Trust Investments

9 Months Ended

Sep. 30, 2026

Preneed Trust Investments [Abstract]

TRUST INVESTMENTS

TRUST INVESTMENTS

Preneed trust investments represent trust fund assets that we are generally permitted to withdraw as the services and merchandise are provided to customers. Preneed funeral and cemetery contracts are secured by payments from customers, less amounts not required by law to be deposited into trust. These earnings are recognized in Other revenue on our Condensed Consolidated Statements of Operations, when a service is performed or merchandise is delivered. Trust management fees charged by our wholly owned registered investment advisory firm are included as revenue in the period in which they are earned. Our investments are diversified across multiple industry segments using a balanced allocation strategy to minimize long-term risk. We do not intend to sell and it is likely that we will not be required to sell the securities prior to their anticipated recovery.

Cemetery perpetual care trust investments represent a portion of the proceeds from the sale of cemetery property interment rights that we are required by various state laws to deposit into perpetual care trust funds. The income earned from these perpetual care trusts offsets maintenance expenses for cemetery property and memorials. This trust fund income is recognized in Other revenue.

Changes in the fair value of our trust fund assets (Preneed funeral, cemetery and perpetual care trust investments) are offset by changes in the fair value of our trust fund liabilities (Deferred preneed funeral and cemetery receipts held in trust and Care trusts’ corpus) and reflected in Other, net. There is no impact on earnings until such time the services are performed, or the merchandise is delivered, causing the contract to be withdrawn from the trust in accordance with state regulations and the gain or loss is allocated to the contract.

We rely on our trust investments to provide funding for the various contractual obligations that arise upon maturity of the underlying preneed contracts. Because of the long-term relationship between the establishment of trust investments and the required performance of the underlying contractual obligations, the impact of current market conditions that may exist at any given time is not necessarily indicative of our ability to generate profit on our future performance obligations.

Preneed Cemetery Trust Investments

The components of Preneed cemetery trust investments on our Condensed Consolidated Balance Sheets are as follows (in thousands):

	September 30, 2026		December 31, 2025
Preneed cemetery trust investments, at market value	$	116,504	$	112,531
Less: allowance for contract cancellation	(3,519)		(3,379)
Preneed cemetery trust investments	$	112,985	$	109,152

The cost and market values associated with preneed cemetery trust investments at September 30, 2026, are detailed below (in thousands):

	Fair Value Hierarchy Level	Cost		Unrealized Gains		Unrealized Losses		Fair Market Value
Cash and money market accounts	1	$	14,683	$	—	$	—	$	14,683
Common stock	1	11,904		2,047		(1,667)		12,284
Limited partnership fund		3,532		285		—		3,817
Mutual funds:
Equity	1	10,280		90		(1,066)		9,304
Fixed income	2	41,777		—		(1,468)		40,309
Alternative investments		35,121		455		(144)		35,432
Trust securities		$	117,297	$	2,877	$	(4,345)	$	115,829
Accrued investment income		$	675					$	675
Preneed cemetery trust investments								$	116,504
Market value as a percentage of cost								98.7		%

The cost and market values associated with preneed cemetery trust investments at December 31, 2025 are detailed below (in thousands):

	Fair Value Hierarchy Level	Cost		Unrealized Gains		Unrealized Losses		Fair Market Value
Cash and money market accounts	1	$	15,653	$	—	$	—	$	15,653
Common stock	1	11,599		768		(1,709)		10,658
Limited partnership fund		3,496		—		(93)		3,403
Mutual funds:
Equity	1	9,483		—		(279)		9,204
Fixed income	2	43,013		353		(50)		43,316
Alternative investments		29,380		374		(68)		29,686
Trust securities		$	112,624	$	1,495	$	(2,199)	$	111,920
Accrued investment income		$	611					$	611
Preneed cemetery trust investments								$	112,531
Market value as a percentage of cost								99.4		%

There were no fixed income securities (excluding mutual funds) within our preneed cemetery trust investments in an unrealized loss position at September 30, 2026 and December 31, 2025.

Preneed cemetery trust investment security transactions recorded in Other, net on our Condensed Consolidated Statements of Operations are as follows (in thousands):

	Three months ended September 30,				Nine months ended September 30,
	2026		2025		2026		2025
Investment income	$	658	$	626	$	1,814	$	2,043
Realized gains	—		1,807		402		10,009
Realized losses	(20)		(656)		(118)		(7,753)
Unrealized gains (losses), net	(1,434)		(437)		(1,468)		(468)
Expenses and taxes	(693)		(557)		(1,616)		(1,366)
Net change in deferred preneed cemetery receipts held in trust	1,489		(783)		986		(2,465)
	$	—	$	—	$	—	$	—

Purchases and sales of investments in the preneed cemetery trusts are as follows (in thousands):

	Three months ended September 30,				Nine months ended September 30,
	2026		2025		2026		2025
Purchases	$	(3,114)	$	(19,372)	$	(15,512)	$	(61,050)
Sales	2,007		19,955		12,108		67,957

Preneed Funeral Trust Investments

Preneed funeral trust investments represent trust fund assets that we are permitted to withdraw as services and merchandise are provided to customers. Preneed funeral contracts are secured by payments from customers, less retained amounts not required to be deposited into trust.

The components of Preneed funeral trust investments on our Condensed Consolidated Balance Sheets are as follows (in thousands):

	September 30, 2026		December 31, 2025
Preneed funeral trust investments, at market value	$	113,890	$	118,993
Less: allowance for contract cancellation	(3,439)		(3,577)
Preneed funeral trust investments	$	110,451	$	115,416

The cost and market values associated with preneed funeral trust investments at September 30, 2026 are detailed below (in thousands):

	Fair Value Hierarchy Level	Cost		Unrealized Gains		Unrealized Losses		Fair Market Value
Cash and money market accounts	1	$	19,610	$	—	$	—	$	19,610
Fixed income securities:
U.S agency obligations	2	307		—		(23)		284
Common stock	1	11,299		1,942		(1,582)		11,659
Limited partnership fund		3,352		271		—		3,623
Mutual funds:
Equity	1	9,235		19		(1,012)		8,242
Fixed income	2	35,805		—		(1,251)		34,554
Other investments	2	1,692		—		—		1,692
Alternative investments		33,336		432		(136)		33,632
Trust securities		$	114,636	$	2,664	$	(4,004)	$	113,296
Accrued investment income		$	594					$	594
Preneed funeral trust investments								$	113,890
Market value as a percentage of cost								98.8		%

The estimated maturities of the fixed income securities (excluding mutual funds) included above are as follows (in thousands):

Due in one year or less	$	99
Due in one to five years	90
Due in five to ten years	95
Thereafter	—
Total fixed income securities	$	284

The cost and market values associated with preneed funeral trust investments at December 31, 2025 are detailed below (in thousands):

	Fair Value Hierarchy Level	Cost		Unrealized Gains				Unrealized Losses		Fair Market Value
Cash and money market accounts	1	$	20,985	$	—			$	—	$	20,985
Fixed income securities:
U.S agency obligations	2	306		—				(18)		288
Common stock	1	11,981		793				(1,765)		11,009
Limited partnership fund		3,611		—				(97)		3,514
Mutual funds:
Equity	1	9,226		—				(276)		8,950
Fixed income	2	41,059		331				(48)		41,342
Other investments	2	1,724		—				—		1,724
Alternative investments		30,344		386				(70)		30,660
Trust securities		$	119,236	$	1,510	$	—	$	(2,274)	$	118,472
Accrued investment income		$	521							$	521
Preneed funeral trust investments										$	118,993
Market value as a percentage of cost										99.4		%

The following table summarizes our fixed income securities (excluding mutual funds) within our preneed funeral trust investment in an unrealized loss position at September 30, 2026, aggregated by major security type and length of time in a continuous unrealized loss position (in thousands):

	September 30, 2026
	In Loss Position Less than 12 months				In Loss Position Greater than 12 months				Total
	Fair market value		Unrealized Losses		Fair market value		Unrealized Losses		Fair market value		Unrealized Losses
Fixed income securities:
U.S agency obligations	$	—	$	—	$	284	$	(23)	$	284	$	(23)
Total fixed income securities with an unrealized loss	$	—	$	—	$	284	$	(23)	$	284	$	(23)

The following table summarizes our fixed income securities (excluding mutual funds) within our preneed funeral trust investment in an unrealized loss position at December 31, 2025, aggregated by major security type and length of time in a continuous unrealized loss position (in thousands):

	December 31, 2025
	In Loss Position Less than 12 months				In Loss Position Greater than 12 months				Total
	Fair market value		Unrealized Losses		Fair market value		Unrealized Losses		Fair market value		Unrealized Losses
Fixed income securities:
U.S agency obligations	$	—	$	—	$	288	$	(18)	$	288	$	(18)
Total fixed income securities with an unrealized loss	$	—	$	—	$	288	$	(18)	$	288	$	(18)

Preneed funeral trust investment security transactions recorded in Other, net on our Condensed Consolidated Statements of Operations are as follows (in thousands):

	Three months ended September 30,				Nine months ended September 30,
	2026		2025		2026		2025
Investment income	$	487	$	491	1,384		1,485
Realized gains	—		1,652		406		9,100
Realized losses	(19)		(383)		(117)		(6,611)
Unrealized gains (losses), net	(1,235)		2,415		(1,340)		2,626
Expenses and taxes	(545)		(347)		(1,250)		(817)
Net change in deferred preneed funeral receipts held in trust	1,312		(3,827)		917		(5,782)
	$	—	$	—	$	—	$	—

Purchases and sales of investments in the preneed funeral trusts are as follows (in thousands):

	Three months ended September 30,				Nine months ended September 30,
	2026		2025		2026	2025
Purchases	$	(2,956)	$	(16,839)	(14,363)	(53,294)
Sales	1,905		18,013		11,839	60,470

Cemetery Perpetual Care Trust Investments

Care trusts’ corpus on our Condensed Consolidated Balance Sheets represent the corpus of those trusts plus undistributed income. The components of Care trusts’ corpus are as follows (in thousands): 

	September 30, 2026		December 31, 2025
Cemetery perpetual care trust investments, at market value	$	99,094	$	95,625
Obligations due to (due from) trust	(322)		(2,200)
Care trusts' corpus	$	98,772	$	93,425

The following table reflects the cost and market values associated with the trust investments held in perpetual care trust funds at September 30, 2026 (in thousands):

	Fair Value Hierarchy Level	Cost		Unrealized Gains		Unrealized Losses		Fair Market Value
Cash and money market accounts	1	$	6,001	$	—	$	—	$	6,001
Fixed income securities:
Common stock	1	10,503		1,806		(1,471)		10,838
Limited partnership fund		3,116		252		—		3,368
Mutual funds:
Equity	1	9,485		132		(941)		8,676
Fixed income	2	39,703		—		(1,397)		38,306
Alternative investments		30,991		401		(127)		31,265
Trust securities		$	99,799	$	2,591	$	(3,936)	$	98,454
Accrued investment income		$	640					$	640
Cemetery perpetual care trust investments								$	99,094
Market value as a percentage of cost								98.7		%

The following table reflects the cost and market values associated with the trust investments held in perpetual care trust funds at December 31, 2025 (in thousands): 

	Fair Value Hierarchy Level	Cost		Unrealized Gains		Unrealized Losses		Fair Market Value
Cash and money market accounts	1	$	8,800	$	—	$	—	$	8,800
Fixed income securities:
Corporate debt	2	94		2		—		96
Common stock	1	10,527		1,028		(1,451)		10,104
Limited partnership fund		2,892		—		(77)		2,815
Mutual funds:
Equity	1	9,271		216		(257)		9,230
Fixed income	2	39,229		319		(145)		39,403
Alternative investments		24,308		310		(57)		24,561
Trust securities		$	95,121	$	1,875	$	(1,987)	$	95,009
Accrued investment income		$	616					$	616
Cemetery perpetual care trust investments								$	95,625
Market value as a percentage of cost								99.9		%

There were no fixed income securities (excluding mutual funds) within our perpetual care trust investment in an unrealized loss position at September 30, 2026 and December 31, 2025.

Perpetual care trust investment security transactions recorded in Other, net on our Condensed Consolidated Statements of Operations are as follows (in thousands):

	Three months ended September 30,				Nine months ended September 30,
	2026		2025		2026		2025
Realized gains	$	—	$	298	700		1,577
Realized losses	(3)		(533)		$	(176)	$	(1,962)
Unrealized gains (losses), net	(1,361)		325		(1,345)		112
Net change in care trusts’ corpus	1,364		(90)		821		273
	$	—	$	—	$	—	$	—

Perpetual care trust investment security transactions recorded in Other revenue are as follows (in thousands):

	Three months ended September 30,				Nine months ended September 30,
	2026		2025		2026		2025
Investment income	$	2,174	$	2,549	$	6,002	$	7,456
Realized losses	(2,820)		87		(3,711)		(1,172)
Total	$	(646)	$	2,636	$	2,291	$	6,284

Purchases and sales of investments in the perpetual care trusts are as follows (in thousands):

	Three months ended September 30,				Nine months ended September 30,
	2026		2025		2026		2025
Purchases	$	(2,748)	$	(17,798)	$	(13,980)	$	(56,694)
Sales	1,771		18,109		$	14,103	$	61,040