CAPS · Capstone Holding Corp.

Capstone Holding Corp. published an investor FAQ on May 6, 2026, addressing shareholder questions following its April 16 earnings release. The FAQ provides key updates on capital structure and reaffirms FY2026 guidance. As of May 1, approximately 72% of the original $6.82 million convertible note principal has been converted, leaving $1.90 million outstanding. This reduction lowers potential dilution and debt service obligations. The company reaffirmed its FY2026 outlook: revenue of $72.1 million (up 54%), gross profit of approximately $18.7 million (up 73%), and EBITDA of approximately $3.8 million (up 322%), with a positive EBITDA run-rate expected beginning in Q2. Management expressed confidence in the business trajectory, citing scale from two acquisitions in 2025, improved product mix, and operational efficiencies. The FAQ also addressed the working capital facility: at year-end 2025, $7.9 million was drawn against the $11.5 million Beacon Bank revolver, and management expects extension but has no binding commitment. Management stated it is not contemplating bankruptcy, distinguishing market stress from operational health. The company authorized a reverse stock split but has not decided to execute. Overall, the FAQ aims to provide transparency on capital structure improvements and operating momentum, which management believes will support stock performance over time.