Carriage Services, Inc. Q3 2026 Earnings Recap

Carriage shares fell 21.6% after earnings, as investors reacted to a weaker outlook for performance: third-quarter adjusted EBITDA declined 16%, margin compressed, and management said results fell short of expectations. Weak cemetery preneed sales and a trust-related tax impact weighed on results, while the transcript provides no updated full-year outlook figures.

Key Takeaways

• Revenue was $100.3 million, down 2.4% year over year, primarily reflecting weaker cemetery preneed sales.
• Comparable cemetery revenue fell 7.8% to $32.5 million; comparable cemetery preneed sales declined 4.8% in the quarter. Management said performance has not met its standards and outlined changes to sales execution and accountability.
• Adjusted EBITDA decreased 16% to $27.7 million, and margin fell to 27.6% from 32.1%. Adjusted diluted EPS was $0.59, versus $0.75 a year earlier.
• Financial revenue declined $2.8 million to $6.2 million, primarily due to additional trust taxes associated with the sale of certain investments.
• Funeral results improved: same-store contracts grew 2.3%, comparable funeral revenue rose 3.6% to $56.8 million, and insurance-funded preneed funeral contracts sold increased 7%.