Capstone Holding Corp. (NASDAQ: CAPS) has released its second quarter 2025 financial results, reporting a substantial increase in its gross margin, which rose to 24.4% from 21.4% in the same period the previous year. This improvement is attributed to increased sales of owned brands and disciplined cost management. The company is advancing its acquisition of a Carolina-based stone company, expected to close within the next 10 days. This acquisition is anticipated to be immediately accretive to revenue and EBITDA, expanding Capstone's presence in the high-growth Southeast market. Capstone is targeting a $100 million revenue run-rate by the end of 2025 or the first quarter of 2026, with additional acquisitions under review at attractive valuations. The company has secured flexible capital funding through an Equity Line of Credit and a convertible note, ensuring the availability of funds for future acquisitions without relying on high-interest debt. Looking ahead, Capstone expects a rebound in Q3 order volumes as market conditions stabilize, with potential interest rate cuts in late 2025 providing additional demand support. The company continues to focus on product rollouts and expanding into new territories to maintain momentum.
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