CSVMEDIUM SIGNALMANAGEMENT10-K

Carriage Services appointed a new President and COO while reducing its operational footprint despite completing significant acquisitions during 2025.

The leadership appointment of Steven Metzger as President and COO represents a strategic realignment following the founder's transition away from executive roles in the prior year. The company's operational consolidation—from 162 to 155 funeral homes and 31 to 28 cemeteries—suggests portfolio optimization despite acquiring eight funeral homes, one cemetery, and one cremation business for $56.5 million, indicating the company divested underperforming locations while adding strategic assets.

Comparing 2026-02-26 vs 2025-02-28View on EDGAR →
FINANCIAL ANALYSIS

Carriage Services delivered solid financial performance with net income growing substantially and operating income increasing 19.4% to $97.7 million. The balance sheet strengthened with stockholders' equity rising 22.2% to $254.8 million and operating cash flow improving 16.7% to $60.7 million. However, interest expense climbed notably to $36.3 million, likely reflecting debt financing for the year's acquisition activity, though the overall financial picture suggests effective capital deployment and operational execution.

FINANCIAL STATEMENT CHANGES
Net Income
P&L
+56.3%
$33.0M→$51.5M

Net income grew 56.3% — bottom-line growth signals improving overall business health.

Cash & Equivalents
Balance Sheet
+44.9%
$1.2M→$1.7M

Cash position surged 44.9% — strong cash generation or capital raise providing significant financial cushion.

Interest Expense
P&L
+40.1%
$25.9M→$36.3M

Interest expense surged 40.1% — significant debt increase or rising rates materially impacting earnings.

Accounts Receivable
Balance Sheet
+34.6%
$30.2M→$40.6M

Receivables surged 34.6% — revenue recognized but not yet collected; watch for collection issues or channel stuffing.

Capital Expenditure
Cash Flow
+28.1%
$16.1M→$20.6M

Capex increased 28.1% — ongoing investment in capacity or infrastructure for future growth.

Current Assets
Balance Sheet
+25.9%
$44.5M→$56.1M

Current assets grew 25.9% — improving short-term liquidity or inventory/receivables build.

Stockholders Equity
Balance Sheet
+22.2%
$208.6M→$254.8M

Equity base grew 22.2% — retained earnings accumulation or equity issuance strengthening the balance sheet.

Operating Income
P&L
+19.4%
$81.8M→$97.7M

Operating income improving — cost discipline or growing revenue base absorbing fixed costs.

Operating Cash Flow
Cash Flow
+16.7%
$52.0M→$60.7M

Operating cash flow grew 16.7% — strong conversion of earnings to cash, healthy business fundamentals.

LANGUAGE CHANGES
NEW — 2026-02-26
PRIOR — 2025-02-28
ADDED
At December 31, 2025, we operated 155 funeral homes in 24 states and 28 cemeteries in 9 states.
COMPANY DEVELOPMENTS Leadership Changes On January 16, 2026, Carriage Services, Inc.
(the Company ) announced that the Board of Directors (the Board ) appointed Steven D.
Metzger to serve as the Company s President and Chief Operating Officer, effective as of February 2, 2026.
Metzger s appointment was made in connection with certain executive leadership changes and appointments announced by the Company to better align with the Company s business strategy.
Acquisitions During the year ended December 31, 2025, we acquired eight funeral homes, one cemetery, and one cremation focused business in Florida for an aggregate price of $56.5 million.
We acquired substantially all of the assets and assumed certain operating liabilities of these businesses.
Additionally, we acquired the real property for one funeral home that we previously leased from a third party for a purchase price of $2.5 million.
Divestitures During the year ended December 31, 2025, we sold thirteen funeral homes, four cemetery and real property for an aggregate of $40.4 million resulting in a gain of $1.5 million.
Additionally, we sold real property for $4.0 million resulting in a gain of $1.0 million.
REMOVED
At December 31, 2024, we operated 162 funeral homes in 26 states and 31 cemeteries in 11 states.
COMPANY DEVELOPMENTS Board of Directors and Leadership Changes On February 22, 2024, the Board of Directors (the Board ) of the Company announced the conclusion of the Company s review of strategic alternatives following the Board s vote on February 21, 2024, to bring the strategic review process to a close.
The strategic review process was first announced on June 29, 2023, which was overseen by the Board with assistance from experienced financial advisors and legal counsel.
The Board unanimously determined that continuing to execute on the Company s strategic plan as an independent, public company was in the best interests of the Company and its stockholders at that time.
February 22, 2024 (the Transition Date ), the Company announced that Melvin C.
Payne, the Company s founder and former Chief Executive Officer, would cease to serve as Executive Chairman of the Board, but would remain on the Board until the Company s 2024 annual meeting of stockholders, when the term for Class I directors is scheduled to expire.
Payne began serving as a special advisor to the Board and senior management in a consulting role.
Payne s termination of employment, the employment-related provisions of his Employment Agreement with the Company, dated as of November 5, 2019, (as amended prior to the Transition Date, the Employment Agreement ) terminated on the Transition Date.
Payne entered into a Transition Agreement (the Transition Agreement ), setting forth the terms of his severance benefits and his consulting arrangement.
Payne is entitled to receive certain benefits, subject to the timely execution and non-revocation by Mr.
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