Revenue volatility remains high, with the 2026Q1 operating margin of -11.8% highlighting a structural inability to scale profitability despite a 60% year-over-year revenue increase.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 |
|---|
| Sales/Revenue | 51.62M | 46.88M | 44.88M | 48.35M | 61.56M | 66.74M | 45.45M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Revenue Growth % | 18.89% | 4.47% | -7.19% | -21.45% | -7.76% | 46.85% | - | - | - | - | - | - | - | - |
| Cost of Goods Sold | 39.18M | 36.09M | 35.31M | 38.74M | 45.03M | 50.43M | 34.52M | 39K | 157K | 205K | 179K | 157K | 0 | 0 |
| COGS % of Revenue | - | 76.98% | 78.67% | 80.12% | 73.15% | 75.55% | 75.94% | - | - | - | - | - | - | - |
| Gross Profit | 12.44M | 10.79M | 9.57M | 9.61M | 16.53M | 16.32M | 10.94M | -39K | -157K | -205K | -179K | -157K | 0 | 0 |
| Gross Margin % | 24.09% | 23.02% | 21.33% | 19.88% | 26.85% | 24.45% | 24.06% | - | - | - | - | - | - | - |
| Gross Profit Growth % | - | 12.76% | -0.43% | -41.86% | 1.32% | 49.2% | 28141.03% | 75.16% | 23.41% | -14.53% | -14.01% | - | - | - |
| Operating Expenses | 16.74M | 14.37M | 10.21M | 10.87M | 12.54M | 11.68M | 8.54M | 723K | 397K | 1.48M | 1.41M | 2.78M | 4.58M | 4.14M |
| OpEx % of Revenue | - | 30.66% | 22.75% | 22.47% | 20.37% | 17.5% | 18.79% | - | - | - | - | - | - | - |
| Selling, General & Admin | 16.09M | 14.37M | 10.21M | 10.87M | 12.54M | 11.68M | 8.54M | 723K | 397K | 436K | 364K | 1.6M | 1.45M | 1.17M |
| SG&A % of Revenue | - | 30.66% | 22.75% | 22.47% | 20.37% | 17.5% | 18.79% | - | - | - | - | - | - | - |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1.37M | 1.04M | 1.04M | 1.18M | 3.07M | 3.12M |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 652K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -1.37M | 0 | 0 | 0 | 0 | 0 |
| Operating Income | -4.3M | -3.58M | -638K | -1.26M | 3.99M | 4.64M | 2.4M | -762K | -554K | -1.68M | -1.58M | -2.94M | -4.52M | -4.29M |
| Operating Margin % | -8.34% | -7.64% | -1.42% | -2.6% | 6.49% | 6.95% | 5.27% | - | - | - | - | - | - | - |
| Operating Income Growth % | - | -461.6% | 49.2% | -131.46% | -13.87% | 93.49% | 414.44% | -37.55% | 67.02% | -6.06% | 46.1% | 35.04% | -5.38% | - |
| EBITDA | -3.87M | -3.19M | -121K | -950K | 4.23M | 5.02M | 2.64M | -723K | -397K | -1.48M | -1.41M | -2.78M | -4.36M | -4.12M |
| EBITDA Margin % | -7.49% | -6.81% | -0.27% | -1.96% | 6.88% | 7.52% | 5.81% | - | - | - | - | - | - | - |
| EBITDA Growth % | -387.15% | -2538.02% | 87.26% | -122.44% | -15.69% | 90.16% | 465.28% | -82.12% | 73.08% | -4.98% | 49.5% | 36.25% | -5.92% | - |
| D&A (Non-Cash Add-back) | 436K | 391K | 517K | 306K | 241K | 386K | 245K | 39K | 157K | 205K | 179K | 157K | 160K | 173K |
| EBIT | -4.96M | -3.58M | -638K | -2.06M | 3.99M | 4.64M | 2.4M | -762K | -554K | -1.68M | -1.58M | -2.94M | -4.52M | -4.29M |
| Net Interest Income | -4.48M | -3.89M | -1.48M | -1.53M | -895K | -1.06M | -710K | -261K | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 156K | 70K | 81K | 4K | 17K | 6K |
| Interest Expense | 4.48M | 3.89M | 1.48M | 1.53M | 895K | 1.06M | 710K | 261K | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | -9.94M | -10.47M | -2.37M | -2.33M | -895K | -279K | -710K | -261K | -248K | -111K | -81K | -24K | -43K | 158K |
| Pretax Income | -14.24M | -14.05M | -3M | -3.58M | 3.1M | 4.36M | 1.69M | -1.02M | -802K | -1.79M | -1.67M | -2.96M | -4.57M | -4.13M |
| Pretax Margin % | -27.59% | -29.98% | -6.7% | -7.41% | 5.03% | 6.53% | 3.71% | - | - | - | - | - | - | - |
| Income Tax | 7.17M | 7.18M | -442K | 234K | 783K | 436K | -8.49M | -24K | -49K | -36K | -56K | -192K | -400K | -21K |
| Effective Tax Rate % | -50.37% | -51.06% | 14.71% | -6.53% | 25.27% | 10.01% | -503.32% | 2.35% | 6.11% | 2.01% | 3.36% | 6.48% | 8.76% | 0.51% |
| Net Income | -21.42M | -21.23M | -2.56M | -3.82M | 2.31M | 3.92M | 10.46M | -2.07M | -380K | -1.75M | -663K | -2.77M | -4.17M | -3.92M |
| Net Margin % | -41.49% | -45.28% | -5.71% | -7.9% | 3.76% | 5.87% | 23% | - | - | - | - | - | - | - |
| Net Income Growth % | -573.91% | -728.33% | 32.89% | -264.97% | -40.96% | -62.5% | 604.34% | -445.53% | 78.35% | -164.71% | 76.07% | 33.5% | -6.27% | - |
| Net Income (Continuing) | -21.42M | -21.23M | -2.56M | -3.82M | 2.31M | 3.92M | 10.17M | -999K | -753K | -1.75M | -1.61M | -2.77M | -4.17M | -4.11M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -1.07M | 373K | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -641K | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -2.30 | -4.12 | -34.86 | -36.39 | 14.69 | 49.46 | 107.60 | -38.12 | -6.99 | -37.20 | -16.22 | -67.78 | -101.92 | -95.90 |
| EPS Growth % | 94.39% | 88.18% | 4.2% | -347.72% | -70.3% | -54.03% | 382.25% | -445.39% | 81.21% | -129.35% | 76.07% | 33.5% | -6.28% | - |
| EPS (Basic) | - | -4.12 | -34.86 | -36.39 | 14.69 | 49.46 | 107.60 | -38.12 | -6.99 | -37.20 | -16.22 | -67.78 | -101.92 | -95.90 |
| Diluted Shares Outstanding | 9.33M | 5.32M | 157.61K | 157.61K | 157.61K | 79.28K | 79.28K | 54.38K | 54.38K | 47.17K | 40.88K | 40.88K | 40.88K | 40.88K |
| Basic Shares Outstanding | 9.33M | 5.32M | 157.61K | 157.61K | 157.61K | 79.28K | 79.28K | 54.38K | 54.38K | 47.17K | 40.88K | 40.88K | 40.88K | 40.88K |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Imminent liquidity crisis
According to the provided quarterly data, Capstone Holding Corp. experienced a volatile revenue trajectory, peaking at $13.7 million in 2025Q3 before fluctuating, with the most recent 2026Q1 figure of $12.6 million representing a 60% year-over-year increase that appears disconnected from historical performance trends.
The erratic nature of these revenue shifts suggests that the company may be relying on non-recurring project-based income rather than a stable, scalable business model. Investors should monitor whether this growth is sustainable or merely a reflection of lumpy, unpredictable contract recognition.
As reported in financial statements, the company maintains a gross margin profile averaging approximately 20-24%, which is notably thin for a firm historically associated with biotechnology and suggests a high-cost, low-value-add operational structure that leaves little room for error in managing input costs.
The inability to consistently expand gross margins beyond the mid-20% range indicates a lack of pricing power or significant inefficiencies in the underlying cost of goods sold. This margin profile appears fundamentally incompatible with the high R&D requirements typically expected in the firm's stated industry.
Based on the reported figures, Capstone Holding Corp. has struggled to achieve positive operating leverage, as evidenced by the 2025Q4 operating margin of -14.3% despite generating $12.5 million in revenue, indicating that overhead expenses are scaling disproportionately to the company's top-line output.
The persistent failure to convert gross profit into operating income suggests that SG&A costs are not being managed with sufficient discipline. This lack of scalability implies that the current cost structure may be fundamentally misaligned with the company's revenue-generating capacity.
Data from recent filings reveals a significant disconnect between operating and net income, highlighted by a massive -134.6% net margin in 2025Q4, which suggests that non-operating items or significant asset impairments are severely distorting the company's bottom-line performance and overall earnings quality.
The extreme variance in net income relative to operating results warrants further investigation into potential non-recurring charges or hidden financial liabilities. Such volatility makes it difficult for analysts to rely on reported EPS as a meaningful indicator of the company's core operational health.
Based on the provided financial snapshot, the company's consistent net losses and minimal cash reserves suggest that the current business model is unsustainable, raising serious questions about the firm's ability to continue as a going concern without immediate and highly dilutive external financing.
Short-sellers would likely focus on the widening gap between revenue growth and cash depletion, which points to a potential liquidity crisis. The lack of R&D investment in recent periods further suggests that the company may be sacrificing long-term viability to support short-term operational survival.
Quick answers to the most common questions about buying CAPS stock.
For fiscal year 2025, Capstone Holding Corp. (CAPS) reported total revenue of $46.9M.
Capstone Holding Corp. (CAPS) reported a net loss of $21.2M for the fiscal year ending 2025.
Capstone Holding Corp. (CAPS) reported an operating income of $-3.6M, resulting in an operating profit margin of -7.6%. This margin reflects the operational efficiency of the business before interest and taxes.
Capstone Holding Corp. (CAPS) generated $10.8M in gross profit for the year, representing a gross profit margin of 23.0%. This demonstrates the company's core pricing power and production efficiency.