Company Fourth Quarter and Full Year Highlights:
GAAP diluted EPS of $0.77 compared to $0.62 in the prior year quarter, resulting in an increase of 24.2%;
Adjusted diluted EPS of $0.75 compared to $0.62 in the prior year quarter, resulting in an increase of 21.0%;
Total revenue grew 8.0% over the prior year quarter, primarily driven by an increase in funeral operating contract volume of 6.8% and a 25.5% growth in preneed cemetery sales production;
GAAP diluted EPS of $3.25 compared to $2.10 in the prior year, resulting in growth of 54.8%;
Adjusted diluted EPS of $3.20 compared to $2.65 in the prior year, resulting in an increase of 20.8%;
Total revenue grew 3.3% over the prior year, primarily driven by a 2.3% increase in funeral operating contract volume and 13.4% growth in preneed cemetery sales production;
Financial revenue increased 17.7% over the prior year, primarily driven by a 27.4% increase in insurance-funded preneed funeral contracts sold resulting in an increase in general agency commission revenue;
Completed the strategic acquisition of two businesses that generated more than $15 million in revenue in 2024 and divested certain non-core assets throughout the year driving our leverage ratio down to 4.0x;
The Company's guidance for 2026 is $440-$450 million in total revenue, adjusted consolidated EBITDA of $135-140 million, adjusted diluted EPS of $3.35-$3.55 and adjusted free cash flow of $40-$50 million, which assumes $25-$30 million in capital expenditures.
Carlos Quezada, Vice Chairman and CEO, stated, "We are very pleased with our 2025 fourth quarter and full year performance. In the fourth quarter, total funeral operating revenue increased by 9.6%, primarily reflecting growth in funeral operating contract volume, while total cemetery operating revenue grew 18.4%, primarily driven by a strong performance in preneed cemetery sales production. Operating income grew 16.8% and adjusted consolidated EBITDA grew by 11.0%, while adjusted consolidated EBITDA margin grew by 80 bps to 30.8%, all versus the same quarter last year.
For the full year, Carriage delivered a strong financial performance, highlighted by GAAP diluted EPS growth of nearly 55% and adjusted diluted EPS growth of 21%, reflecting disciplined execution across our business. Operating revenue increased 6.1%, driven by balanced growth in both funeral and cemetery operations through higher contract volumes, improved pricing discipline, and continued strength in preneed cemetery sales production of 13.4% over the prior year. We also experienced impressive growth in financial revenue, primarily driven by a 27.4% increase in insurance-funded preneed funeral contracts sold. During the year, we completed strategic acquisitions of two high-quality businesses generating more than $15 million in annual revenue, while divesting non-core assets and further strengthening our balance sheet, ending the year with a 4.0x leverage ratio. Importantly, our results reflect a renewed focus on service excellence, empowering our teams to deliver premier experiences while driving sustainable performance. With this performance, Carriage concludes three consecutive years of consistent financial improvement while strengthening our balance sheet and positioning the Company well for its next phase of disciplined growth and long-term value creation," concluded Mr. Quezada.
FINANCIAL HIGHLIGHTS
Three months endedDecember 31,
Year EndedDecember 31,
(in millions, except volume, average, margins, and EPS)
2025
2024
2025
2024
GAAP Metrics:
Total revenue
$
105.5
$
97.7
$
417.4
$
404.2
Operating income
$
24.6
$
21.1
$
97.7
$
81.8
Operating income margin
23.3
%
21.6
%
23.4
%
20.2
%
Net income
$
12.3
$
9.9
$
51.5
$
33.0
Diluted EPS
$
0.77
$
0.62
$
3.25
$
2.10
Cash provided by operating activities
$
14.1
$
9.3
$
60.7
$
52.0
Cemetery Consolidated Metrics:
Preneed interment rights (property) sold
3,752
3,396
14,573
14,523
Average price per preneed interment right sold
$
5,643
$
5,264
$
5,807
$
5,374
Funeral Consolidated Metrics:
Funeral contracts
10,638
10,620
43,523
44,103
Average revenue per funeral contract(1)
$
5,780
$
5,524
$
5,693
$
5,549
Burial rate
32.3
%
31.2
%
32.1
%
32.2
%
Cremation rate
60.9
%
61.5
%
61.0
%
60.2
%
Non-GAAP Metrics(2):
Adjusted consolidated EBITDA
$
32.5
$
29.3
$
130.7
$
126.2
Adjusted consolidated EBITDA margin
30.8
%
30.0
%
31.3
%
31.2
%
Adjusted diluted EPS
$
0.75
$
0.62
$
3.20
$
2.65
Adjusted free cash flow
$
6.4
$
6.8
$
45.7
$
42.7
Cemetery Operating Metrics(3):
Preneed interment rights (property) sold
3,752
3,245
14,407
13,910
Average price per preneed interment right sold
$
5,643
$
5,361
$
5,836
$
5,486
Funeral Operating Metrics(4):
Funeral contracts
10,571
9,899
41,579
40,652
Average revenue per funeral contract(1)
$
5,777
$
5,629
$
5,763
$
5,681
Burial rate
32.2
%
31.5
%
32.3
%
32.4
%
Cremation rate
60.9
%
61.1
%
60.8
%
59.9
%
(1) Excludes preneed interest earnings reflected in financial revenue.
(2) We present both GAAP and non-GAAP measures to provide investors with additional information and to allow for the increased comparability of our ongoing performance from period to period. The most comparable GAAP measures to the Non-GAAP measures presented in this table can be found in the Reconciliation of Non-GAAP Financial Measures section of this press release.
(3) Metrics calculated using cemetery operating results (excluding impact from divestitures).
(4) Metrics calculated using funeral operating results (excluding impact from divestitures).
Total revenue for the three months ended December 31, 2025 increased $7.8 million compared to the three months ended December 31, 2024. We experienced a 10.5% increase in the consolidated number of preneed interment rights (property) sold and a 7.2% increase in the consolidated average price per preneed interment rights sold. Additionally, we experienced a 4.6% increase in the consolidated average revenue per funeral contract and a 0.2% increase in consolidated funeral contract volume.
Net income for the three months ended December 31, 2025 increased $2.4 million compared to the three months ended December 31, 2024. We experienced a $3.0 million increase in gross profit contribution from our businesses and a $1.0 million decrease in net (gain) loss on divestitures and impairment charges; partially offset by a $1.0 million increase in income tax expense and a $0.1 million increase in interest expense.
Total revenue for the year ended December 31, 2025 increased $13.2 million compared to the year ended December 31, 2024. We experienced an 8.1% increase in the consolidated average price per preneed interment rights sold and a 0.3% increase in the consolidated number of preneed interment rights (property) sold. Additionally, we experienced a 2.6% increase in the consolidated average revenue per funeral contract, which was partially offset by a 1.3% decrease in consolidated funeral contract volume.
Net income for the year ended December 31, 2025 increased $18.6 million compared to the year ended December 31, 2024. We experienced a $3.3 million increase in gross profit contribution from our businesses and a $10.4 million decrease in general, administrative, and other expenses as the prior year primarily comprised of one-time costs related to executive severance payments and the Company's review of strategic alternatives. Additionally, a decline of $3.7 million in interest expense and a $3.3 million decrease from the impact of divestitures and impairment charges were partially offset by a $1.6 million increase in income tax expense and a $0.4 million decrease in net gain on property damage, net of insurance claims.
OUTLOOK FOR 2026
2026 Outlook(1)
(in millions, except per share amounts)
Total revenue
$440, $450
Adjusted consolidated EBITDA(2)
$135, $140
Adjusted diluted EPS(2)
$3.35, $3.55
Adjusted free cash flow(2)(3)
$40, $50
Capital expenditures
$25, $30
(1) Includes the expected revenue impact of acquisitions and divestitures of certain non-core assets.
(2) Adjusted consolidated EBITDA, adjusted diluted EPS, and adjusted free cash flow are non-GAAP financial measures. We normally reconcile these non-GAAP financial measures from operating income, diluted earnings per share, and cash provided by operating activities; however, these measures calculated in accordance with GAAP are not currently accessible on a forward-looking basis. Our outlook for 2025 excludes the following: Gains or losses associated with divestitures, acquisition costs, severance and separation costs, impairment of goodwill, intangibles, and property, plant, and equipment, special vendor incentives, potential tax reserve adjustments and IRS payments and/or refunds, and other special items. The foregoing items could materially impact our forward-looking diluted earnings per share and/or our net cash provided by operating activities calculated in accordance with GAAP.
(3) Includes the expected impact of total capital expenditures (growth and maintenance).
CALL AND INVESTOR RELATIONS CONTACT
Carriage Services has scheduled a conference call for tomorrow, February 26, 2026 at 8:00 a.m. Central Time. To participate in the call, please dial 800-330-6710 (Conference ID - 3387880) or to listen live over the internet via webcast click link. An audio archive of the call will be available on demand via the Company's website at www.carriageservices.com.
Carriage Services is a leading provider of funeral and cemetery services and merchandise in the United States. Carriage operated 155 funeral homes in 24 states and 28 cemeteries in 9 states as of December 31, 2025. It is dedicated to delivering premier experiences through innovation, partnership, and elevated service.
CARRIAGE SERVICES, INC.
CONDENSED OPERATING AND FINANCIAL TREND REPORT
(in thousands, except per share amounts)
Three months endedDecember 31,
Year endedDecember 31,
2025
2024
2025
2024
Funeral operating revenue
$
61,068
$
55,723
$
239,601
$
230,954
Cemetery operating revenue
33,841
28,579
130,631
120,060
Financial revenue
9,342
8,104
33,892
28,802
Ancillary revenue
814
948
3,608
4,323
Total operating revenue
105,065
93,354
407,732
384,139
Divested revenue
417
4,346
9,708
20,059
Total revenue
$
105,482
$
97,700
$
417,440
$
404,198
Funeral operating EBITDA
$
23,938
$
21,173
$
94,617
$
91,752
Funeral operating EBITDA margin
39.2
%
38.0
%
39.5
%
39.7
%
Cemetery operating EBITDA
15,045
12,023
58,653
55,800
Cemetery operating EBITDA margin
44.5
%
42.1
%
44.9
%
46.5
%
Financial EBITDA
8,640
7,485
30,840
26,702
Financial EBITDA margin
92.5
%
92.4
%
91.0
%
92.7
%
Ancillary EBITDA
158
152
552
673
Ancillary EBITDA margin
19.4
%
16.0
%
15.3
%
15.6
%
Divested EBITDA
(73
)
1,345
2,316
5,724
Divested EBITDA margin
(17.5
)%
30.9
%
23.9
%
28.5
%
Total field EBITDA
$
47,708
$
42,178
$
186,978
$
180,651
Total field EBITDA margin
45.2
%
43.2
%
44.8
%
44.7
%
Total overhead
$
15,158
$
12,882
$
56,637
$
66,862
Overhead as a percentage of revenue
14.4
%
13.2
%
13.6
%
16.5
%
Consolidated EBITDA
$
32,550
$
29,296
$
130,341
$
113,789
Consolidated EBITDA margin
30.9
%
30.0
%
31.2
%
28.2
%
Other expenses and interest
Depreciation & amortization
$
6,430
$
5,616
$
24,507
$
22,890
Non-cash stock compensation
1,949
1,999
7,806
6,520
Interest expense
7,087
7,004
28,365
32,075
Other
(359
)
627
(600
)
2,224
Pretax income
$
17,443
$
14,050
$
70,263
$
50,080
Net tax expense
5,171
4,195
18,756
17,127
Net income
$
12,272
$
