CARRIAGE SERVICES INC
For the period ended Sep 30, 2026. Filed Nov 5, 2026.
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, 2026 · Filed Nov 5, 2026
CSV$26.80-5.0%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-06-30; filed 2026-08-06.
0001016281-26-000055
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-11-05.
0001016281-26-000070
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe 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 95 previous paragraphs and 94 current paragraphs.
45 unchanged; 41 reworded; 8 added; 9 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 14 previous and 14 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 (8)
Current report
Credit Facility
Current report
On September 30, 2026, we closed on our new $300 million credit facility agreement and increased committed borrowing capacity by $50 million, which represents another important step in strengthening our capital structure and advancing our long-term growth strategy.
Current report
During the nine months ended September 30, 2025, we acquired eight funeral home businesses, one cemetery, and one cremation focused business for the aggregate purchase price of approximately $57.8 million. The purchase price for the businesses consisted of approximately (i) $56.5 million paid in cash at closing and (ii) $1.3 million, the net present value of future deferred payments totaling $2.0 million.
Current report
Gross profit for the three months ended September 30, 2026 decreased $5.0 million compared to the three months ended September 30, 2025, primarily due to a decline in cemetery revenue and an increase in field costs and expenses.
Current report
Net income for the nine months ended September 30, 2026 decreased $4.6 million, compared to the nine months ended September 30, 2025, primarily driven by the lower gross profit described above, partially offset by a $1.0 million decrease in interest expense.
Current report
Cemetery comparable adjusted operating profit decreased $3.5 million for the three months ended September 30, 2026, compared to the three months ended September 30, 2025. The decrease was primarily driven by a decline in comparable revenue described above and higher operating expenses, resulting in a 650 basis point decline in comparable adjusted operating profit margin to 41.8%. The increase in operating expenses primarily relates to higher salaries and benefits, promotional expenses, and bad debt expense.
Current report
Other revenue and other adjusted operating profit, which consist of perpetual care trust earnings, earnings from delivered preneed cemetery merchandise and services, and preneed cemetery finance charges, decreased $3.0 million for the three months ended September 30, 2026, compared to the three months ended September 30, 2025. The decrease was primarily attributable to higher trust tax expense on perpetual care trust funds which were recorded upon completion of the prior year’s trust tax returns, compared to a tax benefit recorded in the same period in 2025.
Current report
Cemetery comparable adjusted operating profit decreased $2.2 million for the nine months ended September 30, 2026, compared to the nine months ended September 30, 2025. The decrease was primarily driven by a decline in comparable revenue described above and higher operating expenses, resulting in a 180 basis points decline in comparable adjusted operating profit margin to 43.2%. The increase in operating expenses primarily reflects higher salaries and benefits and bad debt expense, partially offset by lower atneed merchandise and service costs, commissions, and insurance expense.
Removed paragraphs (9)
Previous report
ATM Program
Previous report
On May 6, 2026, the Company announced it had entered into an Equity Distribution Agreement with Oppenheimer & Co. Inc. and Raymond James & Associates, Inc., as sales agents (together, the “Sales Agents”), with respect to an at-the-market equity offering program (the “ATM Program”) under which the Company may offer and sell, from time to time, shares of its common stock having an aggregate offering price of up to $100.0 million (“Shares”) through or to the Sales Agents, as sales agents and/or principals. To date, we have not sold any Shares under our ATM Program.
Previous report
Board of Directors
Previous report
On May 12, 2026, upon the recommendation of the Corporate Governance Committee of the Company, the Board of Directors (the “Board”) unanimously elected Douglas Meehan to serve as the Chair of the Compensation Committee, effective on that date. Mr. Meehan has been a director of the Company since 2018. He succeeds Somer Webb, who continues to serve on the Board and as a member of the Audit, Compensation, and Corporate Governance Committees.
Previous report
Gross profit for the three months ended June 30, 2026 decreased $0.9 million compared to the three months ended June 30, 2025, primarily due to an increase in depreciation and amortization.
Previous report
Net income for the six months ended June 30, 2026 decreased $6.9 million, compared to the six months ended June 30, 2025, primarily due to a prior year net gain on divestitures, impairment charges, and sale of real property of $7.7 million; partially offset by a $0.8 million decrease in interest expense and a $0.7 million decrease in income tax expense.
Previous report
Cemetery comparable adjusted operating profit decreased $0.2 million for the three months ended June 30, 2026, compared to the three months ended June 30, 2025. The decrease was primarily driven by a 0.4% increase in operating expense with the largest contributor in salaries and benefits, which increased 1.6% relative to recognized revenue. As a result, comparable operating profit margin decreased 50 basis points to 44.5%.
Previous report
Other revenueand other adjusted operating profit decreased $0.6 million and $0.7 million, respectively for the three months ended June 30, 2026, compared to the three months ended June 30, 2025. The decline is primarily attributable to lower perpetual care trust fund earnings, while the greater decrease in adjusted operating profit reflects the timing of certain operating expenses recognized between periods.
Previous report
Cemetery comparable adjusted operating profit increased $1.2 million for the six months ended June 30, 2026, compared to the six months ended June 30, 2025. The increase was driven by a 0.9% decrease in operating expenses as a percentage of operating revenue, primarily reflecting lower promotional expenses and facilities and grounds insurance costs as a percentage of revenue. As a result, comparable operating profit margin increased 90 basis points to 44.0%.
Reworded paragraphs (41)
Previous wording
We continue to monitor the macroeconomic, geopolitical, and certain policy factors and their potential impact, if any, on our business. During the first half of 2026, consumer discretionary spending has reflected mixed trends, with higher-income consumers appearing more resilient and moderate-income consumers exhibiting more cautious behavior, which could result in an overall reduction in consumer spending and demand for products and services. These trends continue to be influenced by moderating, but still elevated, inflation, evolving tariff and trade policies, geopolitical developments, and volatility in energy prices. Although certain indicators suggest that inflation has moderated, these factors continue to create uncertainty regarding future cost trends and broader economic conditions. Inflation and other macroeconomic conditions may negatively impact consumer discretionary spending, including the amount consumers are able to spend on our services. To date, these conditions have not materially impacted our business, and our industry has historically demonstrated resilience during similar adverse economic and market environments.
Current wording
We continue to monitor the macroeconomic, geopolitical, and certain policy factors and their potential impact, if any, on our business. During the nine months ended September 30, 2026, consumer discretionary spending has reflected mixed trends, with higher-income consumers appearing more resilient and moderate-income consumers exhibiting more cautious behavior, which could result in an overall reduction in consumer spending and demand for products and services. These trends continue to be influenced by moderating, but still elevated, inflation, evolving tariff and trade policies, geopolitical developments, and volatility in energy and fuel prices, which may affect both consumer spending and our operating costs. Although certain indicators suggest that inflation has moderated, these factors continue to create uncertainty regarding future cost trends and broader economic conditions. Inflation and other macroeconomic conditions may negatively impact consumer discretionary spending, including the amount consumers are able to spend on our services. To date, these conditions have not materially impacted our business, and our industry has historically demonstrated resilience during similar adverse economic and market environments.
Previous wording
We generate cash in our operations primarily from atneed sales and delivery of preneed sales. We also generate cash from earnings on our cemetery perpetual care trusts. Based on our recent operating results, current cash position and anticipated future cash flows, we do not anticipate any significant liquidity constraints in the foreseeable future. We have the ability to draw on our Credit Facility, as needed, subject to its customary terms and conditions. For additional details related to our debt and lease obligations, including our Credit Facility, Acquisition Debt and Senior Notes, refer to Notes 10 to our unaudited Condensed Consolidated Financial Statements contained in Part I, Item 1 of this Quarterly Report on Form 10-Q.
Current wording
We generate cash in our operations primarily from atneed sales and delivery of preneed sales. We also generate cash from earnings on our cemetery perpetual care trusts. Based on our recent operating results, current cash position and anticipated future cash flows, we do not anticipate any significant liquidity constraints in the foreseeable future. We have the ability to draw on our Credit Facility, as needed, subject to its customary terms and conditions. For additional details related to our debt and lease obligations, including our Credit Facility, Acquisition Debt and Senior Notes, refer to Note 10 in our unaudited Condensed Consolidated Financial Statements contained in Part I, Item 1 of this Quarterly Report on Form 10-Q.
Previous wording
For 2026, our plan is to remain focused on executing our growth strategy and other strategic objectives. This includes prioritizing our capital allocation for potential strategic growth acquisitions, capital expenditures, debt repayments, the payment of dividends, and other general corporate purposes as allowed under our Credit Facility. We expect to fund these payments using cash on hand and borrowings under our Credit Facility. We believe that our existing and anticipated cash resources, including, as needed, additional borrowings or other financings that we may be able to obtain, will be sufficient to meet our anticipated working capital requirements, capital expenditures, scheduled debt payments, commitments, potential growth acquisitions, and dividends for the next 12 months, as well as our long-term financial obligations.
Current wording
For 2026, our plan is to remain focused on executing our growth strategy and other strategic objectives. This includes prioritizing our capital allocation framework for capital expenditures, debt repayments, the payment of dividends, potential strategic growth acquisitions, potential share repurchases, and other general corporate purposes as allowed under our Credit Facility. We expect to fund these payments using cash on hand and borrowings under our Credit Facility. On September 30, 2026, we increased the committed borrowing capacity under our Credit Facility by $50 million when we closed on our new $300 million credit facility, which we believe represents another important step in strengthening our capital structure and advancing our long term growth strategy. We believe that our existing and anticipated cash resources, including, as needed, additional borrowings or other financings that we may be able to obtain, will be sufficient to meet our anticipated working capital requirements, capital expenditures, scheduled debt payments, commitments, dividends, potential growth acquisitions, and potential share repurchases for the next 12 months, as well as our long-term financial obligations.
Previous wording
However, if our capital allocations and expenditures or acquisition plans change, we may need to access the capital markets, including, for example, through our ATM Program, or seek further borrowing capacity from our lenders to obtain additional funding and we may not be able to obtain such funding on terms and conditions that are acceptable to us. Further, to the extent operating cash flow or access to and cost of financing sources are materially different than expected, future liquidity may be adversely affected. For additional information regarding known material factors that could cause cash flow or access to and cost of finance sources to differ from our expectations, please read Part I, Item 1A, “Risk Factors”.
Current wording
However, if our capital allocations and expenditures or acquisition plans change, we may need to access the capital markets, or seek further borrowing capacity from our lenders to obtain additional funding and we may not be able to obtain such funding on terms and conditions that are acceptable to us. Further, to the extent operating cash flow or access to and cost of financing sources are materially different than expected, our future liquidity may be adversely affected. For additional information regarding known material factors that could cause cash flow or access to and cost of finance sources to differ from our expectations, please read Part II, Item 1A, “Risk Factors”.
Previous wording
We began 2026 with $1.7 million in cash and ended the quarter with $2.6 million in cash. As of June 30, 2026, we had borrowings of $124.0 million outstanding on our Credit Facility compared to $126.7 million as of December 31, 2025.
Current wording
We began 2026 with $1.7 million in cash and ended the quarter with $8.1 million in cash. As of September 30, 2026, we had borrowings of $114.8 million outstanding on our Credit Facility compared to $126.7 million as of December 31, 2025.
Previous wording
For the six months ended June 30, 2026, cash provided by operating activities was $22.5 million compared to $21.9 million for the six months ended June 30, 2025. The growth was primarily driven by improvements in working capital.
Current wording
For the nine months ended September 30, 2026, cash provided by operating activities was $47.2 million compared to $46.6 million for the nine months ended September 30, 2025. The growth was primarily driven by improvements in working capital.
Previous wording
Our investing activities resulted in net cash outflows of $13.4 million for thesix months ended June 30, 2026, compared to net cash inflows of $12.8 million for the six months ended June 30, 2025, a decrease of $26.2 million, primarily as a result of the activity described below.
Current wording
Our investing activities resulted in net cash outflows of $20.1 million for thenine months ended September 30, 2026, compared to net cash outflows of $31.9 million for the nine months ended September 30, 2025, a decrease of $11.8 million, primarily as a result of the activity described below.
Previous wording
During the six months ended June 30, 2026, we acquired one funeral home for $4.5 million.
Current wording
During the nine months ended September 30, 2026, we acquired one funeral home for $4.5 million and one ancillary location for $1.5 million.
Previous wording
During the six months ended June 30, 2026, we sold one funeral home for an aggregate of $0.3 million.
Current wording
During the nine months ended September 30, 2026, we sold one funeral home and real property for an aggregate of $1.0 million.
Previous wording
During the six months ended June 30, 2025, we sold two funeral homes and three cemeteries for an aggregate of $15.8 million. Additionally, we sold real property for $3.0 million.
Current wording
During the nine months ended September 30, 2025, we sold nine funeral homes and four cemeteries for an aggregate of $33.8 million. Additionally, we sold real property for $3.5 million.
Previous wording
For the six months ended June 30, 2026, our capital expenditures (comprised of growth and maintenance spend) totaled $9.2 million compared to $6.0 million for the six months ended June 30, 2025, an increase of $3.2 million.
Current wording
For the nine months ended September 30, 2026, our capital expenditures (comprised of growth and maintenance spend) totaled $15.1 million compared to $12.7 million for the nine months ended September 30, 2025, an increase of $2.4 million.
Previous wording
The following tables present our capital expenditures (in thousands):
Current wording
The following table presents our capital expenditures (in thousands):
Previous wording
Our financing activities resulted in a net cash outflow of $8.2 million for the six months ended June 30, 2026, compared to a net cash outflow of $34.5 million for the six months ended June 30, 2025, a decrease of $26.3 million.
Current wording
Our financing activities resulted in a net cash outflow of $20.6 million for the nine months ended September 30, 2026, compared to a net cash outflow of $14.6 million for the nine months ended September 30, 2025, an increase of $6.1 million.
Previous wording
During the six months ended June 30, 2025, we had net payments on our Credit Facility, acquisition debt, and finance leases of $24.3 million, net payments on our employee equity plans of $6.6 million, and paid dividends of $3.5 million.
Current wording
During the nine months ended September 30, 2026, we had net payments on our Credit Facility, acquisition debt, and finance leases of $12.6 million, net payments on our employee equity plans of $1.5 million, and paid dividends of $5.3 million. We also had a payment of $1.3 million for debt issuance costs on the Credit Facility that we closed on September 30, 2026.
Previous wording
During the six months ended June 30, 2026, we had net payments on our Credit Facility, acquisition debt, and finance leases of $3.0 million, net payments on our employee equity plans of $1.7 million, and paid dividends of $3.6 million.
Current wording
During the nine months ended September 30, 2025, we had net payments on our Credit Facility, acquisition debt, and finance leases of $2.5 million, net payments on our employee equity plans of $6.8 million, and paid dividends of $5.3 million.
Previous wording
Revenue for the three months ended June 30, 2026 increased $0.8 million, compared to the three months ended June 30, 2025, primarily due to an increase in acquisition and financial revenue that was partially offset by a decline in divested and comparable revenue. In our Funeral segment, we experienced a 4.7% increase in the average revenue per funeral contract, and a 21.1% increase in preneed insurance contracts sold; partially offset by a 4.0% decrease in funeral contract volume. In our Cemetery segment, we experienced a 5.0% increase in preneed sales production and a 17.3% increase in the average price per interment right (property) sold; partially offset by a 14.0% decrease in the number of preneed interment rights (property) sold.
Current wording
Revenue for the three months ended September 30, 2026 decreased $2.5 million, compared to the three months ended September 30, 2025, primarily due to a decrease in cemetery revenue. Acquisition revenue more than offset the revenue from prior year divestitures. We experienced a 1.9% increase in the average revenue per funeral contract and a 2.5% increase in funeral contract volume. We experienced a 1.7% increase in the average price per interment right (property) sold offset by a 7.3% decrease in the number of preneed interment rights (property) sold.
Previous wording
Net income for the three months ended June 30, 2026 increased $0.5 million, compared to the three months ended June 30, 2025, primarily due to a $0.9 million decrease in general and administrative expenses, a $0.4 million decrease in interest expense, and a $0.2 million decrease in income tax expense; partially offset by a $0.9 million decrease in gross profit contribution from our businesses.
Current wording
Net income for the three months ended September 30, 2026 increased $2.3 million, compared to the three months ended September 30, 2025, as the prior was impacted by a $6.6 million loss on divestitures, which was partially offset by a $5.0 million decrease in gross profit contribution from our businesses and a $0.6 million increase in income tax expense.
Previous wording
Revenue for the six months ended June 30, 2026 decreased $0.1 million compared to the six months ended June 30, 2025, primarily due to a decrease in divested and comparable revenue offset by growth in acquisition and financial revenue. In our Funeral segment we experienced a 6.0% decrease in funeral contract volume which was partially offset by a 3.8% increase in the average revenue per funeral contract, and a 14.9% increase in preneed insurance contracts sold. In our Cemetery segment, we experienced an 8.9% decrease in the number of preneed interment rights (property) sold partially offset a 14.1% increase in the average price per interment right sold.
Current wording
Revenue for the nine months ended September 30, 2026 decreased $2.6 million compared to the nine months ended September 30, 2025, primarily due to a decrease in cemetery revenue. Acquisition revenue largely offset revenue from prior year divestitures. We experienced a 3.4% decrease in funeral contract volume which was partially offset by a 3.2% increase in the average revenue per funeral contract. We experienced an 8.4% decrease in the number of preneed interment rights (property) sold partially offset by a 9.7% increase in the average price per interment right sold.
Previous wording
Gross profit for the six months ended June 30, 2026 decreased $0.1 million, compared to the six months ended June 30, 2025, primarily due to the decline in revenue described above partially offset by effective cost management.
Current wording
Gross profit for the nine months ended September 30, 2026 decreased $5.1 million, compared to the nine months ended September 30, 2025, primarily due to the decline in revenue described above combined with higher salaries and benefits among other operating costs.
Previous wording
The following is a discussion of our results of operations for the three and six months ended June 30, 2026 and 2025.
Current wording
The following is a discussion of our results of operations for the three and nine months ended September 30, 2026 and 2025.
Previous wording
Cemetery property amortization, field depreciation expense, and regional and unallocated funeral and cemetery costs, are not included in adjusted operating profit, a non-GAAP financial measure. Adding back these items will result in gross profit, a GAAP financial measure.
Current wording
Cemetery property amortization, field depreciation expense, and regional and unallocated funeral and cemetery costs, are not included in adjusted operating profit, a non-GAAP financial measure. Deducting these items from adjusted operating profit results in gross profit, a GAAP financial measure.
Previous wording
Funeral home comparable revenue decreased $1.4 million for the three months ended June 30, 2026, compared to the three months ended June 30, 2025. The decline in comparable revenue is primarily driven by a 3.5% decrease in comparable contract volume, which is partially offset by a 1.1% increase in the average revenue per contract excluding preneed funeral trust earnings. Average revenue per contract, including trust earnings, increased by 3.7%, primarily reflecting higher preneed interest recognized on fulfilled funeral and service and merchandise contracts.
Current wording
Funeral home comparable revenue increased $2.0 million for the three months ended September 30, 2026, compared to the three months ended September 30, 2025. The increase in comparable revenue is primarily driven by a 2.3% increase in comparable contract volume combined with a 1.2% increase in the average revenue per contract excluding preneed funeral trust earnings. Average revenue per contract, including trust earnings, also increased by 1.1%, as trust earnings were relatively flat.
Previous wording
Funeral home comparable adjusted operating profit for the three months ended June 30, 2026 decreased $1.3 million when compared to the same period in 2025. The decrease was primarily driven by an increase in operating expenses as a percentage of revenue, resulting in a 130 basis points decline in comparable adjusted operating profit margin to 36.5%. The increase in operating expenses was primarily attributable to higher salaries and benefits, together with higher general and administrative expenses, and promotional expenses.
Current wording
Funeral home comparable adjusted operating profit for the three months ended September 30, 2026 increased $0.2 million when compared to the same period in 2025. The increase was primarily driven by the higher comparable revenue described above, partially offset by higher operating expenses. The increase in operating expenses was primarily attributable to higher salaries and benefits, general and administrative expenses, and promotional expenses. As operating expenses grew at a higher rate than during the comparative period, comparable adjusted operating profit margin declined 100 basis points to 35.9%.
Previous wording
Ancillary revenue decreased $0.2 million, while ancillary adjusted operating profit increased $0.1 million for the six months ended June 30, 2026, compared to the six months ended June 30, 2025. The decrease in ancillary revenue is primarily due to a decline in our online cremation business. Despite the decline in revenue, ancillary adjusted operating profit increased due to lower operating expenses.
Current wording
Ancillary revenue and ancillary adjusted operating profit each decreased approximately $0.1 million for the three months ended September 30, 2026, compared to the three months ended September 30, 2025, primarily due to lower activity in our online cremation businesses.
Previous wording
Other revenue and other adjusted operating profit, which consists of preneed funeral insurance commissions and earnings from delivered preneed funeral trust and insurance contracts, increased $1.8 million each, for the three months ended June 30, 2026, compared to the same period in 2025. This increase was primarily driven by higher funeral trust income and growth in general agency commission income earned on the sale of preneed insurance policies.
Current wording
Other revenue and other adjusted operating profit, which consists of preneed funeral insurance commissions and earnings from delivered preneed funeral trust and insurance contracts, increased $0.2 million and $0.4 million each, for the three months ended September 30, 2026, compared to the same period in 2025. The increase in other adjusted operating profit was primarily due to lower consulting costs.
Previous wording
Funeral home comparable revenue decreased $4.1 million for the six months ended June 30, 2026, compared to the six months ended June 30, 2025. The decline in comparable revenue was primarily driven by a 4.7% decrease in comparable contract volume as well as a 1.4% increase in the average revenue per contract excluding preneed interest. The decline in contract volume primarily reflects a more normalized mortality environment compared to recent years, contributing to lower funeral case volumes across our comparable funeral homes.
Current wording
Funeral home comparable revenue decreased $2.1 million for the nine months ended September 30, 2026, compared to the nine months ended September 30, 2025. The decrease in comparable revenue was primarily driven by a 2.5% decrease in comparable contract volume, partially offset by a 1.3% increase in the average revenue per contract, excluding preneed funeral trust earnings. The decrease in comparable contract volume primarily reflects lower death rates across the United States from a milder flu season compared to the same period in 2025.
Previous wording
Funeral home comparable adjusted operating profit for the six months ended June 30, 2026, decreased $3.8 million when compared to the same period in 2025. The decrease was primarily driven by an increase in operating expenses as a percentage of revenue, resulting in 180 basis points decline in comparable adjusted operating profit margin to 39.1%. The increase in operating expenses primarily reflects higher salaries and benefits, general and administrative expenses, promotional expenses, and facilities and grounds expenses.
Current wording
Funeral home comparable adjusted operating profit for the nine months ended September 30, 2026, decreased $3.6 million when compared to the same period in 2025. The decrease was primarily driven by the decrease in comparable revenue described above and higher operating expenses, resulting in a 150 basis points decline in comparable adjusted operating profit margin to 38.1%. The increase in operating expenses primarily reflects higher salaries and benefits, general and administrative expenses, promotional expenses, and facilities and grounds expenses.
Previous wording
Ancillary revenue decreased $0.1 million, while ancillary adjusted operating profit increased $0.1 million for the three months ended June 30, 2026, compared to the three months ended June 30, 2025. The decrease in ancillary revenue is primarily attributable to lower activity in our online cremation businesses. Despite the decline in revenue, ancillary adjusted operating profit improved due to lower operating expenses.
Current wording
Ancillary revenue decreased $0.3 million, while ancillary adjusted operating profit was flat for the nine months ended September 30, 2026, compared to the nine months ended September 30, 2025. The decline in ancillary revenue was primarily due to lower activity in our online cremation businesses, which was offset by lower operating expenses.
Previous wording
Other revenue and other adjusted operating profit, which consists of preneed funeral insurance commissions and earnings from delivered preneed funeral trust and insurance contracts, increased $2.5 million and $2.9 million, respectively, for the six months ended June 30, 2026, compared to the six months ended June 30, 2025. This increase was primarily driven by higher funeral trust income and growth in general agency commission income earned on the sale of preneed insurance policies.
Current wording
Other revenue and other adjusted operating profit, which consists of preneed funeral insurance commissions and earnings from delivered preneed funeral trust and insurance contracts, increased $2.7 million and $3.3 million, respectively, for the nine months ended September 30, 2026, compared to the nine months ended September 30, 2025. This increase in other revenue was primarily driven by higher funeral trust earnings and growth in commission income earned on the sale of preneed insurance policies. The increase in other adjusted operating profit was primarily driven by the increase in other revenue combined with lower costs.
Previous wording
Cemetery comparable revenue decreased $0.1 million for the three months ended June 30, 2026, compared to the three months ended June 30, 2025. The decrease was primarily driven by a 17.0% decrease in the number of preneed interment rights (property) sold, which was partially offset by a 17.9% increase in the average price per interment right sold. Cemetery comparable atneed revenue, which represents approximately 27.9% of our total operating revenue, decreased $0.6 million for the three months ended June 30, 2026, compared to the same period in 2025, primarily due to a 6.1% decline in atneed recognized merchandise and service revenue and a 6.9% decrease in recognized atneed property revenue.
Current wording
Cemetery comparable revenue decreased $2.8 million for the three months ended September 30, 2026, compared to the three months ended September 30, 2025. The decrease in comparable revenue was primarily driven by a $2.2 million decrease in comparable preneed revenue, reflecting a 9.8% decrease in the number of preneed interment rights (property) sold, somewhat offset by a 3.0% increase in the average price per interment right sold. Cemetery comparable atneed revenue, which represents approximately 27.5% of our total operating revenue, decreased $0.6 million for the three months ended September 30, 2026, compared to the same period in 2025, primarily due to a 9.3% decrease in recognized atneed merchandise and service revenue, combined with a 4.3% decrease in recognized atneed property revenue.
Previous wording
Cemetery comparable revenue increased $1.5 million for the six months ended June 30, 2026, compared to the six months ended June 30, 2025. The increase was primarily driven by a 16.5% increase in the average price per preneed interment right sold, partially offset by a 12.7% decline in the number of preneed interment rights sold. Cemetery atneed revenue, which represents approximately 29.2% of our total operating revenue, decreased $0.5 million for the six months ended June 30, 2026, compared to the same period of the prior year, primarily due to a 6.8% decline in atneed property sold across our cemetery portfolio.
Current wording
Cemetery comparable revenue decreased $1.2 million for the nine months ended September 30, 2026, compared to the nine months ended September 30, 2025. The decrease in comparable revenue was primarily driven by a $1.1 million decrease in comparable atneed revenue. Comparable preneed revenue decreased $0.2 million, as an 11.7% decrease in the number of preneed interment rights (property) sold was largely offset by an 11.7% increase in the average price per preneed interment rights sold and higher recognized preneed merchandise and service revenue. Cemetery comparable atneed revenue, which represents approximately 28.7% of our comparable operating revenue, decreased $1.1 million for the nine months ended September 30, 2026, compared to the same period of the prior year, primarily due to a 6.8% decline in atneed contract volume, partially offset by a 3.3% increase in average revenue per atneed contract.
Previous wording
Other revenueand other adjusted operating profit, which consist of preneed cemetery trust revenue and preneed cemetery finance charges, decreased $0.4 million and $0.5 million, respectively, for the six months ended June 30, 2026, compared to the six months ended June 30, 2025. The decline is primarily attributable to lower perpetual care trust fund earnings, while the greater decrease in adjusted operating profit reflects the timing of certain operating expenses recognized between periods.
Current wording
Other revenue and other adjusted operating profit, which consist of preneed cemetery trust revenue and preneed cemetery finance charges, decreased $3.4 million, respectively, for the nine months ended September 30, 2026, compared to the nine months ended September 30, 2025. The decline is primarily attributable to higher trust tax expense on perpetual care trust funds which were recorded upon completion of the prior year's trust tax returns, compared to a tax benefit recorded in the same period in 2025.
Previous wording
Cemetery property amortization. Cemetery property amortization totaled $3.1 million and $5.1 million for the three and six months ended June 30, 2026, respectively, an increase of $0.9 million and $1.1 million compared to the three and six months ended June 30, 2025, respectively. The increases were primarily driven by a higher mix of mausoleum property sales, which carry significantly higher associated property costs than traditional cemetery property sales.
Current wording
Cemetery property amortization. Cemetery property amortization totaled $2.3 million and $7.5 million for the three and nine months ended September 30, 2026, respectively, a decrease of $0.4 million and an increase of $0.6 million, respectively, compared to the three and nine months ended September 30, 2025. The increase was primarily driven by a higher mix of mausoleum property sales in the first half of 2026, which carry significantly higher associated property costs than traditional cemetery property sales.
Previous wording
Field depreciation. Depreciation expense for our field businesses totaled $3.4 million and $6.8 million for the three and six months ended June 30, 2026, respectively, an increase of $0.1 million and $0.2 million compared to the three and six months ended June 30, 2025, respectively.
Current wording
Field depreciation. Depreciation expense for our field businesses totaled $3.4 million and $10.1 million for the three and nine months ended September 30, 2026, respectively. We experienced an increase of $0.2 million and $0.3 million compared to the three and nine months ended September 30, 2025, respectively.
Previous wording
Regional and unallocated funeral and cemetery costs. Regional and unallocated funeral and cemetery costs consist of salaries and benefits for regional management, field incentive compensation, and other related costs for field infrastructure. Regional and unallocated funeral and cemetery costs totaled $3.7 million and $3.3 million, respectively, for the three months ended June 30, 2026, compared to the three months ended June 30, 2025, an increase of $0.4 million, primarily driven by an increase in salaries and benefits. For the six months ended June 30, 2026, Regional and unallocated funeral and cemetery costs were $8.0 million and $8.5 million, respectively, compared to the six months ended June 30, 2025, a decrease of $0.5 million, primarily driven by a decrease in leadership and development expenses offset by increases in salaries and benefits and transportation costs.
Current wording
Regional and unallocated funeral and cemetery costs. Regional and unallocated funeral and cemetery costs consist of salaries and benefits for regional management, field incentive compensation, and other related costs for field infrastructure. Regional and unallocated funeral and cemetery costs totaled $3.6 million and $4.1 million, respectively, for the three months ended September 30, 2026, compared to the three months ended September 30, 2025. We experienced a decrease of $0.5 million, primarily driven by a decrease in incentive compensation costs. For the nine months ended September 30, 2026, Regional and unallocated funeral and cemetery costs were $11.7 million and $12.6 million, respectively, compared to the nine months ended September 30, 2025. We experienced a decrease of $0.9 million, primarily driven by a decrease in leadership and development expenses offset by increases in salaries and benefits and transportation costs.
Previous wording
General, administrative, and other. General, administrative, and other expenses, which include salaries and benefits and cash and equity incentive compensation for our Houston support office, totaled $11.0 million for the three months ended June 30, 2026, a decrease of $0.9 million compared to the same period in 2025, primarily driven by lower incentive compensation coupled with an increased focus on cost management across all aspects of our business. For the six months ended June 30, 2026, general, administrative, and other expenses totaled $24.1 million, an increase of $0.1 million compared to the six months ended June 30, 2025.
Current wording
General, administrative, and other. General, administrative, and other expenses, which include salaries and benefits and cash and equity incentive compensation for our Houston support office, totaled $12.2 million for the three months ended September 30, 2026, flat compared to the same period in 2025, primarily driven by lower incentive compensation coupled with an increased focus on cost management across all aspects of our business. For the nine months ended September 30, 2026, general, administrative, and other expenses totaled $36.3 million, an increase of $0.1 million compared to the nine months ended September 30, 2025.
Previous wording
During the three months ended June 30, 2026, we sold one funeral home for a loss of $47.0 thousand. We also recognized an impairment of $0.1 million and $0.3 million during the three and six months ended June 30, 2026, respectively.
Current wording
During the three months ended September 30, 2026, we sold excess land for a gain of $0.3 million. We also recognized an impairment of $0.3 million during the nine months ended September 30, 2026.
Previous wording
During the six months ended June 30, 2025, we sold two funeral homes and three cemeteries for a gain of $5.9 million. We also recognized an impairment of $0.1 million on land held for sale during the six months ended June 30, 2025.
Current wording
During the nine months ended September 30, 2025, we sold nine funeral homes and four cemeteries for a gain of $1.0 million. We also recognized an impairment of $1.8 million on assets held for sale during the nine months ended September 30, 2025.
Previous wording
Other, net. During the six months ended June 30, 2025, we recorded a $2.0 million gain on the sale of other real property not used in business operations. We did not record any gain or loss activity during the six months ended June 30, 2026.
Current wording
Other, net. During the nine months ended September 30, 2025, we recorded a $1.1 million gain on the sale of other real property not used in business operations.
Previous wording
Income taxes. Income tax expense including discrete items totaled $4.9 million for the three months ended June 30, 2026, a decrease of $0.2 million compared to the three months ended June 30, 2025. Our effective tax was 28.5% and 30.4% for the three months ended June 30, 2026, respectively, primarily related to a decrease in non-deductible officer compensation.
Current wording
Income taxes. Income tax expense including discrete items totaled $3.7 million for the three months ended September 30, 2026, an increase of $0.6 million compared to the three months ended September 30, 2025. Our effective tax rate was 29.6% and 32.3% for the three months ended September 30, 2026 and 2025 respectively.
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