16.8% 23.5% +6.7% 26.0% Adj. EBITDA ($0.6M) ($0.9M) N/A $3.8M Adj. EBITDA Margin -7.5% -6.9% - 5.2% THE INFLECTION: POSITIV
Slide 7: A Strengthened Capital Structure
A Strengthened Capital Structure OBLIGATIONS IN CONTEXT PROGRESS TO DATE Convertible Note 72% $1.90M remaining; recent conversion activity has materially reduced debt. Beacon Bank Revolver Management is confident the facility will be extended. of original principal converted Stream Finance Mezzanine
Slide 8: Capstone's Thesis in Motion
Capstone’s Thesis in Motion 2025 EXECUTION DRIVING 2026 RESULTS Capstone’s operational achievements in 2025 are beginning to translate into financial results in 2026—as scale, leverage, and customer growth flow through the platform. Management remains confident in the Company’s trajectory as end-mar
Slide 9: Capstone Goals for 2026
Capstone Goals for 2026 PROGRESS UPDATE 9
Slide 10: Capstone's Strategic Priorities in 2026
Capstone’s Strategic Priorities in 2026 NEW PRODUCTS GEOGRAPHIC EXPANSION New product launches and direct-to-installer Growing presence in the Pacific Northwest, channel support high-margin revenue growth Northern California, and Southeast markets and broader customer reach. through new hubs and sal
Slide 11: New Products Support Organic Growth
New Products Support Organic Growth ELDORADO STONE Q2 2026 LAUNCH Nature's Edge ~$5M A lower-cost thin veneer with faster ramp potential. Annualized run-rate revenue contribution by CANADIAN MARKET Q3 2027. CSI Pipeline Flexbrick first project secured, expanding owned-brand depth in Canada. Distribu
Slide 12: Geographic Expansion Brings New Customers
Geographic Expansion Brings New Customers P L AT F O R M F O O T P R I N T * PA C I F I C N O R T H W E S T & N O R C A L New Territory Development 4 to 8 NorCal/PNW buildout supported by deeper penetration within existing accounts. S O U T H E A ST E X PA N S I O N Locations with coast-to-coast cov
Slide 13: Operating Leverage Drives Cost Savings
Operating Leverage Drives Cost Savings A N N U A L I Z E D R U N - R AT E LOGISTICS EFFICIENCY SAVI NGS Revenue Density Platform integration enables lower freight costs and improved delivery $480K efficiency. S H A R E D O P E R AT I N G P L AT F O R M Due to warehouse consolidation; ~$240K Reduced
Slide 14: AI Transformation Supports Platform Efficiency
AI Transformation Supports Platform Efficiency AI DEPLOYMENT FOOTPRINT P L AT F O R M B U I L D - O U T Operational Automation 3 Core Initial deployments focused on purchasing, inventory management, routing, and finance workflows. TEAM & INFRASTRUCTURE Workflows Dedicated AI Capability New engineeri
Slide 15: Acquisition Strategy & Pipeline Overview
Acquisition Strategy & Pipeline Overview Pipeline Scale 150+ identified targets; valuations remain attractive at 4–6× EBITDA with realistic seller expectations. Active Engagement Pipeline active across regional distributors and niche product specialists—relationships being nurtured. Near-Term Focus
Slide 16: Capstone FY2026 Guidance
Capstone FY2026 Guidance 2026 First full year of all three subsidiaries • Revenue steps from $46.9M to $72.1M, up 54% • Annual gross profit nearly doubles to $18.7M; margin expands 300 bps to 26.0% • Adjusted EBITDA margin more than doubles— from 2.1% to 5.2% — as integration synergies reach the bot
Slide 17: Performance of Stone Business Q1 2026
Performance of Stone Business Q1 2026 17
Slide 18: Stone Business First Quarter Overview of Results
Stone Business First Quarter Overview of Results Stone Business includes Instone, Carolina Stone as of August 22nd , 2025 and Canadian Stone Industries as of December 1st , 2025 Notes: (1) Excluded from SG&A in Q126 are one-time expenses: consulting expenses related to acquisition ($39K), non-recurr
Slide 19: MD&A Highlights
MD&A Highlights Margin expansion accelerates. Integration on track. Transitional costs to optimize. REVENUE STORY MARGIN STORY EXECUTION +60% +670 bps On Track $7.9M → $12.6M YoY 16.8% → 23.5% GM Integration ahead of plan • Carolina Stone (19%) and CSI (20%) • COGS leveraged to 76.5% of revenue • Ca
Slide 20: Capstone Standalone First Quarter Overview of Results
Capstone Standalone First Quarter Overview of Results OPERATING EXPENSES DOWN 54% ($564K) → ($258K) YoY— standalone Capstone overhead Standalone Capstone overhead is meaningfully down year-over-year, with non-recurring IR and IPO-related costs rolling off as integration completes. Notes: (1) Investo
Slide 21: Financial Guidance Update
Financial Guidance Update FULL YEAR 2026 GUIDANCE Update coming with Q2 results in August Reporting Cadence • Capstone will offer an update on its full year guidance for 2026 with its Q2 results in August. • The critical time periods for the Company are Q2, Q3, and often extending into October. › Wi
Slide 22: Appendix
Appendix 22
Slide 23: Reconciliation of Non-GAAP Results
Reconciliation of Non-GAAP Results In addition to figures prepared in accordance with GAAP, Capstone from time to time presents alternative non-GAAP performance measures, e.g., EBITDA, adjusted EBITDA, adjusted net profit/loss, adjusted earnings per share, free cash flow. These measures should be co
Slide 24: Financial Measures – Non-GAAP
Financial Measures – Non-GAAP Capstone uses non-GAAP Adjusted EBITDA as a supplemental measure of our performance that is not required by, or presented in accordance with, accounting principles generally accepted in the United States (GAAP). A non-GAAP financial measure is a numerical measure of a c
Slide 25: Legal Disclosure & Disclaimer
Legal Disclosure & Disclaimer This presentation includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act that reflect our current views with respect to, among other things, our operations, business strategy, interpretation of prior development activities
Slide 26: Contd...
Contd... THIS PRESENTATION IS NOT INTENDED TO SERVE AS A FORECAST OF ANY SUCH FUTURE PERFORMANCE OR PROSPECTS. An investor must not act on any matter contained in this document but must make its own assessment of Capstone and conduct its own investigations and analysis. Investors should assess their
Slide 27: The Compounding Has Begun.
THE COMPOUNDING HAS BEGUN. LEARN MORE AT www.capstoneholdingcorp.com 27