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, acquisition growth, and strong cemetery segment performance.

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

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

• Adjusted diluted EPS was $0.86, down 10.4% from the prior year, primarily due to a higher effective tax rate.

• A $100 million at-the-market equity offering program was announced in May 2026 to support acquisitions and balance sheet optimization.

Financial highlights

• Funeral comparable revenue was $63.3 million, down 4.2% year-over-year; average revenue per contract increased 1.6%.

• Cemetery revenue increased 6.0% to $34.4 million, driven by a 15.3% rise in average price per interment right sold and strong pre-need sales.

• Financial revenue increased 15.7% to $8.5 million, reflecting strong pre-need funeral sales and commission income.

• Operating cash flow was $14.9 million, up from $13.8 million year-over-year; capital expenditures were $3.9 million, up from $3.2 million.

• Adjusted free cash flow was $11.2 million, compared to $13.4 million in the prior year.

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 of $25–$30 million; leverage ratio to end 2026 between 3.5x–4x.

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

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

• 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.