SERVICE CORP INTERNATIONAL
For the period ended Sep 30, 2025. Filed Oct 30, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2025 · Filed Oct 30, 2025
SCI$73.74-2.3%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-06-30; filed 2025-07-31.
0001628280-25-036985
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe CompanyFinancial Condition, Liquidity, and Capital ResourcesCash FlowResults of Operations - Three and Six Months EndedCritical Accounting PoliciesCautionary Statement on Forward-Looking StatementsCurrent report: 10-Q
Period ended 2025-09-30; filed 2025-10-30.
0000089089-25-000083
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe CompanyFinancial Condition, Liquidity, and Capital ResourcesCash FlowResults of Operations - Three and Nine Months EndedCritical Accounting PoliciesCautionary Statement on Forward-Looking StatementsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 217 previous paragraphs and 212 current paragraphs.
135 unchanged; 67 reworded; 9 added; 8 removed; 7 previous and 1 current paragraphs rearranged.
Tables are not compared: 11 previous and 11 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (9)
Current report
In addition to the above items, the decrease from prior year is primarily due to lower funeral gross profit on lower services performed, and higher tax rate. This decline was partially offset by higher cemetery gross profit, lower corporate general and administrative expenses, and lower share count over the prior year quarter.
Current report
Adjusted comparable funeral revenue decreased $0.4 million due to a 3.1% decrease in funeral services performed, partially offset by a 3.1% increase in average revenue per service. The total comparable cremation rate increased slightly by 50 basis points to 64.4%.
Current report
Core general agency and other revenue grew $3.1 million, due to an 8.7% increase in core production primarily driven by higher preneed insurance production.
Current report
The comparable cemetery revenue increased $31.0 million, or 6.9%, for the three months ended September 30, 2025 primarily due to higher comparable core revenue of $27.5 million and higher comparable other revenue of $3.5 million. The comparable core revenue increase of $27.5 million was primarily due to a $27.3 million increase in recognized preneed revenue, from higher recognized preneed property revenue of $21.3 million and higher recognized preneed merchandise and service revenue of $6.0 million. Total recognized preneed revenue benefited from growth in comparable cemetery preneed sales production of $30.3 million, or 9.6%.
Current report
36 Service Corporation International
Current report
Nine Months Ended September 30, 2025 and 2024
Current report
Our effective tax rate was 26.1% and 23.1% for the nine months ended September 30, 2025 and 2024, respectively. The higher effective tax rate in the current period was primarily due to a change in estimate recorded in the current year related to the finalization of the 2024 tax return, as well as less excess tax benefit recognized upon the settlement of employee share-
Removed paragraphs (8)
Previous report
In addition to the above items, higher funeral operating results and effective cost management drove gross profit growth and margin expansion over the prior year quarter. Higher gross profit and lower share count more than offset the increase in corporate general and administrative expenses.
Previous report
The comparable cemetery revenue increased $1.8 million, or 0.4%, for the three months ended June 30, 2025 primarily due to higher comparable core revenue of $0.6 million and higher comparable other revenue of $1.2 million. Comparable core revenue was higher by $0.6 million due in large measure to an increase in atneed revenue. Atneed revenue increased $2.7 million due to increased atneed property production of 4.4%. This was partially offset by a $2.1 million decrease in recognized preneed revenue. The decrease was driven by a decline in recognized preneed property revenue related to the timing of revenue recognition on newly constructed property versus the prior year quarter. Preneed sales production increased $18.5 million, or 5.3%, due to an increase in both large and core sales, which will benefit us in future periods, as this current undeveloped property sold is constructed and recognized.
Previous report
Our effective tax rate was 25.2% and 25.3% for the three months ended June 30, 2025 and 2024, respectively. The lower effective tax rate in the current period was primarily due to non-taxable gains on the cash surrender value of certain life insurance policies as a result of gains in the financial markets.
Previous report
Six Months Ended June 30, 2025 and 2024
Previous report
40 Service Corporation International
Reworded paragraphs (67)
Previous wording
We are North America’s largest provider of deathcare products and services, with a network of funeral service locations and cemeteries unequaled in geographic scale and reach. At June 30, 2025, we owned and operated 1,485 funeral service locations and 498 cemeteries (of which 310 are combination locations), in 44 states, eight Canadian provinces, the District of Columbia, and Puerto Rico. Our funeral and cemetery operations consist of funeral service locations, cemeteries, funeral service/cemetery combination locations, crematoria, and other related businesses, which enable us to serve a wide array of customer needs. We sell cemetery property and funeral and cemetery merchandise and services at the time of need and on a preneed basis. Our financial position is enhanced by our $16.4 billion backlog of future revenue from both trust and insurance-funded preneed sales at June 30, 2025. Preneed selling provides us with a strategic opportunity to gain future market share. We also believe it adds to the stability and predictability of our revenue and cash flows. While revenue on the majority of preneed merchandise and service sales is deferred until the time of need, sales of preneed cemetery property provide opportunities for full current revenue recognition to the extent that the property is developed and available for use.
Current wording
We are North America’s largest provider of deathcare products and services, with a network of funeral service locations and cemeteries unequaled in geographic scale and reach. At September 30, 2025, we owned and operated 1,487 funeral service locations and 499 cemeteries (of which 312 are combination locations), in 44 states, eight Canadian provinces, the District of Columbia, and Puerto Rico. Our funeral and cemetery operations consist of funeral service locations, cemeteries, funeral service/cemetery combination locations, crematoria, and other related businesses, which enable us to serve a wide array of customer needs. We sell cemetery property and funeral and cemetery merchandise and services at the time of need and on a preneed basis. Our financial position is enhanced by our $16.8 billion backlog of future revenue from both trust and insurance-funded preneed sales at September 30, 2025. Preneed selling provides us with a strategic opportunity to gain future market share. We also believe it adds to the stability and predictability of our revenue and cash flows. While revenue on the majority of preneed merchandise and service sales is deferred until the time of need, sales of preneed cemetery property provide opportunities for full current revenue recognition to the extent that the property is developed and available for use.
Previous wording
Since the start of 2025, the U.S. government has announced and rescinded multiple tariffs on several foreign jurisdictions, which has increased uncertainty regarding the ultimate effect of the tariffs on economic conditions. Current uncertainties about tariffs and their effects on trading relationships may affect costs for and availability of raw materials or contribute to inflation in the markets in which we operate. Although we are continuing to monitor the economic effects of such announcements, as well as opportunities to mitigate their related impacts, costs and other effects associated with the tariffs remain uncertain.
Current wording
Since the start of 2025, the U.S. government has announced and rescinded multiple tariffs on several foreign jurisdictions, which have led, and may continue to lead, to the imposition of retaliatory tariffs or other measures taken by foreign jurisdictions. These tariffs and retaliatory tariffs have increased uncertainty regarding the ultimate scope, durability and effect of existing and future tariffs on economic conditions. Current uncertainties about tariffs and their effects on trading relationships may affect costs for and availability of raw materials or contribute to inflation in the markets in which we operate. Although we are continuing to monitor the economic effects of such announcements, as well as opportunities to mitigate their related impacts, costs and other effects associated with the tariffs remain uncertain.
Previous wording
We rely on cash flow from operations as a significant source of liquidity. Our cash flow from operating activities provided $477.6 million in the first six months of 2025. As of June 30, 2025, we had $1,189.0 million in remaining borrowing capacity under our Bank Credit Facility.
Current wording
We rely on cash flow from operations as a significant source of liquidity. Our cash flow from operating activities provided $729.9 million in the first nine months of 2025. As of September 30, 2025, we had $1,214.0 million in remaining borrowing capacity under our Bank Credit Facility.
Previous wording
Net cash provided by operating activities was $477.6 million and $417.0 million for the six months ended June 30, 2025 and 2024, respectively.
Current wording
Net cash provided by operating activities was $729.9 million and $680.8 million for the nine months ended September 30, 2025 and 2024, respectively.
Previous wording
The $60.6 million increase in operating cash flows from 2024 comprises:
Current wording
The $49.1 million increase in operating cash flows from 2024 comprises:
Previous wording
•a $43.4 million increase in General Agency (GA) commission and other receipts,
Current wording
•a $120.1 million increase in cash receipts from customers, General Agency (GA) commission and other receipts,
Previous wording
•a $22.3 million decrease in payments for certain legal matters,
Current wording
•a $27.8 million decrease in payments for certain legal matters,
Previous wording
•a $37.7 million decrease in employee compensation payments,
Current wording
•a $12.5 million decrease in employee compensation payments,
Previous wording
•a $0.5 million decrease in cash interest payments, partially offset by
Current wording
•a $13.0 million decrease in cash interest payments, partially offset by
Previous wording
Cash flows from investing activities used $191.2 million and $235.8 million for the six months ended June 30, 2025 and 2024, respectively. The $44.6 million decreased outflow in 2025 over 2024 is primarily due to the following:
Current wording
Cash flows from investing activities used $341.4 million and $484.6 million for the nine months ended September 30, 2025 and 2024, respectively. The $143.2 million decreased outflow in 2025 over 2024 is primarily due to the following:
Previous wording
•a $10.2 million decrease in cash spent on business acquisitions,
Current wording
•a $96.8 million decrease in cash spent on business acquisitions,
Previous wording
•a $16.7 million decrease in cash spent on real estate acquisitions,
Current wording
•a $46.7 million decrease in cash spent on real estate acquisitions,
Previous wording
•a $9.8 million decrease in other investing activities primarily for investments in renewable energy tax credits,
Current wording
•a $12.4 million decrease in other investing activities primarily for investments in renewable energy tax credits,
Previous wording
•a $2.7 million decrease in net payments for Company-owned life insurance policies, and
Current wording
•an $8.8 million increase in net proceeds for Company-owned life insurance policies
Previous wording
•a $15.4 million increase in cash receipts from divestitures and asset sales,
Current wording
•a $6.6 million increase in cash receipts from divestitures and asset sales, and
Previous wording
•a $9.8 million decrease in total capital expenditures, which comprises:
Current wording
•a $4.7 million decrease in total capital expenditures, which comprises:
Previous wording
•a $16.7 million net decrease in maintenance capital expenditures, which includes:
Current wording
•a $14.7 million net decrease in maintenance capital expenditures, which includes:
Previous wording
•a $4.5 million decrease in expenditures for capital improvements at existing field locations,
Current wording
•a $6.7 million decrease in expenditures for capital improvements at existing field locations,
Previous wording
•a $9.6 million decrease in expenditures for digital investments and corporate, and
Current wording
•a $6.7 million decrease in expenditures for digital investments and corporate, and
Previous wording
•a $2.6 million decrease in expenditures for cemetery property development,
Current wording
•a $1.3 million decrease in expenditures for cemetery property development, partially offset by
Previous wording
•a $6.9 million increase in expenditures for growth capital expenditures/construction of new funeral service locations,
Current wording
•a $10.0 million increase in expenditures for growth capital expenditures/construction of new funeral service locations,
Previous wording
•a $1.8 million increase in net proceeds for Company-owned life insurance policies, partially offset by
Current wording
•a $2.8 million decrease in net payments for Company-owned life insurance policies, partially offset by
Previous wording
•an $21.8 million increase in capital expenditures related to construction of our new corporate headquarters.
Current wording
•a $35.6 million increase in capital expenditures related to construction of our new corporate headquarters which is financed through a separate construction loan facility.
Previous wording
Financing activities used $243.0 million for the six months ended June 30, 2025 compared to using $215.2 million for the same period in 2024. The $27.8 million increased outflow from 2025 over 2024 is primarily due to the following:
Current wording
Financing activities used $368.9 million for the nine months ended September 30, 2025 compared to using $230.8 million for the same period in 2024. The $138.1 million increased outflow from 2025 over 2024 is primarily due to the following:
Previous wording
•a $147.6 million increase in purchase of Company common stock,
Current wording
•a $204.6 million increase in purchase of Company common stock,
Previous wording
•a $13.8 million decrease in proceeds from exercises of stock options, and
Current wording
•a $22.0 million decrease in proceeds from exercises of stock options, and
Previous wording
•a $3.8 million increase in payments of dividends, partially offset by
Current wording
•a $5.2 million increase in payments of dividends, partially offset by
Previous wording
•a $117.1 million increase in debt proceeds, net of repayments,
Current wording
•a $52.4 million increase in debt proceeds, net of repayments,
Previous wording
•a $17.1 million increase in borrowings from our corporate headquarters debt facility, and
Current wording
•a $33.5 million increase in borrowings from our corporate headquarters debt facility, and
Previous wording
Except for cemetery pre-construction bonds (which are irrevocable), the surety companies generally have the right to cancel the surety bonds at any time with appropriate notice. In the event a surety company were to cancel the surety bond, we are required to obtain replacement surety assurance from another surety company or fund a trust for an amount generally less
Current wording
Except for cemetery pre-construction bonds (which are irrevocable), the surety companies generally have the right to cancel the surety bonds at any time with appropriate notice. In the event a surety company were to cancel the surety bond, we are required to obtain replacement surety assurance from another surety company or fund a trust for an amount generally less than the posted bond amount. Management does not expect that we will be required to fund material future amounts related to these surety bonds due to a lack of surety capacity or surety company non-performance.
Previous wording
During the second quarter of 2025, we replaced our letters of credit with a $46.0 million insurance product and a related indemnity obligation with a large insurance company.
Current wording
During the second quarter of 2025, we replaced our letters of credit with a $46.0 million surety bond and a related indemnity obligation with a large insurance company, which is included in Other bonds in the table above.
Previous wording
The table below details our results of insurance-funded preneed production and maturities.
Current wording
The table below details our results of insurance-funded preneed and third-party preneed production and maturities.
Previous wording
The fair value of our trust investments was based on a combination of quoted market prices, observable inputs such as interest rates or yield curves, and appraisals. As of June 30, 2025, the difference between the backlog and asset market amounts represents $0.17 billion related to contracts for which we have posted surety bonds as financial assurance in lieu of trusting, $1.39 billion collected from customers that were not required to be deposited into trusts, and $0.20 billion in allowable cash distributions from trust assets partially offset by $1.55 billion in amounts due on delivered property and merchandise. As of June 30, 2025, the fair value of the total backlog comprised $4.83 billion related to cemetery contracts and $11.59 billion related to funeral contracts. As of June 30, 2025, the fair value of the assets associated with the backlog of trust-funded deferred revenue comprised $4.86 billion related to cemetery contracts and $2.92 billion related to funeral contracts. As of June 30, 2025, the backlog of insurance-funded contracts of $8.43 billion was equal to the proceeds we expect to receive from the associated insurance policies when the corresponding contract is serviced.
Current wording
The fair value of our trust investments was based on a combination of quoted market prices, observable inputs such as interest rates or yield curves, and appraisals. As of September 30, 2025, the difference between the backlog and asset market amounts represents $0.17 billion related to contracts for which we have posted surety bonds as financial assurance in lieu of trusting, $1.40 billion collected from customers that were not required to be deposited into trusts, and $0.20 billion in allowable cash distributions from trust assets partially offset by $1.54 billion in amounts due on delivered property and merchandise. As of September 30, 2025, the fair value of the total backlog comprised $4.97 billion related to cemetery contracts and $11.80 billion related to funeral contracts. As of September 30, 2025, the fair value of the assets associated with the backlog of trust-funded deferred revenue comprised $5.00 billion related to cemetery contracts and $2.98 billion related to funeral contracts. As of September 30, 2025, the backlog of insurance-funded contracts of $8.56 billion was equal to the proceeds we expect to receive from the associated insurance policies when the corresponding contract is serviced.
Previous wording
During the six months ended June 30, 2025, the Standard and Poor’s 500 Index increased 6.2% and the Bloomberg’s US Aggregate Bond Index increased 4.0%. This compares to SCI trusts that increased 7.8% during the same period. The SCI trusts have a diversified allocation of approximately 60% equities, 26% fixed income securities, 10% alternative and other investments with the remaining 4% available in money market funds.
Current wording
During the nine months ended September 30, 2025, the Standard and Poor’s 500 Index increased 14.8% and the Bloomberg’s US Aggregate Bond Index increased 6.1%. This compares to SCI trusts that increased 13.0% during the same period. The SCI trusts have a diversified allocation of approximately 61% equities, 26% fixed income securities, 9% alternative and other investments with the remaining 4% available in money market funds.
Previous wording
Recognized trust fund income (realized and unrealized) related to our preneed trust investments was $95.9 million and $88.6 million for the six months ended June 30, 2025 and 2024, respectively. Recognized trust fund income (realized and unrealized) related to our cemetery perpetual care trust investments was $53.1 million and $48.8 million for the six months ended June 30, 2025 and 2024, respectively. The increase in recognized trust fund income is primarily due to the market returns experienced over the trailing twelve month period.
Current wording
Recognized trust fund income (realized and unrealized) related to our preneed trust investments was $146.9 million and $134.3 million for the nine months ended September 30, 2025 and 2024, respectively. Recognized trust fund income (realized and unrealized) related to our cemetery perpetual care trust investments was $80.8 million and $73.5 million for the nine months ended September 30, 2025 and 2024, respectively. The increase in recognized trust fund income is primarily due to the market returns experienced over the trailing twelve month period.
Showing the first 40 of 67 pairs. Open the source sections for the rest.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
based awards. The effective tax rate was higher than the federal statutory tax rate of 21.0% primarily due to state and foreign tax expense.
Rearranged previous paragraphs (7)
Previous report — wording carried elsewhere
•a $50.3 million increase in cash receipts from customers,
Previous report — wording carried elsewhere
than the posted bond amount. Management does not expect that we will be required to fund material future amounts related to these surety bonds due to a lack of surety capacity or surety company non-performance.
Previous report — wording carried elsewhere
We recognized a $4.1 million net pre-tax gain on asset divestitures and impairments in the second quarter of 2025 compared to a $1.9 million net pre-tax gain in the second quarter of 2024 on asset divestitures due to non-strategic asset divestitures.
Previous report — wording carried elsewhere
Adjusted comparable funeral revenue increased $32.5 million, or 3.2%, primarily due to a 2.7% increase in total average revenue per service, and a 0.5% increase in total services performed. The total comparable cremation rate increased 50 basis points over prior year to 64.2%.
Previous report — wording carried elsewhere
Core general agency and other revenue grew $15.7 million, primarily due to growth in general agency revenue from higher commission rates as a result of the change in our preferred preneed insurance provider.
Previous report — wording carried elsewhere
Gains on Divestitures and Impairment Charges, Net
Previous report — wording carried elsewhere
Other income, net increased $2.9 million to $7.1 million for the six months ended June 30, 2025 primarily due to the change in foreign currency exchange rates compared to the prior year.