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DATE

Thursday, May 7, 2026 at 9 a.m. ET

Call participants

• President and Chief Executive Officer — Carlos Quezada
• Executive Vice President and Chief Operating Officer — Steve Metzger
• Executive Vice President and Chief Financial Officer — John Enwright

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Takeaways

• Total revenue -- $106.1 million, representing a 0.9% decrease primarily driven by a 5.8% decline in funeral home admit volume.
• Funeral comparable revenue -- $63.3 million, down 4.2%, as volume drop was partially offset by a 1.6% increase in average revenue per contract.
• Cemetery comparable revenue -- $29.6 million, up $1.7 million or 6%, driven by a 9% rise in preneed cemetery sales production and a 15.3% increase in average revenue per property contract.
• Financial revenue -- $8.5 million, up 15.7%, reflecting improved performance in preneed funeral sales and commission income.
• Consolidated preneed funeral insurance contracts sold -- Up 8%, reinforcing the scalability of the preneed insurance platform.
• Adjusted consolidated EBITDA -- $33.8 million, up 2.4%; margin expanded by 100 basis points year over year to 31.8%.
• Adjusted diluted EPS -- $0.86, down $0.10 or 10.4% due primarily to a higher effective tax rate (26.7% vs. 20.3%); impact estimated at $0.07-$0.08 per share.
• GAAP diluted EPS -- $0.84 compared to $1.34 last year, with the prior period including a $7.9 million divestiture and real estate gain.
• Cash from operating activities -- Increased by $1.1 million or 8% year over year.
• Free cash flow -- $400,000, up 3.5% from the previous year.
• Adjusted free cash flow -- Down $2.2 million due to special payments in the prior period.
• Capital expenditures -- $3.9 million, comprised of $2.2 million maintenance and $1.7 million growth capital; primarily used for funeral homes and network technology upgrades.
• Overhead expenses -- $14.8 million or 14% of revenues, down from $15.3 million or 14.3%, reflecting lower variable costs and effective cost management.
• Leverage ratio -- Decreased to 4x, within the 3.5x-4x target range.
• 2026 outlook maintained -- Revenue guided to $440 million-$450 million, adjusted EBITDA of $135 million-$140 million, adjusted EBITDA margin of 30.5%-31.5%, adjusted diluted EPS of $3.35-$3.55, overhead of 13.5%-14.5% of revenue, adjusted free cash flow of $40 million-$50 million, and year-end leverage ratio of 3.5x-4x.
• ATM program launched -- The company introduced an at-the-market equity program for “efficient incremental funding flexibility” and to support its acquisition strategy.
• Recent acquisitions integration -- Acquisitions in Pensacola (Faith Chapel) and Kissimmee (Osceola) are fully integrated with new cemetery development underway at Osceola.
• M&A pipeline -- One acquisition expected to close later in May, with management anticipating “significant activity” in the back half of the year and potential to exceed the $10 million revenue contribution assumption.
• Funeral service mix -- A “40 basis points growth” in the cremation mix over the last three quarters is expected to drive higher average revenue per contract.

Summary

Management described three phases of company transformation, emphasizing the shift from operational constraints and high leverage to disciplined execution and embedded operational excellence. A data-driven growth strategy was articulated, targeting deeper preneed penetration, service mix optimization, pricing sophistication, and technology investment to sustain margins and capital efficiency. The ATM equity program was positioned as an enhancement to capital flexibility, intended to accelerate acquisitions and shareholder returns without immediate guidance adjustments. Integration of recent Florida acquisitions was completed, and additional inventory is being added in Kissimmee, while the M&A pipeline remains active with new market entry imminent. Funeral home call-handling improvements, cost discipline, and a scalable operating platform were credited for mitigating volume declines and improving profitability. Margin expansion was achieved through proactive labor management, corporate overhead controls, and targeted technology upgrades. Management reaffirmed full-year outlook and expects volume and revenue growth to recover over the balance of the year as integration and pipeline execution contribute positively.

• President and Chief Executive Officer Quezada stated, 2025 marked the strongest financial performance in Carriage's 35-year history, surpassing even 2021 results during the peak of the pandemic.
• Management reported the ATM program enables raising equity at market prices in a measured way and only when it supports high returns for shareholders.
• Executive Vice President and Chief Operating Officer Metzger said the M&A pipeline is robust right now, with one acquisition that is scheduled to close later this month, entering a new market with a strong growth profile.
• Integration of recent acquisitions enables Carriage Services (CSV 1.65%) to recognize some synergies that's unique for us with acquisitions in the Florida market.
• Management committed to maintaining high selectivity in acquisitions, with a stated goal of prioritizing markets with favorable demographics and opportunities for operational improvement, rather than adding volume for its own sake.
• Funeral home staffing and expense adjustments responded to early-year volume decline, contributing to EBITDA margin improvement without material service reduction.
• Ongoing operational initiatives, such as mystery call shops and call-handling training, are intended to support market share gains and customer retention.
• Rollout of the Trinity technology platform is underway, with all funeral homes expected to convert in 2026 and combos/cemeteries following in early 2027.

Industry glossary

• ATM program: “At-the-market” equity offering mechanism, allowing a company to issue shares incrementally at prevailing market prices to raise capital flexibly and opportunistically.
• Preneed: Funeral or cemetery service arrangements and sales made prior to the time of need, typically via insurance or trust-funded contracts.
• ARPC: Average revenue per contract, representing the mean value realized per funeral or cemetery transaction.
• Combo: Combined funeral home and cemetery location, operated as a single business unit.

Full Conference Call Transcript

Carlos Quezada: Thank you, Steve, and welcome to everyone joining us for today's first quarter earnings call. We are pleased with our first quarter performance, especially against a strong comparison to the first quarter of 2025. Our results reflect steady execution, discipline and continued focus on what we can control. As I step back and look at our progress, I am encouraged by the consistency we're building across the businesses. We are strengthening our foundation, improving how we operate and positioning Carriage for long-term value creation. Before turning to the financials, I want to recognize our managing partners, our field teams and our Houston support center. You are the heartbeat of Carriage. These results are not by chance.

They are built on a clear vision, high standards, a strong accountability and a deep passion for this profession. Thank you for living our values and for delivering premier experiences to the families every day. Today, we'll cover our first quarter performance and share 3 key phases of our journey: where we were; where we are today; and most importantly, where we are going. John will then walk through our financial details, including cash from operating activities, balance sheet strength, capital expenditures, overhead and our at-the-market offering program. Now to my report. For the first quarter, we reported revenue of $106.1 million, a 0.9% decrease from the same period last year.

The primary reason for this variance was a decline in funeral home admit volume of 5.8%. As you may remember, we had a strong first quarter last year due to the flu season pushing into January and February. After normalizing funeral volume by combining the fourth quarter of 2025 and the first quarter of 2026, the actual volume decline is only 2.3%. As we look at our segments, funeral comparable revenue was $63.3 million, down 4.2% from the previous year. The volume decline was partially offset by a small 1.6% increase in comparable average revenue per contract versus the prior year quarter. As we look ahead to April, we expect funeral volume to be on a normal trend.

Turning to comparable cemetery revenue. We generated $29.6 million in the first quarter, an increase of $1.7 million or 6% versus the prior year quarter. This growth was primarily driven by a 9% increase in comparable preneed cemetery sales production and a 15.3% increase in average revenue per property contract. The Cemetery segment continues to benefit from our disciplined inventory development and strategic pricing and focused preneed execution. Financial revenue for the quarter was $8.5 million, up 15.7% year-over-year, primarily reflecting a strong performance in our preneed funeral sales strategy and the preneed funeral commission income we generated from those sales. We ended the quarter at $2.5 million, an increase of 26% compared to the same period last year.

Consolidated preneed funeral insurance contracts sold increased 8% compared to the same quarter last year, reinforcing the strength and scalability of our funeral preneed insurance platform, supported by the continued execution of our sales organization. On profitability, adjusted consolidated EBITDA for the first quarter was $33.8 million, an increase of $805,000 or 2.4%, with an adjusted consolidated EBITDA margin of 31.8%, up 100 basis points from the prior year quarter. Adjusted diluted EPS for the first quarter was $0.86 per share compared to $0.96 per share in the prior year quarter, representing a decrease of $0.10 per share or 10.4%. John will share more details on this variance.

Overall, we are pleased with our first quarter results, which reflect a strong operating momentum and continued progress towards our strategic objectives. Now let's talk about where we were. Three years ago, the company was operating under constraints, elevated leverage, fragmented processes and underinvestment in core systems and technology. Operational variability across locations, limited scalability, pricing discipline was inconsistent and capital allocation lacked the rigor required to optimize returns. In short, our company had strong underlying assets, but was not positioned to fully convert that potential into durable financial performance. Today, the business reflects a fundamentally different operating profile. We have materially strengthened the balance sheet, reduced leverage and enhanced liquidity.

At the same time, we have institutionalized processes across operations, implemented more disciplined pricing frameworks and invested in systems and data infrastructure to improve visibility, accountability and decision-making. These changes are translating strategy into disciplined execution, driving greater sales predictability, expanding margins and delivering consistent free cash flow. Importantly, we continue to build a culture of operational excellence that is embedded, repeatable and scalable across our businesses. An example of this is that 2025 marked the strongest financial performance in Carriage's 35-year history, surpassing even 2021 results during the peak of the pandemic. Now where we are heading. Our focus is on compounding this progress in line with our long-term strategic objectives and 2030 vision.

We are building a data-driven high-performance platform designed to deliver sustained organic growth, margin expansion and superior capital efficiency. Our priorities include deepening preneed penetration across both Funeral and Cemetery segments, optimizing the service mix towards higher volume offerings, expanding pricing sophistication and leveraging technology to enhance both the customer experience and operating leverage. In parallel, we will continue to execute a disciplined capital allocation framework that balances high-return investments, strategic acquisitions and shareholder returns. By 2030, our vision is to position the company as a premier best-in-class operator in the death care industry, defined by consistent top-tier margins, improved free cash flow generation and a scalable technology-enabled operating model.

We believe this strategy will drive durable long-term value creation and establish a structurally advantaged business capable of outperforming across market cycles. Finally, the at-the-market offering program is a strategic extension of the progress we have already made. With a stronger balance sheet, improved free cash flow and a more disciplined scalable operating platform, we believe we are now in a position to deploy capital with precision. This program gives us the flexibility to do that strategically, raising equity at market prices in a measured way and only when it supports high returns for shareholders. Additionally, the at-the-market program allows us to accelerate strategic growth initiatives, pursue disciplined acquisitions in a highly fragmented industry and maintain balance sheet strength.

It enables us to move faster on opportunities and convert our operational momentum into sustained shareholder value creation. We are energized by our growth plans and confident in the long-term value we're building through disciplined capital execution, growth generated with purpose and intention and an unwavering commitment to service excellence. Thank you. And with that, I will turn the call over to John.

John Enwright: Thank you, Carlos, and good morning, everyone. As Carlos mentioned, we are pleased with our first quarter results, especially considering the tough comparison to prior year, which included approximately $4.8 million in revenue from businesses that were divested during 2025. As noted in our earnings release, we are excited to announce that we established an at-the-market equity offering program, or ATM program, as a prudent enhancement to our capital markets toolkit. The ATM program is intended to provide efficient incremental funding flexibility that enables us to continue executing our disciplined acquisition strategy while ensuring leverage remains comfortably within our targeted range.

We expect to access the ATM program selectively and opportunistically consistent with our commitment to balance sheet strength, disciplined capital allocation and shareholder value creation. With that, let's discuss first quarter results. We reported consolidated adjusted EBITDA of $33.8 million or 31.8% of revenue, up from $32.9 million or 30.8% of revenue in last year's first quarter. Gains were driven by improved cemetery operations and premium funeral sales, adding $2.5 million of EBITDA. However, comparable funeral EBITDA fell by approximately $2.4 million due to lower volume within the channel this quarter, which offset the majority of those gains.

For the first quarter of 2026, our adjusted diluted EPS declined to $0.86, representing a 10.4% decrease from $0.96 in the prior year. The decline was primarily a result of a higher effective tax rate in this year's first quarter. The effective tax rate for the first quarter was 26.7% compared to 20.3% in the first quarter of 2025. The adjustment in tax rate resulted in an estimated impact of $0.07 to $0.08, primarily due to higher excess tax benefits recognized in the previous year upon the settlement of employee share-based awards. On a GAAP basis, diluted EPS for the first quarter was $0.84 compared to $1.34 in the same period last year.

The prior year results included the benefit of a $7.9 million gain associated with the divestiture and the sale of real estate assets. Moving on to cash from operating activities. We saw an increase of $1.1 million over the prior year or an 8% increase, primarily because of year-over-year improvement in operating results. Free cash flow in the quarter was $400,000 or 3.5% higher than the prior year first quarter. Adjusted free cash flow was $2.2 million lower than the prior year first quarter as the first quarter of 2025 was impacted by special payments for professional services related to the review of strategic alternatives as well as severance payments.

As a result of our ongoing commitment to executing disciplined capital allocation, our bank leverage ratio decreased to 4x from 4.2x at the close of the first quarter of 2025. We remain within our long-term leverage ratio target of 3.5 to 4x. Capital expenditures for the quarter totaled $3.9 million in the first quarter of 2026 compared to $3.2 million in the prior year's first quarter. The $700,000 increase was predominantly associated with maintenance capital, driven by incremental spending in our funeral homes, coupled with an IT investment to refresh and improve the quality of our network connectivity within our field locations. For the quarter, we spent $2.2 million on maintenance capital and $1.7 million on growth capital.

Overhead expenses for the quarter totaled $14.8 million or 14% of revenues compared to $15.3 million or 14.3% of revenues in the first quarter of 2025. The decrease was a result of some variable expenses, coupled with effective cost management. Moving on to our 2026 outlook. We are maintaining our previously disclosed full year outlook. As a reminder, our outlook anticipates certain planned acquisitions that we expect to be completed in 2026. Also, utilization of the previously mentioned ATM program have not been factored into any of our metrics in our outlook.

As a reminder, our outlook for the following metrics are: revenues are expected to be in the $440 million to $450 million range; adjusted consolidated EBITDA is expected to be in the range of $135 million to $140 million; adjusted EBITDA margins between 30.5% and 31.5%; adjusted diluted EPS of $3.35 to $3.55; overhead expenses to be between 13.5% to 14.5% of revenue; adjusted free cash flow in the range of $40 million to $50 million; leverage ratio end 2026 between 3.5 to 4x. That concludes our prepared remarks, and I will turn it back over to the operator to open it up for questions.

Operator: [Operator Instructions] We will take our first question from Alex Paris with Barrington Research.

Alexander Paris: I got a couple. I think I'll start with funeral results which were down year-over-year. I get it, tough comp, strong flu season 1 year ago, not too different from your large publicly traded competitor who said the same thing and had a similar comparable volume decline year-over-year. But you reaffirmed your guidance for the full year. It's early in the year. And it suggests that there should be revenue growth returning in the remaining quarters of the year. Can you comment on that or provide some additional color, your thoughts or your confidence why revenue growth will return in the subsequent quarters?

Carlos Quezada: Absolutely. Thank you, Alex, for the question. It's a great question. We have seen in cycles, right, that death care is -- you have this clarity, if you will. It goes up and down. Normally, it's always been first quarter first, fourth quarter, second. But since COVID-19, that has actually changed significantly. What we have seen is that even though first quarter may be down, it picks up some of that volume as we go throughout the year. For us, especially because we are still in the process of integrating our latest 2 acquisitions in Florida and the divestiture that we did from last year also impact that.

As we wash off Q1, we have now passed the largest divestiture, and we feel pretty positive we will be able to make our volume up for the next 2 to 3 quarters.

Alexander Paris: Good. That's helpful. And speaking of acquisitions, I was wondering if you can give us an update on the integration process with Osceola, how is it performing? Osceola and the other acquisitions since they were acquired last September?

Steve Metzger: Alex, it's Steve. So both acquisitions are really trending in a positive direction, Faith Chapel over in Pensacola and then Osceola that you mentioned over in Kissimmee. So excited about the progress of both businesses. And as you know, with the Osceola business, it allows us with our current footprint in that market to really recognize some synergies that's unique for us with acquisitions. So excited to see how that continues to move forward.

Alexander Paris: Are these acquisitions fully integrated at this point? Or they're on their common systems and things like that?

Steve Metzger: Yes. All the systems and people are fully integrated. We actually just with Osceola broke ground a couple of months ago with a new development in the cemetery, so adding some additional inventory and product for the community there. That should be finished in the next month or 2. So yes, all systems go with Osceola and Faith Chapel in terms of integration.

Alexander Paris: Great. And then just one last one, and I'll get back in the queue. I'm wondering if you can give us a little update on the M&A pipeline and outlook? As you noted in the prepared comments, there is an acquisition assumption for -- likely acquisitions or potential acquisitions that might close in 2026. I think that assumption was $5 million to $10 million in revenue. Just looking for a little color there?

Steve Metzger: You bet. So yes, the pipeline is robust right now. We have one acquisition that is scheduled to close later this month. It's going to allow us to enter a new market with a pretty strong growth profile. So we're excited to provide some more detail on that here probably in the next couple of weeks. We're having a number of conversations with owners throughout the country. We've grown the corporate development team out of need, quite frankly. We've just had a lot of interest from owners across the country. I would expect in the back half of the year, we're going to see significant activity that we'll be able to report on.

And Carlos and John mentioned this, one of the benefits with the ATM is being able to support what we think is going to be a pretty significant opportunity for growth through M&A.

Alexander Paris: So last related with the ATM, would you think that there's the potential to exceed that $5 million to $10 million assumption that's baked in guidance given the greater flexibility and wherewithal?

Steve Metzger: My expectation is you're going to see more activity in the back half of the year. In terms of when things close, you may see some of that bleed into early next year as well. We continue to be focused on ensuring the businesses that we're working with and we're integrating are high-value businesses, high-growth markets. So we're not just going to add businesses to add to the top line. That means probably Q3, Q4 into Q1, you'll see some significant activity. Look, I think the next 3 or 4 quarters we certainly plan to exceed the $10 million, whether it hits in Q1 of next year or Q3 and Q4 this year remains to be seen.

Operator: We will take our next question from Laura Maher with B. Riley Securities.

Laura Maher: My first question, it seems the burial to cremation mix is stabilizing. How does this influence your average revenue per contract and funeral home EBITDA margins going forward?

Carlos Quezada: Do you want to answer? Go ahead.

Steve Metzger: Yes. So we have seen over the last 3 quarters some normalization or some benefit associated with the cremation mix. It was 40 basis points growth in this quarter. And as burial kind of flattens, you should see and we should see our ARPC increase.

Laura Maher: Great. And then second, are there any other funeral home properties you're looking to divest?

Steve Metzger: At this time, Laura, we feel pretty good about the portfolio is currently constructed. So no additional divestitures are planned.

Operator: We will take our next question from Parker Snure with Raymond James.

Parker Snure: Just on the funeral volumes, just curious on comparable funeral volumes, how they progressed through the quarter, January, February, March? And then what are you seeing in early days of the second quarter?

John Enwright: Yes. So the tough comp was really January and February. March also came a little light, to be pretty straightforward. I think the 3 months were pretty much the same as it comes to the decline. April started a little slow. We do believe that with the divestiture out may come back. But we do foresee this cyclical terms of Q2, Q3, Q4 coming in to be able to make up for what Q1 is missing. That's what we have seen in years past, and that's what we are really aiming to do. In addition to that, our teams at the field level, which is what really matters, continue to fight pretty hard for market share gains.

And so while there might be a compression of death rate, seems like it because as we talk to vendors, we've seen reports from other public companies, we see that, that's probably the case. We continue to fight pretty hard to make sure that the Carriage businesses gain as many market share gains as we can by providing premier experiences to the families that we serve and delivering on that experience to each one of those families.

Parker Snure: Okay. Okay. Understood. And then on the preneed cemetery production, you had strong growth there despite lower contract volume, you have better revenue per contract. Just curious on the puts and takes there? Were there any large ticket sales that helped drive that? Is that better product, increased pricing? Maybe just more details on the preneed cemetery growth?

John Enwright: We have the normal large sales activity, nothing too large that would offset that. We have been actually working really hard to making sure we have a great sales average on the preneed cemetery side. We're hoping for a little bit more, although if I go back -- I'll give you some data, which I think is fascinating to me. If I go back to Q1 2019 and then calculate the CAGR to Q1 2026, preneed sales is a 22.4% CAGR over this period, which is fantastic. For Q1 2026, what was a little like [ Qingming ] really started a little later this year, has been not great. That's what we have seen.

And even on top of that, we're still able to deliver some pretty amazing performance in Q1. So I feel pretty good about our pipeline for preneed business on both funeral and cemetery. And I don't see why we would not slow down.

Parker Snure: Okay. Okay. And then just last one for me. Just given the news of the ATM program, is it a reasonable expectation that you will finance the acquisitions that are built into your '26 guidance with the ATM program? Or will you use a combination of that and free cash flow from this year? And then also just curious on the expected cash needs or cash outlays to complete these acquisitions?

Steve Metzger: Yes. So I think it might be on timing. So there might be usage of basically free cash flow that we can fund through the ATM program. To the point, it depends on the size of the acquisitions is really when we would be opportunistically accessing the ATM. And really, if you just look at a typical multiples from the $5 million to $10 million of expected revenue, our typical margins are depending on funeral and cemetery, we still expect the margins or the multiples depending on the size to call to be in the average range of, call it, 6 to 8x from an EBITDA multiple percent. So the cash needs would be based on that.

Operator: We will take our next question from George Kelly with ROTH Capital Partners.

George Kelly: A couple for you. First, can you update us on the status of Trinity?

Steve Metzger: Yes. So I'll speak to that. So Trinity, as you know, George, we're in one location right now with the second location is going to go live in May. Provided that's successful, which we expect it to be successful, then we'll do a rollout of our funeral homes starting in July, what we're calling Velocity and all the funeral homes, not the combos or cemeteries, but all the funeral homes should be done in 2026. Then we move into the first quarter of 2027, and we expect all the combos and cemeteries to be up and live.

George Kelly: Okay. Okay. Understood. And then second question from me. Your funeral margin held in pretty well given the downtick in revenue. You commented in your prepared remarks about finding efficiencies and just being disciplined on the cost side. What were you able to -- what efficiencies were you able to find? And are those things sustainable? Should we think of you being able to maintain ,like pretty easily maintain that above 40% margin? Or just how should we think about those efficiencies? Can you detail any of that?

Steve Metzger: Yes. So in that particular channel, we saw some efficiencies on the labor side. So labor was, comparatively speaking to last year in the first quarter, down or roughly flattish, right? So from a margin perspective. And then we saw some other expenses, onetime expenses that may have happened last year, that ultimately didn't reoccur in 2025 in the first quarter. When we talk about just efficiencies in general, it wasn't just within the field. We saw some efficiencies in the cemetery locations, but also in corporate, right? We made some disciplined choices this year in the corporate side to kind of manage as we saw the volume tick down, and we'll continue to do that.

We'll be very thoughtful as we think about the next 3 quarters on where we can and can't spend, especially on discretionary.

John Enwright: Yes, George, if you think about -- we saw the volume starting to come down in early January, and we made decisions to adjust for that. And we've still been able to have adjusted consolidated EBITDA margin greater than Q1 2025 of 31.8% and up 2.4% to last year is pretty impressive. And it speaks highly of the disciplined execution from the bottom up business by business and leader by leader all the way through our overhead. And so we feel pretty proud about accomplishing that despite the volume decline.

George Kelly: Okay. Okay. And then last question for me, I guess, a follow-up to one of your earlier responses. Can you talk more about how you're going after market share gains?

Carlos Quezada: Yes, absolutely. Happy to do that. So one of the things we're doing, George, is, earlier last year -- midyear last year, we started to do mystery call shops. So basically, what that is, we start to call the funeral homes and -- through our company, so they can let us know how good are we at picking up the phone call, right? And that matters because a significant percentage of the volume that comes through the funeral homes comes through the phone. That's first call. That's why we call them calls because people call in and set up an appointment to go and see if that's a good funeral home for their family.

And so we learned that we have some opportunities for improvement, and we have since then started a program to finalize training, to really improve how we entering the phone, to elevate that experience, to address all the touch points we want to address through the phone call, and in doing so, keeping those families more interested in staying with us than going to the competition.

Operator: We will take our next question from Scott Schneeberger with Oppenheimer.

Scott Schneeberger: Just one for me. Could you guys just provide an overview of what you look for in M&A? What are some of the things that you're looking to achieve as you're in the market?

Steve Metzger: Good morning, Scott. So there are a few things that are core to how we view an opportunity. The first is the market. So we do want to be focused on a market that has a favorable growth profile, also looking at the growth of certain age ranges that are significant with our consumers. The second is the opportunity to grow the business. So for example, and we've seen a lot of this, there may be great businesses with great owners, but the ability to grow that business may be limited. So that would be one that we pass on.

But if we see an opportunity with the cemetery or with the sales team or with preneed to grow that with the support and the investment from Carriage, then that becomes very attractive to us. And then the final piece is the valuation. So as we've talked about, I would say of the consolidators in this business, we probably do, on average, the fewest number of total transactions, but we see that come back on revenue and margin and growth of those businesses. And the reason for that is we see the same number of opportunities. We just pass on a lot of them because of either valuation and price or opportunity.

So we'll continue to be selective, and that's why it's tough for us to predict quarter-by-quarter which businesses will come in. But long term, we know there's going to be a pretty significant growth for Carriage on the M&A front.

Operator: There are no further questions in the queue at this time. I will now turn the call back over to Carlos Quezada for closing remarks.

Carlos Quezada: Thank you, everybody, for attending our call today. Our focus remains clear, disciplined execution, purposeful growth and consistent improvement. We appreciate your confidence and support. Have a great day, and we'll talk during our second quarter report.

Operator: This concludes today's call. Thank you for your participation. You may now disconnect.