Capstone Outperforms U.S. and Canadian Building Products Markets in First Half of 2026

New product launches and operating efficiencies expand the Company’s addressable market and support second-half growth.

NEW YORK--(BUSINESS WIRE)--Capstone Holding Corp. (NASDAQ: CAPS), a national, technology-enabled building products distribution platform, today announced strong commercial performance across its North American business. Based on management’s assessment of available market data, the Company believes it outperformed broader building products markets and gained market share in both the United States and Canada in the first half of 2026.

Capstone’s ability to deliver North American sales growth during a period of harsh weather and macroeconomic turbulence reflects the Company’s execution across market cycles. As conditions improve during the second half of 2026, Capstone believes its expanding product portfolio, deepening customer relationships, and distribution efficiencies will support accelerating growth and further market share gains.

“The investments we have made in building a stronger, more efficient distribution platform are paying off, enabling us to grow and win new customers despite challenging conditions across our end markets,” said Matthew Lipman, Chief Executive Officer. “The second half is traditionally a period of strength for the building products industry, and we enter it well positioned to continue growing across the business.”

Key Highlights:

• North American Sales Growth: Based on preliminary, unaudited results, first-half sales increased compared with the prior-year period despite harsh winter conditions and macroeconomic turbulence.
• End Market Outperformance: Management believes Capstone outperformed the broader building products market in both the United States and Canada, reflecting the strength of its customer relationships, product portfolio, and distribution platform.
• Successful New Product Launches: Recent launches, including Willki and Eldorado Stone, generated strong initial demand, expanded Capstone’s addressable market, and increased the breadth of its premium product offering.
• Positioned for Second-Half Growth: Capstone enters the seasonally stronger second half with a broader product portfolio, deeper customer relationships, and a more efficient distribution platform, positioning the Company to compound growth and capture additional market share.

Capstone’s recent product launches are contributing to the Company’s commercial momentum. Willki, a mechanically attached stone system launched across the United States and Canada, expands Capstone’s addressable market by reducing installation complexity and material waste. The addition of Eldorado Stone further strengthens Capstone’s premium manufactured stone offering, with initial order volumes tracking closely with the successful launch trajectory previously achieved with Dutch Quality.

“The story of the first half was our ability to expand Capstone’s addressable market through new products while simultaneously improving margins through greater platform efficiencies,” Lipman added.

For additional updates, visit Capstone's Investor Relations website at www.capstoneholdingcorp.com.

About Capstone Holding Corp.

Capstone Holding Corp. (NASDAQ: CAPS) is a national, technology-enabled building products distribution platform optimizing supply chains across 38 U.S. states and Canada. Through its Instone operating platform and inventory portal, the Company aggregates and delivers proprietary stone veneer, hardscape materials, and modular masonry systems. Capstone’s model combines digital infrastructure, owned-inventory logistics, and disciplined acquisitions to drive scalable margin expansion and operating leverage across its growing platform.

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 our expectations for the second half of 2026, 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 the Company’s liquidity and access to capital; its ability to comply with, or obtain waivers of, financial covenants; the refinancing or repayment of indebtedness as it matures; conditions that may raise substantial doubt about the Company’s ability to continue as a going concern; acquisition timing and integration; macroeconomic conditions; and other execution risks. Please review the Company’s filings with the SEC, including the Quarterly Report on Form 10-Q for the quarter ended March 31, 2026, for a full discussion of these and other risk factors. Capstone undertakes no obligation to revise forward-looking statements except as required by law.