{"id":965123,"date":"2026-05-20T07:38:05","date_gmt":"2026-05-20T11:38:05","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/capstone-reports-q1-2026-results-revenue-up-60-gross-profit-up-124-best-q1-gross-margin-in-four-years\/"},"modified":"2026-05-20T07:38:05","modified_gmt":"2026-05-20T11:38:05","slug":"capstone-reports-q1-2026-results-revenue-up-60-gross-profit-up-124-best-q1-gross-margin-in-four-years","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/capstone-reports-q1-2026-results-revenue-up-60-gross-profit-up-124-best-q1-gross-margin-in-four-years\/","title":{"rendered":"Capstone Reports Q1 2026 Results: Revenue Up 60%, Gross Profit Up 124%, Best Q1 Gross Margin in Four Years"},"content":{"rendered":"

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Capstone Reports Q1 2026 Results: Revenue Up 60%, Gross Profit Up 124%, Best Q1 Gross Margin in Four Years<\/b><\/p>\n

Gross margin expanded 670 bps to 23.5% against one of the harshest winters in recent memory for seasonal businesses<\/i><\/p>\n

NEW YORK–(BUSINESS WIRE<\/a>)–
\nCapstone Holding Corp. (NASDAQ: CAPS), a tech-enabled building products distribution platform, today reported financial and operating results for the first quarter of 2026. Q1 revenue grew 60% year-over-year to $12.6 million, gross profit grew 124% to $3.0 million, and gross margin expanded 670 basis points to 23.5%\u2014the strongest first-quarter gross margin Capstone has reported in four years.<\/b> Results reflect the first full quarter of contribution from Carolina Stone and Canadian Stone Industries (CSI).<\/p>\n

On a pro-forma basis, giving effect to the Carolina Stone and CSI acquisitions as if they had been owned for all of FY2025, platform revenue would have been approximately $68 million, compared with $46.9 million as reported.<\/b> Business momentum in April and May indicates that end-market conditions have improved materially, and Capstone reaffirms FY2026 guidance of $72.1 million in revenue (+54%), $18.7 million in gross profit (+73%), and approximately $3.8 million in Adjusted EBITDA, an approximate 4x increase year-over-year<\/b>, with positive Adjusted EBITDA expected in Q2.<\/p>\n

Financial Summary<\/i><\/b><\/p>\n\n\n\n\n\n\n\n\n
\n

\n\u00a0<\/p>\n<\/td>\n

\n

Q1 2025<\/b><\/p>\n<\/td>\n

\n

Q1 2026<\/b><\/p>\n<\/td>\n

\n

YoY Growth<\/b><\/p>\n<\/td>\n

\n

FY26 Guidance<\/b><\/p>\n<\/td>\n<\/tr>\n

\n

Revenue<\/b><\/p>\n<\/td>\n

\n

\n$7.9M<\/p>\n<\/td>\n

\n

\n$12.6M<\/p>\n<\/td>\n

\n

+60%<\/b><\/p>\n<\/td>\n

\n

$72.1M<\/b><\/p>\n<\/td>\n<\/tr>\n

\n

Gross Profit<\/b><\/p>\n<\/td>\n

\n

\n$1.3M<\/p>\n<\/td>\n

\n

\n$3.0M<\/p>\n<\/td>\n

\n

+124%<\/b><\/p>\n<\/td>\n

\n

$18.7M<\/b><\/p>\n<\/td>\n<\/tr>\n

\n

Gross Margin<\/b><\/p>\n<\/td>\n

\n

\n16.8%<\/p>\n<\/td>\n

\n

\n23.5%<\/p>\n<\/td>\n

\n

+670 bps<\/b><\/p>\n<\/td>\n

\n

26.0%<\/b><\/p>\n<\/td>\n<\/tr>\n

\n

Adj. EBITDA<\/b><\/p>\n<\/td>\n

\n

\n($0.6M)<\/p>\n<\/td>\n

\n

\n($0.9M)<\/p>\n<\/td>\n

\n

N\/A<\/b><\/p>\n<\/td>\n

\n

$3.8M<\/b><\/p>\n<\/td>\n<\/tr>\n

\n

Adj. EBITDA Margin<\/b><\/p>\n<\/td>\n

\n

\n-7.5%<\/p>\n<\/td>\n

\n

\n-6.9%<\/p>\n<\/td>\n

\n

+60 bps<\/b><\/p>\n<\/td>\n

\n

5.2%<\/b><\/p>\n<\/td>\n<\/tr>\n

\n

Note: Q1 is seasonally the weakest quarter for stone demand. 2026 delivered colder-than-normal temperatures and elevated precipitation across every region.<\/i><\/p>\n<\/td>\n<\/tr>\n<\/table>\n

\n\u201cIt was a historically challenging winter for seasonal businesses, but our results reinforce the resilience of the platform we\u2019ve built<\/b>,\u201d said Matthew Lipman, Chief Executive Officer of Capstone. \u201cGross profit grew more than twice as fast as revenue, reflecting the pricing discipline and margin expansion we\u2019ve prioritized across the business. We\u2019ve seen strong project and customer momentum in April and May, and we remain firmly on track to achieve our FY2026 targets and to turn Adjusted EBITDA positive in Q2<\/b>.\u201d<\/p>\n

First Quarter 2026 Highlights:<\/i><\/b><\/p>\n