Capstone Holding Corp. · NASDAQ:CAPS
Capstone — Q2 2025 Earnings Presentation
27 slides from Capstone's earnings presentation, Aug 15, 2025
Slide 1: Capstone Holding Corp. Built to Deliver
CAPSTONE HOLDING CORP. BUILT TO DELIVER. POSITIONED TO ACQUIRE. READY TO SCALE. August 2025
Slide 2: Preamble Disclosure & Disclaimer
Preamble Disclosure & Disclaimer The following content is completely qualified by the legal disclosures on the following two slides. 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 p
Slide 3: 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 4: 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 5: Agenda
Agenda Agenda Executive Summary Capstone 2025 Goals & Strategic Progress • Acquisition Announcement • M&A pipeline update Instone Q2 2025 Performance Review 5
Slide 6: Executive Summary: Second Quarter
Executive Summary: Second Quarter Brand Strategy Drives Profit Expansion • Q2 Revenue was virtually flat year-over-year • Gross Profit increased 13.2% • Growth in revenue of owned, higher-margin brands drove gross margin improvement from 21.4% to 24.4% of revenue • EBITDA of Instone increased from $
Slide 7: Executive Summary: Acquisition Strategy
Executive Summary: Acquisition Strategy Acquisition Plan on Track Carolina Based Stone Company acquisition agreement executed today and expected to close within 10 days • Deal price and structure in target zone • Revenue of ~11 million; trailing EBITDA of ~$750K • Expected to contribute ~$1 million
Slide 8: Executive Summary: Outlook
Executive Summary: Outlook Initial anticipated economic backdrop for 2025 In November and December of 2024 as we were looking forward to 2025, we had expected 100bp of interest rate decrease. • No interest rate cuts affects sales momentum • Continued focus on costs and margin creates operating lever
Slide 9: Introduction
Introduction 2025 Target Instone Positioned for Second-Half Upside • Targeting $100M run-rate revenue and $10M • Late-2025 rate cuts should improve demand; Adjusted EBITDA for 2026. stronger margins and position Instone for accelerated earnings growth. • Strong momentum in product rollout and territ
Slide 10: Capstone Goals for 2025
Capstone Goals for 2025 PROGRESS UPDATE 10
Slide 11: Acquisition Profile: Carolina Base Stone Company
Acquisition Profile: Carolina Base Stone Company Acquisition Advances Entry into Southeast Growth Corridor Business Description A top-rated, first-choice supplier and installer of manufactured and natural stone veneer for commercial, residential, Strategic Rationale and multi-family projects. • Mark
Slide 12: Transaction Profile: Carolina Base Stone Company
Transaction Profile: Carolina Base Stone Company Revenue and EBITDA • EBITDA of $750 thousand on about $11 million in revenue. Expected to be about $1 million EBITDA in 2026. Deal structure • Purchase Price: $3.9M upside to $4.7M at multiple range of 4.7x - 5.2x • Conclusion: First acquisition is a
Slide 13: Capstone: Acquisition Funnel Insight
Capstone: Acquisition Funnel Insight Strong Outlook Capstone reaffirms its 2025 financial targets: • Expecting an additional transaction from the active pipeline by the end of 2025. • Transaction structure likely to be similar and close by end of year. • Multiple acquisition targets are under review
Slide 14: Acquisition Strategy
Acquisition Strategy THREE-PRONGED ACQUISITION STRATEGY Focus on Tuck-In Acquisitions, Sister Companies, Platform Acquisitions Capstone is capitalizing on a favorable deal environment Attractive Valuations Flexible Consideration Execution Confidence 4-6x EBITDA multiple 20-45% non-cash Pricing and s
Slide 15: Performance of Instone in Q2 & H1 2025
Performance of Instone in Q2 & H1 2025 15
Slide 16: Instone Performance: Q2 2025
Instone Performance: Q2 2025 Margin Improvement & Cost Control • Gross margin increased from 21.4% in Q2 2024 to 24.4% in Q2 2025, reflecting a significant year-over-year improvement. • SG&A stabilizing at ~$8.5M annual run-rate, reflecting sustainable 2024 reductions. • Higher profitability - Gross
Slide 17: Instone Second Quarter Overview of Results
Instone Second Quarter Overview of Results (in USD 000) 2024 2025 (GAAP) Q2 Q2 Revenue 12,886 12,852 COGS 10,122 9,722 Gross Profit 2,764 3,130 Gross Profit % 21.4% 24.4% SG&A* 2,390 2,291 Operating Income (Loss) / Adjusted EBITDA 374 839 Adjusted EBITDA % 2.9% 6.5% D&A 121 114 Interest 382 417 Taxe
Slide 18: Instone H1 Overview of Results
Instone H1 Overview of Results (in USD 000) 2024 2025 (GAAP) H1 H1 Revenue 22,245 20,751 COGS 17,737 16,296 Gross Profit 4,508 4,455 Gross Profit % 20.3% 21.5% SG&A* 4,497 4,220 Operating Income (Loss) / Adjusted EBITDA 11 235 Adjusted EBITDA % 0.0% 1.1% D&A 242 230 Interest 745 695 Taxes - - Adjust
Slide 19: Factors Affecting Performance
Factors Affecting Performance EXTERNAL FACTORS • Structural Tailwind from Housing Demand Outpacing Supply • Interest Rate & Policy Uncertainty Expected to Normalize • Labor Market & Consumer Health Remain Supportive • Seasonal Weather Variability Affects Timing, not Trajectory COMPANY FACTORS • New
Slide 20: Capstone Corporate Costs
Capstone Corporate Costs Relatively Fixed: • FTE, Corporate Acquisition Costs, Legal & Insurance, Board Fees, Other Public Company / Financing Costs. Variable: • Investor Relations, IR/PR, Marketing. Costs can be adjusted as required. • Investor relations expenses of $180K in Q2 and $245K in H1 are
Slide 21: Capstone Standalone Second Quarter Overview of Results
Capstone Standalone Second Quarter Overview of Results (in USD 000) 2024 2025 (GAAP) Q2 Q2 Revenue - - COGS - - Gross Profit - - Variable: Investor Relations 19 340 Investor Relations - Nonrecurring* - 180 Instone Fee - IPO Related Costs - - Relatively Fixed: Board Fees 36 30 Compensation - 142 Fina
Slide 22: Capstone Standalone H1 Overview of Results
Capstone Standalone H1 Overview of Results (in USD 000) 2024 2025 (GAAP) H1 H1 Revenue - - COGS - - Gross Profit - - Variable: Investor Relations 19 455 Investor Relations - Nonrecurring* - 245 Instone Fee - IPO Related Costs - 150 Relatively Fixed: Board Fees 72 64 Compensation - 220 Financial Serv
Slide 23: Key Principals Of Capstone
Key Principals Of Capstone TRANSPARENCY ACCOUNTABILITY ADAPTABILITY Clear View Into Enables Performance Expect to Update Range Every Performance Builds Trust Management And Ownership Quarter As Year Moves Forward 23
Slide 24: Appendix
Appendix 24
Slide 25: Reconciliation of Non-GAAP Results
Reconciliation of Non- GAAP Results (in USD $000) 2024 2025 2024 2025 Q2 Q2 1H 1H Capstone Consolidated Net Income (loss) (381) (700) (1,494) (2,428) Reconciliation to Instone Net Income (loss) Remove Capstone Expenses Taxes 1 - 17 - Interest Expense 12 23 29 45 Total SG&A Expenses 92 845 178 1,409
Slide 26: 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
Slide 27: Growth Is Just Getting Started
GROWTH IS JUST GETTING STARTED. LEARN MORE AT www.capstoneholdingcorp.com 27