Financial Analysis

BUSINESS COMBINATIONS On September 9, 2025, we acquired a business consisting of six funeral homes, one cemetery, and one cremation focused business in the Orlando, FL area for approximately $49.0 million. The purchase price consisted of $47.0 million in cash at closing and $2.0 million of deferred purchase price payments. The net present value of such future deferred purchase price payments was $1.3 million. We acquired substantially all of the assets and assumed certain operating liabilities of these businesses. On September 17, 2025, we acquired a business consisting of two funeral homes in the Pensacola, FL area for $9.5 million in cash. We acquired substantially all of the assets and assumed certain operating liabilities of this business. The primary reasons for the acquisitions that contributed to the recognition of goodwill include enhancement of our footprint in strategic markets and the addition of deferred revenue that will enhance our long-term stability. The pro forma impact of these acquisitions on prior periods is not presented, as the impact is not significant to our reported results. The results of the acquired businesses are reflected in our Consolidated Statements of Operations from the date of acquisition. The following table summarizes the breakdown of the preliminary purchase price allocation for the businesses described above (in thousands): Preliminary Purchase Price Allocation Current assets $ 3,302 Preneed trust assets 4,068 Property, plant, and equip …

BusinessCombinationDisclosureTextBlock · excerpt; the full note is in the filing

COMMITMENTS AND CONTINGENCIES Non-Compete, Consulting, and Employment Agreements We have various non-compete agreements with former owners and employees. These agreements are generally for one to ten years and provide for periodic future payments over the term of the agreements. We have various consulting agreements with former owners of businesses we have acquired. Payments for such agreements are generally not made in advance. These agreements are generally for one to ten years and provide for bi-weekly or monthly payments. We have employment agreements with our executive officers. These agreements are generally for two to five years and provide for participation in various incentive compensation arrangements. These agreements generally renew automatically on an annual basis after their initial term has expired. At December 31, 2025, the maximum estimated future cash commitments under these agreements with remaining commitment terms, and with original terms of more than one year, are as follows (in thousands): Non-Compete Consulting (1) Employment (1) Total Years ending December 31, 2026 $ 1,226 $ 1,017 $ 3,754 $ 5,997 2027 795 685 1,480 2028 361 391 752 2029 240 20 260 2030 145 20 165 Thereafter 363 35 398 Total $ 3,130 $ 2,168 $ 3,754 $ 9,052 (1) In connection with Mr. Paynes transition from Executive Chairman of the Board of Directors to serving as a special advisor to the Board of Directors, his employment agreement with the Company was terminated and he entered into a …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

SENIOR NOTES At December 31, 2025, we had $400.0 million in aggregate principal amount of 4.25% Senior Notes due 2029 (the Senior Notes) and related guarantees by the Subsidiary Guarantors, which were issued in a private offering under Rule 144A and Regulation S of the Securities Act. The Senior Notes were issued under an indenture, dated as of May 13, 2021 (the Indenture), among the Company, the Subsidiary Guarantors and Wilmington Trust, National Association, as trustee (Collateral Trustee). The Senior Notes are unsecured, senior obligations and are fully and unconditionally guaranteed on a senior unsecured basis, jointly and severally by each of the Subsidiary Guarantors. The Senior Notes mature on May 15, 2029, unless earlier redeemed or purchased and bear interest at 4.25% per year, which is payable semi-annually in arrears on May 15 and November 15 of each year, beginning on November 15, 2021. We may redeem the Senior Notes, in whole or in part, at the redemption price of 100% on or after May 15, 2026, plus accrued and unpaid interest, if any, to, but excluding, the redemption date. If a change of control occurs, holders of the Senior Notes will have the option to require us to purchase for cash all or a portion of their Senior Notes at a price equal to 101% of the principal amount of the Senior Notes, plus accrued and unpaid interest. In addition, if we make certain asset sales and do not reinvest the proceeds thereof or use such proceeds to repay certain debt, we will …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

FAIR VALUE MEASUREMENTS We evaluated our financial assets and liabilities for those that met the criteria of the disclosure requirements and fair value framework. The carrying values of cash and cash equivalents, accounts receivable and accounts payable approximate the fair values of those instruments due to the short-term nature of the instruments. The fair values of our receivables on preneed cemetery contracts are impracticable to estimate because of the lack of a trading market and the diverse number of individual contracts with varying terms. Our acquisition debt and Credit Facility (as defined in Note 12) and Senior Notes (as defined in Note 13) are classified within Level 2 of the Fair Value Measurements hierarchy. At December 31, 2025, the carrying value and fair value of our Credit Facility was $126.7 million. We believe that our Credit Facility bears interest at a rate that approximates prevailing market rates for instruments with similar characteristics and therefore, the carrying value of our Credit Facility approximates fair value. We estimate the fair value of our acquisition debt utilizing an income approach, which uses a present value calculation to discount payments based on current market rates as of the reporting date. At December 31, 2025, the carrying value of our acquisition debt was $6.2 million, which approximated its fair value. The fair value of our Senior Notes was $385.7 million at December 31, 2025, based on the last traded or broker quoted price. …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

INCOME TAXES U.S. income from continuing operations before income tax expense was $70.3 million, $50.1 million, and $46.4 million for the year ended December 31, 2025, 2024, and 2023, respectively. The provision for income taxes consisted of the following (in thousands): Years Ended December 31, 2025 2024 2023 Current: U.S. federal provision $ 10,500 $ 13,902 $ 7,862 State provision 4,275 3,923 1,847 Total current provision $ 14,775 $ 17,825 $ 9,709 Deferred: U.S. federal (benefit) provision $ 4,507 $ (1,338) $ 2,117 State provision (benefit) (526) 640 1,190 Total deferred (benefit) provision $ 3,981 $ (698) $ 3,307 Total income tax provision $ 18,756 $ 17,127 $ 13,016 A reconciliation of income taxes calculated at the U.S. federal statutory rate to those reflected in the Consolidated Statements of Operations is as follows (dollars in thousands): Years Ended December 31, 2025 2024 2023 Amount Percent Amount Percent Amount Percent Federal statutory rate $ 14,755 21.0 % $ 10,517 21.0 % $ 9,750 21.0 % Effect of state income taxes, net of federal benefit 2,961 4.2 3,655 7.3 2,396 5.2 Effect of non-taxable or non-deductible expenses, net 162(m) Officers' Compensation Limitation 2,075 3.0 1,717 3.4 332 0.7 Restricted stock and performance awards (2,097) (3.0) 72 0.1 (4) Divestiture and impairment of business 775 1.1 219 0.4 ESPP and stock options (376) (0.5) 601 1.2 157 0.3 Other adjustments 663 0.9 346 0.8 385 0.8 Total $ 18,756 26.7 % $ 17,127 34.2 % $ 13,016 28.0 % We are subjec …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

LEASES Our lease obligations consist of operating and finance leases related to real estate, vehicles and equipment. The components of lease cost are as follows (in thousands): Years Ended December 31, Income Statement Classification 2025 2024 2023 Operating lease cost Facilities and grounds expense (1) $ 3,865 $ 3,998 $ 3,526 Short-term lease cost Facilities and grounds expense (1) 277 232 372 Variable lease cost Facilities and grounds expense (1) 183 380 234 Finance lease cost: Depreciation of leased assets Depreciation and amortization (2) $ 543 511 541 Interest on lease liabilities Interest expense 967 506 500 Total finance lease cost 1,510 1,017 1,041 Total lease cost $ 5,835 $ 5,627 $ 5,173 (1) Facilities and grounds expense is included within Cost of service and General, administrative, and other on our Consolidated Statements of Operations. (2) Depreciation and amortization expense is included within Field depreciation expense and General, administrative, and other on our Consolidated Statements of Operations. Supplemental cash flow information related to our leases is as follows (in thousands): Year ended December 31, 2025 2024 2023 Cash paid for operating leases included in operating activities $ 4,833 $ 4,325 $ 3,779 Cash paid for finance leases included in financing activities 642 1,083 1,153 Right-of-use assets obtained in exchange for new leases are as follows (in thousands): Year ended December 31, 2025 2024 Right-of-use assets obtained in exchange for new oper …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

CREDIT FACILITY AND ACQUISITION DEBT At December 31, 2025, our senior secured revolving credit facility (as amended, the Credit Facility) was comprised of: (i) a $250.0 million revolving credit facility, including a $15.0 million subfacility for letters of credit and a $10.0 million swingline, and (ii) an accordion or incremental option allowing for future increases in the facility size by an additional amount of up to $75.0 million in the aggregate in the form of increased revolving commitments or incremental term loans. Our obligations under the Credit Facility are unconditionally guaranteed on a joint and several basis by the same subsidiaries which guarantee the Senior Notes (as defined in Note 13) and certain of our subsequently acquired or organized domestic subsidiaries (collectively, the Subsidiary Guarantors). On July 31, 2024, the Company entered into a fourth amendment, (the Credit Facility Amendment), to our Credit Facility, with the financial institutions party thereto, as lenders, and Bank of America, N.A., as administrative agent. The Credit Facility Amendment provided, among other things, for (i) the extension of the maturity date of the Credit Facility to July 31, 2029, provided that, if the Senior Notes (as defined in the Credit Facility) have a stated maturity date that is prior to July 31, 2029, then the maturity date shall instead be the date that is 91 days prior to the stated maturity date of the Senior Notes; (ii) the establishment of Term Secured Over …

LongTermDebtTextBlock · excerpt; the full note is in the filing

Income Taxes In December 2023, the FASB issued ASU, Income Taxes - Improvements to Income Tax Disclosures to enhance the transparency about income tax information through improvements to income tax disclosures primarily related to rate reconciliation and income taxes paid information. The amendments in this update require that public business entities on an annual basis (1) disclose specific categories in the rate reconciliation; and (2) provide additional information for reconciling items that meet a quantitative threshold (if the effect of those reconciling items is equal to or greater than five percent of the amount computed by multiplying pretax income (loss) by the applicable statutory income tax rate). The amendments in this update also require that all entities disclose on an annual basis (1) the amount of net income taxes paid disaggregated by federal and state taxes; and (2) the amount of net income taxes paid disaggregated by individual jurisdictions in which net income taxes paid is equal to or greater than five percent of total net income taxes paid. The amendments are effective for annual periods beginning after December 15, 2024, and therefore were effective for us for our fiscal year beginning January 1, 2025, and for interim periods within our fiscal year beginning January 1, 2026. The adoption has no material impact on our consolidated financial statements as it modified disclosure requirements only. See Note 16 to the Consolidated Financial Statements for ad …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

SEGMENT REPORTING Our Chief Operating Decision Maker (the CODM), who is the Chief Executive Officer, utilizes segment operating income (loss) for resource allocation across segments, particularly during the annual budgeting and forecasting processes. The CODM examines variances on a monthly basis to make informed decisions regarding capital and personnel distribution among segments. The tables below present revenue, disaggregated by major source for each of our reportable segments, as well as, significant segment expenses, other segment expenses, operating income (loss), depreciation and amortization, interest expense, income (loss) before income taxes, income tax expense (benefit), total assets, long-lived assets, goodwill, capital expenditures and number of operating locations by segment as follows, (in thousands, except number of operating locations) for the years ended December 31, 2025, 2024, and 2023, respectively: Year Ended, December 31, 2025 Funeral Cemetery Corporate Total Revenue Services $ 171,118 $ 20,160 $ $ 191,278 Merchandise 76,649 17,100 93,749 Cemetery property 94,754 94,754 Other revenue 21,445 16,214 37,659 Total revenue 269,212 148,228 417,440 Less: Salaries, benefits, and commission expenses 70,414 42,147 112,561 Cost of merchandise 21,160 8,194 29,354 Allocated overhead costs (1) 12,658 5,127 17,785 Facilities and grounds expenses 11,316 6,204 17,520 General and administrative expenses (2) 11,176 3,840 15,016 Other segment expenses (3) 57,744 21,155 48 …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

STOCKHOLDERS EQUITY Share Authorization We are authorized to issue 80,000,000 shares of common stock, $0.01 per share par value. We had 27,378,870 and 26,881,355 shares issued and 15,751,052 and 15,253,537 shares outstanding, net of 11,627,818 shares held in treasury at par, at December 31, 2025 and 2024, respectively. Stock Based Compensation Plans During the year ended December 31, 2025, we had two stock benefits plans in effect under which stock, restricted stock, stock options, and performance awards have been granted or remain outstanding: the Second Amended and Restated 2006 Long-Term Incentive Plan (as amended, the Amended and Restated 2006 Plan) and the 2017 Omnibus Incentive Plan (as amended, the 2017 Plan). The Amended and Restated 2006 Plan was terminated upon the approval of the 2017 Plan at the annual stockholders meeting on May 17, 2017. The 2017 Plan expires on May 17, 2027. All stock-based plans are administered by the Compensation Committee appointed by our Board of Directors (the Board). At December 31, 2025, we had 2,740,182 shares available to issue under our 2017 Plan. The termination of the Amended and Restated 2006 Plan does not affect the awards previously issued and outstanding. Restricted Stock Restricted stock activity is as follows (in thousands, except shares): Years Ended December 31, 2025 2024 2023 Shares Fair Value Shares Fair Value Shares Fair Value Granted (1) 114,684 $ 4,764 156,630 $ 3,834 142,020 $ 4,634 Returned for payroll taxes 28,656 $ …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing

BUSINESS COMBINATIONS On September 9, 2025, we acquired a business consisting of six funeral homes, one cemetery, and one cremation focused business in the Orlando, FL area for approximately $49.0 million. The purchase price consisted of $47.0 million in cash at closing and $2.0 million of deferred purchase price payments. The net present value of such future deferred purchase price payments was $1.3 million. We acquired substantially all of the assets and assumed certain operating liabilities of these businesses. On September 17, 2025, we acquired a business consisting of two funeral homes in the Pensacola, FL area for $9.5 million in cash. We acquired substantially all of the assets and assumed certain operating liabilities of this business. The primary reasons for the acquisitions that contributed to the recognition of goodwill include enhancement of our footprint in strategic markets and the addition of deferred revenue that will enhance our long-term stability. The pro forma impact of these acquisitions on prior periods is not presented, as the impact is not significant to our reported results. The results of the acquired businesses are reflected in our Consolidated Statements of Operations from the date of acquisition. The following table summarizes the breakdown of the preliminary purchase price allocation for the businesses described above (in thousands): Preliminary Purchase Price Allocation Current assets $ 3,329 Preneed trust assets 4,068 Property, plant, and equip …

BusinessCombinationDisclosureTextBlock · excerpt; the full note is in the filing

SENIOR NOTES The carrying value of our 4.25% senior notes due 2029 (the Senior Notes) is reflected on our Consolidated Balance Sheets as follows (in thousands): September 30, 2025 December 31, 2024 Principal amount $ 400,000 $ 400,000 Debt discount, net of accumulated amortization of $2,268 and $1,848, respectively (2,232) (2,652) Debt issuance costs, net of accumulated amortization of $645 and $526, respectively (632) (751) Carrying value of the Senior Notes $ 397,136 $ 396,597 At September 30, 2025, the fair value of the Senior Notes, which are Level 2 measurements, was $378.4 million. The Senior Notes were issued under an indenture, dated as of May 13, 2021 (the Indenture), among the Company, the Subsidiary Guarantors and Wilmington Trust, National Association, as trustee. The Senior Notes are unsecured, senior obligations and are fully and unconditionally guaranteed on a senior unsecured basis, jointly and severally by each of the Subsidiary Guarantors. The Senior Notes mature on May 15, 2029, unless earlier redeemed or purchased and bear interest at 4.25% per year, which is payable semi-annually in arrears on May 15 and November 15 of each year, beginning on November 15, 2021. The Indenture contains restrictive covenants limiting our ability and our Restricted Subsidiaries (as defined in the Indenture) to, among other things, incur additional indebtedness or issue certain preferred shares, create liens on certain assets to secure debt, pay dividends or make other equity …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

FAIR VALUE MEASUREMENTS We evaluated our financial assets and liabilities for those that met the criteria of the disclosure requirements and fair value framework. The carrying values of cash and cash equivalents, accounts receivable and accounts payable approximate the fair values of those instruments due to the short-term nature of the instruments. The fair values of our receivables on preneed cemetery contracts are impracticable to estimate because of the lack of a trading market and the diverse number of individual contracts with varying terms. Our acquisition debt and Credit Facility (as defined in Note 10) and Senior Notes (as defined in Note 11) are classified within Level 2 of the Fair Value Measurements hierarchy. At September 30, 2025, the carrying value and fair value of our Credit Facility was $134.9 million. We believe that our Credit Facility bears interest at a rate that approximates prevailing market rates for instruments with similar characteristics and therefore, the carrying value of our Credit Facility approximates fair value. We estimate the fair value of our acquisition debt utilizing an income approach, which uses a present value calculation to discount payments based on current market rates as of the reporting date. At September 30, 2025, the carrying value of our acquisition debt was $6.7 million, which approximated its fair value. The fair value of our Senior Notes was $378.4 million at September 30, 2025, based on the last traded or broker quoted pri …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

CREDIT FACILITY AND ACQUISITION DEBT At September 30, 2025, our senior secured revolving credit facility (as amended, the Credit Facility) was comprised of: (i) a $250.0 million revolving credit facility, including a $15.0 million subfacility for letters of credit and a $10.0 million swingline, and (ii) an accordion or incremental option allowing for future increases in the facility size by an additional amount of up to $75.0 million in the aggregate in the form of increased revolving commitments or incremental term loans. Our obligations under the Credit Facility are unconditionally guaranteed on a joint and several basis by the same subsidiaries which guarantee the Senior Notes (as defined in Note 11) and certain of our subsequently acquired or organized domestic subsidiaries (collectively, the Subsidiary Guarantors). On July 31, 2024, the Company entered into a fourth amendment, (the Credit Facility Amendment), to our Credit Facility, with the financial institutions party thereto, as lenders, and Bank of America, N.A., as administrative agent. The Credit Facility Amendment provided, among other things, for (i) the extension of the maturity date of the Credit Facility to July 31, 2029, provided that, if the Senior Notes (as defined in the Credit Facility) have a stated maturity date that is prior to July 31, 2029, then the maturity date shall instead be the date that is 91 days prior to the stated maturity date of the Senior Notes; (ii) the establishment of Term Secured Ove …

LongTermDebtTextBlock · excerpt; the full note is in the filing

Income Taxes In December 2023, the FASB issued ASU, Income Taxes - Improvements to Income Tax Disclosures to enhance the transparency about income tax information through improvements to income tax disclosures primarily related to rate reconciliation and income taxes paid information. The amendments in this update require that public business entities on an annual basis (1) disclose specific categories in the rate reconciliation; and (2) provide additional information for reconciling items that meet a quantitative threshold (if the effect of those reconciling items is equal to or greater than five percent of the amount computed by multiplying pretax income (loss) by the applicable statutory income tax rate). The amendments in this update also require that all entities disclose on an annual basis (1) the amount of net income taxes paid disaggregated by federal and state taxes; and (2) the amount of net income taxes paid disaggregated by individual jurisdictions in which net income taxes paid is equal to or greater than five percent of total net income taxes paid. The amendments are effective for annual periods beginning after December 15, 2024, and therefore were effective for us for our fiscal year beginning January 1, 2025, and for interim periods within our fiscal year beginning January 1, 2026. The adoption has no material impact on our consolidated financial statements as it modified disclosure requirements only. Accounting Pronouncements Not Yet Adopted Expense Disaggreg …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

SEGMENT REPORTING Our Chief Operating Decision Maker (the CODM), who is the Chief Executive Officer, utilizes segment operating income (loss) for resource allocation across segments, particularly during the annual budgeting and forecasting processes. The CODM examines variances on a monthly basis to make informed decisions regarding capital and personnel distribution among segments. Additionally, the CODM employs segment gross profit for product pricing evaluation and uses segment adjusted operating profit to assess each segments performance by comparing results and return on assets against expected outcomes. The tables below present revenue, disaggregated by major source for each of our reportable segments, as well as, significant segment expenses, other segment expenses, operating income (loss), depreciation and amortization, interest expense, income (loss) before income taxes, income tax expense (benefit), capital expenditures and number of operating locations by segment as follows, (in thousands, except number of operating locations) for the three and nine months ended September 30, 2025 and 2024, respectively: Nine months ended, September 30, 2025 Funeral Cemetery Corporate Total Revenue Services $ 128,495 $ 15,229 $ $ 143,724 Merchandise 57,787 12,942 70,729 Cemetery property 70,003 70,003 Other revenue 16,362 11,140 27,502 Total revenue 202,644 109,314 311,958 Less: Salaries, benefits, and commission expenses 51,837 30,878 82,715 Cost of merchandise 21,335 6,079 27,414 …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing