What changed in this filing

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Item 1. Financial Statements

2025-11-06 compared with 2025-08-07 · 216 added, 129 removed, 869 unchanged (28% of the section changed)

3 unchanged sentences

(unaudited and in thousands, except share data)

September 30,

2025 December 31,

54 unchanged sentences

(unaudited and in thousands, except per share data)

Three months ended June 30, Six months ended June 30,

Three months ended September 30, Nine months ended September 30,

2025 2024 2025 2024

14 unchanged sentences

General, administrative, and other 12,177 12,206 36,163 47,047

Net (gain) loss on divestitures, disposals, and impairments charges ( 1 ) 23 ( 5,771 ) 1,568

Net loss on divestitures and impairment charges 6,559 387 788 1,955

Operating income 17,507 22,897 73,069 60,743

20 unchanged sentences

(unaudited and in thousands)

Six months ended June 30,

Nine months ended September 30,

Cash flows from operating activities:

8 unchanged sentences

Amortization and accretion of debt 420 402

Net (gain) loss on divestitures, disposals, and impairment charges ( 5,771 ) 1,568

Net loss on divestitures and impairment charges 788 1,955

Net gain on property damage, net of insurance claims — ( 417 )

Gain on sale of excess real property ( 1,993 ) —

Net gain on sale of excess real property ( 1,047 ) —

Changes in operating assets and liabilities that provided (used) cash:

9 unchanged sentences

Cash flows from investing activities:

Acquisitions of businesses and real property ( 56,499 ) —

Proceeds from divestitures and sale of other assets 37,310 12,015

1 unchanged sentence

Capital expenditures ( 12,715 ) ( 11,710 )

Net cash provided by investing activities 12,813 4,392

Net cash (used in) provided by investing activities ( 31,904 ) 708

Cash flows from financing activities:

1 unchanged sentence

Payments against the credit facility ( 115,900 ) ( 71,200 )

Payment of debt issuance costs for the credit facility — ( 782 )

Payments on acquisition debt and obligations under finance leases ( 427 ) ( 464 )

13 unchanged sentences

(unaudited and in thousands)

Three months ended June 30, 2025

Three months ended September 30, 2025

Shares Outstanding Common Stock Additional Paid-in Capital Retained Earnings Treasury Stock Total

Balance - March 31, 2025 15,693 $ 273 $ 237,407 $ 264,135 $ ( 278,753 ) $ 223,062

Balance - June 30, 2025 15,701 $ 273 $ 238,026 $ 275,874 $ ( 278,753 ) $ 235,420

Net income — — — 6,570 — 6,570

6 unchanged sentences

— — ( 1,766 ) — — ( 1,766 )

Balance - June 30, 2025 15,701 $ 273 $ 238,026 $ 275,874 $ ( 278,753 ) $ 235,420

Three months ended June 30, 2024

Balance - September 30, 2025 15,745 $ 274 $ 238,119 $ 282,444 $ ( 278,753 ) $ 242,084

Three months ended September 30, 2024

Shares Outstanding Common Stock Additional Paid-in Capital Retained Earnings Treasury Stock Total

Balance - March 31, 2024 15,165 $ 268 $ 240,811 $ 217,229 $ ( 278,753 ) $ 179,555

Balance - June 30, 2024 15,236 $ 269 $ 242,883 $ 223,488 $ ( 278,753 ) $ 187,887

Net income — — — 9,866 — 9,866

6 unchanged sentences

— — ( 1,708 ) — — ( 1,708 )

Balance - June 30, 2024 15,236 $ 269 $ 242,883 $ 223,488 $ ( 278,753 ) $ 187,887

Six months ended June 30, 2025

Balance - September 30, 2024 15,223 $ 269 $ 243,259 $ 233,354 $ ( 278,753 ) $ 198,129

Nine months ended September 30, 2025

Shares Outstanding Common Stock Additional Paid-in Capital Retained Earnings Treasury Stock Total

11 unchanged sentences

Other 12 — 496 — — 496

Balance - June 30, 2025 15,701 $ 273 $ 238,026 $ 275,874 $ ( 278,753 ) $ 235,420

Six months ended June 30, 2024

Balance - September 30, 2025 15,745 $ 274 $ 238,119 $ 282,444 $ ( 278,753 ) $ 242,084

Nine months ended September 30, 2024

Shares Outstanding Common Stock Additional Paid-in Capital Retained Earnings Treasury Stock Total

3 unchanged sentences

Issuance of common stock to directors and board advisor 14 — 400 — — 400

Issuance of common stock — — — — — —

Issuance of restricted common stock 157 2 ( 2 ) — — —

5 unchanged sentences

Other 31 — 790 — — 790

Balance - June 30, 2024 15,236 $ 269 $ 242,883 $ 223,488 $ ( 278,753 ) $ 187,887

Balance - September 30, 2024 15,223 $ 269 $ 243,259 $ 233,354 $ ( 278,753 ) $ 198,129

The accompanying condensed notes are an integral part of these Condensed Consolidated Financial Statements.

5 unchanged sentences

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.

At September 30, 2025, we operated 159 funeral homes in 24 states and 28 cemeteries in 9 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.

20 unchanged sentences

Held for Sale

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.

At September 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.

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

September 30, 2025 December 31, 2024

Accounts receivable, net $ 81 $ 833

Inventories 17 302

Prepaid and other current assets 3 —

Current assets held for sale $ 98 $ 1,135

20 unchanged sentences

Long-term liabilities held for sale $ 4,725 $ 13,842

The excess of the purchase price over the fair value of identifiable net assets of funeral home businesses and cemeteries we acquire is recorded as goodwill.

Goodwill has an indefinite life and is not subject to amortization.

As such, we test goodwill for impairment on an annual basis as of August 31st each year.

Under current guidance, we are permitted to first assess qualitative factors to determine whether it is more-likely-than-not that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform a quantitative goodwill impairment test.

We performed our most recent annual goodwill impairment test as of August 31, 2025.

We intend to perform a quantitative impairment test at least once every three years and perform a qualitative assessment during the remaining two years.

We conducted qualitative assessments in 2023 and 2024;

however, we performed a quantitative assessment in 2025.

No goodwill impairment was recorded as a result of our assessments.

In addition to our annual test, we assess the impairment of goodwill whenever events or changes in circumstances indicate that the carrying value of a reporting unit may be greater than fair value.

Factors that could trigger an interim impairment review include, but are not limited to, significant negative industry or economic trends and significant adverse changes in the business climate, which may be indicated by a decline in our market capitalization or decline in operating results.

Our quantitative goodwill impairment test involves estimates and management judgment.

In the quantitative analysis, we compare the fair value of each reporting unit to its carrying value, including goodwill.

If the fair value of the reporting unit exceeds its carrying amount, the goodwill of that reporting unit is not considered impaired.

We determine fair value for each reporting unit using an income approach, weighted 80%, and two market approaches, weighted 10% each.

Our methodology for determining an income-based fair value is based on discounting projected future cash flows.

The projected future cash flows include assumptions concerning future operating performance and economic conditions that may differ from actual future cash flows discounted at our weighted average cost of capital based on market participant assumptions.

Our first methodology for determining a market approach fair value utilizes the guideline public company method, in which we rely on market multiples

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

of comparable companies operating in the same industry as the individual reporting units.

Our second market approach methodology utilizes the guideline transaction method, in which transaction multiples are derived from acquisitions of controlling interests in companies engaged in the same or similar lines of business as the reporting units.

In accordance with the guidance, if the fair value of the reporting unit is less than its carrying amount an impairment charge is recorded in an amount equal to the difference.

When we divest a portion of a reporting unit that constitutes a business in accordance with United States generally accepted accounting principles (“GAAP”), we allocate goodwill associated with that business to be included in the gain or loss on divestiture.

The goodwill allocated is based on the relative fair value of the business being divested and the portion of the reporting unit that will be retained.

Additionally, after each divestiture, we will test the goodwill remaining in the portion of the reporting unit to be retained for impairment using a qualitative assessment unless we deem a quantitative assessment to be appropriate to ensure the fair value of our reporting units is greater than their carrying value.

For the nine months ended September 30, 2025 and 2024, after each divestiture, we concluded that it was more-likely-than not that the fair value of our reporting units was greater than their carrying value and thus there was no impairment to goodwill.

See Note 4 to the Condensed Consolidated Financial Statements included herein for additional information related to our goodwill.

Intangible Assets

Our intangible assets include tradenames resulting from acquisitions and are included in Intangible and other non-current assets , net on our Condensed Consolidated Balance Sheets.

Our tradenames are considered to have an indefinite life and are not subject to amortization.

As such, we test our intangible assets for impairment on an annual basis as of August 31st each year.

Under current guidance, we are permitted to first assess qualitative factors to determine whether it is more-likely-than-not that the fair value of the tradename is less than its carrying amount as a basis for determining whether it is necessary to perform a quantitative impairment test.

We performed our most recent annual intangible assets impairment test as of August 31, 2025.

We intend to perform a quantitative impairment test at least once every three years and perform a qualitative assessment during the remaining two years.

We conducted qualitative assessments in 2023 and 2024;

however, we performed a quantitative assessment in 2025.

In addition to our intangible assets annual test, we assess the impairment of intangible assets whenever certain events or changes in circumstances indicate that the carrying value of the intangible asset may be greater than the fair value.

Factors that could trigger an interim impairment review include, but are not limited to, significant under-performance relative to historical or projected future operating results and significant negative industry or economic trends.

Our quantitative intangible asset impairment test involves estimates and management judgment.

Our quantitative analysis is performed using the relief from royalty method, which measures the tradenames by determining the value of the royalties that we are relieved from paying due to our ownership of the asset.

We determine the fair value of the asset by discounting the cash flows that represent a savings in lieu of paying a royalty fee for use of the tradename.

The discounted cash flow valuation uses projections of future cash flows and includes assumptions concerning future operating performance and economic conditions that may differ from actual future cash flows and the determination and application of an appropriate royalty rate and discount rate.

To estimate the royalty rates for the individual tradename, we mainly rely on the profit split method, but also consider the comparable third-party license agreements and the return on asset method.

A scorecard is used to assess the relative strength of the individual tradename to further adjust the royalty rates selected under the profit-split method for qualitative factors.

In accordance with the guidance, if the fair value of the tradename is less than its carrying amount, then an impairment charge is recorded in an amount equal to the difference.

Our 2025 quantitative assessment did no t indicate any impairment to intangible assets as a result of our testing.

As a result of our 2024 qualitative assessment, we determined that there were factors that would indicate the need to perform additional quantitative impairment tests for certain funeral home businesses.

As a result of these additional quantitative impairment tests, we recorded an impairment to the tradenames for certain funeral home businesses of $ 0.6 million, during the nine months ended September 30, 2024, as the carrying amount of these tradenames exceeded their fair value.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

Property, Plant, and Equipment

Property, plant, and equipment is comprised of the following (in thousands):

June 30, 2025 December 31, 2024

September 30, 2025 December 31, 2024

Land $ 92,739 $ 86,609

6 unchanged sentences

Property, plant, and equipment, net $ 284,480 $ 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.

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.

During the nine months ended September 30, 2025, we acquired $23.3 million of property, plant and equipment related to our business combinations, described in Note 3 to the Consolidated Financial Statements.

We sold nine funeral homes and four cemeteries that had a carrying value of property, plant, and equipment of $ 10.7 million, and we sold real property for $ 4.1 million, with a carrying value of $ 2.6 million, resulting in a $ 1.1 million gain on the sale.

The impacts of these transactions are recorded in Net loss on divestitures and impairment charges on our Consolidated Statements of Operation and more fully described in Note 5 to the Condensed Consolidated Financial Statements.

We also recognized an impairment of $ 1.6 million for the three months ended September 30, 2025 on assets classified as held for sale.

During the nine months ended September 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 loss on divestitures and impairment charges on our Consolidated Statements of Operations.

Additionally, we sold real property for $ 1.1 million, with a carrying value of $ 0.8 million and we recognized an impairment related to property, plant and equipment for assets held for sale of $ 40 thousand, which was recorded in Net loss on divestitures and impairment charges on our Consolidated Statement of Operations.

Our growth and maintenance capital expenditures totaled $ 2.2 million and $ 3.0 million for the three months ended September 30, 2025 and 2024, respectively, and $ 5.2 million and $ 6.4 million for the nine months ended September 30, 2025 and 2024, respectively.

In addition, we recorded depreciation expense of $ 3.2 million and $ 3.5 million for the three months ended September 30, 2025 and 2024, respectively, and $ 10.0 million and $ 10.7 million for the nine months ended September 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 we acquire a cemetery, we utilize an internal and external approach to determine the fair value of the cemetery property.

From an external perspective, we obtain an accredited appraisal to provide reasonable assurance for property existence, property availability (unrestricted) for development, property lines, available spaces to sell, identifiable obstacles or easements and general valuation inclusive of known variables in that market.

From an internal perspective, we conduct a detailed analysis of the acquired cemetery property using other cemeteries in our portfolio as a benchmark.

This provides the added benefit of relevant data that is not available to third party appraisers.

Through this thorough internal process, we are able to identify viable costs of property based on historical experience, particular markets and demographics, reasonable margins, practical retail prices, and park infrastructure and condition.

Cemetery property was $ 116.6 million and $ 112.9 million, net of accumulated amortization of $ 76.3 million and $ 72.6 million at September 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.

Income tax expense was $ 5.1 million and $ 4.2 million for the three months ended June 30, 2025 and 2024, respectively, and $ 10.4 million and $ 7.9 million for the six months ended June 30, 2025 and 2024, respectively.

Our operating tax rate before discrete items was 31.2 % and 33.6 % for the six months ended June 30, 2025 and 2024, respectively, and 31.2 % and 33.2 % for the three months ended June 30, 2025 and 2024, respectively.

Our growth capital expenditures for cemetery property development totaled $ 4.5 million and $ 1.7 million for the three months ended September 30, 2025 and 2024, respectively, and $ 7.5 million and $ 5.3 million for the nine months ended September 30, 2025 and 2024, respectively.

We recorded amortization expense for cemetery interment rights of $ 2.8 million and $ 2.0 million for the three months ended September 30, 2025 and 2024, respectively, and $ 6.8 million and $ 6.3 million for the nine months ended September 30, 2025 and 2024, respectively.

During the nine months ended September 30, 2025, we sold four cemeteries that had a carrying value of cemetery property of $ 3.4 million, which was included in the gain on sale and recorded in Net loss on divestitures and impairment charges on our Consolidated Statements of Operations, more fully described in Note 5 to the Condensed Consolidated Financial Statements.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

During the nine months ended September 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 loss on divestitures and impairment charges on our Consolidated Statements of Operations.

Income tax expense was $ 3.1 million and $ 5.0 million for the three months ended September 30, 2025 and 2024, respectively, and $ 13.6 million and $ 12.9 million for the nine months ended September 30, 2025 and 2024, respectively.

Our operating tax rate before discrete items was 35.3 % and 33.2 % for the three months ended September 30, 2025 and 2024, respectively, and 32.0 % and 33.2 % for the nine months ended September 30, 2025 and 2024, respectively.

On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was signed into law.

The OBBBA made several key provisions of the Tax Cuts and Jobs Act of 2017 permanent, including 100% bonus depreciation, the immediate expensing of domestic research costs, and the introduction of a favorable modification to the business interest expense limitation.

Together, these changes accelerate the timing of certain tax deductions in the current period that allow for reductions in cash taxes.

The Company has completed its assessment of the legislation’s impact and determined that it did not have a material effect on the Company's annualized effective tax rate.

RECENTLY ISSUED ACCOUNTING STANDARDS

6 unchanged sentences

The adoption has no material impact on our consolidated financial statements as it modified disclosure requirements only.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

Accounting Pronouncements Not Yet Adopted

6 unchanged sentences

We expect the adoption will have no material impact on our condensed consolidated financial statements as it modifies disclosure requirements only.

Internal-Use Software

In September 2025, the FASB issued ASU 2025-06, Targeted Improvements to the Accounting for Internal-Use Software.

Under the new guidance, costs associated with software developed for internal use will now be capitalized when management authorizes a project and when it is probable the project will be completed and used to perform the function intended, rather than when a project reaches the application development stage under existing guidance.

The guidance is effective beginning January 1, 2028, with early adoption permitted, and can be applied prospectively, retrospectively, or on a modified retrospective basis.

We have not determined the transition method, timing for adoption, or estimated the effect on our condensed consolidated financial statements.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

BUSINESS COMBINATIONS

On September 9, 2025, we acquired a business consisting of six funeral homes, one cemetery, and one cremation focused business in the Orlando, FL area for approximately $ 49.0 million.

The purchase price consisted of $ 47.0 million in cash at closing and $ 2.0 million of deferred purchase price payments.

The net present value of such future deferred purchase price payments was $ 1.3 million.

We acquired substantially all of the assets and assumed certain operating liabilities of these businesses.

On September 17, 2025, we acquired a business consisting of two funeral homes in the Pensacola, FL area for $ 9.5 million in cash.

We acquired substantially all of the assets and assumed certain operating liabilities of this business.

The primary reasons for the acquisitions that contributed to the recognition of goodwill include enhancement of our footprint in strategic markets and the addition of deferred revenue that will enhance our long-term stability.

The pro forma impact of these acquisitions on prior periods is not presented, as the impact is not significant to our reported results.

The results of the acquired businesses are reflected in our Consolidated Statements of Operations from the date of acquisition.

The following table summarizes the breakdown of the preliminary purchase price allocation for the businesses described above (in thousands):

Preliminary Purchase Price Allocation

Current assets $ 3,329

Preneed trust assets 4,068

Property, plant, and equipment 23,315

Cemetery property 2,733

Goodwill 37,233

Intangible and other non-current assets 3,708

Assumed liabilities ( 1,293 )

Preneed trust liabilities ( 4,068 )

Deferred revenue ( 12,526 )

Purchase price $ 56,499

The purchase accounting is preliminary as we have not finalized our assessment of the fair value because there has been insufficient time between the acquisition date and the issuance of these financial statements to complete our review and the final determination of fair value.

We are also currently reviewing the allocation of goodwill between segments.

We did not acquire any businesses during the nine months ended September 30, 2024.

Many of the former owners and staff of our acquired funeral home and cemetery businesses have provided high quality service to families for generations, which often represents a substantial portion of the value of a business.

The excess of the purchase price over the fair value of identifiable net assets of acquired funeral home and cemetery businesses is recorded as goodwill.

The following table presents changes in goodwill in the accompanying Consolidated Balance Sheets (in thousands):

June 30, 2025 December 31, 2024

September 30, 2025 December 31, 2024

Goodwill at the beginning of the period $ 414,859 $ 423,643

Increase in goodwill related to acquisitions 37,233 —

Decrease in goodwill related to divestitures ( 18,608 ) ( 8,784 )

Goodwill at the end of the period $ 433,484 $ 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 of six funeral homes and one cemetery which was recorded in Net (gain) loss on divestitures, disposals, and impairment charges on our Consolidated Statements of Operations, of which $ 7.8 million was allocated to our funeral homes segment and $ 1.0 million was allocated to our cemetery segment.

During the nine months ended September 30, 2025, we allocated $ 18.6 million of goodwill to the sale of nine funeral homes and four cemeteries which was recorded in Net loss on divestitures and impairment charges on our Consolidated Statements of Operations, of which $ 16.9 million was allocated to our funeral home segment and $ 1.7 million was allocated to our cemetery segment.

During the nine months ended September 30, 2024, we allocated $ 8.8 million of goodwill to the sale of six funeral homes and one cemetery which was recorded in Net loss on divestitures and impairment charges on our Consolidated Statements of Operations, of which $ 7.8 million was allocated to our funeral homes segment and $ 1.0 million was allocated to our cemetery segment.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

DIVESTED OPERATIONS

During the three months ended June 30, 2025, we merged one funeral home with another business we own in an existing market.

During the six months ended June 30, 2025, we sold two funeral homes and three cemeteries for an aggregate of $ 15.8 million and merged one funeral homes with another business we own in an existing market.

During the three months ended June 30, 2024, we merged one funeral home with another business we own in an existing market.

During the six months ended June 30, 2024, we sold six funeral homes and one cemetery for an aggregate of $ 10.9 million and merged one funeral home with another business we own in an existing market.

During the three months ended September 30, 2025, we sold seven funeral homes and one cemetery for an aggregate of $ 18.0 million.

During the nine months ended September 30, 2025, we sold nine funeral homes and four cemeteries for an aggregate of $ 33.8 million and merged one funeral home with another business we own in an existing market.

During the three months ended September 30, 2024, we merged two funeral homes with other businesses we own in existing markets.

During the nine months ended September 30, 2024, we sold six funeral homes and one cemetery for an aggregate of $ 10.9 million and merged three funeral homes with other businesses we own in existing markets.

The operating results of these divested funeral homes and cemeteries are reflected on our Consolidated Statements of Operations as shown in the table below (in thousands):

Three months ended June 30, Six months ended, June 30,

Three months ended September 30, Nine months ended, September 30,

2025 2024 2025 2024

1 unchanged sentence

Operating income 220 ( 154 ) 1,717 42

Income on divestitures (1)

Gain (loss) on divestitures (1)

( 6,854 ) 295 2,125 ( 1,214 )

1 unchanged sentence

Net gain (loss) from divested operations, after tax $ ( 4,514 ) $ 94 $ 2,614 $ ( 783 )

Net loss on divestitures is recorded in Net (gain) loss on divestitures, disposals, and impairment charges on our Consolidated Statements of Operations.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

Net loss on divestitures is recorded in Net loss on divestitures and impairment charges on our Consolidated Statements of Operations.

Accounts Receivable

3 unchanged sentences

Accounts receivable is comprised of the following (in thousands):

June 30, 2025

September 30, 2025

Column1 Funeral Cemetery Corporate Held for Sale Total

10 unchanged sentences

Other receivables include supplier rebates, commissions due from third-party insurance companies and perpetual care income receivables.

The following table summarizes the activity in our allowance for credit losses by portfolio segment for the six months ended June 30, 2025 (in thousands):

January 1, 2025 Provision for Credit Losses Write Offs Recoveries June 30, 2025

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

The following table summarizes the activity in our allowance for credit losses by portfolio segment for the nine months ended September 30, 2025 (in thousands):

January 1, 2025 Provision for Credit Losses Write Offs Recoveries September 30, 2025

Trade and financed receivables:

2 unchanged sentences

Total allowance for credit losses on trade and financed receivables $ ( 1,316 ) $ ( 1,576 ) $ 14 $ ( 607 ) $ ( 3,485 )

Balances due on undelivered preneed funeral trust contracts have been reclassified to reduce Deferred preneed funeral revenue on our Consolidated Balance Sheets of $ 8.9 million and $ 10.2 million at June 30, 2025 and December 31, 2024, respectively.

Balances due on undelivered preneed funeral trust contracts have been reclassified to reduce Deferred preneed funeral revenue on our Consolidated Balance Sheets of $ 8.6 million and $ 10.2 million at September 30, 2025 and December 31, 2024, respectively.

As these performance obligations are to be completed after the date of death, we cannot quantify the recognition of revenue in future periods.

2 unchanged sentences

Our cemetery receivables are comprised of the following (in thousands):

June 30, 2025 December 31, 2024

September 30, 2025 December 31, 2024

Interment rights $ 95,497 $ 79,436

2 unchanged sentences

Cemetery receivables $ 117,038 $ 97,547

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

The components of our cemetery receivables are as follows (in thousands):

June 30, 2025 December 31, 2024

September 30, 2025 December 31, 2024

Cemetery receivables $ 117,038 $ 97,547

7 unchanged sentences

Preneed cemetery receivables, net $ 63,312 $ 50,958

The following table summarizes the activity in our allowance for credit losses for Preneed cemetery receivables, net for the six months ended June 30, 2025 (in thousands):

January 1, 2025 Provision for Credit Losses Write Offs June 30, 2025

The following table summarizes the activity in our allowance for credit losses for Preneed cemetery receivables, net for the nine months ended September 30, 2025 (in thousands):

January 1, 2025 Provision for Credit Losses Write Offs September 30, 2025

Total allowance for credit losses on Preneed cemetery receivables, net

$ ( 2,004 ) $ ( 1,177 ) $ 815 $ ( 2,366 )

The amortized cost basis of our cemetery receivables by year of origination as of June 30, 2025 is as follows (in thousands):

The amortized cost basis of our cemetery receivables by year of origination as of September 30, 2025 is as follows (in thousands):

2025 2024 2023 2022 2021 Prior Total

Total cemetery receivables, at amortized cost $ 48,511 $ 35,804 $ 15,566 $ 8,101 $ 2,830 $ 1,127 $ 111,939

The aging of past due cemetery receivables as of June 30, 2025 is as follows (in thousands):

The aging of past due cemetery receivables as of September 30, 2025 is as follows (in thousands):

31-60 Past Due 61-90 Past Due 91-120 Past Due >120 Past Due Total Past Due Current Total

2 unchanged sentences

Total contracts $ 2,050 $ 1,773 $ 670 $ 7,461 $ 11,954 $ 105,084 $ 117,038

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

Balances due on undelivered preneed cemetery contracts have been reclassified to reduce Deferred preneed cemetery revenue on our Consolidated Balance Sheets.

The transaction price allocated to preneed merchandise and service performance obligations that were unfulfilled were $ 15.8 million and $ 13.6 million at June 30, 2025 and December 31, 2024, respectively.

The transaction price allocated to preneed merchandise and service performance obligations that were unfulfilled were $ 16.1 million and $ 13.6 million at September 30, 2025 and December 31, 2024, respectively.

As these performance obligations are to be completed after the date of death, we cannot quantify the recognition of revenue in future periods.

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Our acquisition debt and Credit Facility (as defined in Note 10) and Senior Notes (as defined in Note 11) are classified within Level 2 of the Fair Value Measurements hierarchy.

At June 30, 2025, the carrying value and fair value of our Credit Facility was $ 112.9 million.

At September 30, 2025, the carrying value and fair value of our Credit Facility was $ 134.9 million.

We believe that our Credit Facility bears interest at a rate that approximates prevailing market rates for instruments with similar characteristics and therefore, the carrying value of our Credit Facility approximates fair value.

We estimate the fair value of our acquisition debt utilizing an income approach, which uses a present value calculation to discount payments based on current market rates as of the reporting date.

At June 30, 2025, the carrying value of our acquisition debt was $ 5.4 million, which approximated its fair value.

The fair value of our Senior Notes was $ 378.3 million at June 30, 2025, based on the last traded or broker quoted price.

At September 30, 2025, the carrying value of our acquisition debt was $ 6.7 million, which approximated its fair value.

The fair value of our Senior Notes was $ 378.4 million at September 30, 2025, based on the last traded or broker quoted price.

We identified investments in fixed income securities, common stock and mutual funds presented within the preneed and perpetual care trust investments categories on our Consolidated Balance Sheets as having met the criteria for fair value measurement.

Where quoted prices are available in an active market, investments held by the trusts are classified as Level 1 investments pursuant to the three-level valuation hierarchy.

Our Level 1 investments include cash, common stock and equity

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

mutual funds.

Our Level 1 investments include cash, common stock and equity mutual funds.

Where quoted market prices are not available for the specific security, then fair values are estimated by using quoted prices of similar securities in active markets or inputs other than quoted prices that can corroborate observable market data.

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The investment strategy of this fund is to generate attractive, risk-adjusted returns over a multi-year performance period through the construction of a concentrated portfolio of investments possessing certain distinct business attributes that suggest the potential for long-term value creation.

The value of the investments in this fund cannot be liquidated at June 30, 2025 because the investments include restrictions that do not allow for liquidation until 2027.

As of June 30, 2025, we do not have an unfunded commitment for this investment.

Furthermore, we have two investments in real estate debt and structured credit (“alternative investments”), whose fair value has been estimated using NAV and therefore, has not been classified in the fair value hierarchy.

The value of the investments in this fund cannot be liquidated at September 30, 2025 because the investments include restrictions that do not allow for liquidation until 2027.

As of September 30, 2025, we do not have an unfunded commitment for this investment.

Furthermore, we have six investments in real estate debt and structured credit (“alternative investments”), whose fair value has been estimated using NAV and therefore, has not been classified in the fair value hierarchy.

The investment strategy for these alternative investments is to create capital growth, income generation, and risk-adjusted returns.

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The structured credit is approximately 56 % of the total alternative investment and can be liquidated with a 15-day notice period with no restrictions.

As of June 30, 2025, we do not have an unfunded commitment for these investments.

As of September 30, 2025, we had approximately $21.8 million in unfunded commitment for these investments.

Our receivables from preneed funeral trusts represent assets in trusts which are controlled and operated by third parties in which we do not have a controlling financial interest (less than 50%) in the trust assets.

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See Notes 8 and 9 to our Condensed Consolidated Financial Statements for the fair value hierarchy levels of our trust investments.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

TRUST INVESTMENTS

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The components of Preneed cemetery trust investments on our Consolidated Balance Sheets are as follows (in thousands):

June 30, 2025 December 31, 2024

September 30, 2025 December 31, 2024

Preneed cemetery trust investments, at market value $ 105,177 $ 106,143

3 unchanged sentences

Preneed cemetery trust investments $ 102,011 $ 98,120

The cost and market values associated with preneed cemetery trust investments at June 30, 2025, are detailed below (in thousands):

The cost and market values associated with preneed cemetery trust investments at September 30, 2025, are detailed below (in thousands):

Fair Value Hierarchy Level Cost Unrealized Gains Unrealized Losses Fair Market Value

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Due in five to ten years 169

Thereafter 2,682

Total fixed income securities $ 576

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Market value as a percentage of cost 100.6 %

The following table summarizes our fixed income securities (excluding mutual funds) within our preneed cemetery trust investments in an unrealized loss position at June 30, 2025, aggregated by major security type and length of time in a continuous unrealized loss position (in thousands):

June 30, 2025

The following table summarizes our fixed income securities (excluding mutual funds) within our preneed cemetery trust investments in an unrealized loss position at September 30, 2025, aggregated by major security type and length of time in a continuous unrealized loss position (in thousands):

September 30, 2025

In Loss Position Less than 12 months In Loss Position Greater than 12 months Total

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Preneed cemetery trust investment security transactions recorded in Other, net on our Consolidated Statements of Operations are as follows (in thousands):

Three months ended June 30, Six months ended June 30,

Three months ended September 30, Nine months ended September 30,

2025 2024 2025 2024

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Purchases and sales of investments in the preneed cemetery trusts are as follows (in thousands):

Three months ended June 30, Six months ended June 30,

Three months ended September 30, Nine months ended September 30,

2025 2024 2025 2024

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The components of Preneed funeral trust investments on our Consolidated Balance Sheets are as follows (in thousands):

June 30, 2025 December 31, 2024

September 30, 2025 December 31, 2024

Preneed funeral trust investments, at market value $ 125,533 $ 111,721

4 unchanged sentences

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

The cost and market values associated with preneed funeral trust investments at June 30, 2025 are detailed below (in thousands):

The cost and market values associated with preneed funeral trust investments at September 30, 2025 are detailed below (in thousands):

Fair Value Hierarchy Level Cost Unrealized Gains Unrealized Losses Fair Market Value

19 unchanged sentences

Due in five to ten years 99

Thereafter 2,465

Total fixed income securities $ 482

18 unchanged sentences

Market value as a percentage of cost 100.9 %

The following table summarizes our fixed income securities (excluding mutual funds) within our preneed funeral trust investment in an unrealized loss position at June 30, 2025, aggregated by major security type and length of time in a continuous unrealized loss position (in thousands):

June 30, 2025

The following table summarizes our fixed income securities (excluding mutual funds) within our preneed funeral trust investment in an unrealized loss position at September 30, 2025, aggregated by major security type and length of time in a continuous unrealized loss position (in thousands):

September 30, 2025

In Loss Position Less than 12 months In Loss Position Greater than 12 months Total

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Preneed funeral trust investment security transactions recorded in Other, net on our Consolidated Statements of Operations are as follows (in thousands):

Three months ended June 30, Six months ended June 30,

Three months ended September 30, Nine months ended September 30,

2025 2024 2025 2024

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Purchases and sales of investments in the preneed funeral trusts are as follows (in thousands):

Three months ended June 30, Six months ended June 30,

Three months ended September 30, Nine months ended September 30,

2025 2024 2025 2024

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The components of Care trusts’ corpus are as follows (in thousands):

June 30, 2025 December 31, 2024

September 30, 2025 December 31, 2024

Cemetery perpetual care trust investments, at market value $ 93,154 $ 87,337

4 unchanged sentences

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

The following table reflects the cost and market values associated with the trust investments held in perpetual care trust funds at June 30, 2025 (in thousands):

The following table reflects the cost and market values associated with the trust investments held in perpetual care trust funds at September 30, 2025 (in thousands):

Fair Value Hierarchy Level Cost Unrealized Gains Unrealized Losses Fair Market Value

18 unchanged sentences

Due in five to ten years —

Thereafter 2,418

Total fixed income securities $ 96

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

The following table summarizes our fixed income securities (excluding mutual funds) within our perpetual care trust investment in an unrealized loss position at June 30, 2025, aggregated by major security type and length of time in a continuous unrealized loss position (in thousands):

June 30, 2025

The following table summarizes our fixed income securities (excluding mutual funds) within our perpetual care trust investment in an unrealized loss position at September 30, 2025, aggregated by major security type and length of time in a continuous unrealized loss position (in thousands):

September 30, 2025

In Loss Position Less than 12 months In Loss Position Greater than 12 months Total

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Perpetual care trust investment security transactions recorded in Other, net on our Consolidated Statements of Operations are as follows (in thousands):

Three months ended June 30, Six months ended June 30,

Three months ended September 30, Nine months ended September 30,

2025 2024 2025 2024

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Perpetual care trust investment security transactions recorded in Other revenue are as follows (in thousands):

Three months ended June 30, Six months ended June 30,

Three months ended September 30, Nine months ended September 30,

2025 2024 2025 2024

3 unchanged sentences

Purchases and sales of investments in the perpetual care trusts are as follows (in thousands):

Three months ended June 30, Six months ended June 30,

Three months ended September 30, Nine months ended September 30,

2025 2024 2025 2024

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Receivables from preneed funeral trusts are as follows (in thousands):

June 30, 2025 December 31, 2024

September 30, 2025 December 31, 2024

Preneed funeral trust funds, at cost $ 21,749 $ 23,063

3 unchanged sentences

Receivables from preneed funeral trusts, net $ 16,403 $ 22,372

The following summary reflects the composition of the assets held in trust and controlled by third parties to satisfy our future obligations related to the underlying preneed funeral contracts at June 30, 2025 and December 31, 2024.

The cost basis includes reinvested interest and dividends that have been earned on the trust assets.

Fair value includes unrealized gains and losses on trust assets.

The composition of the preneed trust funds at June 30, 2025, is as follows (in thousands):

The composition of the preneed trust funds at September 30, 2025, is as follows (in thousands):

Historical Cost Basis Fair Value

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CREDIT FACILITY AND ACQUISITION DEBT

At June 30, 2025, our senior secured revolving credit facility (as amended, the “Credit Facility”) was comprised of:

At September 30, 2025, our senior secured revolving credit facility (as amended, the “Credit Facility”) was comprised of:

(i) a $ 250.0 million revolving credit facility, including a $ 15.0 million subfacility for letters of credit and a $ 10.0 million swingline, and (ii) an accordion or incremental option allowing for future increases in the facility size by an additional amount of up to $ 75.0 million in the aggregate in the form of increased revolving commitments or incremental term loans.

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In addition, the Credit Facility also contains customary negative covenants, including, but not limited to, covenants that restrict (subject to certain exceptions) the ability of the Company and the Subsidiary Guarantors to incur indebtedness, grant liens, make investments, engage in mergers and acquisitions, and pay dividends and other restricted payments, and certain financial maintenance covenants.

At June 30, 2025, we were subject to the following financial covenants under our Credit Facility:

At September 30, 2025, we were subject to the following financial covenants under our Credit Facility:

(A) a Total Leverage Ratio not to exceed 5.00 to 1.00 and (B) a Fixed Charge Coverage Ratio (as defined in the Credit Facility) of not less than 1.20 to 1.00 as of the end of any period of four consecutive fiscal quarters.

These financial maintenance covenants are calculated for the Company and its subsidiaries on a consolidated basis.

We were in compliance with all of the covenants contained in our Credit Facility at June 30, 2025.

We were in compliance with all of the covenants contained in our Credit Facility at September 30, 2025.

Our Credit Facility and acquisition debt consisted of the following (in thousands):

June 30, 2025 December 31, 2024

September 30, 2025 December 31, 2024

Credit Facility $ 134,900 $ 137,000

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Total acquisition debt, net of current portion $ 6,069 $ 4,895

At June 30, 2025, we had outstanding borrowings under the Credit Facility of $ 112.9 million.

At September 30, 2025, we had outstanding borrowings under the Credit Facility of $ 134.9 million.

We also had one letter of credit for $ 2.2 million under the Credit Facility.

The letter of credit will expire on November 25, 2025, and is expected to automatically renew annually and secures our obligations under our various self-insured policies.

At June 30, 2025, we had $ 134.9 million of availability under the Credit Facility.

At September 30, 2025, we had $ 112.9 million of availability under the Credit Facility.

The interest expense and amortization of debt issuance costs related to our Credit Facility are as follows (in thousands):

Three months ended June 30, Six months ended June 30,

Three months ended September 30, Nine months ended September 30,

2025 2024 2025 2024

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Credit Facility amortization of debt issuance costs 88 105 265 381

At June 30, 2025, our outstanding borrowings under our Credit Facility bore interest at a prime rate or the SOFR rate, plus an applicable margin based on our leverage ratio.

At June 30, 2025, the prime rate margin was equivalent to 1.125 % and the SOFR term margin was 2.125 %.

The weighted average interest rate on our Credit Facility was 6.8 % and 8.7 % for the three months ended June 30, 2025 and 2024, respectively, and 6.9 % and 8.8 % for the six months ended June 30, 2025 and 2024, respectively.

At September 30, 2025, our outstanding borrowings under our Credit Facility bore interest at a prime rate or the SOFR rate, plus an applicable margin based on our leverage ratio.

At September 30, 2025, the prime rate margin was equivalent to 1.125 % and the SOFR term margin was 2.125 %.

The weighted average interest rate on our Credit Facility was 6.7 % and 8.5 % for the three months ended September 30, 2025 and 2024, respectively, and 6.8 % and 8.7 % for the nine months ended September 30, 2025 and 2024, respectively.

Acquisition debt consists of deferred purchase price and promissory notes payable to sellers.

2 unchanged sentences

The imputed interest expense related to our acquisition debt is as follows (in thousands):

Three months ended June 30, Six months ended June 30,

Three months ended September 30, Nine months ended September 30,

2025 2024 2025 2024

2 unchanged sentences

The carrying value of our 4.25 % senior notes due 2029 (the “Senior Notes”) is reflected on our Consolidated Balance Sheets as follows (in thousands):

June 30, 2025 December 31, 2024

September 30, 2025 December 31, 2024

Principal amount $ 400,000 $ 400,000

4 unchanged sentences

Carrying value of the Senior Notes $ 397,136 $ 396,597

At June 30, 2025, the fair value of the Senior Notes, which are Level 2 measurements, was $ 378.3 million.

At September 30, 2025, the fair value of the Senior Notes, which are Level 2 measurements, was $ 378.4 million.

The Senior Notes were issued under an indenture, dated as of May 13, 2021 (the “Indenture”), among the Company, the Subsidiary Guarantors and Wilmington Trust, National Association, as trustee.

4 unchanged sentences

The interest expense and amortization of debt discount and debt issuance costs related to our Senior Notes are as follows (in thousands):

Three months ended June 30, Six months ended June 30,

Three months ended September 30, Nine months ended September 30,

2025 2024 2025 2024

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The debt discount and the debt issuance costs are being amortized using the effective interest method over the remaining term of approximately 44 months of the Senior Notes.

The effective interest rates on the unamortized debt discount and the unamortized debt issuance costs for the Senior Notes for both the three and six months ended June 30, 2025 and 2024 were 4.42 % and 4.30 %, respectively.

The effective interest rates on the unamortized debt discount and the unamortized debt issuance costs for the Senior Notes for both the three and nine months ended September 30, 2025 and 2024 were 4.42 % and 4.30 %, respectively.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

1 unchanged sentence

The following table sets forth the computation of the basic and diluted earnings per share (in thousands, except per share data):

Three months ended June 30, Six months ended June 30,

Three months ended September 30, Nine months ended September 30,

2025 2024 2025 2024

13 unchanged sentences

Stock options excluded from the computation of diluted earnings per share because the inclusion of such stock options would result in an antidilutive effect are as follows (in thousands):

Three months ended June 30, Six months ended June 30,

Three months ended September 30, Nine months ended September 30,

2025 2024 2025 2024

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Additionally, the CODM employs segment gross profit for product pricing evaluation and uses segment adjusted operating profit to assess each segment’s performance by comparing results and return on assets against expected outcomes.

The tables below present revenue, disaggregated by major source for each of our reportable segments, as well as, significant segment expenses, other segment expenses, operating income (loss), depreciation and amortization, interest expense, income (loss) before income taxes, income tax expense (benefit), capital expenditures and number of operating locations by segment as follows, (in thousands, except number of operating locations) for the three and six months ended June 30, 2025 and 2024, respectively:

Three months ended June 30, 2025 Funeral Cemetery Corporate Total

The tables below present revenue, disaggregated by major source for each of our reportable segments, as well as, significant segment expenses, other segment expenses, operating income (loss), depreciation and amortization, interest expense, income (loss) before income taxes, income tax expense (benefit), capital expenditures and number of operating locations by segment as follows, (in thousands, except number of operating locations) for the three and nine months ended September 30, 2025 and 2024, respectively:

Three months ended September 30, 2025 Funeral Cemetery Corporate Total

Services $ 39,238 $ 4,966 $ — $ 44,204

21 unchanged sentences

professional services, travel and meals expenses, computer software expenses, and office supplies.

(3) The Corporate segment’s other segment expenses primarily include general, administrative and other expenses, net loss on divestitures, disposals, and impairment charges and amortization and depreciation expenses.

The Funeral and Cemetery segment's other segment expenses primarily include transportation costs, other funeral costs, non-payroll related promotional costs, net loss on divestitures, disposals and impairment charges, and amortization and depreciation expenses.

(3) The Corporate segment’s other segment expenses primarily include general, administrative and other expenses, net loss on divestitures and impairment charges and amortization and depreciation expenses.

The Funeral and Cemetery segment's other segment expenses primarily include transportation costs, other funeral costs, non-payroll related promotional costs, net loss on divestitures and impairment charges, and amortization and depreciation expenses.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

Three months ended June 30, 2024 Funeral Cemetery Corporate Total

Three months ended September 30, 2024 Funeral Cemetery Corporate Total

Services $ 39,892 $ 5,024 $ — $ 44,916

21 unchanged sentences

professional services, travel and meals expenses, computer software expenses and office supplies.

The Funeral and Cemetery segment's other segment expenses primarily include transportation costs, other funeral costs, non-payroll related promotional costs, net loss on divestitures and impairment charges, and amortization and depreciation expenses.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

Six months ended, June 30, 2025 Funeral Cemetery Corporate Total

Nine months ended, September 30, 2025 Funeral Cemetery Corporate Total

Services $ 128,495 $ 15,229 $ — $ 143,724

24 unchanged sentences

professional services, travel and meals expenses, computer software expenses, and office supplies.

The Funeral and Cemetery segment's other segment expenses primarily include transportation costs, other funeral costs, non-payroll related promotional costs, net loss on divestitures and impairment charges, and amortization and depreciation expenses.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

Six months ended June 30, 2024 Funeral Cemetery Corporate Total

Nine months ended September 30, 2024 Funeral Cemetery Corporate Total

Services $ 124,288 $ 14,760 $ — $ 139,048

24 unchanged sentences

professional services, travel and meals expenses, computer software expenses, and office supplies.

(4) The Corporate segment’s other segment expenses primarily include general, administrative and other expenses, net loss on divestitures, disposals, and impairment charges and amortization and depreciation expenses.

SUBSEQUENT EVENTS

On July 4, 2025, the One Big Beautiful Bill Act “(OBBBA”) was signed into law, which includes federal tax law revisions that may affect the Company’s ability to utilize certain tax attributes.

The Company is currently evaluating the impact of these changes.

On July 16, 2025, we sold three funeral homes and one cemetery that was included in held for sale at June 30, 2025, for an aggregate of $ 5.5 million.

The Funeral and Cemetery segment's other segment expenses primarily include transportation costs, other funeral costs, non-payroll related promotional costs, net loss on divestitures and impairment charges, and amortization and depreciation expenses.

CAUTIONARY STATEMENT ON FORWARD-LOOKING STATEMENTS

51 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements