Capstone Holding Corp. (NASDAQ: CAPS) announced on September 29, 2026, that it has retired approximately 85% of its original $6.82 million in convertible note principal. The reduction brings the outstanding balance on the company's convertible debt down to $1 million.
The company has fully retired the first of its two convertible notes, which were originally issued in July 2025. The remaining outstanding debt is the October 2025 note. The reduction in principal was achieved through the conversion of the notes.
As of September 28, 2026, Capstone reported 26,384,119 shares of common stock issued and outstanding. This represents an increase of 5,805,568 shares since August 10, 2026, when the company reported 20,578,551 shares outstanding. The increase is attributed to 2,446,825 shares issued upon conversion of senior secured convertible notes and 3,358,743 shares issued under an equity line of credit with Tumim Stone Capital, LLC.
According to the company’s press release, the outstanding convertible note principal was $1.90 million as of June 30, 2026. The company reported its strongest quarter in years during the second quarter of 2026, with revenue increasing 67% year over year to $21.5 million. Gross profit increased 92% to $6.0 million, and gross margin expanded by 357 basis points to 27.9%.
