CARRIAGE SERVICES INC

For the period ended Mar 31, 2026. Filed May 7, 2026.

About 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.

Mar 31, 2026 · Filed May 7, 2026

CSV$26.80-5.0%Stored close · as of Nov 6, 2026

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Contents

3. Segment Reporting

SEGMENT REPORTING

Our Chief Operating Decision Maker (the “CODM”), who is the Chief Executive Officer, utilizes segment adjusted operating profit for resource allocation across segments, particularly during the annual budgeting and forecasting processes. The CODM examines variances on a monthly basis to make informed decisions regarding capital and personnel distribution among segments. Additionally, the CODM employs segment gross profit for product pricing evaluation and uses segment adjusted operating profit to assess each segment’s performance by comparing results and return on assets against expected outcomes. The CODM does not review disaggregated assets by segment; therefore assets by segment is not provided.

The tables below present revenue, disaggregated by major source for each of our reportable segments, as well as, significant segment expenses, other segment expenses, operating income (loss), depreciation and amortization, regional and unallocated funeral and cemetery costs, and gross profit by segment as follows: (in thousands) for the three months ended March 31, 2026 and 2025, respectively:

Three months ended, March 31, 2026 · Funeral · Cemetery · Total
Revenue
Services	$45,492	$5,430		$50,922
Merchandise	20,513	4,165		24,678
Cemetery property	—	21,214		21,214
Other revenue	5,709	3,597		9,306
Total revenue	71,714	34,406		106,120
Less:
Salaries, benefits, and commission expenses	17,873	10,134		28,007
Cost of merchandise	5,592	2,001		7,593
Allocated overhead costs(1)	2,959	1,161		4,120
Facilities and grounds expenses	3,071	1,251		4,322
General and administrative expenses(2)	3,429	1,053		4,482
Other segment expenses(3)	7,192	1,970		9,162
Adjusted operating profit (4)	$31,598	$16,836		$48,434
Reconciliation of Adjusted operating profit to Gross profit
Cemetery property amortization	$—	$1,995		$1,995
Field depreciation expense	2,886	522		3,408
Regional and unallocated funeral and cemetery costs	2,331	2,060		4,391
Gross profit	$26,381	$12,259		$38,640
Corporate costs and expenses:
General and administrative expenses			$13,085
Net loss on divestitures and impairment charges			278
Operating income			$25,277
Interest expense			$6,884
Other, net			(6)
Income before income taxes			$18,399
(1) Allocated overhead costs include: property insurance costs, property tax expenses, and corporate overhead fees allocated to the field, such as information technology, human resources, legal, and finance.
(2) General and administrative expenses include: professional services, travel and meals expenses, computer software expenses, and office supplies.
(3) Other segment expenses primarily include transportation costs, other funeral costs, and non-payroll related promotional costs.
(4) During the first quarter of 2026, the Company changed its measure of segment profit from segment operating income to segment adjusted operating profit. The change reflects how management now evaluates segment performance and allocates resources. The change primarily relates to the exclusion of depreciation, amortization, and certain corporate allocations. Prior-period amounts have been recast for comparability.

Three months ended March 31, 2025 · Funeral · Cemetery · Total
Revenue
Services	$47,949	$5,061		$53,010
Merchandise	21,556	4,039		25,595
Cemetery property	—	19,991		19,991
Other revenue	5,114	3,359		8,473
Total revenue	74,619	32,450		107,069
Less:
Salaries, benefits, and commission expenses	17,977	9,919		27,896
Cost of merchandise	6,270	1,826		8,096
Allocated overhead costs(1)	3,227	1,331		4,558
Facilities and grounds expenses	2,929	1,205		4,134
General and administrative expenses(2)	3,021	895		3,916
Other segment expenses(3)	8,016	2,226		10,242
Adjusted operating profit (4)	$33,179	$15,048		$48,227
Reconciliation of Adjusted operating profit margin to Gross profit
Cemetery property amortization	$—	$1,828		$1,828
Field depreciation expense	2,826	496		3,322
Regional and unallocated funeral and cemetery costs	3,150	2,085		5,235
Gross profit	$27,203	$10,639		$37,842
Corporate costs and expenses:
General and administrative expenses			$12,048
Net loss on divestitures and impairment charges			(5,770)
Operating income			$31,564
Interest expense			$7,298
Other, net			(1,988)
Income before income taxes			$26,254
(1) Allocated overhead costs include: property insurance costs, property tax expenses, and corporate overhead fees allocated to the field, such as information technology, human resources, legal, and finance.
(2) General and administrative expenses include: professional services, travel and meals expenses, computer software expenses, and office supplies.
(3) Other segment expenses primarily include transportation costs, other funeral costs, and non-payroll related promotional costs.
(4) During the first quarter of 2026, the Company changed its measure of segment profit from segment operating income to segment adjusted operating profit. The change reflects how management now evaluates segment performance and allocates resources. The change primarily relates to the exclusion of depreciation, amortization, and certain corporate allocations. Prior-period amounts have been recast for comparability.

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