Executive Summary

Q3 2025 delivered modest topline growth and strong non-GAAP profitability: revenue rose 2.0% YoY to $102.74M, adjusted diluted EPS increased 17.2% YoY to $0.75, and adjusted EBITDA margin expanded to 32.1% (from 30.5%) .
GAAP diluted EPS fell to $0.41 (from $0.63) on higher losses from divestitures/impairments; management emphasized the underlying operating strength and margin expansion on an adjusted basis .
Guidance ranges were narrowed with the midpoint reaffirmed/raised for EPS and FCF; overhead targeted at 13–13.5% of revenue and leverage expected to end 2025 near ~4.0x–4.1x .
Strategic portfolio actions remained a catalyst: divestiture of non-core assets (proceeds >$19M; ~$9M revenue and ~$2.4M EBITDA removed) and acquisition in Orlando (Osceola, >$15M revenue last year), plus rollouts of Sales Edge 2.0 CRM and Titan (AI sales agent) to accelerate preneed sales .

What Went Well and What Went Wrong

What Went Well

Cemetery operating revenue up 12.6% YoY and preneed cemetery sales up 21.4%; average price per preneed interment right sold increased 15.1% YoY, supporting margin expansion .
Financial revenue rose 27.2% YoY driven by 27.9% growth in preneed insurance contracts and general agency commission revenue; CEO: “Adjusted diluted EPS of $0.75…underscoring our commitment to disciplined execution and purposeful growth” .
Adjusted consolidated EBITDA grew to $32.98M with margin of 32.1% (+160 bps YoY); overhead efficiency improved to 13.4% of revenue (vs. 14.1% YoY) .

What Went Wrong

Funeral contract volume declined 5.5% YoY in Q3; management cited lower volumes in July/August before normalization in September/October .
GAAP results were pressured by a $6.6M net loss on divestitures and impairment charges, driving GAAP diluted EPS down to $0.41 (from $0.63) .
Operating income margin compressed to 17.0% from 22.7% YoY; cemetery revenue recognition timing and fixed-cost leverage in funeral contributed to quarterly margin dynamics .

Financial Results

Multi-Quarter Trend (Q1 → Q3 2025)

Metric	Q1 2025	Q2 2025	Q3 2025
Revenue ($USD Millions)	$107.07	$102.15	$102.74
Operating Income ($USD Millions)	$31.56	$23.998	$17.507
Operating Income Margin %	29.5%	23.5%	17.0%
GAAP Diluted EPS ($)	$1.34	$0.74	$0.41
Adjusted Diluted EPS ($)	$0.96	$0.74	$0.75
Adjusted EBITDA ($USD Millions)	$32.95	$32.26	$32.98
Adjusted EBITDA Margin %	30.8%	31.6%	32.1%

YoY and Estimates (Q3 2025 vs Q3 2024; Consensus)

Metric	Q3 2024	Q3 2025 Actual	Q3 2025 Consensus*
Revenue ($USD Millions)	$100.69	$102.74	$101.43*
GAAP Diluted EPS ($)	$0.63	$0.41	—
Adjusted Diluted EPS ($)	$0.64	$0.75	$0.728*
Adjusted EBITDA ($USD Millions)	$30.74	$32.98	$31.74*

Values with asterisks retrieved from S&P Global.

Segment Breakdown (Revenue and EBITDA Margin)

Segment	Q3 2024 Revenue ($MM)	Q3 2025 Revenue ($MM)	Q3 2024 EBITDA Margin %	Q3 2025 EBITDA Margin %
Funeral Operating	$56.61	$55.85	38.1%	36.8%
Cemetery Operating	$31.60	$35.59	49.0%	48.5%
Financial	$7.11	$9.04	92.0%	89.3%
Ancillary	$1.05	$0.86	14.8%	20.2%

KPIs

KPI	Q3 2024	Q2 2025	Q3 2025
Funeral Contracts (Consolidated)	10,713	10,589	10,124
Avg Revenue per Funeral Contract ($)	$5,540	$5,626	$5,651
Burial Rate %	31.6%	31.4%	31.5%
Cremation Rate %	60.7%	61.6%	61.3%
Preneed Interment Rights Sold (Consol.)	3,511	4,016	3,569
Avg Price per Preneed Interment Right ($)	$5,360	$5,871	$6,257

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Total Revenue ($MM)	FY 2025	$410 – $420	$413 – $417	Narrowed; midpoint maintained (~$415)
Adjusted EBITDA ($MM)	FY 2025	$129 – $134	$130 – $132	Narrowed; midpoint slightly lower (~$131.0 vs ~$131.5)
Adjusted Diluted EPS ($)	FY 2025	$3.15 – $3.35	$3.25 – $3.30	Raised midpoint (to ~$3.275)
Adjusted Free Cash Flow ($MM)	FY 2025	$40 – $50	$44 – $48	Raised; narrowed range
Overhead (% of Revenue)	FY 2025	—	13.0% – 13.5% (call)	New detail
Leverage Ratio (x)	FY 2025 YE	—	4.0x – 4.1x (call)	New detail
Dividend per Share ($)	Q4 2025	—	$0.1125 declared; payable Dec 1, 2025	Confirmed cadence

Non-GAAP outlook excludes divestiture gains/losses, acquisition costs, severance, impairments, special items; GAAP reconciliations are not available forward-looking .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q1–Q2 2025)	Current Period (Q3 2025)	Trend
AI/Technology for Sales	Building transformation; partnerships; return to growth via acquisitions (Q2)	Launching Sales Edge 2.0 CRM and Titan AI agent to generate leads and appointments	Acceleration; tech-enabled preneed growth
Funeral Volume/Macro	Q1 benefited from flu season shift; normalized outlook	July/Aug softness; normalization in Sept/Oct; modeling 1–2% volume growth in 2026	Near-term normalization; cautious macro
Cemetery Permitting/Recognition	Some delays earlier in year (Q2)	Renewed momentum; recognition timing helped Q3; sinkhole resolution impact recognized	Improving execution; operational learnings
M&A Pipeline & Multiples	Under contract to acquire >$15M revenue; leverage reduction (Q2)	Q4 quiet; expect busy Q1; typical 7–8x EBITDA, high single digits for premium assets	Pipeline improving; disciplined pricing
Overhead & Leverage	Overhead down; leverage reduced to 4.2x (Q2)	Overhead 13.4% in Q3; leverage 4.1x; lower interest expense YoY	Continued cost discipline; deleveraging
Insurance-Funded Preneed	Strategy roll-out; partners NGL/Precoa (Q2)	Commission revenue $2.6M (+61% YoY); monthly preneed funeral sales >$7M in Sept	Strong momentum; further tools rolling out

Management Commentary

CEO: “Total operating revenue grew 5.2% year-over-year, driven by 21.4% growth in cemetery preneed sales combined with financial revenue growth of 27.2%… Purposeful Growth in Action - Building Momentum Toward Our 2030 Vision” .
CFO: “Adjusted EPS increased to $0.75 from $0.64… GAAP performance was negatively impacted by a loss on divestitures and impairment of long-lived assets… leverage ratio improved to 4.1x… interest expense fell by $1.1M” .
CEO on technology: “We will introduce Titan, our AI-powered sales agent… Sales Edge 2.0 and Titan represent a significant step forward… to accelerate sales growth” .

Q&A Highlights

Funeral volume: Mid-single-digit declines in July/August; normalization in September and positive October; baseline 2026 funeral volume modeled at low single-digit growth .
Cemetery performance: Q3 benefited from recognition of sales delayed by permitting/sinkhole; expectation to maintain a 10–20% preneed sales growth range .
Insurance-funded preneed: Fully rolled out; September set all-time high >$7M; partners adding CRM and AI tools; seen as mid-innings with room to grow .
Trinity system implementation: Costs persist into 2026; full network benefits expected in 2027 due to phased rollout and parallel systems for accuracy .
M&A: Expect activity in Q1 2026; typical multiples 7–8x, high single digits for premium assets; divested Q3 businesses were ~$9M revenue, ~$2.4M EBITDA; proceeds >$19M .

Estimates Context

EPS: Adjusted diluted EPS $0.75 vs consensus $0.728 → bold beat driven by cemetery preneed growth and overhead efficiency .
Revenue: $102.74M vs consensus $101.43M → bold beat; financial revenue tailwinds from insurance-funded preneed .
EBITDA: S&P Global’s EBITDA actual of ~$30.84M vs consensus ~$31.74M suggests a miss under their definition, while company-reported consolidated EBITDA was $32.58M and adjusted EBITDA $32.98M; differences reflect methodology/definition .