Capstone Holding reaffirms $100M revenue target for FY25

Capstone Holding announced its financial and strategic highlights for the first quarter of 2025 and reaffirmed full-year 2025 guidance. The Company continues to target a $100 million revenue run-rate and $10 million in adjusted EBITDA by year-end, driven by a disciplined mix of organic growth and accretive acquisitions. Guidance Reaffirmed: Capstone reiterates its 2025 financial targets of $100M run-rate revenue and $10M adjusted EBITDA, with expected contributions from both organic initiatives and strategic M&A. Active M&A Pipeline: The company is currently evaluating multiple acquisition targets at attractive 4-6x EBITDA valuations, with 20-45% of deal consideration in non-cash consideration. If consummated, these transactions will be highly accretive to earnings. Flexible Capital Access: Capstone has secured an Equity Line of Credit (ELOC) giving it access to acquisition capital only when needed, without resorting to high interest debt or large, upfront equity dilution. Instone Performance on Track: Instone maintained margin stability and cost discipline amid typical Q1 seasonality. SG&A remains on track at a sustainable $8M annual run-rate, with Q3 order volumes expected to rebound as conditions normalize. Scalable Acquisition Framework: Capstone’s M&A strategy spans tuck-ins, sister companies, and new platform targets-positioning the Company to capitalize on a major structural tailwind: persistent housing demand outpacing supply. Shareholder-Aligned Growth Strategy: The Company’s capital deployment strategy is designed to be earnings accretive, ensuring value-accretive growth to enhance long-term shareholder value.