Capstone Strengthens Southeast Presence and Achieves Key Milestones in Carolina Stone Integration

Combined platform expands reach in the nation's fastest-growing housing market through operational efficiencies and new customer growth

NEW YORK CITY, NEW YORK / ACCESS Newswire / October 14, 2025 / Capstone Holding Corp. (NASDAQ:CAPS), a national building products distribution platform, today announced that the integration of Carolina Stone is already delivering operational and commercial synergies.

The combined companies have completed a full ERP system upgrade, launched a regional marketing campaign, and established new customer relationships. These early milestones reinforce Capstone's expectation that the acquisition would be immediately accretive and deliver significant value for the platform.

Key Highlights:

• Immediate Milestones: The combined team has already completed a full ERP system upgrade, rolled out regional marketing initiatives, and begun engaging new customers through coordinated field and digital campaigns.

• Customer Traction: The combined team is in active dialogue with regional and national production homebuilders, signaling early commercial traction and positioning the platform for continued growth.

• Marketing Activation: Instone has extended its marketing platform to Carolina Stone, activating a secondary customer segment in home remodeling and positioning the platform to capture rising demand in a high-growth market.

• Operational Synergies: The integration is driving near-term cost reductions and margin expansion through greater purchasing power, lower logistics costs, and expanded cross-selling potential.

"With Carolina Stone, we've met every milestone and are already capitalizing on new opportunities in the region," said Matt Lipman, Chief Executive Officer of Capstone Holding Corp. "It's two businesses leveraging each other's strengths to build one of the Southeast's most effective sales engines."

One of the key benefits of the acquisition is expanded access to the Southeast, the fastest-growing housing market in the United States. New development is up 33% year over year, according to Building, Design & Production Magazine.

Carolina Stone, a local leader in the region, now has access to Instone's proprietary product line, advanced marketing and sales capabilities, and national logistics network. This positions the platform to capture a larger share of both new development and secondary remodeling demand.