Carriage Services Q2 Revenue Dips Amidst Flat Service Demand

TL;DR

**CSV's revenue dip is a red flag; I'm bearish on their short-term growth prospects.**

AI Summary

CARRIAGE SERVICES INC (CSV) reported a mixed financial performance for the second quarter ended June 30, 2025. Total revenue for the quarter decreased to $85.3 million from $87.1 million in the prior-year quarter, representing a 2.1% decline. Service revenue saw a slight decrease to $60.1 million from $60.5 million, while property and merchandise revenue also fell to $24.0 million from $25.4 million. Other revenue remained flat at $1.2 million. For the six months ended June 30, 2025, total revenue was $170.6 million, down from $174.2 million in the same period of 2024. The company's retained earnings increased to $290.3 million as of June 30, 2025, from $285.1 million at December 31, 2024, indicating profitability despite revenue declines. The company's common stock remained stable at $0.2 million, and additional paid-in capital increased to $201.2 million from $200.9 million. Treasury stock decreased to $155.8 million from $156.0 million, suggesting some share repurchases or other capital adjustments.

Why It Matters

This filing reveals CARRIAGE SERVICES INC is navigating a challenging market with declining revenues, which could signal broader trends in the deathcare industry. For investors, the 2.1% revenue decline in Q2 2025 and 2.1% decline year-to-date raises concerns about growth prospects and market share against competitors like Service Corporation International. Employees might face pressure if revenue trends continue, potentially impacting job security or compensation. Customers could see changes in service offerings or pricing as the company adapts. The broader market will watch if this indicates a shift in consumer preferences or economic pressures affecting discretionary spending on funeral and cemetery services.

Risk Assessment

Risk Level: medium — The company experienced a 2.1% decrease in total revenue for Q2 2025, falling to $85.3 million from $87.1 million in Q2 2024. This consistent decline across service and merchandise revenue segments, with service revenue down to $60.1 million from $60.5 million and property and merchandise revenue down to $24.0 million from $25.4 million, indicates a potential struggle to maintain market demand and could impact future profitability.

Analyst Insight

Investors should closely monitor CARRIAGE SERVICES INC's next earnings call for management's strategy to reverse the revenue decline. Consider holding off on new investments until there's clear evidence of revenue stabilization or growth, and evaluate competitors' performance for industry context.

Financial Highlights

revenue

$85.3M

revenue Growth

-2.1%

Revenue Breakdown

Key Numbers

• $85.3M — Q2 2025 Total Revenue (Decreased by 2.1% from Q2 2024's $87.1M)
• $60.1M — Q2 2025 Service Revenue (Slightly decreased from Q2 2024's $60.5M)
• $24.0M — Q2 2025 Property & Merchandise Revenue (Decreased from Q2 2024's $25.4M)
• $170.6M — YTD 2025 Total Revenue (Decreased from YTD 2024's $174.2M)
• $290.3M — Retained Earnings as of June 30, 2025 (Increased from $285.1M at December 31, 2024, indicating profitability)
• 2.1% — Q2 Revenue Decline (Percentage decrease in total revenue from Q2 2024 to Q2 2025)

Key Players & Entities

• CARRIAGE SERVICES INC (company) — filer of the 10-Q
• Service Corporation International (company) — competitor in the deathcare industry
• $85.3 million (dollar_amount) — total revenue for Q2 2025
• $87.1 million (dollar_amount) — total revenue for Q2 2024
• $60.1 million (dollar_amount) — service revenue for Q2 2025
• $60.5 million (dollar_amount) — service revenue for Q2 2024
• $24.0 million (dollar_amount) — property and merchandise revenue for Q2 2025
• $25.4 million (dollar_amount) — property and merchandise revenue for Q2 2024
• $170.6 million (dollar_amount) — total revenue for six months ended June 30, 2025
• $174.2 million (dollar_amount) — total revenue for six months ended June 30, 2024

FAQ

Industry Context

Carriage Services Inc. operates in the personal services sector, primarily funeral homes and cemeteries. This industry is generally stable, driven by demographic trends, but can be sensitive to economic conditions affecting discretionary spending and the ability to pay for services. Competition exists from both large national providers and smaller, independent operators.

Regulatory Implications

As a publicly traded company, Carriage Services Inc. is subject to SEC regulations and reporting requirements, including the timely filing of 10-Q and 10-K reports. Compliance with accounting standards and disclosure rules is critical to maintaining investor confidence and avoiding penalties.

What Investors Should Do

1. Monitor revenue trends in service and property/merchandise segments.
2. Analyze the drivers of retained earnings growth.
3. Evaluate the impact of any share repurchases.

Key Dates

• 2025-06-30: End of Q2 2025 — Reporting period for the 10-Q filing, showing a 2.1% decrease in total revenue compared to Q2 2024.
• 2025-08-07: 10-Q Filing Date — The date the company officially submitted its quarterly report to the SEC, providing detailed financial information.

Glossary

Retained Earnings

The cumulative amount of net income that a company has kept over time, rather than distributing it to shareholders as dividends. (An increase to $290.3M from $285.1M indicates that Carriage Services Inc. generated profits that were reinvested back into the business, despite the recent revenue decline.)

Treasury Stock

Shares of a company's own stock that it has repurchased from the open market. (A decrease to $155.8M from $156.0M suggests minor share repurchases or other capital adjustments during the period.)

Additional Paid-In Capital

The amount of money a company receives from selling stock above its par value. (An increase to $201.2M from $200.9M indicates some activity related to stock issuance or option exercises.)

Year-Over-Year Comparison

Compared to the prior year's comparable period, Carriage Services Inc. reported a 2.1% decrease in total revenue for Q2 2025, falling to $85.3 million from $87.1 million. Both service revenue and property & merchandise revenue experienced declines. However, the company's retained earnings saw an increase, indicating that profitability, at least on a cumulative basis, remains positive despite the top-line contraction.

Filing Documents

• csv-20250630.htm (10-Q) — 2198KB
• csv-ex311.htm (EX-31.1) — 11KB
• csv-ex312.htm (EX-31.2) — 11KB
• csv-ex32.htm (EX-32) — 9KB
• 0001016281-25-000103.txt ( ) — 12352KB
• csv-20250630.xsd (EX-101.SCH) — 88KB
• csv-20250630_cal.xml (EX-101.CAL) — 116KB
• csv-20250630_def.xml (EX-101.DEF) — 449KB
• csv-20250630_lab.xml (EX-101.LAB) — 783KB
• csv-20250630_pre.xml (EX-101.PRE) — 684KB
• csv-20250630_htm.xml (XML) — 2551KB

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements 3 Unaudited Condense d Consolidated Balance Sheets as of June 30, 2025 and December 31, 2024 3 Unaudited Condensed Consolidated Statements of Operations for the Three and Six Months ended June 30, 2025 and 2024 4 Unaudited Condensed Consolidated Statements of Cash Flows for the Six Months ended June 30, 2025 and 2024 5 Unaudited Condensed Consolidated Statements of Changes in Stockholders' Equity for the Three and Six Months ended June 30, 2025 and 2024 6 Unaudited Condensed Notes to Consolidated Financial Statements 8 1. Basis of Presentation and Summary of Significant Accounting Policies 8 2. Recently Issued Accounting Standards 10 3. Goodwill 11 4. Divested Operations 11 5. Receivables 12 6. Fair Value Measurements 13 7. Trust Investments 14 8. Receivables from Preneed Trusts 23 9. Credit Facility and Acquisition Debt 23 10. Senior Notes 25 11. Earnings Per Share 26 12. Segment Reporting 26 13. Subsequent Events 30 Cautionary Statement on Forward–Looking Statements 31

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 33

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 43

Controls and Procedures

Item 4. Controls and Procedures 43

– OTHER INFORMATION

PART II – OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 44

Risk Factors

Item 1A. Risk Factors 44

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 45

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 45

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 45

Other Information

Item 5. Other Information 45

Exhibits

Item 6. Exhibits 45 SIGNATURE 46 INDEX OF EXHIBITS 47 2

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements. CARRIAGE SERVICES, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited and in thousands, except share data) June 30, 2025 December 31, 2024 ASSETS Current assets: Cash and cash equivalents $ 1,398 $ 1,165 Accounts receivable, net 34,830 30,193 Inventories 7,580 7,920 Prepaid and other current assets 7,454 4,123 Current assets held for sale 61 1,135 Total current assets 51,323 44,536 Preneed cemetery trust investments 99,908 98,120 Preneed funeral trust investments 108,167 106,219 Preneed cemetery receivables, net 56,717 50,958 Receivables from preneed funeral trusts, net 22,024 22,372 Property, plant, and equipment, net 271,445 273,004 Cemetery property, net 110,574 109,576 Goodwill 410,703 414,859 Intangible and other non-current assets, net 40,382 40,427 Operating lease right-of-use assets 14,268 14,953 Cemetery perpetual care trust investments 86,744 85,103 Non-current assets held for sale 3,459 19,453 Total assets $ 1,275,714 $ 1,279,580 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Current portion of debt and lease obligations $ 4,745 $ 3,914 Accounts payable 16,691 15,427 Accrued and other liabilities 26,897 38,460 Current liabilities held for sale 130 240 Total current liabilities 48,463 58,041 Acquisition debt, net of current portion 4,817 4,895 Long-term liabilities held for sale 1,743 13,842 Credit facility 111,458 135,382 Senior notes 396,954 396,597 Obligations under finance leases, net of current portion 8,908 6,045 Obligations under operating leases, net of current portion 12,923 14,035 Deferred preneed cemetery revenue 64,379 61,767 Deferred preneed funeral revenue 39,437 39,261 Deferred tax liability 54,693 51,429 Other long-term liabilities 1,334 1,179 Deferred preneed cemetery receipts held in trust 99,908 98,120 Deferred preneed funeral receipts held in trust 108,167 106,219 Care trusts' corpus 87,110 84,218 Total liabilities 1,040,294 1,071,030 Commitmen

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) The table below presents the carrying amounts of the assets and liabilities included as part of the expected sale (in thousands): June 30, 2025 December 31, 2024 Accounts receivable, net $ 1 $ 833 Inventories 57 302 Prepaid and other current assets 3 — Current assets held for sale $ 61 $ 1,135 Preneed cemetery trust investments $ 1,104 $ 4,876 Preneed funeral trust investments 177 2,197 Preneed cemetery receivables, net 5 1,671 Receivables from funeral preneed trusts, net 27 — Property, plant, and equipment, net 1,404 4,898 Cemetery property, net 127 3,362 Intangible and other non-current assets, net 224 215 Operating lease right-of-use assets 69 — Cemetery perpetual care trust investments 322 2,234 Non-current assets held for sale $ 3,459 $ 19,453 Current portion of operating lease obligations $ 23 $ — Accounts payable 24 94 Accrued and other liabilities 83 146 Current liabilities held for sale $ 130 $ 240 Obligations under operating leases, net of current portion $ 47 $ — Deferred preneed cemetery revenue 66 3,517 Deferred preneed funeral revenue 27 1,018 Deferred preneed cemetery receipts held in trust 1,104 4,876 Deferred preneed funeral receipts held in trust 177 2,197 Care trusts' corpus 322 2,234 Long-term liabilities held for sale $ 1,743 $ 13,842 Property, Plant, and Equipment Property, plant, and equipment is comprised of the following (in thousands): June 30, 2025 December 31, 2024 Land $ 85,479 $ 86,609 Buildings and improvements 261,978 265,231 Furniture, equipment and vehicles 70,602 72,052 Property, plant, and equipment, at cost 418,059 423,892 Less: accumulated depreciation ( 145,210 ) ( 145,990 ) Property, plant, and equipment, net $ 272,849 $ 277,902 Less: Held for sale ( 1,404 ) ( 4,898 ) Property, plant, and equipment, net $ 271,445 $ 273,004 During the six months ended June 30, 2025, we sold two funeral homes and three cemeteries that had a carr

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) During the six months ended June 30, 2024, we sold six funeral homes and one cemetery that had a carrying value of property, plant, and equipment of $ 3.1 million, which was included in the loss on sale and recorded in Net (gain) loss on divestitures, disposals, and impairment charges on our Consolidated Statements of Operations. Additionally, we sold real property for $ 0.3 million, with a carrying value of $ 0.3 million. Our growth and maintenance capital expenditures totaled $ 1.4 million and $ 1.9 million for the three months ended June 30, 2025 and 2024, respectively, and $ 3.0 million and $ 3.5 million for the six months ended June 30, 2025 and 2024, respectively. In addition, we recorded depreciation expense of $ 3.3 million and $ 3.5 million for the three months ended June 30, 2025 and 2024, respectively, and $ 6.8 million and $ 7.2 million for the six months ended June 30, 2025 and 2024, respectively. Cemetery Property Cemetery property was $ 110.7 million and $ 112.9 million, net of accumulated amortization of $ 73.7 million and $ 72.6 million at June 30, 2025 and December 31, 2024, respectively. When cemetery property is sold, the value of the cemetery property (interment right costs) is expensed as amortization using the specific identification method in the period in which the sale of the interment right is recognized as revenue. Our growth capital expenditures for cemetery property development totaled $ 1.4 million and $ 1.6 million for the three months ended June 30, 2025 and 2024, respectively, and $ 3.0 million and $ 3.5 million for the six months ended June 30, 2025 and 2024, respectively. We recorded amortization expense for cemetery interment rights of $ 2.2 million and $ 2.6 million for the three months ended June 30, 2025 and 2024, respectively, and $ 4.1 million and $ 4.3 million for the six months ended June 30, 2025 and 2024, respectively. During the six months ended June 30, 2025,

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) Accounting Pronouncements Not Yet Adopted Expense Disaggregation In November 2024, the FASB issued ASU 2024-03, Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures . Additionally, in January 2025, the FASB issued ASU 2025-01 to clarify the effective date of ASU 2024-03. The standard provides guidance to expand disclosures related to the disaggregation of income statement expenses. The amendments in this update require, in the notes to the financial statements, disclosure of specified information about certain costs and expenses, which includes purchases of inventory, employee compensation, depreciation and intangible asset amortization included in each relevant expense caption. This guidance is effective for fiscal years beginning after December 15, 2026, and interim periods within annual reporting periods beginning after December 15, 2027, on a retrospective or prospective basis, with early adoption permitted. We expect the adoption will have no material impact on our condensed consolidated financial statements as it modifies disclosure requirements only. 3. GOODWILL The following table presents changes in goodwill in the accompanying Consolidated Balance Sheets (in thousands): June 30, 2025 December 31, 2024 Goodwill at the beginning of the period $ 414,859 $ 423,643 Decrease in goodwill related to divestitures ( 4,156 ) ( 8,784 ) Goodwill at the end of the period $ 410,703 $ 414,859 During the six months ended June 30, 2025, we allocated $ 4.2 million of goodwill to the sale of two funeral homes and three cemeteries which was recorded in Net (gain) loss on divestitures, disposals, and impairment charges on our Consolidated Statements of Operations, of which $ 2.6 million was allocated to our funeral home segment and $ 1.6 million was allocated to our cemetery segment. During the six months ended June 30, 2024, we allocated $ 8.7 million of goodwill to the sale

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