First of two convertible notes fully retired as Company advances toward eliminating remaining convertible debt.

Capstone Holding Corp. (NASDAQ:CAPS), a national, technology-enabled building products distribution platform, today announced that it has retired approximately 85% of its original $6.82 million in convertible note principal, reducing the remaining balance to $1 million.

The Company has fully retired the first of its two convertible notes, originally issued in July 2025, and has reduced the principal balance on its remaining convertible debt to $1,000,000, through conversions of the notes. Only the October 2025 note remains outstanding.