Capstone Holding Corp. reported a consolidated net loss of approximately $21.2 million for the fiscal year ended December 31, 2025, a significant increase from a net loss of $2.6 million in the previous year. The company's revenue for the year was $46.9 million, reflecting a 4.5% increase from $44.9 million in 2024. This growth was primarily driven by the acquisitions of Carolina Stone Holdings and Fraser Canyon Holdings, which contributed incremental revenue during their respective post-acquisition periods. However, organic revenue from the TotalStone segment experienced a modest decline due to softer demand conditions in certain regional markets.
The company's cost of goods sold rose to $36.1 million, up 2.2% from $35.3 million in 2024, while gross profit increased by 12.8% to $10.8 million, resulting in a gross margin improvement to 23.0% from 21.3%. The increase in gross profit was attributed to a favorable product mix shift towards higher-margin stone veneer products and contributions from the acquired businesses. Selling, general, and administrative expenses surged by 40.8% to $14.4 million, largely due to operating costs from the acquisitions and higher public company costs following its public offering in March 2025.
Capstone's operational developments included the completion of two significant acquisitions in 2025, which expanded its geographic footprint and product offerings. The acquisition of Fraser Canyon Holdings on December 1, 2025, marked the company's entry into the Canadian market, while the acquisition of Carolina Stone on August 22, 2025, enhanced its distribution and installation capabilities in the Southeastern United States. As of December 31, 2025, the company employed approximately 93 full-time employees and 3 independent contractors across its various facilities.
Looking ahead, Capstone aims to drive sustainable growth through strategic acquisitions and organic expansion. The company plans to enhance its product portfolio and optimize operations to improve efficiency and customer satisfaction. Despite the challenges posed by market conditions, including elevated interest rates and inflation, Capstone remains focused on leveraging its expanded distribution network and product offerings to capture market share and deliver value to its stakeholders. The company anticipates that the full-year contributions from its recent acquisitions will positively impact its financial performance in 2026.
About Capstone Holding Corp.
Capstone Holding Corp. is a distributor of building products, primarily specializing in thin veneer and natural stone for residential and commercial construction. Through its Instone brand, it offers a broad product range supported by a strategic distribution network across the U.S. The company emphasizes operational excellence, customer relationships, and strategic acquisitions to drive growth in a competitive, cyclical industry.
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