CARRIAGE SERVICES Business Summary

Carriage Services Inc. (CSV) operates a high-margin consolidator model within the death care industry, generating revenue through two primary segments: Funeral Home Operations and Cemetery Operations. The Funeral Home segment, accounting for approximately 70% of total revenue, derives income from professional services, cremations, and the sale of burial merchandise such as caskets and urns. The Cemetery Operations segment contributes the remaining 30% through the sale of interment rights (mausoleum spaces and private estates) and related services. The company utilizes a dual-pronged growth strategy focusing on "at-need" transactions and "pre-need" contract sales, which provide a backlog of future revenue and stable cash flows. Positioned as a premier mid-tier consolidator, Carriage Services competes directly with industry giant Service Corporation International (SCI) and specialized providers like Matthews International and Hillenbrand, distinguishing itself through a decentralized, high-performance culture that targets high-growth metropolitan markets. Founded in 1991 by Melvin C. Payne, who remains a significant individual shareholder and Chairman, the company is currently led by Vice Chairman and CEO Carlos R. Quezada, an industry veteran with over three decades of experience including a long tenure at SCI. The leadership team was recently restructured in February 2026 to support its "2030 Vision," elevating Steven D. Metzger—formerly of SCI and the restaurant industry—to President and Chief Operating Officer, and expanding the remit of CFO John Enwright to oversee information technology and supply chain operations. This executive core is supported by a board with deep expertise in capital allocation and operational scaling. The company maintains a strong institutional investor base, with major positions held by Fidelity Management & Research, BlackRock, and The Vanguard Group, reflecting confidence in its disciplined acquisition strategy and margin expansion initiatives.