On Our M&A Pipeline: Active Dialogue with Several Targets; Strategy on Track

Disciplined, accretive M&A has been central to our strategy from day one, and our current pipeline continues to validate that approach.

We've completed the acquisition of Carolina Stone, and integration is already well underway. As expected, the deal is immediately revenue- and EBITDA-accretive. Instone's products will soon be reaching customers across the fast-growing Southeast market.

Carolina Stone is the kind of regional leader we look for: a strong operator with a loyal customer base where we can add value by plugging into our platform. This acquisition expands our presence in a key national market and is already improving our combined margin profile through scale and operational efficiency.

Looking ahead, we're in active discussions with several additional operators, each a strong strategic fit and consistent with our past M&A successes. These are local leaders that gain by plugging into a more efficient, better-capitalized distribution platform.

This momentum reflects the strength of our playbook. Capstone has built a repeatable, data-driven approach to M&A: identify strategic assets, integrate them into the Instone platform, and unlock value through scale, logistics, and a growing portfolio of owned brands. Today, more than half of our sales come from brands we own, supporting margin expansion and durable market share. Our model is delivering, and we intend to keep executing it with discipline.

Capstone is backed by a flexible capital structure and a management team with deep sector expertise. We will continue to pursue high-quality acquisitions at attractive valuations. The funnel is healthy, and our bar is high. We're focused on strategic fit and accretive, long-term value creation.

We couldn't do this without your support. Your belief in our long-term strategy gives us the ability to move thoughtfully, act decisively, and build something durable. As CEO, I'm grateful to have you with us on this journey. We will have more exciting updates to share soon.

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Matthew Lipman
Chief Executive Officer
Capstone Holding Corp.