Capstone Holding Corp. Segments Disclosure
Note 18 Segment Information
The Company has reportable segments: (i) the TotalStone segment, which includes the operations of TotalStone, LLC and the legacy Instone distribution business, together with Canadian Stone Industries Inc. and Continental Stone Industries, Inc. (collectively, "Fraser Canyon"), acquired in December 2025; and (ii) the Carolina Stone segment, which includes the operations of Carolina Stone Distributors, LLC and its affiliated installation business, acquired in August 2025. The TotalStone segment distributes natural and manufactured stone and related building products. The Carolina Stone segment distributes and installs stone veneer and related masonry products. The Company also incurs corporate-level SG&A expenses at Capstone Holding Corp. ("Capstone" or the "Parent"), consisting primarily of board fees, investor relations, filing, legal, insurance, accounting and consulting expenses not identifiable or allocated to the operating segments.
The Company's Chief Executive Officer serves as the chief operating decision maker ("CODM"). The CODM evaluates segment performance based on segment revenue, gross profit, and income (loss) from operations. Corporate overhead and certain shared services costs not directly attributable to a segment are reported within the Parent/Eliminations column. Interest expense, income taxes, and other non-operating items are not allocated to segments. The accounting policies of the reportable segments are the same as those described in Note 3.
The following tables present financial information regarding the Company's reportable segments, reconciled to the Company's consolidated totals.
| Fiscal Year Ended December 31, | ||||||||||||||||||||||||||||||||||||||||
| 2025 | 2024 | |||||||||||||||||||||||||||||||||||||||
| TotalStone | Carolina Stone | Parent | Eliminations | Consolidated | TotalStone | Carolina Stone | Parent | Eliminations | Consolidated | |||||||||||||||||||||||||||||||
| Income (loss) from operations before taxes: | ||||||||||||||||||||||||||||||||||||||||
| Sales | $ | 43,550 | $ | 3,331 | $ | — | $ | — | $ | 46,881 | $ | 44,876 | $ | — | $ | — | $ | — | $ | 44,876 | ||||||||||||||||||||
| Cost of goods sold | 33,834 | 2,256 | — | — | 36,090 | 35,306 | — | — | — | 35,306 | ||||||||||||||||||||||||||||||
| Gross Profit | 9,716 | 1,075 | — | — | 10,791 | 9,570 | — | — | — | 9,570 | ||||||||||||||||||||||||||||||
| Selling, general and administrative expenses | 10,157 | 1,204 | 3,223 | (210 | ) | 14,374 | 9,847 | — | 611 | (240 | ) | 10,208 | ||||||||||||||||||||||||||||
| Impairment of goodwill | 6,200 | — | — | 6,200 | — | — | — | — | — | |||||||||||||||||||||||||||||||
| Transaction Expenses | 185 | 1,018 | 1,203 | — | ||||||||||||||||||||||||||||||||||||
| (Loss) income from operations | $ | (6,826 | ) | $ | (129 | ) | $ | (4,241 | ) | $ | 210 | $ | (10,986 | ) | $ | (277 | ) | $ | — | $ | (611 | ) | $ | 240 | $ | (638 | ) | |||||||||||||
| Other financial information: | ||||||||||||||||||||||||||||||||||||||||
| Depreciation & amortization | $ | 277 | $ | 75 | $ | 39 | $ | — | $ | 391 | $ | 310 | $ | — | $ | — | $ | — | $ | 310 | ||||||||||||||||||||
| As of December 31, 2025 | As of December 31, 2024 | ||||||||||||||||||||||||||||||||||||
| TotalStone | Carolina Stone | Parent | Eliminations | Consolidated | TotalStone | Carolina Stone | Parent | Eliminations | Consolidated | ||||||||||||||||||||||||||||
| Total assets | $ | 51,332 | $ | 5,531 | $ | 6,141 | $ | (11,626 | ) | $ | 51,378 | $ | 40,468 | $ | 7,858 | $ | (1,105 | ) | $ | 47,221 | |||||||||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Apr 16, 2026 | Showing above |
| 2024 | Mar 31, 2025 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.