Carriage Services Reports $106.1 Million Revenue with 35.5% Net Income Decline in Q1 2026

Carriage Services, Inc. reported a total revenue of $106.1 million for the three months ended March 31, 2026, a slight decrease of 0.9% from $107.1 million in the same period of the previous year. The decline was primarily attributed to a decrease in funeral contract volume, which fell by 0.9%, although this was partially offset by a 3.1% increase in average revenue per funeral contract. The company's net income for the quarter was $13.5 million, down 35.5% from $20.9 million in the prior year, largely due to a significant prior year gain on divestitures and increased general and administrative expenses.

In terms of operational performance, Carriage Services operated 155 funeral homes across 24 states and 28 cemeteries in 9 states as of March 31, 2026. The company experienced a 10.0% increase in preneed sales production, which includes merchandise and services, and an 11.0% increase in the average price per preneed interment right sold. However, the number of preneed interment rights sold decreased by 2.6%. The company’s gross profit rose to $38.6 million, reflecting effective cost management strategies.

Strategically, Carriage Services did not engage in any acquisitions during the first quarter of 2026, following a significant acquisition in September 2025 that expanded its footprint in Florida. The company has also initiated an at-the-market offering program, allowing it to sell up to $100 million in common stock, which may provide additional capital for future growth initiatives. The company’s leadership underwent restructuring to enhance operational management, although this did not affect the overall segment reporting structure.

On the balance sheet, total assets increased slightly to $1.35 billion from $1.34 billion at the end of 2025, while total liabilities decreased to $1.08 billion. The company reported cash and cash equivalents of $2.9 million, up from $1.7 million at the beginning of the year. Carriage Services' long-term debt stood at $522.3 million, down from $528.3 million, indicating a focus on debt management. The company remains optimistic about its liquidity and capital resources, expecting to meet its operational and strategic needs through internally generated cash flows and available credit facilities.

Looking ahead, Carriage Services anticipates continued challenges from macroeconomic factors, including inflation and consumer spending trends, which may impact demand for its services. However, the company remains committed to executing its growth strategy, focusing on potential acquisitions, capital expenditures, and maintaining a strong financial position to navigate the evolving market landscape.