Carriage Services Reports Slight Revenue Increase but Decline in Net Income for Q2 2026

Carriage Services, Inc. reported its financial results for the second quarter and first half of 2026, revealing a slight increase in total revenue but a decline in net income compared to the previous year. For the three months ended June 30, 2026, total revenue reached $102.9 million, up from $102.1 million in the same period of 2025, marking a 0.8% increase. However, net income for the quarter rose to $12.3 million, a 4.5% increase from $11.7 million in the prior year. For the six months ended June 30, 2026, total revenue was $209.1 million, a marginal decrease from $209.2 million in 2025, while net income fell significantly to $25.8 million from $32.7 million, reflecting a 21.1% decline.

The company experienced notable changes in its operational metrics. Funeral contract volume decreased by 4.0% in the second quarter, while the average revenue per funeral contract increased by 4.7%. In the cemetery segment, there was a 14.0% drop in the number of preneed interment rights sold, although the average price per interment right rose by 17.3%. The overall decline in contract volume is attributed to a more normalized mortality environment compared to recent years, which has impacted demand for services.

Strategically, Carriage Services made a significant acquisition during the quarter, purchasing a funeral home for approximately $4.5 million. This acquisition is part of the company's ongoing strategy to expand its footprint in key markets. Additionally, the company has initiated an at-the-market equity offering program, allowing it to raise up to $100 million through the sale of common stock, although no shares have been sold under this program to date.

Operationally, Carriage Services reported a total of 155 funeral homes and 28 cemeteries across 24 and 9 states, respectively, as of June 30, 2026. The company’s cash and cash equivalents increased to $2.6 million from $1.7 million at the beginning of the year, while borrowings under its credit facility decreased to $124.0 million from $126.7 million. The company continues to monitor macroeconomic conditions, including inflation and consumer spending trends, which could impact future performance. Looking ahead, Carriage Services aims to focus on executing its growth strategy, including potential acquisitions and capital expenditures, while maintaining sufficient liquidity to meet its operational needs.