- **Revenue Growth**: Q3 revenue up 5.2% YoY to $101.3 million, driven by 21.4% pre-need cemetery sales growth and 61% increase in insurance-funded funeral commissions.
- **Profitability**: Adjusted EBITDA margin expanded 160 bps to 32.1%, with EPS up 17.2% to $0.75.
- **Strategic Initiatives**: AI tools (Sales Edge 2.0, Titan) to accelerate pre-need sales, targeting 10%-20% annual growth. Q4 2025 guidance: revenue $413-$417 million, EPS $3.25-$3.30.
- **M&A Activity**: Completed $19 million divestiture, acquired two businesses, and expects Q1 2026 pipeline activity at 7-8x EBITDA multiples.
- **Volume Outlook**: 1-2% funeral volume growth in 2026, with Q4 2025 volumes returning to normal after July/August weakness.

**【CEO Summary Section】**
- Total operating revenue for Q3 2025 was $101.3 million, up 5.2% YoY, driven by a 21.4% increase in pre-need cemetery sales and 61% growth in general agency commission revenue tied to insurance-funded pre-arranged funeral sales.
- Funeral segment revenue declined 1.3% YoY due to lower volume in July and August, but September volumes returned to normal, with October trending positively. Cemetery segment revenue grew 12.6% YoY to $35.6 million.
- Pre-need funeral sales reached an all-time high of $7 million in September, accounting for 50.5% of year-over-year growth in financial revenue. The company expects 1-2% funeral volume growth in 2026.
- Launched Sales Edge 2.0 (CRM with marketing module) and Titan (AI-powered sales agent) to accelerate pre-need cemetery sales, targeting 10%-20% annual growth.
- Adjusted consolidated EBITDA rose 7.3% YoY to $33 million, with a margin expansion of 160 basis points to 32.1%. Adjusted EPS increased 17.2% to $0.75.

**【CFO Financial Commentary】**
- GAAP net income was $10.4 million, while adjusted EBITDA was $33 million (32.1% of revenue), up 7.3% YoY. Free cash flow increased 7.7% YoY, and the leverage ratio improved to 4.1x.
- Completed divestitures of seven non-core assets, generating $19 million in proceeds and reducing EBITDA by $2.4 million. Reinvested proceeds into debt reduction and strategic acquisitions.
- Updated 2025 guidance: revenue $413-$417 million, EBITDA $130-$132 million, EPS $3.25-$3.30, and free cash flow $44-$48 million.

**【Q&A Key Highlights】**
- **Volume Recovery**: July/August volume decline (~2% YoY) was offset by strong September and October trends, with Q4 expected to normalize. 2026 funeral volume growth target is 1-2%.
- **Pre-need Cemetery Growth**: Permit delays in key cemeteries impacted Q1/Q2, but Q3 sales rebounded 21.4% YoY. Technology (Sales Edge 2.0, Titan) will sustain 10%-20% annual growth.
- **M&A Pipeline**: Acquired two businesses in Q3 ($15 million+ revenue) and expects Q1 2026 activity. Multiples for high-quality assets range 7-8x EBITDA, with flexibility for strategic fits.
- **Trinity Implementation**: Ongoing costs for funeral home rollout will persist into 2026, with full network implementation by 2027. Synergies expected from 2027 onward.
- **Demographic Trends**: Aging population (oldest baby boomers ~80) and flu season dynamics may influence death rates, but long-term growth is supported by favorable demographics.

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