On Aug. 6, Carriage Services, Inc. announced its financial results for the second quarter ended June 30, 2025. Highlights included:
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GAAP net income growth of $5.5 million, or 85.7%, over the prior year quarter.
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GAAP diluted EPS of $0.74 and adjusted diluted EPS of $0.74, compared to $0.40 and $0.63 in the prior year quarter, a growth of 85.0% and 17.5%, respectively.
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Total funeral consolidated revenue increased $1.7 million or 2.6% over the prior year quarter, driven by an increase in consolidated funeral average revenue per contract of 1.4%.
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Total consolidated revenue for the six months ended June 30, 2025, grew $3.4 million, driven by a $4.4 million increase in consolidated funeral revenue that was slightly offset by a decline in consolidated cemetery revenue of $1.0 million.
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The Company is excited to announce our return to growth through acquisitions as we are under contract to acquire strategic businesses that generated revenue in excess of $15 million last year, with closings scheduled for later this quarter.
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Leverage ratio lowered to 4.2x from 4.6x at the same period last year, as the Company paid down $7.1 million of debt on its credit facility during the second quarter.
Carlos Quezada, vice chairman and CEO (pictured at top), stated, “We are pleased with our second quarter performance, which delivered an impressive GAAP net income growth of $5.5 million, or 85.7%, over the prior year quarter. Our GAAP diluted EPS reached $0.74, and adjusted diluted EPS of $0.74, compared to $0.40 and $0.63 in the prior quarter, reflecting growth of 85% and 17.5%, respectively. Despite the revenue impact of our first quarter divestitures, total revenue remained flat due to the impact of our organic growth strategies. Excluding the impact of divestitures, revenue increased $1.8 million, or 1.7%. After over two years of disciplined capital allocation, where we were able to pay just over $100 million of debt, we are excited to announce that we are under contract to acquire new businesses, which we anticipate will close this quarter. Combined, these premier locations served more than 2,600 families and generated more than $15 million in revenue last year. We are excited to return to our long-term strategy of adding shareholder value through high-quality acquisitions. Therefore, we are updating our full-year guidance to reflect our current performance trends, as well as divestitures and acquisitions that will impact the second half of the year,” Quezada said.
Previously, the company had expected to earn $400-$410 million in revenue for 2025 — it now expects to earn $410 to $420 million in revenue for the year.
It also boosted its outlook for its adjusted diluted earnings per share from $3.10-$3.30 to $3.15 to $3.35, as well as its adjusted consolidated EBITDA forecast from $128 to $133 million to $129 to $134 million.
Other Highlights
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Total revenue for the three months ended June 30, 2025, decreased $0.2 million compared to the three months ended June 30, 2024. We experienced a 3.9% decrease in the consolidated number of preneed interment rights (property) sold and a 0.6% decrease in the consolidated average price per preneed interment right sold. Additionally, we experienced a 1.4% increase in the consolidated average revenue per funeral contract, as well as a 0.8% decrease in consolidated funeral contract volume.
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Net income for the three months ended June 30, 2025 increased $5.5 million compared to the three months ended June 30, 2024. We experienced a $6.7 million decrease in general, administrative, and other expenses, and a $1.3 million decrease in interest expense; partially offset by a $1.1 million decrease in gross profit contribution from our businesses and a $0.9 million increase in income tax expense.
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Total revenue for the six months ended June 30, 2025 increased $3.4 million compared to the six months ended June 30, 2024. We experienced a 4.4% increase in the consolidated average price per preneed interment right sold, which was partially offset by a 4.8% decrease in the consolidated number of preneed interment rights (property) sold. Additionally, we experienced a 1.9% increase in the consolidated average revenue per funeral contract. Consolidated funeral contract volume remained flat.
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Net income for the six months ended June 30, 2025 increased $19.4 million compared to the six months ended June 30, 2024. We experienced a $9.3 million increase in (gain) loss on sale of divestitures and real property, a $10.9 million decrease in general, administrative, and other expenses, and a $2.7 million decrease in interest expense; partially offset by a $2.5 million increase in income tax expense and a $0.5 million decrease in gross profit contribution from our businesses.
Read the full earnings release.
