Capstone Holding Executes Cost Rationalization Program Accelerating Its Transition To Positive Free Cash Flow And EBITDA; CEO Reduces His Cash Salary To $1.00 For Next Year

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.

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.

Significant Positive EBITDA Targeted for Q2 2026: Management targets these cost reductions to establish a positive Corporate EBITDA run-rate beginning in Q2 2026, independent of revenue growth, materially strengthening Capstone's financial profile against macroeconomic volatility.