Capstone Holding Corp. (NASDAQ: CAPS) extended its revolving credit facility with Berkshire Bank through June 19, 2026, preserving liquidity without adding cost.
The extension comes as the company balances a high debt burden relative to market capitalization, negative EBITDA, a low current ratio, and an Altman Z‑Score of –4.49. The new term gives Capstone a longer runway to fund acquisitions and operational initiatives while maintaining compliance with covenants.
Capstone’s strategy centers on consolidating the fragmented building‑products distribution market through acquisitions and building a technology‑enabled platform. The credit line will support the purchase of new distributors, geographic expansion, and integration of acquired assets into a unified distribution backbone.
CEO Matthew Lipman said the extension reflects lender confidence and the company’s disciplined growth approach. "This extension reflects the strength of our operating performance and continued lender confidence in our business," Lipman said. "We enter the new year with the liquidity runway and flexibility to achieve disciplined growth and margin expansion."
The company has reaffirmed a $100 million run‑rate revenue target for 2026 and a path to 10 % EBITDA margin. It recently converted $1.9 million of related‑party debt into long‑term preferred equity and completed the acquisition of Canadian Stone Industries, a distributor with $15 million in annual revenue, further expanding its footprint.
With the extended facility, Capstone can pursue its acquisition pipeline without the immediate pressure of refinancing, positioning it to capitalize on consolidation opportunities in the building‑products sector and accelerate its transformation into a technology‑enabled distribution platform.
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