CARRIAGE SERVICES INC

For the period ended Sep 30, 2026. Filed Nov 5, 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.

Sep 30, 2026 · Filed Nov 5, 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, depreciation and amortization, regional and unallocated funeral and cemetery costs, and gross profit by segment as follows: (in thousands)

Three months ended September 30, 2026 · Funeral · Cemetery · Total
Revenue
Services	$41,639	$4,992		$46,631
Merchandise	18,012	4,223		22,235
Cemetery property	—	24,382		24,382
Other revenue	5,697	1,311		7,008
Total revenue	$65,348	$34,908		$100,256
Less:
Salaries, benefits, and commission expenses	$18,211	$11,153		$29,364
Cost of merchandise	4,700	2,025		6,725
Allocated overhead costs(1)	3,197	1,337		4,534
Facilities and grounds expenses	3,005	1,997		5,002
General and administrative expenses(2)	3,117	1,064		4,181
Other segment expenses(3)	7,663	2,187		9,850
Adjusted operating profit (4)	$25,455	$15,145		$40,600
Reconciliation of Adjusted operating profit to Gross profit
Cemetery property amortization	$—	$2,340		$2,340
Field depreciation expense	2,850	526		3,376
Regional and unallocated funeral and cemetery costs	2,358	1,275		3,633
Gross profit	$20,247	$11,004		$31,251
Corporate costs and expenses:
General and administrative expenses			$12,172
Net gain on divestitures and impairment charges			(320)
Operating income			$19,399
Interest expense			$6,737
Loss on extinguishment of debt			$579
Other, net			(536)
Income before income taxes			$12,619
(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 September 30, 2025 · Funeral · Cemetery · Total
Revenue
Services	$39,238	$4,966		$44,204
Merchandise	17,967	4,573		22,540
Cemetery property	—	26,093		26,093
Other revenue	5,573	4,332		9,905
Total revenue	$62,778	$39,964		$102,742
Less:
Salaries, benefits, and commission expenses	$16,849	$10,426		$27,275
Cost of merchandise	4,645	2,119		6,764
Allocated overhead costs(1)	3,301	1,340		4,641
Facilities and grounds expenses	2,867	1,982		4,849
General and administrative expenses(2)	2,517	977		3,494
Other segment expenses(3)	7,691	1,709		9,400
Adjusted operating profit (4)	$24,908	$21,411		$46,319
Reconciliation of Adjusted operating profit to Gross profit
Cemetery property amortization	$—	$2,755		$2,755
Field depreciation expense	2,765	461		3,226
Regional and unallocated funeral and cemetery costs	2,077	2,018		4,095
Gross profit	$20,066	$16,177		$36,243
Corporate costs and expenses:
General and administrative expenses			$12,177
Net loss on divestitures and impairment charges			6,559
Operating income			$17,507
Interest expense			$6,946
Other, net			852
Income before income taxes			$9,709
(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.

Nine months ended September 30, 2026 · Funeral · Cemetery · Total
Revenue
Services	$127,545	$15,613		$143,158
Merchandise	56,437	12,821		69,258
Cemetery property	—	70,400		70,400
Other revenue	18,772	7,737		26,509
Total revenue	$202,754	$106,571		$309,325
Less:
Salaries, benefits, and commission expenses	$53,691	$32,508		$86,199
Cost of merchandise	13,619	6,094		19,713
Allocated overhead costs(1)	9,194	3,742		12,936
Facilities and grounds expenses	8,850	4,812		13,662
General and administrative expenses(2)	9,363	3,141		12,504
Other segment expenses(3)	23,804	6,291		30,095
Adjusted operating profit (4)	$84,233	$49,983		$134,216
Reconciliation of Adjusted operating profit to Gross profit
Cemetery property amortization	$—	$7,464		$7,464
Field depreciation expense	8,565	1,576		10,141
Regional and unallocated funeral and cemetery costs	6,785	4,891		11,676
Gross profit	$68,883	$36,052		$104,935
Corporate costs and expenses:
General and administrative expenses			$36,258
Net loss on divestitures and impairment charges			48
Operating income			$68,629
Interest expense			$20,304
Loss on extinguishment of debt			579
Other, net			(429)
Income before income taxes			$48,175
(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.

Nine months ended September 30, 2025 · Funeral · Cemetery · Total
Revenue
Services	$128,495	$15,229		$143,724
Merchandise	57,787	12,942		70,729
Cemetery property	—	70,003		70,003
Other revenue	16,362	11,140		27,502
Total revenue	$202,644	$109,314		$311,958
Less:
Salaries, benefits, and commission expenses	$51,837	$30,878		$82,715
Cost of merchandise	16,191	6,079		22,270
Allocated overhead costs(1)	9,914	4,039		13,953
Facilities and grounds expenses	8,506	4,748		13,254
General and administrative expenses(2)	8,242	2,828		11,070
Other segment expenses(3)	23,617	5,809		29,426
Adjusted operating profit (4)	$84,337	$54,933		$139,270
Reconciliation of Adjusted operating profit to Gross profit
Cemetery property amortization	—	6,824		$6,824
Field depreciation expense	8,426	1,410		$9,836
Regional and unallocated funeral and cemetery costs	6,963	5,627		12,590
Gross profit	$68,948	$41,072		$110,020
Corporate costs and expenses:
General and administrative expenses			$36,163
Net loss on divestitures and impairment charges			788
Operating income			$73,069
Interest expense			$21,278
Other, net			(1,029)
Income before income taxes			$52,820
(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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