Capstone Executes $2.0 Million Cost Rationalization; CEO Reduces Cash Salary to $1.00 to Anchor Positive EBITDA Target

Immediate overhead reductions strengthen free cash flow, align management compensation with shareholder equity, and establish clear path to positive EBITDA beginning in Q2 2026.

NEW YORK CITY, NEW YORK / ACCESS Newswire / January 21, 2026 / Capstone Holding Corp. (NASDAQ:CAPS), a national building products distribution platform, today announced the execution of a cost rationalization program accelerating the Company's transition to positive free cash flow and EBITDA.

The initiatives remove approximately $2.0 million in annualized corporate overhead expenses, effective immediately.

"2026 is the year we translate the $70 million run-rate platform we've built into a durable profitability engine," said Matthew Lipman, Chief Executive Officer of Capstone. "By reducing corporate overhead by $2.0 million, we are immediately positioning the Company for sustainable, cash-generative growth. We have a clear line of sight to a positive EBITDA run-rate."

Financial Impact

Metric	Impact	Timing
Annualized OpEx Savings	$2.0 Million	Immediate
OpEx Reduction (Cash)	~$1.7 Million	FY 2026
CEO Cash Compensation	$1.00 (Annual)	Effective Immediately
EBITDA Target	Positive Run-Rate	Q2 2026

Key Highlights:

• $2.0 Million Annualized Savings: The Company has eliminated non-core investor relations and consulting expenditures. This results in an immediate ~$1.7M reduction in operating expenses (OpEx), directly accretive to the bottom line.

• Executive Compensation Restructuring: Chief Executive Officer Matthew Lipman has voluntarily reduced his annual base cash salary to $1.00 for the next year, aligning executive remuneration directly with common shareholder equity appreciation.