Service Corporation International (SCI): Business Model Canvas [Dec-2025 Updated]

You're looking to cut through the noise and see the actual mechanics of how Service Corporation International, the giant in deathcare, generates its revenue, and honestly, it's a fascinating model built on scale and future promises. As an analyst who's seen a few cycles, what stands out is their massive footprint-operating 1,487 funeral service locations and 499 cemeteries-backed by a staggering $16 Billion pre-need sales backlog ensuring future cash flow, all while posting a Trailing Twelve Month Revenue of $4.29 Billion USD as of September 30, 2025. This isn't just about at-need services; it's a sophisticated operation managing long-term contracts and continuous acquisition, so dive into the nine blocks below to see exactly how they structure their 25,000 associates and high fixed real estate costs to maintain this market position.

Service Corporation International (SCI) - Canvas Business Model: Key Partnerships

You're looking at the core relationships Service Corporation International (SCI) maintains to run its expansive deathcare operations as of late 2025. These aren't just friendly agreements; they are critical financial and operational linkages. Honestly, the scale of their partnerships directly impacts their ability to manage pre-need funding and maintain industry leadership.

The relationships with insurance companies are central to funding future services. Service Corporation International named Global Atlantic as its preferred provider of preneed insurance via a 10-year partnership that began in July 2024. This strategic shift was noted to be a driver of higher funeral revenue in the second quarter of 2025.

For growth, Service Corporation International relies on partnerships with independent funeral home owners to execute its strategy. The company's robust cash flow in 2025 supported an 'extensive pipeline of acquisitions.' Specifically, capital expenditures in the second quarter of 2025 amounted to $100 million, with a focus on acquisitions alongside maintenance and cemetery development.

Service Corporation International actively partners with non-profit organizations to reinforce its commitment to community support, which is a key part of its brand promise. These contributions are tracked closely by analysts.

Service Corporation International solidifies its position as the Funeral Service Foundation's top corporate donor through this consistent financial backing. This support helps fund programs that strengthen the funeral service profession across the board.

The company also maintains relationships with other key support entities:

• Tragedy Assistance Program for Survivors (TAPS)
• Donate Life America

To give you a sense of the scale these partnerships operate within, Service Corporation International owned and operated 1,489 funeral service locations as of March 31, 2025. The funeral segment alone saw revenue of $625.9 million in the first quarter of 2025, performing 95,624 services at an average revenue per service of $5,743.

Finance: draft 13-week cash view by Friday.

Service Corporation International (SCI) - Canvas Business Model: Key Activities

You're looking at the core engine of Service Corporation International (SCI), the activities that actually generate their revenue and maintain their massive footprint. It's all about scale and execution in a very sensitive industry.

• Operating 1,487 funeral service locations and 499 cemeteries.
• Pre-need sales production and contract management, driving a backlog of future revenue estimated at $16B as of March 31, 2025.
• Acquisition and integration of independent funeral homes and cemeteries.
• Real estate management and capital investment in property maintenance and development.
• Providing comprehensive funeral, cremation, and cemetery services across North America.

The sheer scale of their physical presence is a key activity in itself, allowing for cost advantages and market density. As of March 31, 2025, Service Corporation International owned and operated 1,489 funeral service locations and 496 cemeteries, with 309 of those cemeteries being combination locations. By June 30, 2025, the count stood at 1,485 funeral service locations and 498 cemeteries.

Managing the pre-need business-selling services and property before they are needed-is critical for future revenue visibility. The backlog of future revenue from these contracts stood at approximately $16B as of the first quarter of 2025. The transition to insurance-funded pre-need contracts is a major ongoing activity, though it caused a temporary dip; for instance, non-funeral home preneed sales revenue decreased by $4.6 million in the third quarter of 2025 due to deferring urn delivery on contracts. Still, core funeral preneed sales production saw a strong 9% increase in Q3 2025.

Growth is actively pursued through buying competitors. In the third quarter of 2025, Service Corporation International invested $37 million into business acquisitions, bringing the year-to-date investment to $65 million. Management expected to achieve their full-year target of between $75 million and $125 million in acquisition investment for 2025. To give you context on past activity, in the full year of 2024, they invested $181 million to acquire 26 funeral homes and 6 cemeteries.

Capital deployment for maintaining and improving this vast asset base is a constant activity. Here's a quick look at recent capital spending:

The focus on cemetery development is clear, with $45 million allocated to those projects in Q3 2025 alone. For the full year 2024, total maintenance, cemetery development, and other capital expenditures reached $315 million.

The actual delivery of services drives immediate revenue. In the first quarter of 2025, the number of comparable total funeral services performed increased by 1.8% to 95,624, while the average revenue per service grew by 2.3% to $5,743. On the cemetery side, large cemetery sales grew by $8 million, or 19%, in the third quarter of 2025.

These activities are supported by a large workforce; Service Corporation International employed approximately 25,000 associates as of early 2025. The company serves over 700,000 families each year. Finance: draft 13-week cash view by Friday.

Service Corporation International (SCI) - Canvas Business Model: Key Resources

You're looking at the core assets Service Corporation International (SCI) uses to run North America's largest deathcare operation. These aren't just line items; they are the physical footprint and the financial promises that underpin their entire model.

The sheer scale of the physical network is a massive resource. As of September 30, 2025, SCI owned and operated a combined total of 1,986 locations across the continent. This scale gives them supply chain cost advantages and network optimization benefits that smaller players just can't match. Honestly, this footprint is tough to replicate.

That pre-need sales backlog is a huge financial asset, representing approximately $16 Billion in future revenue as of early 2025 data. This is money collected now for services to be delivered later, which provides a stable, predictable funding source for capital allocation and growth investments. It's the long-term promise built into the business.

Then you have the perpetual care trust funds, which are legally mandated to maintain cemetery grounds into perpetuity. While the corpus value fluctuates with market performance, the investment portfolio backing these obligations was reported with investments totaling $2,154,032 (likely in thousands, based on context with other financial statements) for Cemetery perpetual care trust investments as of the end of 2024. This shows the long-term financial commitment tied to their cemetery assets.

The intangible assets are just as critical to their operations, you see. They rely on the established trust in their primary brand and the expertise of their people. Here are the key elements:

• Dignity Memorial brand equity and national scale.
• Dedicated workforce of over 25,000 associates.

If onboarding takes 14+ days, churn risk rises, so retaining that 25,000-person team is defintely key.

Service Corporation International (SCI) - Canvas Business Model: Value Propositions

Service Corporation International operates as a single-source provider with a network that, as of June 30, 2025, included 1,485 funeral service locations and 498 cemeteries, of which 310 were combination locations, across 44 states, eight Canadian provinces, the District of Columbia, and Puerto Rico. As of March 31, 2025, the network comprised 1,489 funeral service locations and 496 cemeteries (309 combination locations). SCI offers a comprehensive range of final arrangement planning options to over 700,000 families annually.

The value proposition of financial security and portability is supported by pre-need contract performance. In the third quarter of 2025, total recognized preneed revenue benefited from comparable cemetery preneed sales production growth of $30 million, representing almost 10%. Preneed funeral sales production increased by $6 million, or about 2%, over the third quarter of 2024. Cemetery preneed sales production saw a 5.3% increase in the second quarter of 2025.

The trusted Dignity Memorial brand identifies a network of providers that proudly serve over 375,000 families a year.

Cost-effective scale and operating efficiency are demonstrated through performance metrics across the segments. In the first quarter of 2025, comparable funeral revenues increased 3.9% year-over-year. The number of services performed in the first quarter of 2025 was 95,624, up 1.8% from 93,967 in the first quarter of 2024. Revenue per service grew 2.3%, moving from $5,613 per service in the first quarter of 2024 to $5,743 in the first quarter of 2025. The operating income margin improved to 23.4% in the first quarter of 2025, up from 22.2% in the first quarter of 2024. Service Corporation International managed fixed costs with an increase of about 1.4% for the third quarter of 2025.

The scale of Service Corporation International within the broader market context is significant:

The company's operational focus is reflected in the following segment performance indicators:

• Q3 2025 Adjusted Earnings Per Share: $0.87
• Q3 2025 Comparable Core Funeral Average: Increase offset by volume decline
• Q3 2025 Non-Funeral Home Sales Average Increase: 13.4%
• Q3 2025 Cemetery Gross Profit Growth: $18 million
• Q3 2025 Cemetery Gross Profit Percentage Increase: 160 basis points

Service Corporation International (SCI) - Canvas Business Model: Customer Relationships

You're looking at how Service Corporation International (SCI) builds and maintains its connection with client families, which is really the core of their business. It's a high-stakes relationship, so the approach has to be personal and consistent across the entire customer journey, from planning years ahead to the immediate need.

Dedicated personal assistance through pre-need sales counselors

The sales force focused on pre-need arrangements-planning and paying for services in advance-is a key touchpoint. This team is responsible for securing future revenue and establishing a relationship long before the actual service is required. The focus on pre-need production has been strong through 2025. For instance, in the third quarter of 2025, preneed cemetery sales production jumped by 10% over the prior year quarter, driving comparable cemetery revenue up 7%. This contrasts with the first quarter of 2025, where the company expected its pre-need funeral sales production for the full year to hit $1.2 billion, representing a 27% increase compared to 2019 levels. It's important to note the transition in funeral pre-need, which saw a 9% dollar decline in the fourth quarter of 2024 versus the fourth quarter of 2023 due to a shift to an insurance-funded model, a transition expected to normalize by mid-2025.

The financial incentives for these sales are also evolving, which affects counselor focus. The new preferred preneed insurance agreement, effective since mid-2024, is driving general agency commission percentages closer to 35% to 36%, up from historical levels near 26%, 27% per insurance contract. Service Corporation International (SCI) has about 25,000 associates supporting these efforts across North America.

High-touch, empathetic service delivery at the time of need (at-need)

When a death occurs, the service delivery must be immediate and deeply empathetic. This is where the scale of Service Corporation International (SCI) comes into play, as they hold about 17% to 18% market share by revenue in the total deathcare business. For the funeral segment, this means handling a high volume of services while maintaining quality. In the second quarter of 2025, the comparable total funeral sales average increased 3.1% compared to the second quarter of 2024. Similarly, the third quarter of 2025 saw a 3.1% increase in the comparable total funeral sales average year-over-year. Even with a modest increase in the core cremation rate, the average revenue per service remains a focus for Service Corporation International (SCI). The non-funeral home sales average saw an impressive 13.4% growth in Q3 2025. That's a significant jump in the average value of those direct-to-consumer type arrangements.

Long-term relationship management via pre-need contract servicing

Managing pre-need contracts is about servicing a long-term financial obligation and maintaining the relationship until the contract is used. The cemetery segment's performance reflects this. The expected recognition rate for cemetery preneed sales is around 95%. Furthermore, the core consumer business, defined as contracts below $80,000 in spend, has remained strong, showing growth in both the velocity and average of contracts sold over the last two quarters of 2025. The revenue from these contracts includes income from endowment care trust funds, royalties, and finance charges on installment contracts.

Community engagement and charitable partnerships for grief support

While specific dollar amounts for charitable partnerships aren't always broken out in the quarterly reports, the commitment to the community is implied through the scale of operations and the focus on client families. Service Corporation International (SCI) has a market share of about 12% to 13% on the funeral side and 27%, 28% on the cemetery side, meaning their local presence is substantial. The company emphasizes its 25,000 associates and their commitment to providing excellent service to client families.

Here is a snapshot of the key performance indicators tied to customer interaction and sales production through the first three quarters of 2025:

The company's 2025 guidance for the cemetery segment anticipates a mid-single-digit growth rate in preneed production. Finance: draft 13-week cash view by Friday.

Service Corporation International (SCI) - Canvas Business Model: Channels

You're looking at how Service Corporation International (SCI) gets its services and products to the families it serves as of late 2025. It's a mix of very physical locations and increasingly important digital touchpoints, all centered around their extensive footprint.

Physical network of 1,487 funeral homes and 499 cemeteries. This represents the core physical infrastructure for both immediate need (atneed) and pre-arranged (preneed) services across North America. This massive scale is a key resource for market coverage.

The distribution of these physical assets shows a clear strategy of integrated service delivery:

• Combination locations: 312 sites offer both funeral and cemetery services, allowing for streamlined, full-service client experiences.
• The company serves families across 44 states and eight Canadian provinces, plus the District of Columbia and Puerto Rico, as of mid-2025 reports.

Direct sales force for pre-need arrangements (SCI Direct and core channel). This channel is critical for securing future revenue streams, often through insurance-backed contracts. The performance of this sales effort is tracked closely, showing growth momentum in the cemetery preneed space, even as funeral preneed sales transition.

Here's a look at some of the recent sales performance metrics related to these direct channels, using the latest reported quarterly data from 2025:

The core cremation rate, which is part of the overall service mix delivered through these channels, was reported at 57.3% as of the third quarter of 2025, up 50 basis points.

Digital presence for information, planning, and online memorials. Service Corporation International uses its website, www.sci-corp.com, as a primary information hub. This digital channel supports the physical network by allowing families to access planning resources and information about their Dignity Memorial® brand offerings. The company also broadcasts investor conference calls live via the Internet, showing a commitment to digital investor relations access.

The overall scale of the business, which these channels support, resulted in a trailing 12-month revenue of $4.29B as of September 30, 2025. Capital investments supporting the physical channels totaled $100 million in the second quarter of 2025, focused on maintenance, cemetery development, and acquisitions.

Service Corporation International (SCI) - Canvas Business Model: Customer Segments

Service Corporation International serves more than 700,000 families each year with its portfolio of brands, including Dignity Memorial®.

The customer base is segmented by the timing of need and the type of service required, spanning a broad geographic footprint across North America.

The customer segments are defined by their immediate need for services or their proactive planning for future arrangements.

• At-need families requiring immediate funeral or cemetery services.
• Pre-need customers planning and funding future arrangements.
• Diverse demographic groups across 44 US states and eight Canadian provinces.
• Families seeking comprehensive grief and bereavement support services through brands like Dignity Memorial®.

For customers planning future arrangements, cemetery preneed sales production showed a 9.6% increase in the third quarter of 2025.

Service Corporation International (SCI) - Canvas Business Model: Cost Structure

You're looking at the hard numbers that drive Service Corporation International's operations as of late 2025. This cost structure is heavily weighted toward fixed assets and personnel, which is typical for a business managing extensive real estate holdings.

The real estate footprint is a major fixed cost driver. For the third quarter of 2025, the Maintenance capital investment totaled $86 million. This covers keeping the existing field locations and properties in shape. Looking at the full-year 2025 outlook, the total for maintenance, cemetery development, and other capital expenditures is projected to be $315 million at the midpoint. This breaks down further:

Personnel costs are substantial, supporting the estimated workforce of 24,953 associates, which management referred to as 25,000 associates in their Q3 2025 commentary. These are the people delivering the services every day.

Selling, General, and Administrative (SG&A) expenses show some quarterly variability, often tied to compensation timing. For the third quarter of 2025, the Corporate G&A expense decreased by $5.4 million quarter-over-quarter. For the upcoming fourth quarter of 2025, management is comfortable with a Corporate G&A expense range of $39 million to $41 million. Pre-need sales commissions are embedded within these figures and are a key variable, especially as the company manages the transition of its pre-need insurance funding model.

Taxes are a significant cash outflow. The third quarter of 2025 saw an expected increase in cash taxes paid of $11.1 million compared to the prior year period. For the full year 2025, the expected cash taxes paid, at the midpoint of guidance, is set at $135 million.

Service Corporation International remains active in expanding its footprint, which introduces acquisition and integration costs into the structure. In the third quarter of 2025, the company invested $37 million into business acquisitions. The target investment range for acquisitions for the entire 2025 fiscal year is set between $75 million to $125 million.

• Q3 2025 Business Acquisitions Investment: $37 million
• 2025 Full-Year Acquisition Investment Target Range: $75 million to $125 million
• Q3 2025 Maintenance Capital Investment: $86 million
• 2025 Full-Year Maintenance Capital Expenditures Outlook (Midpoint): $315 million
• Estimated Associates: 24,953
• 2025 Full-Year Expected Cash Taxes (Midpoint): $135 million

Service Corporation International (SCI) - Canvas Business Model: Revenue Streams

Service Corporation International (SCI) generates revenue primarily through the sale of funeral services and cemetery products and services, with a significant portion derived from pre-need sales recognized over time.

Trailing Twelve Month (TTM) Revenue as of Sep 30, 2025: $4.29 Billion USD.

The TTM revenue breakdown, based on the latest available financial reporting structure in millions USD ending September 2025, shows the following major components:

The recognition of revenue from pre-need contracts is a key driver, as seen in the third quarter of 2025 results. For instance, comparable cemetery revenue grew by almost 7% ($31 million) in Q3 2025, largely driven by recognized pre-need revenue.

• Core cemetery revenue increase in Q3 2025 was $27.5 million, which included a $21 million increase from higher property revenue recognized.
• Recognized merchandise and services revenue from cemetery pre-need increased by $6 million in Q3 2025.
• Comparable funeral revenue saw a slight decline of less than 1% (almost $2 million) in Q3 2025.
• Pre-need Funeral Sales Production increased by about 2% ($6 million) over the third quarter of 2024.

Investment income from pre-need trust funds is captured within the revenue streams, particularly in the cemetery segment's 'Other revenue,' which is primarily terminal care fund trust income. Non-funeral home sales and general agency revenue is reflected in the growth of the non-funeral home sales average.

• Other revenue (Cemetery, primarily terminal care fund trust income) increased by 10% ($3.5 million) in Q3 2025.
• Non-funeral home sales average grew by 13.4% year-over-year in Q3 2025.
• Non-funeral home preneed sales revenue decreased by $4.6 million in Q3 2025 due to operational transitions.

Finance: draft Q4 2025 revenue projection model by next Tuesday.