Capstone Holding Corp. (NASDAQ: CAPS) announced the integration of KLAD Envelope Solutions, its architectural representative business, to expand commercial market access and drive higher-margin sales growth.

The integration provides Capstone direct access to architects, designers, and general contractors, according to a company statement. KLAD represents premium building envelope materials, including architectural metals, which the company states will increase exposure to more profitable revenue streams.

"KLAD's relationships with architects, designers, and general contractors are proving to be a valuable asset for our business," said Matthew Lipman, Chief Executive Officer of Capstone. "Our expanded access to commercial and institutional markets is creating opportunities for higher-value, higher-margin project wins and will contribute to a strong sales year for Capstone."

The company reports that many KLAD-represented products bypass traditional warehousing and logistics, enabling revenue growth without additional warehouse investment. Large-format and specialty materials are fulfilled outside Capstone's logistics network, allowing revenue capture without incremental fixed cost investment.

Robert Jahnsen, President of KLAD Envelope Solutions, stated: "With their resources behind us, we expect to expand across North America and engage a broader set of commercial designers and builders."

Capstone targets a positive EBITDA run-rate by Q2 2026. The company recently announced new customer and project wins representing more than 300,000 square feet of annualized demand.

The building products distribution platform operates across 38 U.S. states and Canada through its Instone operating platform. Capstone plans to publish an Earnings Power Presentation in the coming weeks outlining its growth strategy.

KLAD Envelope Solutions is a Canadian-based manufacturer's representative agency specializing in technical and architectural products for building envelopes.