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Item 1. Financial Statements

2026-08-06 compared with 2026-05-07 · 243 added, 121 removed, 714 unchanged (34% of the section changed)

3 unchanged sentences

(unaudited and in thousands, except per share data)

Three months ended March 31,

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

2026 2025 2026 2025

Service revenue $ 45,605 $ 46,510 $ 96,527 $ 99,520

41 unchanged sentences

Prepaid and other current assets 13,714 5,978

Current assets held for sale 9 —

Total current assets 67,640 56,076

16 unchanged sentences

Accrued and other liabilities 25,467 33,922

Current liabilities held for sale 50 —

Total current liabilities 46,480 57,217

25 unchanged sentences

(unaudited and in thousands)

Three months ended March 31,

Six months ended June 30,

Cash flows from operating activities:

21 unchanged sentences

Cash flows from investing activities:

Acquisitions of businesses ( 4,500 ) —

Capital expenditures ( 9,223 ) ( 6,009 )

19 unchanged sentences

(unaudited and in thousands)

Three months ended March 31, 2026

Three months ended June 30, 2026

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

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

Net income — — — 12,272 — 12,272

Issuance of common stock from employee stock purchase plan 8 — 325 — — 325

Issuance of common stock to directors and board advisor 2 — 62 — — 62

Exercise of stock options 18 — 3 — — 3

Restricted common stock, performance awards, and stock options surrendered for taxes paid ( 16 ) — ( 315 ) — — ( 315 )

Stock-based compensation expense — — 1,868 — — 1,868

Dividends on common stock ($ 0.1125 per share)

— — ( 1,785 ) — — ( 1,785 )

Balance - June 30, 2026 15,884 $ 275 $ 237,367 $ 320,480 $ ( 278,753 ) $ 279,369

Three months ended June 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

Net income — — — 11,739 — 11,739

Issuance of common stock from employee stock purchase plan 9 — 295 — — 295

Issuance of common stock to directors and board advisor 1 — 63 — — 63

Exercise of stock options 2 — — — — —

Restricted common stock, performance awards, and stock options surrendered for taxes paid ( 4 ) — ( 2 ) — — ( 2 )

Stock-based compensation expense — — 2,029 — — 2,029

Dividends on common stock ($ 0.1125 per share)

— — ( 1,766 ) — — ( 1,766 )

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

Six months ended June 30, 2026

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

Balance - December 31, 2025 15,751 $ 274 $ 238,539 $ 294,716 $ ( 278,753 ) $ 254,776

9 unchanged sentences

Other 1 — 59 — — 59

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

Three months ended March 31, 2025

Balance - June 30, 2026 15,884 $ 275 $ 237,367 $ 320,480 $ ( 278,753 ) $ 279,369

Six months ended June 30, 2025

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

11 unchanged sentences

Other 12 — 496 — — 496

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

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

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Funeral Home Operations, which currently accounts for approximately 66 % of our total revenue and Cemetery Operations, which currently accounts for approximately 34 % of our total revenue.

At March 31, 2026, we operated 155 funeral homes in 24 states and 28 cemeteries in 9 states.

At June 30, 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.

10 unchanged sentences

Use of Estimates

The preparation of our Consolidated Financial Statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenue, and expenses.

The preparation of our Condensed Consolidated Financial Statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenue, and expenses.

On an ongoing basis, we evaluate our critical estimates and judgments, which include those related to the impairment of goodwill and the fair value measurements used in business combinations.

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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.

Held for sale balances on our Condensed Consolidated Balance Sheets primarily consist of $ 0.3 million of property, plant and equipment as of June 30, 2026, and December 31, 2025, respectively.

On July 10, 2026, we completed the sale of excess land that was classified as held for sale on our Condensed Consolidated Balance Sheets as of June 30, 2026.

During the three months ended June 30, 2026, we sold one funeral home for an aggregate of $ 0.3 million.

We recorded an impairment of $ 0.1 million and $ 0.3 million, for the three and six months ended June 30, 2026, respectively, resulting in an immaterial loss recorded in Net (gain) loss on divestitures and impairment charges on our Condensed Consolidated Statements of 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 home with another business we own in an existing market.

We recorded an impairment of $ 0.1 million during the six months ended June 30, 2025, resulting in a gain of $ 5.9 million recorded in Net (gain) loss on divestitures and impairment charges on our Condensed Consolidated Statements of Operations.

Income tax expense was $ 4.9 million and $ 5.1 million for the three months ended June 30, 2026 and 2025, respectively, and $ 9.8 million and $ 10.4 million for the six months ended June 30, 2026 and 2025, respectively.

Our operating tax rate before discrete items was 28.8 % and 31.2 % for the three months ended June 30, 2026 and 2025, respectively, and 28.4 % and 31.2 % for the six months ended June 30, 2026 and 2025, respectively.

RECENTLY ISSUED ACCOUNTING STANDARDS

6 unchanged sentences

This guidance is effective for fiscal years beginning after December 15, 2026, and interim periods within annual reporting periods beginning after December 15, 2027, on a retrospective or prospective basis, with early adoption permitted.

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

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

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

Internal-Use Software

2 unchanged sentences

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.

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

SEGMENT REPORTING

1 unchanged sentence

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.

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 CODM does not review disaggregated assets by segment;

therefore assets by segment is not provided.

therefore assets by segment are 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

(in thousands) for the three and six months ended June 30, 2026 and 2025, respectively:

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

Three months ended June 30, 2026 Funeral Cemetery Total

Services $ 40,414 $ 5,191 $ 45,605

4 unchanged sentences

Salaries, benefits, and commission expenses $ 17,607 $ 11,221 $ 28,828

Cost of merchandise 3,328 2,069 5,397

Allocated overhead costs (1)

3,039 1,244 4,283

Facilities and grounds expenses 2,774 1,564 4,338

General and administrative expenses (2)

2,818 1,024 3,842

Other segment expenses (3)

8,946 2,133 11,079

Adjusted operating profit (4)

$ 27,180 $ 18,002 $ 45,182

Reconciliation of Adjusted operating profit margin to Gross profit

Cemetery property amortization $ — $ 3,129 $ 3,129

Field depreciation expense 2,829 528 3,357

Regional and unallocated funeral and cemetery costs 2,096 1,556 3,652

Gross profit $ 22,255 $ 12,789 $ 35,044

Corporate costs and expenses:

General and administrative expenses $ 11,001

Net loss on divestitures and impairment charges 90

Operating income $ 23,953

Interest expense $ 6,683

Other, net 113

Income before income taxes $ 17,157

(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 June 30, 2025 Funeral Cemetery Total

Services $ 41,308 $ 5,202 $ 46,510

Merchandise 18,264 4,330 22,594

Cemetery property — 23,919 23,919

Other revenue 5,675 3,449 9,124

Total revenue $ 65,247 $ 36,900 $ 102,147

Salaries, benefits, and commission expenses $ 17,011 $ 10,533 $ 27,544

Cost of merchandise 5,276 2,135 7,411

8 unchanged sentences

$ 26,250 $ 18,474 $ 44,724

Reconciliation of Adjusted operating profit margin to Gross profit

Cemetery property amortization $ — $ 2,241 $ 2,241

Field depreciation expense 2,835 453 3,288

Regional and unallocated funeral and cemetery costs 1,736 1,524 3,260

Gross profit $ 21,679 $ 14,256 $ 35,935

Corporate costs and expenses:

General and administrative expenses $ 11,938

Net loss on divestitures and impairment charges ( 1 )

Operating income $ 23,998

Interest expense $ 7,034

Other, net 107

Income before income taxes $ 16,857

(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)

Six months ended, June 30, 2026 Funeral Cemetery Total

Services $ 85,906 $ 10,621 $ 96,527

Merchandise 38,425 8,598 47,023

Cemetery property — 46,018 46,018

Other revenue 13,075 6,426 19,501

Total revenue $ 137,406 $ 71,663 $ 209,069

Salaries, benefits, and commission expenses

$ 35,480 $ 21,355 $ 56,835

Cost of merchandise 8,919 4,070 12,989

Allocated overhead costs (1)

5,998 2,405 8,403

Facilities and grounds expenses 5,845 2,815 8,660

General and administrative expenses (2)

6,246 2,077 8,323

Other segment expenses (3)

16,140 4,103 20,243

Adjusted operating profit (4)

$ 58,778 $ 34,838 $ 93,616

Reconciliation of Adjusted operating profit to Gross profit

20 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

Three months ended March 31, 2025 Funeral Cemetery Total

Six months ended June 30, 2025 Funeral Cemetery Total

Services 89,257 10,263 $ 99,520

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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,

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

2026 2025 2026 2025

Numerator for basic and diluted earnings per share:

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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

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

2026 2025 2026 2025

Antidilutive stock options 208 228 213 224

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):

March 31, 2026 December 31, 2025

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

June 30, 2026 December 31, 2025

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

1 unchanged sentence

Decrease in goodwill related to divestitures ( 279 ) ( 24,708 )

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

Goodwill at the end of the period $ 428,714 $ 427,897

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.

During the six months ended June 30, 2026, we allocated $ 0.3 million of goodwill to the sale of one funeral home which was recorded in Net loss on divestitures and impairment charges on our Condensed Consolidated Statements of Operations, allocated to our funeral home segment.

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 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 changed the manner in which certain funeral home operations are managed and reviewed.

As a result, the Company reassessed its 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.

structure under ASC 350, Intangibles—Goodwill and Other and determined that certain reporting units within the funeral home segment no longer met the criteria to be considered separate reporting units.

Accordingly, the Company combined these reporting units into a single reporting unit.

This change did not affect the Company’s operating segments under ASC 280, Segment Reporting.

In connection with the change in reporting unit structure, the Company performed a qualitative goodwill impairment assessment and concluded that it was not more likely than not that the fair value of the combined reporting unit was less than its carrying amount.

Accordingly, no quantitative impairment test was required, and no goodwill impairment charge was recognized.

Accounts Receivable

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Preneed cemetery receivables with payments expected to be received beyond one year from the balance sheet date are recorded in Preneed cemetery receivables, net .

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

March 31, 2026

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

June 30, 2026

Column1 Funeral Cemetery Corporate Total

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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 three months ended March 31, 2026 (in thousands):

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

The following table summarizes the activity in our allowance for credit losses by portfolio segment for the six months ended June 30, 2026 (in thousands):

January 1, 2026 Provision for Credit Losses Write Offs Recoveries June 30, 2026

Trade and financed receivables:

4 unchanged sentences

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

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

Interment rights $ 107,481 $ 99,741

4 unchanged sentences

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

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

Cemetery receivables $ 129,897 $ 122,307

5 unchanged sentences

Preneed cemetery receivables, net $ 69,605 $ 67,055

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

The following table summarizes the activity in our allowance for credit losses for Preneed cemetery receivables, net for the six months ended June 30, 2026 (in thousands):

January 1, 2026 Provision for Credit Losses Write Offs June 30, 2026

Total allowance for credit losses on Preneed cemetery receivables, net

$ ( 2,601 ) $ ( 1,154 ) $ ( 63 ) $ ( 3,818 )

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

The amortized cost basis of our cemetery receivables by year of origination as of June 30, 2026 is as follows (in thousands):

2026 2025 2024 2023 2022 Prior Total

Total cemetery receivables, at amortized cost $ 36,562 $ 44,683 $ 27,364 $ 10,718 $ 4,617 $ 1,457 $ 125,401

The aging of past due cemetery receivables as of March 31, 2026 is as follows (in thousands):

The aging of past due cemetery receivables as of June 30, 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

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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.

At June 30, 2026, the carrying value and fair value of our Credit Facility was $ 124.0 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 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.

At June 30, 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 $ 383.1 million at June 30, 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 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.

The value of the investments in this fund cannot be liquidated at June 30, 2026 because the investments include restrictions that do not allow for liquidation until 2027.

As of June 30, 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

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

Capital growth is

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.

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

Income generation may involve dividends, rental income, or interest from various investments.

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The structured credit is approximately 59 % of the total alternative investment and can be liquidated with a 15-day notice period with no restrictions.

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.

As of June 30, 2026, we had approximately $29 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 Condensed 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.

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• 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.

As of June 30, 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.

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Preneed funeral and cemetery contracts are secured by payments from customers, less amounts not required by law to be deposited into trust.

These earnings are recognized in Other revenue on our Consolidated Statements of Operations, when a service is performed or merchandise is delivered.

These earnings are recognized in Other revenue on our Condensed Consolidated Statements of Operations, when a service is performed or merchandise is delivered.

Trust management fees charged by our wholly owned registered investment advisory firm are included as revenue in the period in which they are earned.

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Preneed Cemetery Trust Investments

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

March 31, 2026 December 31, 2025

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

June 30, 2026 December 31, 2025

Preneed cemetery trust investments, at market value $ 116,947 $ 112,531

1 unchanged sentence

Preneed cemetery trust investments $ 113,456 $ 109,152

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

The cost and market values associated with preneed cemetery trust investments at June 30, 2026, are detailed below (in thousands):

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

23 unchanged sentences

Market value as a percentage of cost 99.4 %

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.

There were no fixed income securities (excluding mutual funds) within our preneed cemetery trust investments in an unrealized loss position at June 30, 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 March 31,

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

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

2026 2025 2026 2025

Investment income $ 648 $ 770 $ 1,156 $ 1,417

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Net change in deferred preneed cemetery receipts held in trust ( 695 ) ( 4 ) ( 503 ) ( 1,682 )

$ — $ — $ — $ —

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

Three months ended March 31,

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

2026 2025 2026 2025

Purchases $ ( 8,359 ) $ ( 38,172 ) $ ( 12,398 ) $ ( 41,678 )

3 unchanged sentences

Preneed funeral contracts are secured by payments from customers, less retained amounts not required to be deposited into trust.

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

March 31, 2026 December 31, 2025

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

June 30, 2026 December 31, 2025

Preneed funeral trust investments, at market value $ 116,379 $ 118,993

1 unchanged sentence

Preneed funeral trust investments $ 112,900 $ 115,416

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

The cost and market values associated with preneed funeral trust investments at June 30, 2026 are detailed below (in thousands):

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

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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 March 31, 2026, aggregated by major security type and length of time in a continuous unrealized loss position (in thousands):

March 31, 2026

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, 2026, aggregated by major security type and length of time in a continuous unrealized loss position (in thousands):

June 30, 2026

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

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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 March 31,

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

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

2026 2025 2026 2025

Investment income $ 498 $ 521 897 994

4 unchanged sentences

Net change in deferred preneed funeral receipts held in trust ( 501 ) ( 56 ) ( 395 ) ( 1,955 )

$ 1 $ — $ — $ —

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

Three months ended March 31,

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

2026 2025 2026 2025

Purchases $ ( 7,669 ) $ ( 33,083 ) ( 11,407 ) ( 36,455 )

1 unchanged sentence

Cemetery Perpetual Care Trust Investments

Care trusts’ corpus on our Consolidated Balance Sheets represent the corpus of those trusts plus undistributed income.

Care trusts’ corpus on our Condensed Consolidated Balance Sheets represent the corpus of those trusts plus undistributed income.

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

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

Cemetery perpetual care trust investments, at market value $ 98,772 $ 95,625

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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):

The following table reflects the cost and market values associated with the trust investments held in perpetual care trust funds at June 30, 2026 (in thousands):

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

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Market value as a percentage of cost 99.9 %

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 March 31,

There were no fixed income securities (excluding mutual funds) within our perpetual care trust investment in an unrealized loss position at June 30, 2026 and December 31, 2025.

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

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

2026 2025 2026 2025

Realized gains $ 5 $ 1,028 700 1,279

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Net change in care trusts’ corpus ( 260 ) 1,101 ( 543 ) 363

$ — $ — $ — $ —

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 March 31,

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

2026 2025 2026 2025

Investment income $ 1,528 $ 2,420 $ 3,828 $ 4,907

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

Three months ended March 31,

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

2026 2025 2026 2025

Purchases $ ( 7,682 ) $ ( 35,774 ) $ ( 11,232 ) $ ( 38,896 )

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

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

Preneed funeral trust funds, at cost $ 16,665 $ 16,758

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Receivables from preneed funeral trusts, net $ 16,165 $ 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 March 31, 2026 and December 31, 2025.

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 March 31, 2026, is as follows (in thousands):

The composition of the preneed trust funds at June 30, 2026, is as follows (in thousands):

Historical Cost Basis Fair Value

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

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

$ 397,693 $ 397,319

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$ 526,016 $ 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

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

June 30, 2026 December 31, 2025

Principal amount $ 400,000 $ 400,000

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Carrying value of the Senior Notes $ 397,693 $ 397,319

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

At June 30, 2026, the fair value of the Senior Notes, which are Level 2 measurements, was $ 383.1 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.

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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

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

2026 2025 2026 2025 Filter Handle

Senior Notes interest expense 4,250 4,250 $ 8,500 $ 8,500 X

Senior Notes amortization of debt discount 145 140 291 278 X

Senior Notes amortization of debt issuance costs 42 40 83 79 X

The debt discount and the debt issuance costs are being amortized using the effective interest method over the remaining term of approximately 35 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.

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, 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:

At June 30, 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.

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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 March 31, 2026, we were subject to the following financial covenants under our Credit Facility:

At June 30, 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 March 31, 2026.

We were in compliance with all of the covenants contained in our Credit Facility at June 30, 2026.

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

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

Credit Facility $ 124,000 $ 126,700

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Total acquisition debt, net of current portion $ 5,411 $ 5,581

At March 31, 2026, we had outstanding borrowings under the Credit Facility of $ 120.5 million.

At June 30, 2026, we had outstanding borrowings under the Credit Facility of $ 124.0 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, 2026, and is expected to automatically renew annually and secures our obligations under our various self-insured policies.

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

At June 30, 2026, we had $ 123.8 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.

At June 30, 2026, the prime rate margin was equivalent to 1.125 % and the SOFR term margin was 2.225 %.

The weighted average interest rate on our Credit Facility was 6.0 % and 6.8 % for the three months ended June 30, 2026 and 2025, respectively.

The weighted average interest rate on our Credit Facility was 5.9 % and 6.9 % for the three months ended June 30, 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.

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

Three months ended March 31,

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

2026 2025 2026 2025

Credit Facility interest expense 1,977 2,102 $ 3,964 $ 4,601

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

Three months ended March 31,

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

2026 2025 2026 2025

Acquisition debt imputed interest expense $ 112 $ 93 262 187

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.

On May 27, 2026, we acquired a business consisting of one funeral home for approximately $ 4.5 million.

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

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

Preliminary Purchase Price Allocation

Current assets $ 58

Property, plant, and equipment 3,024

Goodwill 1,096

Intangible and other non-current assets 322

Purchase price $ 4,500

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.

The primary reasons for the acquisition that contributed to the recognition of goodwill include the expansion of our footprint in strategic markets.

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

The results of the acquired business is reflected in our Condensed Consolidated Statements of Operations from the date of acquisition.

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.

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

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

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

SUBSEQUENT EVENTS

On May 6, 2026, the Company announced it has entered into an Equity Distribution Agreement with Oppenheimer & Co.

and Raymond James & Associates, Inc., serving as sales agents (together, the “Sales Agents”), with respect to its at-the-market offering program under which the Company may offer and sell, from time to time, shares of its common stock having an aggregate offering price of up to $ 100.0 million through the Sales Agents.

CAUTIONARY STATEMENT ON FORWARD-LOOKING STATEMENTS

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• our ability to meet the timing, objectives and expectations related to our capital allocation framework, including our forecasted rates of return, planned uses of free cash flow and future capital allocation, including debt repayment plans, internal growth projects, potential strategic acquisitions, share repurchases, or dividend increases;

• our ability to meet the projected financial and performance guidance of our full year outlook, if at all;

• our ability to meet the projected financial and performance guidance of our updated full year outlook, if at all;

• the timely and full payment of death benefits related to preneed funeral contracts funded through life insurance contracts;

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• our ability to identify and consummate strategic acquisitions on commercially reasonable terms and on a timely basis, if at all, and successfully integrate acquired businesses with our existing businesses, including expected performance and financial improvements related thereto;

• our ability to successfully complete any non-core asset divestitures on commercially reasonable terms and o a timely basis, if at all, and the impact of any such divestitures on our Company, including any financial, operational, tax or other similar impacts related thereto;

• our ability to successfully complete any non-core asset divestitures on commercially reasonable terms and on a timely basis, if at all, and the impact of any such divestitures on our Company, including any financial, operational, tax or other similar impacts related thereto;

• the effects of any additional imposition or changes in tariffs or trade agreements including, but not limited to, any potential disruptions in international trade, any increased inflationary pressures on the economy or costs for our goods, and our ability, if at all, to mitigate such effects;

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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