Carriage Services Announces Second Quarter 2025 Results, Strategic Acquisitions, and Raises Full-Year 2025 Outlook
HOUSTON, Aug. 06, 2025 (GLOBE NEWSWIRE) -- Carriage Services, Inc. (NYSE:CSV) today announced its financial results for the second quarter ended June 30, 2025.
Company Highlights:
GAAP net income growth of $5.5 million, or 85.7%, over the prior year quarter;
GAAP diluted EPS of $0.74 and adjusted diluted EPS of $0.74, compared to $0.40 and $0.63 in the prior year quarter, a growth of 85.0% and 17.5%, respectively;
Total funeral consolidated revenue increased $1.7 million or 2.6% over the prior year quarter, driven by an increase in consolidated funeral average revenue per contract of 1.4%;
Total consolidated revenue for the six months ended June 30, 2025, grew $3.4 million, driven by a $4.4 million increase in consolidated funeral revenue that was slightly offset by a decline in consolidated cemetery revenue of $1.0 million;
The Company is excited to announce our return to growth through acquisitions as we are under contract to acquire strategic businesses that generated revenue in excess of $15 million last year, with closings scheduled for later this quarter; and
Leverage ratio lowered to 4.2x from 4.6x at the same period last year, as the Company paid down $7.1 million of debt on its credit facility during the second quarter.
Carlos Quezada, Vice Chairman and CEO, stated, "We are pleased with our second quarter performance, which delivered an impressive GAAP net income growth of $5.5 million, or 85.7%, over the prior year quarter. Our GAAP diluted EPS reached $0.74, and adjusted diluted EPS of $0.74, compared to $0.40 and $0.63 in the prior quarter, reflecting growth of 85.0% and 17.5%, respectively. Despite the revenue impact of our first quarter divestitures, total revenue remained flat due to the impact of our organic growth strategies. Excluding the impact of divestitures, revenue increased $1.8 million, or 1.7%. After over two years of disciplined capital allocation, where we were able to pay just over $100 million of debt, we are excited to announce that we are under contract to acquire new businesses, which we anticipate will close this quarter. Combined, these premier locations served more than 2,600 families and generated more than $15 million in revenue last year. We are excited to return to our long-term strategy of adding shareholder value through high-quality acquisitions. Therefore, we are updating our full-year guidance to reflect our current performance trends, as well as divestitures and acquisitions that will impact the second half of the year," concluded Mr. Quezada.
FINANCIAL HIGHLIGHTS
Three months ended June 30,
Six months ended June 30,
(in millions, except volume, average, margins, and EPS)
2025
2024
2025
2024
GAAP Metrics:
Total revenue
$
102.1
$
102.3
$
209.2
$
205.8
Operating income
$
24.0
$
18.4
$
55.6
$
37.8
Operating income margin
23.5
%
18.0
%
26.6
%
18.4
%
Net income
$
11.7
$
6.3
$
32.7
$
13.2
Diluted EPS
$
0.74
$
0.40
$
2.07
$
0.85
Cash provided by operating activities
$
8.1
$
2.2
$
21.9
$
21.9
Cemetery Consolidated Metrics:
Preneed interment rights (property) sold
4,016
4,179
7,252
7,616
Average price per preneed interment right sold
$
5,871
$
5,908
$
5,669
$
5,430
Funeral Consolidated Metrics:
Funeral contracts
10,589
10,679
22,761
22,770
Average revenue per funeral contract(1)
$
5,626
$
5,549
$
5,671
$
5,565
Burial rate
31.4
%
32.0
%
32.4
%
32.9
%
Cremation rate
61.6
%
59.7
%
60.9
%
59.3
%
Non-GAAP Metrics(2):
Adjusted consolidated EBITDA
$
32,262
$
32,604
$
65,210
$
66,205
Adjusted consolidated EBITDA margin
31.6
%
31.9
%
31.2
%
32.2
%
Adjusted diluted EPS
$
0.74
$
0.63
$
1.70
$
1.38
Adjusted free cash flow
$
6.9
$
(0.3
)
$
20.3
$
18.2
Cemetery Operating Metrics(3):
Preneed interment rights (property) sold
4,016
4,025
7,116
7,269
Average price per preneed interment right sold
$
5,871
$
6,013
$
5,705
$
5,554
Funeral Operating Metrics(4):
Funeral contracts
10,589
10,533
22,644
22,306
Average revenue per funeral contract(1)
$
5,626
$
5,578
$
5,682
$
5,595
Burial rate
31.4
%
32.0
%
32.4
%
32.7
%
Cremation rate
61.6
%
59.9
%
61.0
%
59.6
%
(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 and acquisitions).
(4) Metrics calculated using funeral operating results (excluding impact from divestitures and acquisitions).
Total revenue for the three months ended June 30, 2025 decreased $0.2 million compared to the three months ended June 30, 2024. We experienced a 3.9% decrease in the consolidated number of preneed interment rights (property) sold and a 0.6% decrease in the consolidated average price per preneed interment right sold. Additionally, we experienced a 1.4% increase in the consolidated average revenue per funeral contract, as well as a 0.8% decrease in consolidated funeral contract volume.
Net income for the three months ended June 30, 2025 increased $5.5 million compared to the three months ended June 30, 2024. We experienced a $6.7 million decrease in general, administrative, and other expenses, and a $1.3 million decrease in interest expense; partially offset by a $1.1 million decrease in gross profit contribution from our businesses and a $0.9 million increase in income tax expense.
Total revenue for the six months ended June 30, 2025 increased $3.4 million compared to the six months ended June 30, 2024. We experienced a 4.4% increase in the consolidated average price per preneed interment right sold, which was partially offset by a 4.8% decrease in the consolidated number of preneed interment rights (property) sold. Additionally, we experienced a 1.9% increase in the consolidated average revenue per funeral contract. Consolidated funeral contract volume remained flat.
Net income for the six months ended June 30, 2025 increased $19.4 million compared to the six months ended June 30, 2024. We experienced a $9.3 million increase in (gain) loss on sale of divestitures and real property, a $10.9 million decrease in general, administrative, and other expenses, and a $2.7 million decrease in interest expense; partially offset by a $2.5 million increase in income tax expense and a $0.5 million decrease in gross profit contribution from our businesses.
REVISED 2025 OUTLOOK
Revised 2025 Outlook (1)
Previous 2025 Outlook (1)
(in millions, except per share amounts)
Total revenue
$410 – $420
$400 – $410
Adjusted consolidated EBITDA(2)
$129 – $134
$128 – $133
Adjusted diluted EPS(2)
$3.15 – $3.35
$3.10 – $3.30
Adjusted free cash flow(2)(3)
$40 – $50
$40 – $50
(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, August 7, 2025 at 8:00 a.m. Central Time. To participate in the call, please dial 888-254-3590 (Conference ID, 6237081) 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 159 funeral homes in 25 states and 28 cemeteries in 10 states as of June 30, 2025. It is dedicated to delivering premier experiences through innovation, partnership, and elevated service.
For any investor relations questions, please email
CARRIAGE SERVICES, INC.
CONDENSED OPERATING AND FINANCIAL TREND REPORT
(in thousands – except per share amounts)
Three months ended June 30,
Six months ended June 30,
2025
2024
2025
2024
Funeral operating revenue
$
59,572
$
58,753
$
128,662
$
124,801
Cemetery operating revenue
33,450
33,644
61,388
60,049
Financial revenue
8,224
6,921
15,580
13,664
Ancillary revenue
904
1,082
1,936
2,329
Divested revenue
(3
)
1,918
1,650
4,968
Total revenue
$
102,147
$
102,318
$
209,216
$
205,811
Funeral operating EBITDA
$
22,030
$
23,220
$
51,570
$
50,569
Funeral operating EBITDA margin
37.0
%
39.5
%
40.1
%
40.5
%
Cemetery operating EBITDA
15,003
16,712
26,368
28,247
Cemetery operating EBITDA margin
44.9
%
49.7
%
43.0
%
47.0
%
Financial EBITDA
7,610
6,385
14,165
12,715
Financial EBITDA margin
92.5
%
92.3
%
90.9
%
93.1
%
Ancillary EBITDA
32
192
220
365
Ancillary EBITDA margin
3.5
%
17.7
%
11.4
%
15.7
%
Divested EBITDA
49
694
628
1,634
Divested EBITDA margin
(1633.3
)%
36.2
%
38.1
%
32.9
%
Total field EBITDA
$
44,724
$
47,203
$
92,951
$
93,530
Total field EBITDA margin
43.8
%
46.1
%
44.4
%
45.4
%
Total overhead
$
12,462
$
20,425
$
27,741
$
39,781
Overhead as a percentage of revenue
12.2
%
20.0
%
13.3
%
19.3
%
Consolidated EBITDA
$
32,262
$
26,778
$
65,210
$
53,749
Consolidated EBITDA margin
31.6
%
26.2
%
31.2
%
26.1
%
Other expenses and interest
Depreciation & amortization
$
6,173
$
6,204
$
11,574
$
11,664
Non-cash stock compensation
2,092
2,182
3,845
2,671
Interest expense
7,034
8,324
14,332
17,036
Other
106
(391
)
(7,652
)
1,197
Pretax income
$
16,857
$
10,459
$
43,111
$
21,181
Net tax expense
5,118
4,200
10,446
7,949
Net income
$
11,739
$
6,259
$
32,665
$
13,232
Special items(1)
$
12
$
5,417
$
(8,217
)
$
12,212
Tax on special items
4
1,825
(2,432
)
4,054
Adjusted net income
$
11,747
$
9,851
