Carriage Services (CSV) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenue was $102.1 million, nearly flat year-over-year, with funeral operating revenue up 1.4% and cemetery revenue down 0.6%; six-month revenue reached $209.2 million, up $3.4 million year-over-year.

• GAAP net income for Q2 2025 rose to $11.7 million from $6.3 million, with diluted EPS up 85% to $0.74 and adjusted diluted EPS up 17.5% to $0.74.

• Adjusted consolidated EBITDA for Q2 2025 was $32.3 million (31.6% margin), and adjusted free cash flow for the quarter was $6.9 million; six-month adjusted free cash flow reached $20.3 million.

• The company is resuming acquisitions after significant debt reduction, with multiple transactions under contract expected to close in Q3 2025, adding over $15 million in annual revenue.

• Divestitures included the sale of funeral homes and cemeteries for $15.8 million, resulting in a $5.9 million gain, and additional real property sales for a $2.0 million gain.

Financial highlights

• Funeral operating revenue for Q2 2025 was $69.6 million, up 1.4% year-over-year; cemetery operating revenue was $33.5 million, down 0.6%.

• Q2 2025 gross profit was $35.9 million (down $1.1 million year-over-year); six-month gross profit was $73.8 million (down $0.5 million year-over-year).

• Adjusted operating profit for Q2 2025 was $44.7 million, with a margin of 43.8%.

• Overhead costs for Q2 2025 were 12.2% of revenue, 80 basis points below the long-term range and 39% lower year-over-year.

• Adjusted consolidated EBITDA margin was 31.6% for Q2 2025 and 31.2% year-to-date.

Outlook and guidance

• Full-year 2025 guidance raised: total revenue $410–$420 million, adjusted consolidated EBITDA $129–$134 million, adjusted diluted EPS $3.15–$3.35, and adjusted free cash flow $40–$50 million.

• Overhead expenses expected at 13%–13.5% of revenue; leverage ratio projected to end the year between 4.1 and 4.2 times.

• Guidance reflects expected impact of acquisitions and divestitures in the second half of 2025.

• Stronger performance anticipated in Q4 due to easier comps and acquisition impact.

• No significant liquidity constraints are anticipated; existing cash and credit resources are expected to cover obligations and growth plans.