Capstone executes $2M cost rationalization, CEO reduces cash salary to $1.00

Capstone Holding announced the execution of a cost rationalization program accelerating the Company’s transition to positive free cash flow and EBITDA. The initiatives remove approximately $2M 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, CEO. “By reducing corporate overhead by $2M, we are immediately positioning the Company for sustainable, cash-generative growth. We have a clear line of sight to a positive EBITDA run-rate.” The Company has eliminated non-core investor relations and consulting expenditures. This results in an immediate ~$1.7M reduction in operating expenses, directly accretive to the bottom line. 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. Management targets these cost reductions to establish a positive Corporate EBITDA run-rate beginning in Q2, independent of revenue growth, materially strengthening Capstone’s financial profile against macroeconomic volatility.