Carriage Services (CSV) investor relations material

Executive summary

• Q1 2026 revenue was $106.1 million, down 0.9% year-over-year, mainly due to a 5.8% decline in funeral home at-need volume and divestitures, partially offset by higher average revenue per contract and strong cemetery segment growth.

• Adjusted consolidated EBITDA rose 2.4% to $33.8 million, with margin up 100 basis points to 31.8%.

• Adjusted diluted EPS was $0.86, down 10.4% from $0.96 in Q1 2025, primarily due to a higher effective tax rate and absence of prior year divestiture gains.

• Net income decreased 35.5% to $13.5 million, mainly due to prior year gains on divestitures and higher general and administrative expenses.

• The company continues to focus on operational excellence, disciplined capital allocation, scalable growth, and technology investments, supported by a robust M&A pipeline and a $100 million at-the-market equity offering program.

Financial highlights

• Comparable funeral revenue was $63.3 million, down 4.2% year-over-year; average revenue per contract increased 1.7%.

• Comparable cemetery revenue grew 6% to $29.6 million, with a 9%–10% increase in preneed sales and a 15.3% rise in average revenue per property contract.

• Financial revenue increased 15.7%–21.0% year-over-year, reflecting strong pre-need funeral sales and higher commission income.

• Adjusted free cash flow was $11.2 million, down from $13.4 million in Q1 2025.

• Cash from operating activities increased to $14.9 million, and capital expenditures were $3.9 million, up from $3.2 million.

Outlook and guidance

• Full-year 2026 guidance reaffirmed: revenue of $440–$450 million, adjusted EBITDA of $135–$140 million, adjusted EBITDA margin of 30.5%–31.5%, adjusted diluted EPS of $3.35–$3.55, and adjusted free cash flow of $40–$50 million.

• Overhead expenses expected at 13.5%–14.5% of revenue; capital expenditures projected at $25–$30 million.

• Guidance excludes gains/losses from divestitures, acquisition costs, severance, impairments, and other special items.

• Guidance assumes $5–$10 million in revenue from planned acquisitions, with potential to exceed this due to a robust M&A pipeline and flexibility from the ATM program.

• Management expects sufficient liquidity for working capital, capital expenditures, debt payments, acquisitions, and dividends over the next 12 months.