CARRIAGE SERVICES INC

For the period ended Jun 30, 2026. Filed Aug 6, 2026.

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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.

Jun 30, 2026 · Filed Aug 6, 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 are 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 and six months ended June 30, 2026 and 2025, respectively:

Three months ended June 30, 2026 · Funeral · Cemetery · Total
Revenue
Services	$40,414	$5,191		$45,605
Merchandise	17,912	4,433		22,345
Cemetery property	—	24,804		24,804
Other revenue	7,366	2,829		10,195
Total revenue	$65,692	$37,257		$102,949
Less:
Salaries, benefits, and commission expenses	$17,607	$11,221		$28,828
Cost of merchandise	3,328	2,069		5,397
Allocated overhead costs(1)	3,039	1,244		4,283
Facilities and grounds expenses	2,774	1,564		4,338
General and administrative expenses(2)	2,818	1,024		3,842
Other segment expenses(3)	8,946	2,133		11,079
Adjusted operating profit (4)	$27,180	$18,002		$45,182
Reconciliation of Adjusted operating profit margin to Gross profit
Cemetery property amortization	$—	$3,129		$3,129
Field depreciation expense	2,829	528		3,357
Regional and unallocated funeral and cemetery costs	2,096	1,556		3,652
Gross profit	$22,255	$12,789		$35,044
Corporate costs and expenses:
General and administrative expenses			$11,001
Net loss on divestitures and impairment charges			90
Operating income			$23,953
Interest expense			$6,683
Other, net			113
Income before income taxes			$17,157
(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 June 30, 2025 · Funeral · Cemetery · Total
Revenue
Services	$41,308	$5,202		$46,510
Merchandise	18,264	4,330		22,594
Cemetery property	—	23,919		23,919
Other revenue	5,675	3,449		9,124
Total revenue	$65,247	$36,900		$102,147
Less:
Salaries, benefits, and commission expenses	$17,011	$10,533		$27,544
Cost of merchandise	5,276	2,135		7,411
Allocated overhead costs(1)	3,387	1,367		4,754
Facilities and grounds expenses	2,709	1,561		4,270
General and administrative expenses(2)	2,703	956		3,659
Other segment expenses(3)	7,911	1,874		9,785
Adjusted operating profit (4)	$26,250	$18,474		$44,724
Reconciliation of Adjusted operating profit margin to Gross profit
Cemetery property amortization	$—	$2,241		$2,241
Field depreciation expense	2,835	453		3,288
Regional and unallocated funeral and cemetery costs	1,736	1,524		3,260
Gross profit	$21,679	$14,256		$35,935
Corporate costs and expenses:
General and administrative expenses			$11,938
Net loss on divestitures and impairment charges			(1)
Operating income			$23,998
Interest expense			$7,034
Other, net			107
Income before income taxes			$16,857
(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.

Six months ended, June 30, 2026 · Funeral · Cemetery · Total
Revenue
Services	$85,906	$10,621		$96,527
Merchandise	38,425	8,598		47,023
Cemetery property	—	46,018		46,018
Other revenue	13,075	6,426		19,501
Total revenue	$137,406	$71,663		$209,069
Less:
Salaries, benefits, and commission expenses	$35,480	$21,355		$56,835
Cost of merchandise	8,919	4,070		12,989
Allocated overhead costs(1)	5,998	2,405		8,403
Facilities and grounds expenses	5,845	2,815		8,660
General and administrative expenses(2)	6,246	2,077		8,323
Other segment expenses(3)	16,140	4,103		20,243
Adjusted operating profit (4)	$58,778	$34,838		$93,616
Reconciliation of Adjusted operating profit to Gross profit
Cemetery property amortization	$—	$5,124		$5,124
Field depreciation expense	5,715	1,050		6,765
Regional and unallocated funeral and cemetery costs	4,427	3,616		8,043
Gross profit	$48,636	$25,048		$73,684
Corporate costs and expenses:
General and administrative expenses			$24,086
Net loss on divestitures and impairment charges			368
Operating income			$49,230
Interest expense			$13,567
Other, net			107
Income before income taxes			$35,556
(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.

Six months ended June 30, 2025 · Funeral · Cemetery · Total
Revenue
Services	89,257	10,263		$99,520
Merchandise	39,820	8,369		48,189
Cemetery property	—	43,910		43,910
Other revenue	10,789	6,808		17,597
Total revenue	139,866	69,350		209,216
Less:
Salaries, benefits, and commission expenses	34,988	20,452		55,440
Cost of merchandise	11,547	3,961		15,508
Allocated overhead costs(1)	6,613	2,699		9,312
Facilities and grounds expenses	5,638	2,765		8,403
General and administrative expenses(2)	5,724	1,851		7,575
Other segment expenses(3)	15,927	4,100		20,027
Adjusted operating profit (4)	$59,429	$33,522		$92,951
Reconciliation of Adjusted operating profit margin to Gross profit
Cemetery property amortization	—	4,069		$4,069
Field depreciation expense	5,661	949		$6,610
Regional and unallocated funeral and cemetery costs	4,886	3,609		8,495
Gross profit	$48,882	$24,895		$73,777
Corporate costs and expenses:
General and administrative expenses			$23,986
Net loss on divestitures and impairment charges			(5,771)
Operating income			$55,562
Interest expense			$14,332
Other, net			(1,881)
Income before income taxes			$43,111
(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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