Key Highlights

  • Third quarter Revenue was USD 100.26 million against a USD 109.47 million estimate and USD 102.7 million a year ago.
  • Adjusted diluted EPS was USD 0.59 against a USD 0.79 estimate, while GAAP diluted EPS was USD 0.56.
  • Consolidated funeral contract Volume increased 2.5%, while comparable cemetery revenue declined 7.8% on lower preneed sales.
  • Revised 2026 outlook lists adjusted EPS of USD 2.90 to USD 3.05, down from USD 3.35 to USD 3.55.

Carriage Services (NYSE:CSV) reported third quarter revenue of USD 100.26 million, against USD 102.7 million in the same quarter of 2025 and an estimate of USD 109.47 million. Adjusted diluted EPS was USD 0.59, compared with an estimate of USD 0.79 and USD 0.75 a year earlier. The company also lowered its full year outlook and announced a new Credit facility.

Revenue

Funeral and cemetery results moved in different directions. Funeral comparable revenue was USD 56.83 million against USD 54.86 million a year earlier, and consolidated funeral contracts numbered 10,374 against 10,124. Average revenue per funeral contract was USD 5,930 against USD 5,821, an increase of 1.9% as stated.

Cemetery comparable revenue was USD 32.54 million against USD 35.30 million, a decline of 7.8%. Financial revenue was USD 6.20 million against USD 9.03 million, and the company said it was reduced by additional trust taxes tied to the sale of certain Master Limited Partnership investments held in its trusts.

Profit and Margins

Net income was USD 8.9 million, which the company described as growth of 35.2%, and Operating Income was USD 19.4 million against USD 17.5 million. GAAP diluted EPS was USD 0.56 against USD 0.41. Divestitures and Impairment charges produced a net gain of USD 0.3 million, against a net loss of USD 6.6 million a year earlier.

Adjusted consolidated EBITDA was USD 27.7 million against USD 33.0 million, with an adjusted Margin of 27.6% against 32.1%. Cemetery comparable EBITDA was USD 13.6 million against USD 17.1 million. Chief executive Carlos Quezada said field teams delivered funeral volume growth and that targeted actions since the start of the quarter aimed to reinforce cemetery sales discipline.

Cash, Balance Sheet and Revised Outlook

Cash provided by Operating Activities was USD 24.7 million, the same as a year earlier, and adjusted free Cash Flow was USD 19.3 million against USD 19.0 million. Cash and cash equivalents stood at USD 8.1 million at September 30, long-term Debt was USD 516.2 million against USD 528.3 million at year end 2025, and stockholders' Equity was USD 288.4 million. The quarterly Dividend declared was USD 0.1125 per share, unchanged from a year earlier.

The company closed a new USD 300 million credit Facility and increased committed borrowing capacity by USD 50 million. Management said acquisitions under contract or letter of intent represent more than USD 14 million in annual revenue, with closings targeted for later this year and early 2027.

The revised 2026 outlook cites lower mortality rates in the first half, cemetery preneed performance, the trust taxes and revised Acquisition timing. It lists revenue of USD 415 million to USD 420 million, adjusted EBITDA of USD 125 million to USD 130 million, adjusted diluted EPS of USD 2.90 to USD 3.05, adjusted free cash flow of USD 40 million to USD 45 million and capital expenditures of USD 20 million to USD 25 million.

Metrics to Track

Funeral contract volume growth of 2.5% sits alongside a 7.8% decline in cemetery comparable revenue and a 7.0% increase in insurance-funded preneed funeral contracts sold. Adjusted EBITDA of USD 27.7 million sits alongside a revised full year range of USD 125 million to USD 130 million, down from USD 135 million to USD 140 million.

Management named three priorities: sustaining funeral momentum, restoring consistent cemetery sales execution and expanding through acquisitions. It referred to its 2030 Vision and a conference call on November 5, 2026.