Carriage Services Announces Strong Third Quarter Results and Confirms the Midpoint of the 2025 Outlook 

Rhea-AI Summary

Carriage Services (NYSE: CSV) reported third-quarter 2025 results, confirming the midpoint of its 2025 outlook. Q3 total revenue was $102.7M, up 2.0% year-over-year, with total operating revenue up 5.2% driven by a 21.4% increase in cemetery preneed sales and a 27.2% increase in financial revenue. Adjusted diluted EPS was $0.75, a 17.2% increase versus $0.64 a year ago; GAAP diluted EPS was $0.41 versus $0.63 a year ago. The company completed acquisitions that served 2,600+ families and generated >$15M in prior-year revenue while divesting eight non-core properties and reducing leverage to 4.1x.

Management scheduled a conference call for November 6, 2025 at 8:00 a.m. CT and reaffirmed 2025 guidance ranges for revenue, adjusted EBITDA, adjusted diluted EPS, and adjusted free cash flow.

Positive

• Adjusted diluted EPS of $0.75 (+17.2% YoY)
• Cemetery preneed sales growth of 21.4% YoY
• Financial revenue increase of 27.2% YoY
• Adjusted consolidated EBITDA of $32.98M (vs $30.74M)

Negative

• GAAP diluted EPS declined to $0.41 from $0.63
• Net income down $3.3M in Q3 versus prior year quarter
• Operating income fell to $17.5M from $22.9M in Q3
• Net loss on divestitures and impairment charges increased by $6.2M

Insights

Corporate Finance Analyst

Adjusted EPS rose while GAAP EPS fell; cash flow and leverage show modest improvement.

Adjusted diluted EPS increased to $0.75, a 17.2% rise versus prior-year quarter, while GAAP diluted EPS declined to $0.41 from $0.63. Adjusted consolidated EBITDA for the quarter was $32,976 and adjusted free cash flow was $19.0, supporting the company’s stated reduction in leverage to 4.1.

Risks to near-term GAAP results appear tied to special items: the company recorded higher net loss on divestitures and impairment charges which reduced net income by $3.3 million for the quarter; tax and interest benefited results modestly. Watch the reconciliation of non-GAAP measures and the announced conference call on November 6, 2025 for management detail and any updates to the outlook; monitor quarterly EBITDA, adjusted EPS, and adjusted free cash flow through year-end to validate the revised guidance midpoint.

Operational Performance Analyst

Preneed and cemetery pricing drove operating revenue growth, offset by lower funeral volumes.

Cemetery operating revenue rose 12.6% driven by a 4.6% increase in preneed interment rights sold and a 15.1% rise in average preneed price; consolidated financial revenue grew 27.2% mainly from higher preneed insurance contracts sales. Funeral contract volume declined (funeral contracts fell from 10,713 to 10,124), while average revenue per funeral contract edged up slightly.

Operational dependencies include sustaining preneed price and insurance contract momentum and arresting funeral volume declines. Concrete items to watch over the next reporting cycle: preneed interment rights volume and average price, funeral contract volume trends, and the net impact of the recent acquisitions and divestitures on total operating revenue and field EBITDA margin within the remainder of 2025.

Conference call on Thursday, November 6, 2025 at 8:00 a.m. Central Time

HOUSTON, Nov. 05, 2025 (GLOBE NEWSWIRE) -- Carriage Services, Inc. (NYSE: CSV) today announced its financial results for the third quarter ended September 30, 2025.

Company Highlights:

• Total revenue grew 2.0% over the prior year quarter, driven by increased operating revenue of 5.2% primarily as a result of 21.4% growth in cemetery preneed sales;
• Cemetery operating revenue increased 12.6% over the prior year quarter, driven by a 4.6% increase in the number of preneed interment rights sold and a 15.1% increase in the average price of preneed interment rights sold;
• Financial revenue increased 27.2% over the prior year quarter, primarily driven by a 27.9% increase in preneed insurance contracts sold resulting in an increase in general agency commission revenue;
• GAAP diluted EPS of $0.41 compared to $0.63 in the prior year quarter;
• Adjusted diluted EPS of $0.75 compared to $0.64 in the prior year quarter, resulting in an increase of 17.2%; and
• Divested non-core assets consisting of seven funeral homes and one cemetery and completed the strategic acquisition of two businesses that generated more than $15 million in revenue last year while reducing our leverage ratio to 4.1x.

Carlos Quezada, Vice Chairman and CEO, stated, "We are pleased with our third-quarter performance, which reflects the strength of our strategy and the dedication of our team. Our adjusted diluted EPS of $0.75 represents a 17.2% increase over last year's $0.64, underscoring our commitment to disciplined execution and purposeful growth.

We are excited to be back in growth mode, expanding our footprint this quarter through strategic acquisitions of businesses that served over 2,600 families and generated more than $15 million in annual revenue last year. At the same time, we divested certain non-core assets to reallocate capital towards better long-term value creation opportunities.

Total operating revenue grew 5.2% year-over-year, driven by 21.4% growth in cemetery preneed sales combined with financial revenue growth of 27.2%, reflecting the continued success of our national prearranged funeral and cemetery strategy. These results highlight the strength of our team, the effectiveness of our business strategy, and the growing demand for the premier experiences we deliver. Purposeful Growth in Action - Building Momentum Toward Our 2030 Vision.” concluded Mr. Quezada.

FINANCIAL HIGHLIGHTS

		Three months ended September 30,								Nine months ended September 30,
(in millions, except volume, average, margins, and EPS)			2025				2024				2025				2024
GAAP Metrics:
Total revenue		$	102.7			$	100.7			$	312.0			$	306.5
Operating income		$	17.5			$	22.9			$	73.1			$	60.7
Operating income margin			17.0	%			22.7	%			23.4	%			19.8	%
Net income		$	6.6			$	9.9			$	39.2			$	23.1
Diluted EPS		$	0.41			$	0.63			$	2.47			$	1.48
Cash provided by operating activities		$	24.7			$	20.8			$	46.6			$	42.7
Cemetery Consolidated Metrics:
Preneed interment rights (property) sold			3,569				3,511				10,821				11,127
Average price per preneed interment right sold		$	6,257			$	5,360			$	5,863			$	5,408
Funeral Consolidated Metrics:
Funeral contracts			10,124				10,713				32,885				33,483
Average revenue per funeral contract(1)		$	5,651			$	5,540			$	5,665			$	5,557
Burial rate			31.5	%			31.6	%			32.1	%			32.5	%
Cremation rate			61.3	%			60.7	%			61.0	%			59.8	%
Non-GAAP Metrics(2):
Adjusted consolidated EBITDA		$	32,976			$	30,744			$	98,186			$	96,949
Adjusted consolidated EBITDA margin			32.1	%			30.5	%			31.5	%			31.6	%
Adjusted diluted EPS		$	0.75			$	0.64			$	2.45			$	2.02
Adjusted free cash flow		$	19.0			$	17.7			$	39.3			$	35.9
Cemetery Operating Metrics(3):
Preneed interment rights (property) sold			3,567				3,410				10,655				10,665
Average price per preneed interment right sold		$	6,261			$	5,439			$	5,904			$	5,524
Funeral Operating Metrics(4):
Funeral contracts			9,779				9,986				31,264				31,039
Average revenue per funeral contract(1)		$	5,712			$	5,669			$	5,756			$	5,691
Burial rate			31.7	%			32.0	%			32.4	%			32.7	%
Cremation rate			61.0	%			60.4	%			60.7	%			59.5	%
(1)Excludes preneed interest earnings reflected in financial revenue.
(2)We present both GAAP and non-GAAP measures to provide investors with additional information and to allow for the increased comparability of our ongoing performance from period to period. The most comparable GAAP measures to the Non-GAAP measures presented in this table can be found in the Reconciliation of Non-GAAP Financial Measures section of this press release.
(3)Metrics calculated using cemetery operating results (excluding impact from divestitures).
(4)Metrics calculated using funeral operating results (excluding impact from divestitures).

• Total revenue for the three months ended September 30, 2025 increased $2.1 million compared to the three months ended September 30, 2024. We experienced a 1.7% increase in the consolidated number of preneed interment rights (property) sold and a 16.7% increase in the consolidated average price per preneed interment rights sold. Additionally, we experienced a 2.0% increase in the consolidated average revenue per funeral contract that was offset by a 5.5% decrease in consolidated funeral contract volume.
• Net income for the three months ended September 30, 2025 decreased $3.3 million compared to the three months ended September 30, 2024. We experienced a $6.2 million increase in net loss on divestitures and impairment charges; partially offset by a $1.8 million decrease in income tax expense, a $1.1 million decrease in interest expense, and a $0.8 million increase in gross profit contribution from our businesses.
• Total revenue for the nine months ended September 30, 2025 increased $5.5 million compared to the nine months ended September 30, 2024. We experienced an 8.4% increase in the consolidated average price per preneed interment rights sold, which was partially offset by a 2.8% decrease in the consolidated number of preneed interment rights (property) sold. Additionally, we experienced a 1.9% increase in the consolidated average revenue per funeral contract, which was partially offset by a 1.8% decrease in consolidated funeral contract volume.
• Net income for the nine months ended September 30, 2025 increased $16.1 million compared to the nine months ended September 30, 2024. We experienced a $10.9 million decrease in general, administrative, and other expenses, a $3.2 million increase in the loss on divestitures and impairment charges, a $3.8 million decrease in interest expense, and a $0.3 million increase in gross profit contribution from our businesses; partially offset by a $0.7 million increase in income tax expense and a $0.4 million decrease in net gain on property damage, net of insurance claims.

REVISED 2025 OUTLOOK

		Revised 2025 Outlook (1)		Previous 2025 Outlook (1)
(in millions - except per share amounts)
Total revenue		$413 - $417		$410 - $420
Adjusted consolidated EBITDA(2)		$130 - $132		$129 - $134
Adjusted diluted EPS(2)		$3.25 - $3.30		$3.15 - $3.35
Adjusted free cash flow(2)(3)		$44 - $48		$40 - $50
(1) Includes the expected revenue impact of acquisitions and divestitures of certain non-core assets.
(2) Adjusted consolidated EBITDA, adjusted diluted EPS, and adjusted free cash flow are non-GAAP financial measures. We normally reconcile these non-GAAP financial measures from operating income, diluted earnings per share, and cash provided by operating activities; however, these measures calculated in accordance with GAAP are not currently accessible on a forward-looking basis. Our outlook for 2025 excludes the following: Gains or losses associated with divestitures, acquisition costs, severance and separation costs, impairment of goodwill, intangibles, and property, plant, and equipment, special vendor incentives, potential tax reserve adjustments and IRS payments and/or refunds, and other special items. The foregoing items could materially impact our forward-looking diluted earnings per share and/or our net cash provided by operating activities calculated in accordance with GAAP.
(3) Includes the expected impact of total capital expenditures (growth and maintenance).

CALL AND INVESTOR RELATIONS CONTACT

Carriage Services has scheduled a conference call for tomorrow, November 6, 2025 at 8:00 a.m. Central Time. To participate in the call, please dial 800-715-9871 (Conference ID - 3464721) or to listen live over the internet via webcast click link. An audio archive of the call will be available on demand via the Company's website at www.carriageservices.com.

Carriage Services is a leading provider of funeral and cemetery services and merchandise in the United States. Carriage operated 159 funeral homes in 24 states and 28 cemeteries in 9 states as of September 30, 2025. It is dedicated to delivering premier experiences through innovation, partnership, and elevated service.

CARRIAGE SERVICES, INC.
CONDENSED OPERATING AND FINANCIAL TREND REPORT
(in thousands - except per share amounts)
		Three months ended September 30,								Nine months ended September 30,
			2025				2024				2025				2024
Funeral operating revenue		$	55,853			$	56,606			$	179,962			$	176,650
Cemetery operating revenue			35,586				31,604				96,790				91,481
Financial revenue			9,042				7,107				24,563				20,716
Ancillary revenue			860				1,046				2,794				3,375
Total operating revenue			101,341				96,363				304,109				292,222
Divested revenue			1,401				4,324				7,849				14,276
Total revenue		$	102,742			$	100,687			$	311,958			$	306,498
Funeral operating EBITDA		$	20,558			$	21,590			$	71,021			$	70,953
Funeral operating EBITDA margin			36.8	%			38.1	%			39.5	%			40.2	%
Cemetery operating EBITDA			17,242				15,490				43,608				43,777
Cemetery operating EBITDA margin			48.5	%			49.0	%			45.1	%			47.9	%
Financial EBITDA			8,077				6,541				22,212				19,235
Financial EBITDA margin			89.3	%			92.0	%			90.4	%			92.9	%
Ancillary EBITDA			174				155				394				521
Ancillary EBITDA margin			20.2	%			14.8	%			14.1	%			15.4	%
Divested EBITDA			268				1,167				2,035				3,987
Divested EBITDA margin			19.1	%			27.0	%			25.9	%			27.9	%
Total field EBITDA		$	46,319			$	44,943			$	139,270			$	138,473
Total field EBITDA margin			45.1	%			44.6	%			44.6	%			45.2	%
Total overhead		$	13,738			$	14,199			$	41,479			$	53,980
Overhead as a percentage of revenue			13.4	%			14.1	%			13.3	%			17.6	%
Consolidated EBITDA		$	32,581			$	30,744			$	97,791			$	84,493
Consolidated EBITDA margin			31.7	%			30.5	%			31.3	%			27.6	%
Other expenses and interest
Depreciation & amortization		$	6,503			$	5,610			$	18,077			$	17,274
Non-cash stock compensation			2,012				1,850				5,857				4,521
Interest expense			6,946				8,035				21,278				25,071
Other			7,411				400				(241	)			1,597
Pretax income		$	9,709			$	14,849			$	52,820			$	36,030
Net tax expense			3,139				4,983				13,585				12,932
Net income		$	6,570			$	9,866			$	39,235			$	23,098
Special items(1)		$	7,884			$	342			$	(333	)		$	12,554
Tax on special items			2,531				114				99				4,168
Adjusted net income		$	11,923			$	10,094			$	38,803			$	31,484
Adjusted net income margin			11.6	%			10.0	%			12.4	%			10.3	%
Adjusted basic earnings per share		$	0.76			$	0.66			$	2.48			$	2.08
Adjusted diluted earnings per share		$	0.75			$	0.64			$	2.45			$	2.02
GAAP basic earnings per share		$	0.42			$	0.65			$	2.51			$	1.52
GAAP diluted earnings per share		$	0.41			$	0.63			$	2.47			$	1.48
Weighted average shares o/s - basic			15,490				15,011				15,398				14,951
Weighted average shares o/s - diluted			15,732				15,491				15,601				15,400
Reconciliation of Consolidated EBITDA to Adjusted consolidated EBITDA
Consolidated EBITDA		$	32,581			$	30,744			$	97,791			$	84,493
Special items(1)			395				—				395				12,456
Adjusted consolidated EBITDA		$	32,976			$	30,744			$	98,186			$	96,949
Adjusted consolidated EBITDA margin			32.1	%			30.5	%			31.5	%			31.6	%
(1)A detail of our Special items presented in this table can be found in the Reconciliation of Non-GAAP Financial Measures section of this press release.

CARRIAGE SERVICES, INC.
CONDENSED CONSOLIDATED BALANCE SHEET
(unaudited and in thousands)
	September 30, 2025				December 31, 2024
ASSETS
Current assets:
Cash and cash equivalents	$	1,248			$	1,165
Accounts receivable, net		37,515				30,193
Inventories		7,556				7,920
Prepaid and other current assets		4,396				4,123
Current assets held for sale		98				1,135
Total current assets		50,813				44,536
Preneed cemetery trust investments		102,011				98,120
Preneed funeral trust investments		121,849				106,219
Preneed cemetery receivables, net		63,312				50,958
Receivables from preneed funeral trusts, net		16,403				22,372
Property, plant, and equipment, net		284,480				273,004
Cemetery property, net		116,555				109,576
Goodwill		433,484				414,859
Intangible and other non-current assets, net		42,687				40,427
Operating lease right-of-use assets		12,946				14,953
Cemetery perpetual care trust investments		93,154				85,103
Non-current assets held for sale		5,056				19,453
Total assets	$	1,342,750			$	1,279,580
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current portion of debt and lease obligations	$	4,181			$	3,914
Accounts payable		17,247				15,427
Accrued and other liabilities		35,962				38,460
Current liabilities held for sale		144				240
Total current liabilities		57,534				58,041
Acquisition debt, net of current portion		6,069				4,895
Long-term liabilities held for sale		4,725				13,842
Credit facility		133,546				135,382
Senior notes		397,136				396,597
Obligations under finance leases, net of current portion		9,046				6,045
Obligations under operating leases, net of current portion		11,941				14,035
Deferred preneed cemetery revenue		75,821				61,767
Deferred preneed funeral revenue		38,566				39,261
Deferred tax liability		54,251				51,429
Other long-term liabilities		1,482				1,179
Deferred preneed cemetery receipts held in trust		102,011				98,120
Deferred preneed funeral receipts held in trust		117,155				106,219
Care trusts’ corpus		91,383				84,218
Total liabilities		1,100,666				1,071,030
Commitments and contingencies:
Stockholders’ equity:
Common stock		274				269
Additional paid-in capital		238,119				243,825
Retained earnings		282,444				243,209
Treasury stock		(278,753	)			(278,753	)
Total stockholders’ equity		242,084				208,550
Total liabilities and stockholders’ equity	$	1,342,750			$	1,279,580

CARRIAGE SERVICES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited and in thousands, except per share data)
	Three months ended September 30,							Nine months ended September 30,
		2025				2024			2025				2024
Revenue:
Service revenue	$	44,204			$	44,916		$	143,724			$	139,048
Property and merchandise revenue		48,633				47,419			140,732				142,511
Other revenue		9,905				8,352			27,502				24,939
		102,742				100,687			311,958				306,498
Field costs and expenses:
Cost of service		22,851				22,739			71,215				68,119
Cost of merchandise		31,919				31,492			96,684				95,423
Cemetery property amortization		2,755				1,957			6,824				6,273
Field depreciation expense		3,226				3,411			9,836				10,283
Regional and unallocated funeral and cemetery costs		4,095				4,085			12,590				12,172
Other expenses		1,653				1,513			4,789				4,483
		66,499				65,197			201,938				196,753
Gross profit		36,243				35,490			110,020				109,745
Corporate costs and expenses:
General, administrative, and other		12,177				12,206			36,163				47,047
Net loss on divestitures and impairment charges		6,559				387			788				1,955
Operating income		17,507				22,897			73,069				60,743
Interest expense		6,946				8,035			21,278				25,071
Net gain on property damage, net of insurance claims		—				—			—				(417	)
Other, net		852				13			(1,029	)			59
Income before income taxes		9,709				14,849			52,820				36,030
Expense for income taxes		3,431				4,930			16,882				11,962
(Benefit) expense related to discrete income tax items		(292	)			53			(3,297	)			970
Total expense for income taxes		3,139				4,983			13,585				12,932
Net income	$	6,570			$	9,866		$	39,235			$	23,098
Basic earnings per common share:	$	0.42			$	0.65		$	2.51			$	1.52
Diluted earnings per common share:	$	0.41			$	0.63		$	2.47			$	1.48
Dividends declared per common share:	$	0.1125			$	0.1125		$	0.3375			$	0.3375
Weighted average number of common and common equivalent shares outstanding:
Basic		15,490				15,011			15,398				14,951
Diluted		15,732				15,491			15,601				15,400

CARRIAGE SERVICES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited and in thousands)
	Nine months ended September 30,
		2025				2024
Cash flows from operating activities:
Net income	$	39,235			$	23,098
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		18,077				17,274
Provision for credit losses		2,753				2,303
Stock-based compensation expense		5,857				4,521
Deferred income tax (benefit) expense		3,308				(1,838	)
Amortization of intangibles		926				1,012
Amortization of debt issuance costs		384				495
Amortization and accretion of debt		420				402
Net loss on divestitures and impairment charges		788				1,955
Net gain on property damage, net of insurance claims		—				(417	)
Net gain on sale of excess real property		(1,047	)			—
Changes in operating assets and liabilities that provided (used) cash:
Accounts and preneed receivables		(18,405	)			(20,880	)
Inventories, prepaid, and other current assets		203				1,543
Intangible and other non-current assets		(2,100	)			(3,624	)
Preneed funeral and cemetery trust investments		(16,796	)			(6,367	)
Accounts payable		(3,477	)			3,189
Accrued and other liabilities		(1,493	)			5,909
Deferred preneed funeral and cemetery revenue		623				7,546
Deferred preneed funeral and cemetery receipts held in trust		17,312				6,595
Net cash provided by operating activities		46,568				42,716
Cash flows from investing activities:
Acquisitions of businesses and real property		(56,499	)			—
Proceeds from divestitures and sale of other assets		37,310				12,015
Proceeds from insurance claims		—				403
Capital expenditures		(12,715	)			(11,710	)
Net cash (used in) provided by investing activities		(31,904	)			708
Cash flows from financing activities:
Borrowings from the credit facility		113,800				32,100
Payments against the credit facility		(115,900	)			(71,200	)
Payment of debt issuance costs for the credit facility		—				(782	)
Payments on acquisition debt and obligations under finance leases		(427	)			(464	)
Proceeds from the exercise of stock options and employee stock purchase plan contributions		1,476				2,181
Taxes paid on restricted stock, performance award vestings, and exercise of stock options		(8,276	)			(424	)
Dividends paid on common stock		(5,254	)			(5,098	)
Net cash used in financing activities		(14,581	)			(43,687	)
Net increase (decrease) in cash and cash equivalents		83				(263	)
Cash and cash equivalents at beginning of period		1,165				1,523
Cash and cash equivalents at end of period	$	1,248			$	1,260

NON-GAAP FINANCIAL MEASURES

This earnings release uses Non-GAAP financial measures to present the financial performance of the Company. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, the Company’s reported operating results or cash flow from operations or any other measure of performance as determined in accordance with GAAP. We believe the Non-GAAP results are useful to investors to compare our results to previous periods, to provide insight into the underlying long-term performance trends in our business and to provide the opportunity to differentiate ourselves as the best consolidation platform in the industry against the performance of other funeral and cemetery companies.

Reconciliations of the Non-GAAP financial measures to GAAP measures are also provided in this earnings release.

The Non-GAAP financial measures used in this earnings release and the definitions of them used by the Company for our internal management purposes in this earnings release are described below.

• Special items are defined as charges or credits included in our GAAP financial statements that can vary from period to period and are not reflective of costs incurred in the ordinary course of our operations. The tax adjustment related to certain discrete items is not tax effected, all other special items are taxed at the operating tax rate.
• Adjusted net income is defined as net income after adjustments for special items that we believe do not directly reflect our core operations and may not be indicative of our normal business operations. Adjusted net income margin is defined as adjusted net income as a percentage of total revenue.
• Consolidated EBITDA is defined as operating income, plus depreciation and amortization expense, non-cash stock compensation and net loss on divestitures, disposals, and impairment charges. Consolidated EBITDA margin is defined as consolidated EBITDA as a percentage of total revenue.
• Adjusted consolidated EBITDA is defined as consolidated EBITDA after adjustments for severance and separation costs and other special items. Adjusted consolidated EBITDA margin is defined as adjusted consolidated EBITDA as a percentage of total revenue.
• Adjusted free cash flow is defined as cash provided by operating activities, adjusted by special items as deemed necessary, less cash for capital expenditures, which include cemetery property development costs, facility repairs and improvements, equipment, furniture, and vehicle purchases. Adjusted free cash flow margin is defined as adjusted free cash flow as a percentage of total revenue.
• Funeral operating EBITDA is defined as funeral gross profit, plus depreciation and amortization and regional and unallocated costs, less financial EBITDA, ancillary EBITDA, and divested EBITDA related to the funeral home segment. Funeral operating EBITDA margin is defined as funeral operating EBITDA as a percentage of funeral operating revenue.
• Cemetery operating EBITDA is defined as cemetery gross profit, plus depreciation and amortization and regional and unallocated costs, less financial EBITDA and divested EBITDA related to the cemetery segment. Cemetery operating EBITDA margin is defined as cemetery operating EBITDA as a percentage of cemetery operating revenue.
• Preneed cemetery sales is defined as cemetery property, merchandise, and services sold prior to death.
• Financial EBITDA is defined as financial revenue, less the related expenses. Financial revenue and the related expenses are presented within Other revenue and Other expenses, respectively, on the Consolidated Statement of Operations. Financial EBITDA margin is defined as financial EBITDA as a percentage of financial revenue.
• Ancillary revenue is defined as revenues from our ancillary businesses, which include a flower shop, a monument business, a pet cremation business and our online cremation businesses. Ancillary revenue and the related expenses are presented within Other revenue and Other expenses, respectively, on the Consolidated Statement of Operations.
• Ancillary EBITDA is defined as ancillary revenue, less expenses related to our ancillary businesses noted above. Ancillary EBITDA margin is defined as ancillary EBITDA as a percentage of ancillary revenue.
• Divested revenue is defined as revenues from certain funeral home and cemetery businesses that we have divested.
• Divested EBITDA is defined as divested revenue, less field level and financial expenses related to the divested businesses noted above. Divested EBITDA margin is defined as divested EBITDA as a percentage of divested revenue.
• Overhead expenses are defined as regional and unallocated funeral and cemetery costs and general, administrative, and other costs, excluding home office depreciation and non-cash stock compensation.
• Adjusted basic earnings per share (EPS) is defined as GAAP basic earnings per share, adjusted for special items.
• Adjusted diluted earnings per share (EPS) is defined as GAAP diluted earnings per share, adjusted for special items.

Funeral Operating EBITDA and Cemetery Operating EBITDA

Our operations are reported in two business segments: Funeral Home operations and Cemetery operations. Our operating level results highlight trends in volumes, revenue, operating EBITDA (the individual business’ cash earning power/locally controllable business profit), and operating EBITDA margin (the individual business’ controllable profit margin).

Funeral operating EBITDA and cemetery operating EBITDA are defined above. Funeral and cemetery gross profit is defined as revenue less “field costs and expenses” — a line item encompassing these areas of costs: i) funeral and cemetery field costs, ii) field depreciation and amortization expense, and iii) regional and unallocated funeral and cemetery costs. Funeral and cemetery field costs include cost of service, funeral and cemetery merchandise costs, operating expenses, labor, and other related expenses incurred at the business level.

Regional and unallocated funeral and cemetery costs presented in our GAAP statement consist primarily of salaries and benefits of our regional leadership, incentive compensation opportunity to our field employees, and other related costs for field infrastructure. These costs, while necessary to operate our businesses as currently operated within our unique, decentralized platform, are not controllable operating expenses at the field level as the composition, structure and function of these costs are determined by executive leadership in the Houston Support Center. These costs are components of our overall overhead platform presented within consolidated EBITDA and adjusted consolidated EBITDA. We do not directly or indirectly “push down” any of these expenses to the individual business’ field level margins.

We believe that our “regional and unallocated funeral and cemetery costs” are necessary to support our decentralized, high performance culture operating framework, and as such, are included in consolidated EBITDA and adjusted consolidated EBITDA, which more accurately reflects the cash earning power of the Company as an operating and consolidation platform.

Usefulness and Limitations of These Measures

When used in conjunction with GAAP financial measures, our total EBITDA, consolidated EBITDA and adjusted consolidated EBITDA are supplemental measures of operating performance that we believe are useful measures to facilitate comparisons to our historical consolidated and business level performance and operating results.

We believe our presentation of adjusted consolidated EBITDA, a key metric used internally by our management, provides investors with a supplemental view of our operating performance that facilitates analysis and comparisons of our ongoing business operations because it excludes items that may not be indicative of our ongoing operating performance.

Our total field EBITDA, consolidated EBITDA and adjusted consolidated EBITDA are not necessarily comparable to similarly titled measures used by other companies due to different methods of calculation. Our presentation is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. Funeral operating EBITDA, cemetery operating EBITDA, financial EBITDA, ancillary EBITDA and divested EBITDA are not consolidated measures of profitability.

Our total field EBITDA excludes certain costs presented in our GAAP statement that we do not allocate to the individual business’ field level margins, as noted above.

Consolidated EBITDA excludes certain items that we believe do not directly reflect our core operations and may not be indicative of our normal business operations. A reconciliation to operating income, the most directly comparable GAAP measure, is set forth below.

Therefore, these measures may not provide a complete understanding of our performance and should be reviewed in conjunction with our GAAP financial measures. We strongly encourage investors to review the Company's consolidated financial statements and publicly filed reports in their entirety and not rely on any single financial measure.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

The Non-GAAP financial measures are presented for additional information and are reconciled to their most comparable GAAP measures, all of which are reflected in the tables below.

Reconciliation of Operating income to Consolidated EBITDA and Adjusted consolidated EBITDA (in thousands) and Operating income margin to Adjusted consolidated EBITDA margin for the three and nine months ended September 30, 2025 and 2024:

		Three months ended September 30,								Nine months ended September 30,
			2025				2024				2025				2024
Operating income		$	17,507			$	22,897			$	73,069			$	60,743
Depreciation & amortization			6,503				5,610				18,077				17,274
Non-cash stock compensation			2,012				1,850				5,857				4,521
Net loss on divestitures and impairment charges			6,559				387				788				1,955
Consolidated EBITDA		$	32,581			$	30,744			$	97,791			$	84,493
Adjusted for:
Acquisition and divestiture expenses		$	395			$	—			$	395			$	—
Severance and separation costs(1)			—				—				—				6,228
Other special items(2)			—				—				—				6,228
Adjusted consolidated EBITDA		$	32,976			$	30,744			$	98,186			$	96,949
Total revenue		$	102,742			$	100,687			$	311,958			$	306,498
Operating income margin			17.0	%			22.7	%			23.4	%			19.8	%
Adjusted consolidated EBITDA margin			32.1	%			30.5	%			31.5	%			31.6	%
(1) Primarily represents the severance and performance award settlement expense recognized during the first quarter of 2024 for our former Executive Chairman of the Board per his Transition Agreement which was effective February 22, 2024 and severance expense recognized during the second quarter of 2024 for our former Chief Financial Officer per his Release and Separation Agreement which was effective July 1, 2024.
(2) Represents expenses related to the review of strategic alternatives.

Special items affecting Adjusted net income (in thousands) for the three and nine months ended September 30, 2025 and 2024:

		Three months ended September 30,							Nine months ended September 30,
			2025			2024				2025				2024
Acquisition and divestiture expenses		$	395		$	—			$	395			$	—
Severance and separation costs(1)			—			—				—				6,228
Equity award cancellation(2)			—			—				—				(1,336	)
Net loss (gain) on divestitures and sale of real estate(3)			5,845			(295	)			(2,068	)			1,214
Impairment of goodwill, intangibles, and PPE(4)			1,644			637				1,761				637
(Gain) loss on property damage, net of insurance claims(5)			—			—				—				(417	)
Tax adjustment related to certain discrete items			—			—				(421	)			—
Other special items(6)			—			—				—				6,228
Total		$	7,884		$	342			$	(333	)		$	12,554
(1)Primarily represents the severance and performance award settlement expense recognized during the first quarter of 2024 for our former Executive Chairman of the Board per his Transition Agreement which was effective February 22, 2024 and severance expense recognized during the second quarter of 2024 for our former Chief Financial Officer per his Release and Separation Agreement which was effective July 1, 2024.
(2)Primarily represents the stock compensation benefit recognized during the first quarter of 2024 for equity awards cancelled for our former Executive Chairman of the Board per his Transition Agreement, which was effective February 22, 2024.
(3)Represents the net gain or loss recognized for the sale of businesses and real estate during the periods presented.
(4)Represents impairment of assets held for sale.
(5)Represents the loss on property damage, net of insurance claims for property damaged by Hurricane Ian during the third quarter of 2022 and a fire that occurred during first quarter of 2023.
(6)Represents expenses related to the review of strategic alternatives.

Reconciliation of GAAP basic earnings per share to Adjusted basic earnings per share for the three and nine months ended September 30, 2025 and 2024:

		Three months ended September 30,						Nine months ended September 30,
			2025			2024			2025				2024
GAAP basic earnings per share		$	0.42		$	0.65		$	2.51			$	1.52
Special items			0.34			0.01			(0.03	)			0.56
Adjusted basic earnings per share		$	0.76		$	0.66		$	2.48			$	2.08

Reconciliation of GAAP diluted earnings per share to Adjusted diluted earnings per share for the three and nine months ended September 30, 2025 and 2024:

		Three months ended September 30,						Nine months ended September 30,
			2025			2024			2025				2024
GAAP diluted earnings per share		$	0.41		$	0.63		$	2.47			$	1.48
Special items			0.34			0.01			(0.02	)			0.54
Adjusted diluted earnings per share		$	0.75		$	0.64		$	2.45			$	2.02

Reconciliation of Cash provided by operating activities to Adjusted free cash flow (in thousands) for the three and nine months ended September 30, 2025 and 2024:

		Three months ended September 30,								Nine months ended September 30,
			2025				2024				2025				2024
Cash provided by operating activities		$	24,691			$	20,856			$	46,568			$	42,716
Cash used for capital expenditures			(6,706	)			(4,614	)			(12,715	)			(11,710	)
Free cash flow		$	17,985			$	16,242			$	33,853			$	31,006
Plus: incremental special items:
Acquisition and divestiture costs		$	395			$	—			$	395			$	—
Severance and separation costs(1)			248				606				2,132				2,866
Other special items(2)			417				833				2,917				2,006
Adjusted free cash flow		$	19,045			$	17,681			$	39,297			$	35,878
(1)Primarily represents the cash paid to our former Executive Chairman of the Board per his Transition Agreement which was effective February 22, 2024 and cash paid to our former Chief Financial Officer per his Release and Separation Agreement which was effective July 1, 2024.
(2)Represents cash paid for professional services related to the review of strategic alternatives.

CAUTIONARY STATEMENT ON FORWARD-LOOKING STATEMENTS

This earnings release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and contains certain statements and information that may constitute forward-looking statements within the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements made herein or elsewhere by us, or on our behalf, other than statements of historical information, should be deemed to be forward-looking statements, which include, but are not limited to, statements regarding any projections of earnings, revenue, cash flow, adjusted EBITDA, investment returns, capital allocation, debt levels, equity performance, death rates, market share growth, cost inflation, overhead, preneed sales or other financial items; any statements of the plans, strategies, objectives and timing of management for future operations or financing activities, including, but not limited to, capital allocation, organizational performance, execution of our strategic objectives and growth strategy, planned acquisitions and divestitures, technology improvements, product development, the ability to obtain credit or financing, anticipated integration, performance and other benefits of recently completed and anticipated acquisitions, and cost management and debt reductions; any statements of the plans, timing and objectives of management for acquisition and divestiture activities; any statements regarding future economic conditions and market conditions or performance; any statements of belief; and any statements of assumptions underlying any of the foregoing and are based on our current expectations and beliefs concerning future developments and their potential effect on us. Words such as “may”, “will”, “estimate”, “intend”, “believe”, “expect”, “seek”, “project”, “forecast”, “foresee”, “should”, “would”, “could”, “plan”, “anticipate” and other similar words may be used to identify forward-looking statements; however, the absence of these words does not mean that the statements are not forward-looking. While we believe these assumptions concerning future events are reasonable as and when made, there can be no assurance that future developments affecting us will be those that we anticipate. All comments concerning our expectations for future revenue and operating results are based on our forecasts for our existing operations and do not include the potential impact of any future acquisitions or divestitures, except where specifically noted. Our forward-looking statements involve significant risks and uncertainties (some of which are beyond our control) and assumptions that could cause actual results to differ materially from our historical experience and our present expectations or projections. Important factors that could cause actual results to differ materially from those in the forward-looking statements include but are not limited to: our ability to find and retain skilled personnel; the effects of our talent recruitment efforts, incentive and compensation plans and programs, including such effects on our Standards Operating Model and the Company’s operational and financial performance; our ability to execute our strategic objectives and growth strategy, if at all; the potential adverse effects on the Company’s business, financial and equity performance if management fails to meet the expectations of its strategic objectives and growth plan; the execution of our Standards Operating and strategic acquisition frameworks; the effects of competition; changes in the number of deaths in our markets, which are not predictable from market to market or over the short term; changes in consumer preferences and our ability to adapt to or meet those changes; our ability to generate preneed sales, including implementing our cemetery portfolio sales strategy, product development and optimization plans; the investment performance of our funeral and cemetery trust funds; fluctuations in interest rates, including, but not limited to, the effects of increased borrowing costs under our Credit Facility and our ability to minimize such costs, if at all; the effects of inflation on our operational and financial performance, including the increased overall costs for our goods and services, the impact on customer preferences as a result of changes in discretionary income, and our ability, if at all, to mitigate such effects; our ability to obtain debt or equity financing on satisfactory terms to fund additional acquisitions, expansion projects, working capital requirements and the repayment or refinancing of indebtedness; our ability to meet the timing, objectives and expectations related to our capital allocation framework, including our forecasted rates of return, planned uses of free cash flow and future capital allocation, including debt repayment plans, internal growth projects, potential strategic acquisitions, dividend increases, or share repurchases; our ability to meet the projected financial and performance guidance to our full year outlook, if at all; the timely and full payment of death benefits related to preneed funeral contracts funded through life insurance contracts; the financial condition of third-party insurance companies that fund our preneed funeral contracts; increased or unanticipated costs, such as merchandise, goods, insurance or taxes, and our ability to mitigate or minimize such costs, if at all; our level of indebtedness and the cash required to service our indebtedness; changes in federal income tax laws and regulations and the implementation and interpretation of these laws and regulations by the Internal Revenue Service; effects of the application of other applicable laws and regulations, including changes in such regulations or the interpretation thereof; the potential impact of epidemics and pandemics, including any new or emerging public health threats, on customer preferences and on our business; government, social, business and other actions that have been and will be taken in response to pandemics and epidemics, including potential responses to any new or emerging public health threats; effects and expense of litigation; consolidation in the funeral and cemetery industry; our ability to identify and consummate strategic acquisitions on commercially reasonable terms and on a timely basis, if at all, and successfully integrate acquired businesses with our existing businesses, including expected performance and financial improvements related thereto; our ability to successfully complete any non-core asset divestitures on commercially reasonable terms and on a timely basis, if at all, and the impact of any such divestitures on our Company, including any financial, operational, tax or other similar impacts related thereto; the effects of any imposition or changes in tariffs or trade agreements including, but not limited to, any increased inflationary pressures on the economy or costs for our goods, and our ability, if at all, to mitigate such effects; economic, financial and stock market fluctuations; interruptions or security lapses of our information technology, including any cybersecurity or ransomware incidents; adverse developments affecting the financial services industry; acts of war or terrorists acts and the governmental or military response to such acts; our failure to maintain effective control over financial reporting; and other factors and uncertainties inherent in the funeral and cemetery industry.

For additional information regarding known material factors that could cause our actual results to differ from our projected results, please see “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2024, and in other filings with the SEC, available at www.carriageservices.com. Investors are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date of the applicable communication and we undertake no obligation to publicly update or revise any forward-looking statements except to the extent required by applicable law.

FAQ

What were Carriage Services (CSV) Q3 2025 revenues and growth rates?

Q3 2025 total revenue was $102.7M, up 2.0% year-over-year; total operating revenue rose 5.2%.

How did Carriage Services (CSV) report adjusted diluted EPS for Q3 2025?

Adjusted diluted EPS was $0.75 in Q3 2025, a 17.2% increase from $0.64 a year earlier.

What drove Carriage Services (CSV) cemetery revenue growth in Q3 2025?

Cemetery operating revenue rose 12.6%, led by a 21.4% increase in preneed sales and a higher average preneed price.

Did Carriage Services (CSV) change its 2025 guidance on November 5, 2025?

The company published a revised 2025 outlook range and effectively confirmed the midpoint for adjusted diluted EPS and other metrics within the disclosed ranges.

How did acquisitions and divestitures affect Carriage Services (CSV) in Q3 2025?

Carriage completed acquisitions that served over 2,600 families and generated >$15M last year while divesting eight non-core properties; divestitures increased related losses.

When is Carriage Services (CSV) holding its Q3 2025 conference call?

The conference call is scheduled for November 6, 2025 at 8:00 a.m. Central Time (Conference ID 3464721) with a live webcast available on the company website.