Capstone Strengthens Southeast Presence and Achieves Key Milestones in Carolina Stone Integration

Combined platform expands reach in the nation's fastest-growing housing market through operational efficiencies and new customer growth

October 14, 2025 - New York, NY - Capstone Holding Corp. (NASDAQ:CAPS), a national building products distribution platform, today announced that the integration of Carolina Stone is already delivering operational and commercial synergies.

The combined companies have completed a full ERP system upgrade, launched a regional marketing campaign, and established new customer relationships. These early milestones reinforce Capstone's expectation that the acquisition would be immediately accretive and deliver significant value for the platform.

Key Highlights:

• Immediate Milestones: The combined team has already completed a full ERP system upgrade, rolled out regional marketing initiatives, and begun engaging new customers through coordinated field and digital campaigns.
• Customer Traction: The combined team is in active dialogue with regional and national production homebuilders, signaling early commercial traction and positioning the platform for continued growth.
• Marketing Activation: Instone has extended its marketing platform to Carolina Stone, activating a secondary customer segment in home remodeling and positioning the platform to capture rising demand in a high-growth market.
• Operational Synergies: The integration is driving near-term cost reductions and margin expansion through greater purchasing power, lower logistics costs, and expanded cross-selling potential.

"With Carolina Stone, we've met every milestone and are already capitalizing on new opportunities in the region," said Matt Lipman, Chief Executive Officer of Capstone Holding Corp. "It's two businesses leveraging each other's strengths to build one of the Southeast's most effective sales engines."

One of the key benefits of the acquisition is expanded access to the Southeast, the fastest-growing housing market in the United States. New development is up 33% year over year, according to Building, Design & Production Magazine.

Carolina Stone, a local leader in the region, now has access to Instone's proprietary product line, advanced marketing and sales capabilities, and national logistics network. This positions the platform to capture a larger share of both new development and secondary remodeling demand.

"When you look across the Southeast, new homes are going up everywhere," said Kevin Grotke, President and CEO of Instone. "By completing major milestones early - like the full ERP system upgrade - we've been able to shift our focus immediately to winning new customers."

Capstone's integration playbook has delivered repeated success across the platform. The company recently wrote about its integration of Northeast Masonry, which expanded natural stone offerings across Instone's network, opened new hardscape channels, and enabled the combined business to reach a record number of customers.

With a newly signed LOI and a strong pipeline of acquisition targets, Capstone is well positioned to advance its dual-track strategy of disciplined M&A and organic growth. The company has reaffirmed its goal of reaching a $100 million run-rate revenue target by Q1 2026.

About Capstone Holding Corp.

Capstone Holding Corp. (NASDAQ: CAPS) is a diversified platform of building products businessesfocused 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.

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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.