Capstone Holding Corp. · NASDAQ:CAPS
Capstone — Q1 2025 Earnings Presentation
25 slides from Capstone's earnings presentation, May 14, 2025
Slide 1: Capstone Holding Corp. Built to Deliver. Positioned to Acquire. Ready to Scale.
CAPSTONE HOLDING CORP. BUILT TO DELIVER. POSITIONED TO ACQUIRE. READY TO SCALE. May 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 b usiness. The content is in line with our
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 Capstone Goals for 2025 Performance of Instone in Q1 2025 Earnings Power of Instone Standalone for 2025
Slide 6: Executive Summary: Q1 2025 & Full year Outlook
Executive Summary: Q1 2025 & Full year Outlook 2025 Guidance Reaffirmed Instone Positioned for Second-Half Upside • Targeting $100M run-rate revenue and $10M • Q3 order volume expected to rebound as Adjusted EBITDA* by year-end. conditions normalize. • Strong momentum in product rollout and territor
Slide 7: Capstone Goals for 2025
Capstone Goals for 2025
Slide 8: Capstone Key Milestones 2025 — Guidance Reaffirmed
Capstone Key Milestones 2025 — Guidance Reaffirmed Strong Outlook: $100M Revenue, $10M Adjusted EBITDA* Capstone reaffirms its 2025 financial targets: • Run-rate Revenue: $100 Million. • Run-rate Adjusted Operating Income / EBITDA: $10 million. • Targets reflect anticipated earnings contribution fro
Slide 9: 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 10: Capital for Accretive Acquisitions: ELOC
Capital for Accretive Acquisitions: ELOC Equity Line of Credit (ELOC) Flexible Capital Access: Provides on-demand funding to swiftly capitalize on acquisition opportunities, enhancing our responsiveness in a dynamic market. Supports Accretive Acquisitions: Enables the pursuit of strategic acquisitio
Slide 11: Performance of Instone in Q1 2025
Performance of Instone in Q1 2025
Slide 12: Instone Performance: Q1 2025
Instone Performance: Q1 2025 Margin Stability & Cost Control • Gross margins impacted by seasonality but expected to remain within full year guidance. • SG&A stabilizing at ~$8M annual run-rate, reflecting sustainable 2024 reductions. Product Momentum to Drive Growth • Toro + Pangea gaining strong t
Slide 13: Instone: Seasonality Explained
Instone: Seasonality Explained Seasonal temperatures impact the timing of Instone’s revenue throughout the year • Cold winters tend to yield lower revenue in the first Quarter, followed by stronger months • Warmer winters tend to yield a stronger first Quarter followed by slightly softer months
Slide 14: Instone First Quarter Overview of Results
Instone First Quarter Overview of Results * Excludes i) Caps tone management fees, 2) Brooks tone management fees, 3) Totalstone Board Fees , and 4) Depreciation and amorti zation.
Slide 15: 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 • Season Weather Variability Affects Timing, not Trajectory COMPANY FACTORS • New Pr
Slide 16: Earnings Plan for 2025
AV a Earnings Plan for 2025 een! | 2 | am rae a | oe ime ae
Slide 17: 2025 - Instone Earnings Power
2025 - Instone Earnings Power 2025 Plan: Focused On Organic Revenue Growth, Margin Expansion & Cost Control - Guidance Reaffirmed * Excludes i) Caps tone management fees, 2) Brooks tone management fees, 3) Totalstone Board Fees , and 4) Depreciation and amorti zation.
Slide 18: 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. When valuing the business or asset: • Corporate Overhead, Capston
Slide 19: Capstone Standalone First Quarter Overview of Results
Capstone Standalone First Quarter Overview of Results
Slide 20: 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
Slide 21: Appendix
Appendix
Slide 22: Reconciliation of Non-GAAP Results
Reconciliation of Non- GAAP Results (in USD $000) 2024 2025 Q1 Q1 Capstone Consolidated Net Income (loss) (1,169) (1,728) Reconciliation to Instone Net Income (loss) Remove Capstone Expenses Taxes 6 - Interest Expense 21 22 Total SG&A Expenses 87 504 Total COGS - - Total Revenue - - Instone Net Inco
Slide 23: Reconciliation of Non-GAAP Budget
Reconciliation of Non- GAAP Budget (in USD $000) Full Year 2025 Low Case Upside Case Instone 2025 Net Income / (loss) Budget (GAAP) 776 1,128 Reconciliation to Instone Net Income (loss) Capstone Management Fees 240 240 Brookstone Management Fees 400 400 Instone Board Fees 186 186 Instone Adjusted Ne
Slide 24: Financial Measures - Non-GAAP
Financial Measures - Non- GAAP Capstone uses no n-GAAP Adjusted EBITDA as a supp lemental measure of our per for mance th at is not required by, or presented in accordance with, accoun ting pr inciples generally accepted in the United States (GAAP). A n on-GAAP financial measure is a numerical measu
Slide 25: Growth Is Just Getting Started.
GROWTH IS JUST GETTING STARTED. LEARN MORE AT www.capstoneholdingcorp.com