What does funeral — direct operating costs mean?

The variable costs directly attributable to the delivery of funeral services, such as merchandise, labor, and supplies. This metric is essential for calculating the gross margin of the funeral segment.

Service Corporation International (SCI) Funeral — Direct Operating Costs

Screener

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$65.67M-0.9%

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Other financials

Income statement

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Revenue$1.1B+3.6%

Gross profit$273.5M+0.8%

Operating income$231.6M+3.2%

Net income$124.8M+1.6%

EPS (diluted)$0.90+4.7%

Balance sheet

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Cash & equivalents$261.7M-3.3%

Total debt$5.3B+4.0%

Total equity$1.5B-1.4%

Total assets$19.2B+6.9%

Cash flow

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Operating cash flow$238.6M+43.4%

CapEx$95.7M+15.3%

Free cash flow$142.9M+71.4%

Valuation

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Market cap$11.63B+4.8%

Enterprise value$16.67B+4.7%

P/E21.6×+0.9×

P/S2.7×0.0×

Profitability

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Gross margin26%-0.4pp

Operating margin22.4%0.0pp

Net margin12.3%-0.3pp

FCF margin14.5%-0.3pp

Returns & leverage

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Return on equity34.7%+0.2pp

Debt / equity3.4×+0.2×

Current ratio0.5×-0.1×

Where this comes from

Reported directly by Service Corporation International in its filing.

Tagged under the XBRL concept us-gaap:DirectOperatingCosts.

The source filing: Service Corporation International’s 10-Q, filed July 30, 2026.

Filed: Jul 30, 2026, 11:43 AM EDT
Fiscal quarter: Q2 FY2026
Calendar quarter: Q2 2026
Accession: 0000089089-26-000081

Line item	Three months ended June 30, 2026	Three months ended June 30, 2025	Six months ended June 30, 2026	Six months ended June 30, 2025
Non-funeral home preneed sales revenue	21,334	26,421	43,473	48,621
Core general agency and other revenue	60,758	59,578	114,725	114,351
Total funeral revenue	604,838	591,365	1,235,388	1,230,859
Direct cost	(85,179)	(85,005)	(175,469)	(177,783)
Selling compensation	(52,447)	(47,759)	(102,760)	(92,921)
Salaries & fringe expense	(172,400)	(167,465)	(342,985)	(335,315)
Facility expenses	(70,358)	(66,314)	(142,436)	(134,618)
Other costs and overhead	(114,163)	(108,845)	(227,474)	(220,267)

Item 1. Financial Statements

FAQ

What is Service Corporation International's funeral — direct operating costs?: Service Corporation International (SCI) reported funeral — direct operating costs of $85.18M in Q2 2026.
How has Service Corporation International's funeral — direct operating costs changed year-over-year?: Service Corporation International's funeral — direct operating costs increased by 0.2% year-over-year, from $85.01M to $85.18M.
What does funeral — direct operating costs mean?: The variable costs directly attributable to the delivery of funeral services, such as merchandise, labor, and supplies. This metric is essential for calculating the gross margin of the funeral segment.