What changed in this filing

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Item 1. Financial Statements

2026-05-07 compared with 2025-11-06 · 349 added, 599 removed, 486 unchanged (66% of the section changed)

1 unchanged sentence

CARRIAGE SERVICES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited and in thousands, except per share data)

Three months ended March 31,

Service revenue $ 50,922 $ 53,010

Property and merchandise revenue 45,892 45,586

Other revenue 9,306 8,473

Total revenue 106,120 107,069

Field costs and expenses:

Cost of service 24,447 24,577

Cost of merchandise 32,014 32,609

Cemetery property amortization 1,995 1,828

Field depreciation expense 3,408 3,322

Regional and unallocated funeral and cemetery costs 4,391 5,235

Other expenses 1,225 1,656

Total field costs and expenses 67,480 69,227

Gross profit 38,640 37,842

Corporate costs and expenses:

General, administrative, and other 13,085 12,048

Net loss (gain) on divestitures and impairment charges 278 ( 5,770 )

Operating income 25,277 31,564

Interest expense 6,884 7,298

Other, net ( 6 ) ( 1,988 )

Income before income taxes 18,399 26,254

Expense for income taxes 5,163 8,191

Benefit related to discrete income tax items ( 256 ) ( 2,863 )

Total expense for income taxes 4,907 5,328

Net income $ 13,492 $ 20,926

Basic earnings per common share:

$ 0.86 $ 1.35

Diluted earnings per common share:

$ 0.84 $ 1.34

Dividends declared per common share:

$ 0.1125 $ 0.1125

Weighted average number of common and common equivalent shares outstanding:

Basic 15,568 15,243

Diluted 15,779 15,389

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

CARRIAGE SERVICES, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(unaudited and in thousands, except share data)

September 30,

2026 December 31,

25 unchanged sentences

Total current liabilities 49,648 57,217

Acquisition debt, net of current portion 6,069 4,895

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

Credit facility 133,546 135,382

Senior notes 397,136 396,597

Long-term debt 522,281 528,335

Obligations under finance leases, net of current portion 9,174 9,339

21 unchanged sentences

CARRIAGE SERVICES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited and in thousands, except per share data)

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

2025 2024 2025 2024

Service revenue $ 44,204 $ 44,916 $ 143,724 $ 139,048

Property and merchandise revenue 48,633 47,419 140,732 142,511

Other revenue 9,905 8,352 27,502 24,939

102,742 100,687 311,958 306,498

Field costs and expenses:

Cost of service 22,851 22,739 71,215 68,119

Cost of merchandise 31,919 31,492 96,684 95,423

Cemetery property amortization 2,755 1,957 6,824 6,273

Field depreciation expense 3,226 3,411 9,836 10,283

Regional and unallocated funeral and cemetery costs 4,095 4,085 12,590 12,172

Other expenses 1,653 1,513 4,789 4,483

66,499 65,197 201,938 196,753

Gross profit 36,243 35,490 110,020 109,745

Corporate costs and expenses:

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

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

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

Interest expense 6,946 8,035 21,278 25,071

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

Other, net 852 13 ( 1,029 ) 59

Income before income taxes 9,709 14,849 52,820 36,030

Expense for income taxes 3,431 4,930 16,882 11,962

(Benefit) expense related to discrete income tax items ( 292 ) 53 ( 3,297 ) 970

Total expense for income taxes 3,139 4,983 13,585 12,932

Net income $ 6,570 $ 9,866 $ 39,235 $ 23,098

Basic earnings per common share:

$ 0.42 $ 0.65 $ 2.51 $ 1.52

Diluted earnings per common share:

$ 0.41 $ 0.63 $ 2.47 $ 1.48

Dividends declared per common share:

$ 0.1125 $ 0.1125 $ 0.3375 $ 0.3375

Weighted average number of common and common equivalent shares outstanding:

Basic 15,490 15,011 15,398 14,951

Diluted 15,732 15,491 15,601 15,400

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

CARRIAGE SERVICES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited and in thousands)

Nine months ended September 30,

Three months ended March 31,

Cash flows from operating activities:

4 unchanged sentences

Stock-based compensation expense 2,096 1,753

Deferred income tax (benefit) expense 3,308 ( 1,838 )

Deferred income tax expense 1,325 2,464

Amortization of intangibles 320 335

1 unchanged sentence

Amortization and accretion of debt 146 138

Net loss on divestitures and impairment charges 788 1,955

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

Net loss (gain) on divestitures and impairment charges 227 ( 5,770 )

Net gain on sale of excess real property — ( 1,988 )

10 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

Proceeds from insurance claims — 403

Capital expenditures ( 3,896 ) ( 3,163 )

Proceeds from divestitures and sale of other assets 16 18,660

Net cash (used in) provided by investing activities ( 3,880 ) 15,497

2 unchanged sentences

Payments against the credit facility ( 35,600 ) ( 24,100 )

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

Payments on acquisition debt and obligations under finance leases ( 114 ) ( 148 )

3 unchanged sentences

Net cash used in financing activities ( 9,798 ) ( 25,811 )

Net increase (decrease) in cash and cash equivalents 83 ( 263 )

Net increase in cash and cash equivalents 1,220 3,478

Cash and cash equivalents at beginning of period 1,688 1,165

2 unchanged sentences

Cash paid for interest and financing costs $ 2,240 $ 2,705

Cash paid for taxes 10,820 13,434

Cash paid for income taxes 167 1,475

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

2 unchanged sentences

(unaudited and in thousands)

Three months ended September 30, 2025

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

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

Net income — — — 6,570 — 6,570

Issuance of common stock from employee stock purchase plan 7 — 229 — — 229

Issuance of common stock to directors and board advisor 2 — 63 — — 63

Exercise of stock options 53 1 263 — — 264

Restricted common stock, performance awards and stock options surrendered for taxes paid ( 18 ) — ( 645 ) — — ( 645 )

Stock-based compensation expense — — 1,949 — — 1,949

Dividends on common stock ($ 0.1125 per share)

— — ( 1,766 ) — — ( 1,766 )

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

Net income — — — 9,866 — 9,866

Issuance of common stock from employee stock purchase plan 11 — 239 — — 239

Issuance of common stock to directors and board advisor 4 — 136 — — 136

Exercise of stock options 1 — — — — —

Restricted common stock and stock options surrendered for taxes paid ( 29 ) — ( 5 ) — — ( 5 )

Stock-based compensation expense — — 1,714 — — 1,714

Dividends on common stock ($ 0.1125 per share)

— — ( 1,708 ) — — ( 1,708 )

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

Nine months ended September 30, 2025

Three months ended March 31, 2026

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 1 — 63 — — 63

Issuance of common stock 271 3 ( 3 ) — — —

Issuance of restricted common stock 110 1 ( 1 ) — — —

5 unchanged sentences

Other 1 — 59 — — 59

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

Nine months ended September 30, 2024

Balance - March 31, 2026 15,872 $ 275 $ 237,209 $ 308,208 $ ( 278,753 ) $ 266,939

Three months ended March 31, 2025

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 2 — 77 — — 77

Issuance of common stock 271 3 ( 3 ) — — —

Issuance of restricted common stock 115 1 ( 1 ) — — —

Exercise of stock options 77 — 321 — — 321

Restricted common stock and stock options surrendered for taxes paid ( 72 ) — ( 424 ) — — ( 424 )

Restricted common stock, performance awards, and stock options surrendered for taxes paid ( 49 ) — ( 7,629 ) — — ( 7,629 )

Stock-based compensation expense — — 1,676 — — 1,676

2 unchanged sentences

Other 12 — 496 — — 496

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

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

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

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

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.

(“Carriage,” the “Company,” “we,” “us,” or “our”) is a leading provider of funeral and cemetery services and merchandise in the United States (“U.S.”).

Our operations are reported in two business segments:

Funeral Home Operations, which currently accounts for approximately 68 % of our total revenue and Cemetery Operations, which currently accounts for approximately 32 % of our total revenue.

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

At March 31, 2026, we operated 155 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 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):

September 30, 2025 December 31, 2024

Accounts receivable, net $ 81 $ 833

Inventories 17 302

Current assets held for sale $ 98 $ 1,135

Preneed cemetery trust investments $ — $ 4,876

Preneed funeral trust investments — 2,197

Preneed cemetery receivables, net — 1,671

Receivables from funeral preneed trusts, net 4,695 —

Property, plant, and equipment, net 322 4,898

Cemetery property, net — 3,362

Intangible and other non-current assets, net — 215

Operating lease right-of-use assets 39 —

Cemetery perpetual care trust investments — 2,234

Non-current assets held for sale $ 5,056 $ 19,453

Current portion of operating lease obligations $ 9 $ —

Accounts payable 51 94

Accrued and other liabilities 84 146

Current liabilities held for sale $ 144 $ 240

Obligations under operating leases, net of current portion $ 30 $ —

Deferred preneed cemetery revenue — 3,517

Deferred preneed funeral revenue 4,695 1,018

Deferred preneed cemetery receipts held in trust — 4,876

Deferred preneed funeral receipts held in trust — 2,197

Care trusts’ corpus — 2,234

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):

September 30, 2025 December 31, 2024

Land $ 92,739 $ 86,609

Buildings and improvements 266,089 265,231

Furniture, equipment and vehicles 69,244 72,052

Property, plant, and equipment, at cost 428,072 423,892

accumulated depreciation ( 143,270 ) ( 145,990 )

Property, plant, and equipment, net $ 284,802 $ 277,902

Held for sale ( 322 ) ( 4,898 )

Property, plant, and equipment, net $ 284,480 $ 273,004

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

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 $ 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.

The Company classifies assets and liabilities (disposal groups) to be sold as held for sale (“HFS”) in the period in which all of the following criteria are met:

(1) management, having the authority to approve the action, commits to a plan to sell the disposal group;

(2) the disposal group is available for immediate sale in its present condition subject only to terms that are usual and customary for sales of such disposal groups;

(3) an active program to locate a buyer and other actions required to complete

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

the plan to sell the disposal group have been initiated;

(4) the sale of the disposal group is probable, and transfer of the disposal group is expected to qualify for recognition as a completed sale within one year, except if events or circumstances beyond the Company’s control extend the period of time required to sell the disposal group beyond one year;

(5) the disposal group is being actively marketed for sale at a price that is reasonable in relation to its current fair value;

and (6) actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn.

The Company initially measures a disposal group that is classified as held for sale at the lower of its carrying value or fair value less any costs to sell.

Any loss resulting from this measurement is recognized in the period in which the held for sale criteria are met.

Conversely, gains are not recognized on the sale of a disposal group until the date of sale.

The Company assesses the fair value of a disposal group, less any costs to sell, each reporting period it remains classified as held for sale and reports any subsequent changes as an adjustment to the carrying value of the disposal group, as long as the new carrying value does not exceed the carrying value of the disposal group at the time it was initially classified as held for sale.

Additionally, depreciation is not recorded during the period in which the long-lived assets, included in the disposal group, are classified as held for sale.

Upon determining that a disposal group meets the criteria to be classified as held for sale, the Company reports the assets and liabilities of the disposal group, if material, in the line items current and non-current assets held for sale and current and long-term liabilities held for sale in the Condensed Consolidated Balance Sheets.

Held for sale balances on our Condensed Consolidated Balance Sheets primarily consist of $ 0.5 million and $ 0.2 million of property, plant and equipment and goodwill, respectively, at March 31, 2026, and $ 0.3 million property, plant and equipment at December 31, 2025.

Income tax expense for interim periods is based on the estimated annual effective tax rate, adjusted for discrete items recognized in the period incurred, such as tax return filings, tax audit settlements, statute expirations, and changes in valuation allowances.

Our effective tax rate before discrete items was 28.1 % and 31.2 % for the three months ended March 31, 2026 and 2025, respectively.

Income tax expense including discrete items was $ 4.9 million and $ 5.3 million for the three months ended March 31, 2026 and 2025, respectively.

RECENTLY ISSUED ACCOUNTING STANDARDS

In December 2023, the FASB issued ASU, Income Taxes - Improvements to Income Tax Disclosures to enhance the transparency about income tax information through improvements to income tax disclosures primarily related to rate reconciliation and income taxes paid information.

The amendments in this update require that public business entities on an annual basis (1) disclose specific categories in the rate reconciliation;

and (2) provide additional information for reconciling items that meet a quantitative threshold (if the effect of those reconciling items is equal to or greater than five percent of the amount computed by multiplying pretax income (loss) by the applicable statutory income tax rate).

The amendments in this update also require that all entities disclose on an annual basis (1) the amount of net income taxes paid disaggregated by federal and state taxes;

and (2) the amount of net income taxes paid disaggregated by individual jurisdictions in which net income taxes paid is equal to or greater than five percent of total net income taxes paid.

The amendments are effective for annual periods beginning after December 15, 2024, and therefore were effective for us for our fiscal year beginning January 1, 2025, and for interim periods within our fiscal year beginning January 1, 2026.

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

Accounting Pronouncements Not Yet Adopted

11 unchanged sentences

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

SEGMENT REPORTING

Our Chief Operating Decision Maker (the “CODM”), who is the Chief Executive Officer, utilizes segment adjusted operating profit for resource allocation across segments, particularly during the annual budgeting and forecasting processes.

The CODM examines variances on a monthly basis to make informed decisions regarding capital and personnel distribution among segments.

Additionally, the CODM employs segment gross profit for product pricing evaluation and uses segment

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

adjusted operating profit to assess each segment’s performance by comparing results and return on assets against expected outcomes.

The CODM does not review disaggregated assets by segment;

therefore assets by segment is not provided.

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, regional and unallocated funeral and cemetery costs, and gross profit by segment as follows:

(in thousands) for the three months ended March 31, 2026 and 2025, respectively:

Three months ended, March 31, 2026 Funeral Cemetery Total

Services $ 45,492 $ 5,430 $ 50,922

Merchandise 20,513 4,165 24,678

Cemetery property — 21,214 21,214

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.

Other revenue 5,709 3,597 9,306

Total revenue 71,714 34,406 106,120

Salaries, benefits, and commission expenses

17,873 10,134 28,007

Cost of merchandise 5,592 2,001 7,593

Allocated overhead costs (1)

2,959 1,161 4,120

Facilities and grounds expenses 3,071 1,251 4,322

General and administrative expenses (2)

3,429 1,053 4,482

Other segment expenses (3)

7,192 1,970 9,162

Adjusted operating profit (4)

$ 31,598 $ 16,836 $ 48,434

Reconciliation of Adjusted operating profit to Gross profit

Cemetery property amortization $ — $ 1,995 $ 1,995

Field depreciation expense 2,886 522 3,408

Regional and unallocated funeral and cemetery costs 2,331 2,060 4,391

Gross profit $ 26,381 $ 12,259 $ 38,640

Corporate costs and expenses:

General and administrative expenses $ 13,085

Net loss on divestitures and impairment charges 278

Operating income $ 25,277

Interest expense $ 6,884

Other, net ( 6 )

Income before income taxes $ 18,399

(1) Allocated overhead costs include:

property insurance costs, property tax expenses, and corporate overhead fees allocated to the field, such as information technology, human resources, legal, and finance.

(2) General and administrative expenses include:

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

(3) Other segment expenses primarily include transportation costs, other funeral costs, and non-payroll related promotional costs.

(4) During the first quarter of 2026, the Company changed its measure of segment profit from segment operating income to segment adjusted operating profit.

The change reflects how management now evaluates segment performance and allocates resources.

The change primarily relates to the exclusion of depreciation, amortization, and certain corporate allocations.

Prior-period amounts have been recast for comparability.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

Three months ended March 31, 2025 Funeral Cemetery Total

Services $ 47,949 $ 5,061 $ 53,010

Merchandise 21,556 4,039 25,595

Cemetery property — 19,991 19,991

Other revenue 5,114 3,359 8,473

Total revenue 74,619 32,450 107,069

Salaries, benefits, and commission expenses

17,977 9,919 27,896

Cost of merchandise 6,270 1,826 8,096

Allocated overhead costs (1)

3,227 1,331 4,558

Facilities and grounds expenses 2,929 1,205 4,134

General and administrative expenses (2)

3,021 895 3,916

Other segment expenses (3)

8,016 2,226 10,242

Adjusted operating profit (4)

$ 33,179 $ 15,048 $ 48,227

Reconciliation of Adjusted operating profit margin to Gross profit

Cemetery property amortization $ — $ 1,828 $ 1,828

Field depreciation expense 2,826 496 3,322

Regional and unallocated funeral and cemetery costs 3,150 2,085 5,235

Gross profit $ 27,203 $ 10,639 $ 37,842

Corporate costs and expenses:

General and administrative expenses $ 12,048

Net loss on divestitures and impairment charges ( 5,770 )

Operating income $ 31,564

Interest expense $ 7,298

Other, net ( 1,988 )

Income before income taxes $ 26,254

(1) Allocated overhead costs include:

property insurance costs, property tax expenses, and corporate overhead fees allocated to the field, such as information technology, human resources, legal, and finance.

(2) General and administrative expenses include:

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

(3) Other segment expenses primarily include transportation costs, other funeral costs, and non-payroll related promotional costs.

(4) During the first quarter of 2026, the Company changed its measure of segment profit from segment operating income to segment adjusted operating profit.

The change reflects how management now evaluates segment performance and allocates resources.

The change primarily relates to the exclusion of depreciation, amortization, and certain corporate allocations.

Prior-period amounts have been recast for comparability.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

EARNINGS PER SHARE

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

Three months ended March 31,

Numerator for basic and diluted earnings per share:

Net income $ 13,492 $ 20,926

Earnings allocated to unvested restricted stock ( 182 ) ( 347 )

Income attributable to common stockholders $ 13,310 $ 20,579

Denominator for basic earnings per common share – weighted average shares outstanding 15,568 15,243

Effect of dilutive securities:

Stock options 211 146

Denominator for diluted earnings per common share – weighted average shares outstanding 15,779 15,389

Basic earnings per common share:

$ 0.86 $ 1.35

Diluted earnings per common share:

$ 0.84 $ 1.34

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 March 31,

Antidilutive stock options 218 189 X

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.

1 unchanged sentence

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

September 30, 2025 December 31, 2024

March 31, 2026 December 31, 2025

Goodwill at the beginning of the period $ 427,897 $ 414,859

1 unchanged sentence

Decrease in goodwill related to divestitures — ( 24,708 )

Decrease in goodwill related to assets held for sale ( 179 ) —

Goodwill at the end of the period $ 427,718 $ 427,897

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 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 September 30, Nine months ended, September 30,

2025 2024 2025 2024

Revenue $ 1,401 $ 25 $ 7,849 $ 1,383

Operating income 220 ( 154 ) 1,717 42

Gain (loss) on divestitures (1)

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

Income tax (expense) benefit 2,120 ( 47 ) ( 1,228 ) 389

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

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

During the three months ended March 31, 2026, we allocated $ 0.2 million of goodwill to assets held for sale in our funeral home segment.

During the three months ended March 31, 2025, we allocated $ 4.2 million of goodwill to the sale of two funeral homes and three cemeteries which was recorded in Net loss (gain) on divestitures and impairment charges on our Condensed 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 first quarter of 2026, the Company implemented an executive leadership restructuring that resulted in changes to the manner in which certain operations are managed and reviewed.

As a result of these changes, the Company reassessed its reporting unit structure in accordance with ASC 350, Intangibles—Goodwill and Other .

The Company concluded that its previously identified reporting units within the funeral home segment no longer meet the definition of separate reporting units, as discrete financial information for those components is no longer regularly reviewed by management for purposes of resource allocation and performance assessment.

Accordingly, the Company aggregated these components into a single reporting unit.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

This change did not affect the Company’s operating segments as determined under ASC 280.

The Company performed a qualitative assessment and concluded that it is not more likely than not that the fair value of the reporting unit is less than its carrying amount, and therefore no impairment charge was recognized.

Accounts Receivable

3 unchanged sentences

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

September 30, 2025

Column1 Funeral Cemetery Corporate Held for Sale Total

March 31, 2026

Column1 Funeral Cemetery Corporate Total

Trade and financed receivables $ 6,123 $ 32,283 $ — $ 38,406

3 unchanged sentences

December 31, 2025

Column1 Funeral Cemetery Corporate Held for Sale Total

Column1 Funeral Cemetery Corporate Total

Trade and financed receivables $ 7,369 $ 31,267 $ — $ 38,636

3 unchanged sentences

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

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

The following table summarizes the activity in our allowance for credit losses by portfolio segment for the three months ended March 31, 2026 (in thousands):

January 1, 2026 Provision for Credit Losses Write Offs Recoveries March 31, 2026

Trade and financed receivables:

2 unchanged sentences

Total allowance for credit losses on trade and financed receivables $ ( 3,574 ) $ ( 400 ) $ 1,596 $ ( 204 ) $ ( 2,582 )

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.

However, we estimate an average maturity period of ten years for preneed funeral contracts.

Cemetery Receivables

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

September 30, 2025 December 31, 2024

March 31, 2026 December 31, 2025

Interment rights $ 101,755 $ 99,741

2 unchanged sentences

Cemetery receivables $ 124,302 $ 122,307

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

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

September 30, 2025 December 31, 2024

March 31, 2026 December 31, 2025

Cemetery receivables $ 124,302 $ 122,307

4 unchanged sentences

amounts in accounts receivable ( 30,025 ) ( 28,056 )

Preneed cemetery receivables, net including HFS $ 63,312 $ 52,629

Held for sale — ( 1,671 )

Preneed cemetery receivables, net $ 66,648 $ 67,055

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

The following table summarizes the activity in our allowance for credit losses for Preneed cemetery receivables, net for the three months ended March 31, 2026 (in thousands):

January 1, 2026 Provision for Credit Losses Write Offs March 31, 2026

Total allowance for credit losses on Preneed cemetery receivables, net

$ ( 2,601 ) $ ( 536 ) $ ( 565 ) $ ( 3,702 )

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

The amortized cost basis of our cemetery receivables by year of origination as of March 31, 2026 is as follows (in thousands):

2026 2025 2024 2023 2022 Prior Total

Total cemetery receivables, at amortized cost $ 19,451 $ 49,590 $ 30,204 $ 12,323 $ 5,806 $ 2,047 $ 119,421

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

The aging of past due cemetery receivables as of March 31, 2026 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 $ 3,586 $ 1,432 $ 1,008 $ 8,703 $ 14,729 $ 109,573 $ 124,302

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 $ 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.

However, we estimate an average maturity period of eight years for preneed cemetery contracts.

FAIR VALUE MEASUREMENTS

2 unchanged sentences

The fair values of our receivables on preneed cemetery contracts are impracticable to estimate because of the lack of a trading market and the diverse number of individual contracts with varying terms.

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

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

At March 31, 2026, the carrying value and fair value of our Credit Facility was $ 120.5 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 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 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.

These investments are fixed income securities, including U.S.

agency obligations, foreign debt, corporate debt, preferred stocks, certificates of deposit and fixed income mutual funds and other investments, all of which are classified within Level 2 of the valuation hierarchy.

In addition, we have an investment in a limited partnership fund, whose fair value has been estimated using the net asset value per share (“NAV”) practical expedient described in ASC 820-10-35-59, Fair Value Measurement of Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent) and therefore, has not been classified in the fair value hierarchy.

At March 31, 2026, the carrying value of our acquisition debt was $ 6.2 million, which approximated its fair value.

The fair value of our Senior Notes was $ 380.3 million at March 31, 2026, based on the last traded or broker quoted price.

In addition, we have an investment in a limited partnership fund, whose fair value has been estimated using the net asset value per share practical expedient described in ASC 820-10-35-59, Fair Value Measurement of Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent) and therefore, has not been classified in the fair value hierarchy.

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 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.

The value of the investments in this fund cannot be liquidated at March 31, 2026 because the investments include restrictions that do not allow for liquidation until 2027.

As of March 31, 2026, we do not have an unfunded commitment for this investment.

Furthermore, we have nine 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

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

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

Capital growth is achieved by identifying high-potential investments that are appreciated over time.

3 unchanged sentences

The structured credit is approximately 58 % of the total alternative investment and can be liquidated with a 15-day notice period with no restrictions.

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

As of March 31, 2026, we had approximately $ 42.2 million in unfunded commitments for these investments.

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.

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.

We account for these investments at cost.

We account for these receivables at cost.

The following three-level valuation hierarchy based upon the transparency of inputs is utilized in the measurement and valuation of financial assets or liabilities as of the measurement date:

• Level 1—Fair value of securities based on unadjusted quoted prices for identical assets or liabilities in active markets.

Our investments classified as Level 1 securities include cash, U.S.

treasury debt, common stock and equity mutual funds;

• Level 2—Fair value of securities estimated based on quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, and inputs other than quoted market prices that are observable or that can be corroborated by observable market data by correlation.

These inputs include interest rates, yield curves, credit risk, prepayment speeds, rating and tax-exempt status.

Our investments classified as Level 2 securities include U.S.

agency obligations, foreign debt, corporate debt, preferred stocks, certificates of deposit and fixed income mutual funds and other investments.

• Level 3—Unobservable inputs based upon the reporting entity’s internally developed assumptions, which market participants would use in pricing the asset or liability.

As of March 31, 2026 and 2025, we did not have any assets that had fair values determined by Level 3 inputs and no liabilities measured at fair value.

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

12 unchanged sentences

Because of the long-term relationship between the establishment of trust investments and the required performance of the underlying contractual obligations, the impact of current market conditions that may exist at any given time is not necessarily indicative of our ability to generate profit on our future performance obligations.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

Preneed Cemetery Trust Investments

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

September 30, 2025 December 31, 2024

March 31, 2026 December 31, 2025

Preneed cemetery trust investments, at market value $ 114,827 $ 112,531

1 unchanged sentence

Preneed cemetery trust investments $ 111,407 $ 109,152

Held for sale — ( 4,876 )

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

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

The cost and market values associated with preneed cemetery trust investments at March 31, 2026, are detailed below (in thousands):

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

Cash and money market accounts 1 $ 15,724 $ — $ — $ 15,724

Fixed income securities:

agency obligations 2 526 — ( 25 ) 501

Foreign debt 2 — — — —

Corporate debt 2 — — — —

Preferred stock 2 — — — —

Certificates of deposit 2 79 — ( 4 ) 75

Common stock 1 11,573 2,051 ( 1,671 ) 11,953

8 unchanged sentences

Market value as a percentage of cost 99.7 %

The estimated maturities of the fixed income securities (excluding mutual funds) included above are as follows (in thousands):

Due in one year or less $ 75

Due in one to five years 332

Due in five to ten years 169

Total fixed income securities $ 576

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

The cost and market values associated with preneed cemetery trust investments at December 31, 2025 are detailed below (in thousands):

1 unchanged sentence

Cash and money market accounts 1 $ 15,653 $ — $ — $ 15,653

Fixed income securities:

agency obligations 2 664 1 ( 46 ) $ 619

Foreign debt 2 8,575 1,431 ( 8 ) 9,998

Corporate debt 2 8,500 365 ( 256 ) 8,609

Preferred stock 2 2,833 479 ( 176 ) 3,136

Certificates of deposit 2 79 — ( 5 ) 74

Common stock 1 11,599 768 ( 1,709 ) 10,658

3 unchanged sentences

Fixed income 2 43,013 353 ( 50 ) 43,316

Alternative investments 29,380 374 ( 68 ) 29,686

Trust securities $ 112,624 $ 1,495 $ ( 2,199 ) $ 111,920

2 unchanged sentences

Market value as a percentage of cost 99.4 %

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

Fair market value Unrealized Losses Fair market value Unrealized Losses Fair market value Unrealized Losses

Fixed income securities:

agency obligations $ — $ — $ 501 $ ( 25 ) $ 501 $ ( 25 )

Foreign debt — — — — — —

Corporate debt — — — — — —

Preferred stock — — — — — —

Certificates of deposit — — 75 ( 4 ) 75 ( 4 )

Total fixed income securities with an unrealized loss $ — $ — $ 576 $ ( 29 ) $ 576 $ ( 29 )

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

The following table summarizes our fixed income securities (excluding mutual funds) within our preneed cemetery trust investments in an unrealized loss position at December 31, 2024, aggregated by major security type and length of time in a continuous unrealized loss position (in thousands):

December 31, 2024

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

Fair market value Unrealized Losses Fair market value Unrealized Losses Fair market value Unrealized Losses

Fixed income securities:

agency obligations $ — $ — $ 479 $ ( 46 ) $ 479 $ ( 46 )

Foreign debt — — 211 ( 8 ) 211 ( 8 )

Corporate debt 1,274 ( 139 ) 94 ( 117 ) 1,368 ( 256 )

Preferred stock 889 ( 5 ) 891 ( 171 ) 1,780 ( 176 )

Certificates of deposit — — 74 ( 5 ) 74 ( 5 )

Total fixed income securities with an unrealized loss $ 2,163 $ ( 144 ) $ 1,749 $ ( 347 ) $ 3,912 $ ( 491 )

There were no fixed income securities (excluding mutual funds) within our preneed cemetery trust investments in an unrealized loss position at March 31, 2026 and December 31, 2025.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

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

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

2025 2024 2025 2024

Three months ended March 31,

Investment income $ 508 $ 647

4 unchanged sentences

Net change in deferred preneed cemetery receipts held in trust 192 ( 1,678 )

$ — $ — $ — $ —

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

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

2025 2024 2025 2024

Three months ended March 31,

Purchases $ ( 4,039 ) $ ( 3,506 )

4 unchanged sentences

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

September 30, 2025 December 31, 2024

March 31, 2026 December 31, 2025

Preneed funeral trust investments, at market value $ 119,033 $ 118,993

1 unchanged sentence

Preneed funeral trust investments $ 115,482 $ 115,416

Held for sale — ( 2,197 )

Preneed funeral trust investments $ 121,849 $ 106,219

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

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

The cost and market values associated with preneed funeral trust investments at March 31, 2026 are detailed below (in thousands):

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

2 unchanged sentences

U.S agency obligations 2 306 — ( 18 ) 288

Foreign debt 2 — — — —

Corporate debt 2 192 4 — 196

Common stock 1 11,729 2,079 ( 1,694 ) 12,114

9 unchanged sentences

Market value as a percentage of cost 99.7 %

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

The estimated maturities of the fixed income securities (excluding mutual funds) included above are as follows (in thousands):

3 unchanged sentences

Total fixed income securities $ 288

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

The cost and market values associated with preneed funeral trust investments at December 31, 2025 are detailed below (in thousands):

3 unchanged sentences

U.S agency obligations 2 306 — ( 18 ) 288

Foreign debt 2 8,193 1,373 ( 7 ) 9,559

Corporate debt 2 7,941 351 ( 134 ) 8,158

Preferred stock 2 2,577 460 ( 218 ) 2,819

Common stock 1 11,981 793 ( 1,765 ) 11,009

4 unchanged sentences

Other investments 2 1,724 — — 1,724

Alternative investments 30,344 386 ( 70 ) 30,660

Trust securities $ 119,236 $ — $ 1,510 $ — $ ( 2,274 ) $ 118,472

2 unchanged sentences

Market value as a percentage of cost 99.4 %

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

The following table summarizes our fixed income securities (excluding mutual funds) within our preneed funeral trust investment in an unrealized loss position at March 31, 2026, aggregated by major security type and length of time in a continuous unrealized loss position (in thousands):

March 31, 2026

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

2 unchanged sentences

U.S agency obligations $ — $ — $ 288 $ ( 18 ) $ 288 $ ( 18 )

Foreign debt — — — — — —

Corporate debt — — — — — —

Preferred stock — — — — — —

Total fixed income securities with an unrealized loss $ — $ — $ 288 $ ( 18 ) $ 288 $ ( 18 )

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

The following table summarizes our fixed income securities (excluding mutual funds) within our preneed funeral trust investment in an unrealized loss position at December 31, 2025, aggregated by major security type and length of time in a continuous unrealized loss position (in thousands):

4 unchanged sentences

U.S agency obligations $ — $ — $ 288 $ ( 18 ) $ 288 $ ( 18 )

Foreign debt — — 203 ( 7 ) 203 ( 7 )

Corporate debt 1,225 ( 133 ) — ( 1 ) 1,225 ( 134 )

Preferred stock 842 ( 4 ) 717 ( 214 ) 1,559 ( 218 )

Total fixed income securities with an unrealized loss $ — $ — $ 288 $ ( 18 ) $ 288 $ ( 18 )

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

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

2025 2024 2025 2024

Three months ended March 31,

Investment income $ 399 $ 473

4 unchanged sentences

Net change in deferred preneed funeral receipts held in trust 107 ( 1,899 )

$ — $ — $ — $ —

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

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

2025 2024 2025 2024

Three months ended March 31,

Purchases $ ( 3,738 ) $ ( 3,372 )

3 unchanged sentences

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

September 30, 2025 December 31, 2024

March 31, 2026 December 31, 2025

Cemetery perpetual care trust investments, at market value $ 97,434 $ 95,625

Obligations due to (due from) trust ( 1,852 ) ( 2,200 )

Care trusts’ corpus, including HFS $ 91,383 $ 86,452

Held for sale — ( 2,234 )

Care trusts' corpus $ 95,582 $ 93,425

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 September 30, 2025 (in thousands):

NOTES TO CONDENSED 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 March 31, 2026 (in thousands):

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

Cash and money market accounts 1 $ 8,331 $ — $ — $ 8,331

Fixed income securities:

Foreign debt 2 — — — —

Corporate debt 2 94 2 — 96

Preferred stock 2 — — — —

Common stock 1 10,040 1,780 ( 1,450 ) 10,370

8 unchanged sentences

Market value as a percentage of cost 99.8 %

The estimated maturities of the fixed income securities (excluding mutual funds) included above are as follows (in thousands):

Due in one year or less $ 25

Due in one to five years 71

Due in five to ten years —

Total fixed income securities $ 96

The following table reflects the cost and market values associated with the trust investments held in perpetual care trust funds at December 31, 2025 (in thousands):

2 unchanged sentences

Fixed income securities:

Foreign debt 2 7,770 1,262 ( 7 ) 9,025

Corporate debt 2 94 2 — 96

Preferred stock 2 2,725 418 ( 148 ) 2,995

Common stock 1 10,527 1,028 ( 1,451 ) 10,104

3 unchanged sentences

Fixed income 2 39,229 319 ( 145 ) 39,403

Alternative investments 24,308 310 ( 57 ) 24,561

Trust securities $ 95,121 $ 1,875 $ ( 1,987 ) $ 95,009

2 unchanged sentences

Market value as a percentage of cost 99.9 %

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 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

Fair market value Unrealized Losses Fair market value Unrealized Losses Fair market value Unrealized Losses

Fixed income securities:

Foreign debt $ — $ — $ — $ — $ — $ —

Corporate debt — — — — — —

Preferred stock — — — — — —

Total fixed income securities with an unrealized loss $ — $ — $ — $ — $ — $ —

The following table summarizes our fixed income securities within our perpetual care trust investment in an unrealized loss position at December 31, 2024, aggregated by major security type and length of time in a continuous unrealized loss position (in thousands):

December 31, 2024

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

Fair market value Unrealized Losses Fair market value Unrealized Losses Fair market value Unrealized Losses

Fixed income securities:

Foreign debt $ — $ — $ 184 $ ( 7 ) $ 184 $ ( 7 )

Corporate debt 1,111 ( 121 ) 316 ( 281 ) 1,427 ( 402 )

Preferred stock 764 ( 4 ) 1,086 ( 144 ) 1,850 ( 148 )

Total fixed income securities with an unrealized loss $ 1,875 $ ( 125 ) $ 1,586 $ ( 432 ) $ 3,461 $ ( 557 )

There were no fixed income securities (excluding mutual funds) within our perpetual care trust investment in an unrealized loss position at March 31, 2026 and December 31, 2025.

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

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

2025 2024 2025 2024

Three months ended March 31,

Realized gains 695 251

2 unchanged sentences

Net change in care trusts’ corpus ( 284 ) ( 738 )

$ — $ — $ — $ —

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

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

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

2025 2024 2025 2024

Three months ended March 31,

Investment income $ 2,300 $ 2,487

2 unchanged sentences

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

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

2025 2024 2025 2024

Three months ended March 31,

Purchases $ ( 3,550 ) $ ( 3,122 )

Sales $ 6,377 $ 15,963

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

RECEIVABLES FROM PRENEED FUNERAL TRUSTS

2 unchanged sentences

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

September 30, 2025 December 31, 2024

March 31, 2026 December 31, 2025

Preneed funeral trust funds, at cost $ 16,625 $ 16,758

allowance for contract cancellation ( 499 ) ( 503 )

Receivables from preneed funeral trusts, net including HFS $ 21,098 $ 22,372

Held for sale ( 4,695 ) —

Receivables from preneed funeral trusts, net $ 16,126 $ 16,255

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 September 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 September 30, 2025, is as follows (in thousands):

The composition of the preneed trust funds at March 31, 2026, is as follows (in thousands):

Historical Cost Basis Fair Value

11 unchanged sentences

Total $ 16,758 $ 16,638

CREDIT FACILITY AND ACQUISITION DEBT

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

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

LONG TERM DEBT

Our long-term debt consists of the following (in thousands):

March 31, 2026 December 31, 2025

$ 397,505 $ 397,319

Credit Facility

119,323 125,435

Acquisition debt, net of current portion

Total Long-term debt

$ 522,281 $ 528,335

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):

March 31, 2026 December 31, 2025

Principal amount $ 400,000 $ 400,000

Debt discount, net of accumulated amortization of $ 2,557 and $ 2,411 , respectively

( 1,945 ) ( 2,089 )

Debt issuance costs, net of accumulated amortization of $ 726 and $ 685 , respectively

( 550 ) ( 592 )

Carrying value of the Senior Notes $ 397,505 $ 397,319

At March 31, 2026, the fair value of the Senior Notes, which are Level 2 measurements, was $ 380.3 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.

The Senior Notes are unsecured, senior obligations and are fully and unconditionally guaranteed on a senior unsecured basis, jointly and severally by each of the Subsidiary Guarantors.

The Senior Notes mature on May 15, 2029, unless earlier redeemed or purchased and bear interest at 4.25 % per year, which is payable semi-annually in arrears on May 15 and November 15 of each year, beginning on November 15, 2021.

The Indenture contains restrictive covenants limiting our ability and our Restricted Subsidiaries (as defined in the Indenture) to, among other things, incur additional indebtedness or issue certain preferred shares, create liens on certain assets to secure debt, pay dividends or make other equity distributions, purchase or redeem capital stock, make certain investments, sell assets, agree to certain restrictions on the ability of Restricted Subsidiaries to make payments to us, consolidate, merge, sell or otherwise dispose of all or substantially all assets, or engage in transactions with affiliates.

The Indenture also contains customary events of default.

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 March 31,

Senior Notes interest expense 4,250 4,250

Senior Notes amortization of debt discount 146 138

Senior Notes amortization of debt issuance costs 41 39

The debt discount and the debt issuance costs are being amortized using the effective interest method over the remaining term of approximately 38 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 three months ended March 31, 2026 and 2025 were 4.42 % and 4.30 %, respectively.

Credit Facility

At March 31, 2026, 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.

Our obligations under the Credit Facility are unconditionally guaranteed on a joint and several basis by the same subsidiaries which guarantee the Senior Notes (as defined in Note 11) and certain of our subsequently acquired or organized domestic subsidiaries (collectively, the “Subsidiary Guarantors”).

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

Our obligations under the Credit Facility are unconditionally guaranteed on a joint and several basis by the same subsidiaries which guarantee the Senior Notes (as defined in Senior Notes above) and certain of our subsequently acquired or organized domestic subsidiaries (collectively, the “Subsidiary Guarantors”).

On July 31, 2024, the Company entered into a fourth amendment, (the “Credit Facility Amendment”), to our Credit Facility, with the financial institutions party thereto, as lenders, and Bank of America, N.A., as administrative agent.

4 unchanged sentences

(v) the removal of certain mandatory prepayments arising from the issuance of either Equity Interests or Debt (as both are defined by the Credit Facility);

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

modifications to the permitted investments covenant, relating to the Company’s ability to make certain acquisitions, subject to the satisfaction of certain conditions therein.

and (vi) modifications to the permitted investments covenant, relating to the Company’s ability to make certain acquisitions, subject to the satisfaction of certain conditions therein.

The Credit Facility contains customary affirmative covenants, including, but not limited to, covenants with respect to the use of proceeds, payment of taxes and other obligations, continuation of the Company’s business and the maintenance of existing rights and privileges, the maintenance of property and insurance, among others.

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

At March 31, 2026, 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 September 30, 2025.

We were in compliance with all of the covenants contained in our Credit Facility at March 31, 2026.

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

September 30, 2025 December 31, 2024

March 31, 2026 December 31, 2025

Credit Facility $ 120,500 $ 126,700

5 unchanged sentences

Total acquisition debt, net of current portion $ 5,453 $ 5,581

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

At March 31, 2026, we had outstanding borrowings under the Credit Facility of $ 120.5 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, 2027, and is expected to automatically renew annually and secures our obligations under our various self-insured policies.

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

At March 31, 2026, we had $ 127.3 million of availability under the Credit Facility.

Outstanding borrowings under our Credit Facility bear interest at a prime rate or the SOFR rate, plus an applicable margin based on our leverage ratio.

At March 31, 2026, the prime rate margin was equivalent to 1.13 % and the SOFR term margin was 2.23 %.

The weighted average interest rate on our Credit Facility was 5.9 % and 6.9 % for the years ended March 31, 2026 and 2025, respectively.

We have no material assets or operations independent of the Subsidiary Guarantors, as all of our assets and operations are held and conducted by the Subsidiary Guarantors.

Additionally, we do not currently have any significant restrictions on our ability to receive dividends or loans from any Subsidiary Guarantors.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

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

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

2025 2024 2025 2024

Three months ended March 31,

Credit Facility interest expense 1,987 2,499

Credit Facility amortization of debt issuance costs 87 88

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

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 September 30, Nine months ended September 30,

2025 2024 2025 2024

Three months ended March 31,

Acquisition debt imputed interest expense $ 150 $ 94

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

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):

September 30, 2025 December 31, 2024

Principal amount $ 400,000 $ 400,000

Debt discount, net of accumulated amortization of $ 2,268 and $ 1,848 , respectively

( 2,232 ) ( 2,652 )

Debt issuance costs, net of accumulated amortization of $ 645 and $ 526 , respectively

( 632 ) ( 751 )

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

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.

The Senior Notes are unsecured, senior obligations and are fully and unconditionally guaranteed on a senior unsecured basis, jointly and severally by each of the Subsidiary Guarantors.

The Indenture also contains customary events of default.

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 September 30, Nine months ended September 30,

2025 2024 2025 2024

Senior Notes interest expense 4,250 4,250 $ 12,750 $ 12,750

Senior Notes amortization of debt discount 142 135 420 402

Senior Notes amortization of debt issuance costs 40 38 119 114

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 nine months ended September 30, 2025 and 2024 were 4.42 % and 4.30 %, respectively.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

EARNINGS PER SHARE

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

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

2025 2024 2025 2024

Numerator for basic and diluted earnings per share:

Net income $ 6,570 $ 9,866 $ 39,235 $ 23,098

Earnings allocated to unvested restricted stock ( 96 ) ( 127 ) ( 591 ) ( 304 )

Income attributable to common stockholders $ 6,474 $ 9,739 $ 38,644 $ 22,794

Denominator for basic earnings per common share – weighted average shares outstanding 15,490 15,011 15,398 14,951

Effect of dilutive securities:

Stock options 242 64 203 33

Performance awards — 416 — 416

Denominator for diluted earnings per common share – weighted average shares outstanding 15,732 15,491 15,601 15,400

Basic earnings per common share:

$ 0.42 $ 0.65 $ 2.51 $ 1.52

Diluted earnings per common share:

$ 0.41 $ 0.63 $ 2.47 $ 1.48

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 September 30, Nine months ended September 30,

2025 2024 2025 2024

Antidilutive stock options 222 1,070 224 1,192

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

SEGMENT REPORTING

Our Chief Operating Decision Maker (the “CODM”), who is the Chief Executive Officer, utilizes segment operating income (loss) for resource allocation across segments, particularly during the annual budgeting and forecasting processes.

The CODM examines variances on a monthly basis to make informed decisions regarding capital and personnel distribution among segments.

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 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

Merchandise 17,967 4,573 — 22,540

Cemetery property — 26,093 — 26,093

Other revenue 5,573 4,332 — 9,905

Total revenue 62,778 39,964 — 102,742

Salaries, benefits, and commission expenses 16,849 10,426 — 27,275

Cost of merchandise 6,356 3,380 — 9,736

Allocated overhead costs (1)

3,301 1,340 — 4,641

Facilities and grounds expenses 2,868 1,983 — 4,851

General and administrative expenses (2)

2,518 977 — 3,495

Other segment expenses (3)

18,271 4,789 12,177 35,237

Operating income (loss) $ 12,615 $ 17,069 $ ( 12,177 ) $ 17,507

Interest expense $ 330 $ 7 $ 6,609 $ 6,946

Depreciation and amortization $ 2,765 $ 3,216 $ 522 $ 6,503

Income (loss) before income taxes $ 11,697 $ 17,733 $ ( 19,721 ) $ 9,709

Income tax expense (benefit) $ 3,774 $ 5,020 $ ( 5,655 ) $ 3,139

(1) Allocated overhead costs include:

property insurance costs, property tax expenses, and corporate overhead fees allocated to the field, such as information technology, human resources, legal, and finance.

(2) General and administrative expenses include:

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 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 September 30, 2024 Funeral Cemetery Corporate Total

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

Merchandise 19,455 4,757 — 24,212

Cemetery property — 23,207 — 23,207

Other revenue 4,355 3,997 — 8,352

Total revenue 63,702 36,985 — 100,687

Salaries, benefits, and commission expenses 17,275 9,286 — 26,561

Cost of merchandise 6,698 3,740 — 10,438

Allocated overhead costs (1)

3,290 1,263 — 4,553

Facilities and grounds expenses 2,816 2,106 — 4,922

General and administrative expenses (2)

2,453 834 — 3,287

Other segment expenses (4)

11,569 4,254 12,206 28,029

Operating income (loss) $ 19,601 $ 15,502 $ ( 12,206 ) $ 22,897

Interest expense $ 267 $ 17 $ 7,751 $ 8,035

Depreciation and amortization $ 2,912 $ 2,456 $ 242 $ 5,610

Income (loss) before income taxes $ 19,400 $ 15,639 $ ( 20,190 ) $ 14,849

Income tax expense (benefit) $ 6,247 $ 5,142 $ ( 6,406 ) $ 4,983

(1) Allocated overhead costs include:

property insurance costs, property tax expenses, and corporate overhead fees allocated to the field, such as information technology, human resources, legal and finance.

(2) General and administrative expenses include:

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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

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

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

Merchandise 57,787 12,942 — 70,729

Cemetery property — 70,003 — 70,003

Other revenue 16,362 11,140 — 27,502

Total revenue 202,644 109,314 — 311,958

Salaries, benefits, and commission expenses

51,837 30,878 — 82,715

Cost of merchandise 21,335 6,079 — 27,414

Allocated overhead costs (1)

9,914 4,039 — 13,953

Facilities and grounds expenses 8,506 4,748 — 13,254

General and administrative expenses (2)

8,242 2,828 — 11,070

Other segment expenses (3)

40,329 13,991 36,163 90,483

Operating income (loss) $ 62,481 $ 46,751 $ ( 36,163 ) $ 73,069

Interest expense $ 1,014 $ 13 $ 20,251 $ 21,278

Depreciation and amortization $ 8,426 $ 8,234 $ 1,417 $ 18,077

Income (loss) before income taxes $ 63,564 $ 48,811 $ ( 59,555 ) $ 52,820

Income tax expense (benefit) $ 16,341 $ 12,550 $ ( 15,306 ) $ 13,585

Capital expenditures $ 2,232 $ 8,574 $ 1,909 $ 12,715

Number of operating locations at year end 159 28 — 187

(1) Allocated overhead costs include:

property insurance costs, property tax expenses, and corporate overhead fees allocated to the field, such as information technology, human resources, legal, and finance.

(2) General and administrative expenses include:

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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

Nine months ended September 30, 2024 Funeral Cemetery Corporate Total

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

Merchandise 61,778 13,380 — 75,158

DIVESTED OPERATIONS

During the three months ended March 31, 2025, we sold two funeral homes and three cemeteries for an aggregate of $ 15.8 million.

We did not sell any businesses during the three months ended March 31, 2026.

Net (gain) loss on divestitures and impairment charges.

The components of Net (gain) loss on divestitures and impairment charges are as follows (in thousands):

Three months ended March 31,

Impairment of goodwill, intangibles, and PPE $ 236 $ 117

Net loss (gain) on divestitures 51 ( 5,937 )

Net (gain) loss on disposals of fixed assets ( 9 ) 50

Total $ 278 $ ( 5,770 )

BUSINESS COMBINATIONS

We did no t acquire any businesses during the three months ended March 31, 2026.