Carriage Services, Inc. (“Carriage,” the “Company,” “we,” “us,” or “our”) is a leading provider of funeral and cemetery services and merchandise in the United States. Our operations are reported in two business segments: Funeral Home Operations, which currently accounts for approximately 70% of our total revenue and Cemetery Operations, which currently accounts for approximately 30% of our total revenue. At June 30, 2025, we operated 159 funeral homes in 25 states and 28 cemeteries in 10 states.

Our funeral home operations are principally service businesses that generate revenue from sales of burial and cremation services and related merchandise, such as caskets and urns. Funeral services include consultation, the removal and preparation of remains, the sale of caskets and related funeral merchandise, the use of funeral home facilities for visitation and memorial services and transportation services. We provide funeral services and products on both an “atneed” (time of death) and “preneed” (planned prior to death) basis.

Our cemetery operations generate revenue primarily through sales of cemetery interment rights (primarily grave sites, lawn crypts, mausoleum spaces and niches), related cemetery merchandise (such as memorial markers, outer burial containers and monuments) and services (interments, inurnments and installation of cemetery merchandise). We provide cemetery services and products on both an atneed and preneed basis.

Our unaudited Condensed Consolidated Financial Statements include the Company and its subsidiaries. All intercompany balances and transactions have been eliminated. Our interim Condensed Consolidated Financial Statements are unaudited, but include all adjustments, which consist of normal, recurring accruals, that are necessary for a fair presentation of our financial position and results of operations as of and for the interim periods presented.

There have been no material changes in our accounting policies previously disclosed in Part II, Item 8 “Financial Statements and Supplementary Data” in Note 1 in our Annual Report on Form 10-K for the year ended December 31, 2024. In addition, our unaudited Condensed Consolidated Financial Statements have been prepared in a manner consistent with the accounting principles described in our Annual Report on Form 10-K for the year ended December 31, 2024, unless otherwise disclosed herein, and should be read in conjunction therewith.

The preparation of our Consolidated Financial Statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenue, and expenses. On an ongoing basis, we evaluate our critical estimates and judgments, which include those related to the impairment of goodwill and the fair value measurements used in business combinations. These policies are considered critical because they may result in fluctuations in our reported results from period to period due to significant judgments, estimates and assumptions about complex and inherently uncertain matters and because the use of different judgments, assumptions or estimates could have a material impact on our financial condition or results of operations. Actual results may differ from these estimates and such estimates may change if the underlying conditions or assumptions change. Historical performance should not be viewed as indicative of future performance because there can be no assurance the margins, operating income and net earnings, as a percentage of revenue, will be consistent from period to period.

Inventory consists primarily of caskets, outer burial containers and cemetery monuments and markers and is recorded at the lower of its cost basis or net realizable value. Inventory is relieved using specific identification in fulfillment of performance obligations on our contracts.

At June 30, 2025, the assets and liabilities of non-core funeral home and cemetery businesses expected to be sold within the next twelve months, which have met the criteria for such classification, have been classified as held for sale.


	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


	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 carrying value of property, plant, and equipment of $3.4 million, which was included in the gain on sale and recorded in Net (gain) loss on divestitures, disposals, and impairment charges on our Consolidated Statements of Operations, more fully described in Note 4 to the Condensed Consolidated Financial Statements.

Additionally, during the six months ended June 30, 2025, we sold real property for $3.0 million, with a carrying value of $1.0 million, resulting in a $2.0 million gain on the sale, which was recorded in Net (gain) loss on divestitures, disposals, and impairment charges on our Consolidated Statements of Operations.

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 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, we sold three cemeteries that had a carrying value of cemetery property of $3.3 million, which was included in the gain on sale and recorded in Net (gain) loss on divestitures, disposals, and impairment charges on our Consolidated Statements of Operations, more fully described in Note 4 to the Condensed Consolidated Financial Statements.

During the six months ended June 30, 2024, we sold one cemetery that had a carrying value of cemetery property of $0.8 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.