Capstone Showcases Strong Product Launches and Organic Growth Momentum at Hardscape North America

Accelerating organic growth and product expansion underscore Capstone's momentum; the company remains on target for a $100 million revenue run-rate.

November 4, 2025 - New York, NY - Capstone Holding Corp. (NASDAQ: CAPS), a national building products distribution platform, successfully debuted two new outdoor hardscape and landscape products at Hardscape North America, the industry's leading trade show. The launches drew strong demand from dealers, distributors, and contractors - reinforcing Capstone's position to lead the next wave of remodeling activity.

The new product introductions further demonstrate Capstone's organic growth momentum, building on a year of record revenue and gross-margin expansion.

Key Highlights:

• Successful Product Rollouts: Capstone's two new products, launched at the industry's leading tradeshow, are generating strong demand from dealers, distributors, and contractors.
• Favorable Market Outlook: Remodeling demand is projected to rebound in 2026, and Capstone is positioned to capture a leading share of that growth.^[1]
• Owned Brand Momentum: Aura Natural Landscapes™ continues to deliver strong growth for Instone, reflecting rising demand for outdoor living products.
• Record Growth Trajectory: Supported by strong organic performance and multiple accretive acquisitions, Capstone remains on track to achieve its $100 million annualized revenue run-rate target for 2026.

"Remodeling demand is expected to rebound sharply in the coming year," said Matthew Lipman, CEO of Capstone Holding Corp. "With strong new product launches and growth from Aura, we're prepared to capture a leading share of that demand. It's our strategy working exactly as intended: acquisitions complemented by organic momentum."

Zonda, a national leader in housing market research, forecasts a rebound in remodeling spending as interest rates continue to moderate. In their latest report, the firm projects that deferred demand will begin translating into a substantial recovery in the year ahead.^[2]

Much of that renewed activity will center on outdoor living. Three-quarters of homebuyers now prioritize outdoor spaces, and many plan to allocate roughly a quarter of their renovation budgets to them.^[3] Capstone is already seeing this trend reflected in the strong performance of its Aura Natural Landscapes™ brand.

The company's new product launches at Hardscape North America, the industry's leading trade show, continued that momentum. Early enthusiasm from dealers and contractors adds to what is tracking to be a record year of organic revenue growth for Instone, Capstone's operating subsidiary.

Capstone reaffirms its $100 million run-rate revenue target for 2026. The company also reported record gross-margin expansion in Q2 2025, rising to 24.4% from 21.4% in the prior-year period.

About Capstone Holding Corp.

Capstone Holding Corp. (NASDAQ: CAPS) is a diversified platform of building products businesses focused on distribution, brand ownership, and acquisition. Through its Instone subsidiary, Capstone serves 31 U.S. states, offering proprietary stone veneer, hardscape materials, and modular masonry systems. The company's strategy combines disciplined M&A, operational efficiency, and a growing portfolio of owned brands to build a scalable and durable platform.

Investor Contact

Investor Relations

Capstone Holding Corp.

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https://www.capstoneholdingcorp.com

Forward-Looking Statements

This press release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. These statements relate to future events and performance, including guidance regarding revenue and EBITDA targets, M&A strategy, use of capital, and operating outlook. Actual results may differ materially from those projected due to a range of factors, including but not limited to acquisition timing, macroeconomic conditions, and execution risks. Please review the Company's filings with the SEC for a full discussion of risk factors. Capstone undertakes no obligation to revise forward-looking statements except as required by law.

Source: Capstone Holding Corp.

^[1] https://zondahome.com/preview-the-latest-building-products-outlook-forecast/

^[2] https://zondahome.com/preview-the-latest-building-products-outlook-forecast/

^[3] https://www.thisoldhouse.com/home-finances/outdoor-living-trends#:~:text=With%20the%20rise%20in%20popularity,to%20Brown%20Jordan%20Outdoor%20Kitchens