Security National Financial 2Q Results: Cemetery carries the Cemetery/Mortuary segment

August 21, 2026/Finance/

Overall, Security National Financial Corporation (SNFC), the Utah-based company with its base in the Death Care industry, had a positive 2nd Quarter of 2026 with Earnings before Taxes increasing 8.6% (7.3% After Taxes) for the company as compared to the same quarter of 2025. That result was accomplished even though the revenues for the entire company decreased 6.3% for the quarter.

As you may know, SNFC operates in three segments, two of which are directly in the Death Care realm. They operate a Life Insurance segment which includes funeral preneed insurance and an insurance assignment business and they operate in what they term their Cemetery/Mortuary segment which operates cemeteries and funeral homes.

The Cemetery/Mortuary segment reported 2Q2026 revenues of $9.82 million for the quarter in comparison to their 2Q2025 revenues of $8.14 million. That’s a $1.68 million increase in revenue or in percentage terms it is an increase of 20.7% as compared to last year’s 2nd Quarter.

And with that increase in revenue, SNFC posted an Earnings before Taxes Income for the Cemetery/Mortuary segment of $3.04 million as compared to the 2Q2025 number of $1.79 million — an increase of a 69.5%.

Here’s what President of SNFC, Scott M. Quist said of the Cemetery/Mortuary segment in the 2nd Quarter 2026 Report that you can read here:

“Our Cemetery and Mortuary Segment also delivered stellar results increasing revenue by 21% for the quarter and by 13% for the first half, with a corresponding profit improvement of 69% for the quarter and 29% for the first half. As is many times the case, there is much movement going on “under the hood” in achieving those impressive results. First, the overall backdrop. While it is difficult to precisely quantify at this time, I believe most would agree that the death rate in the United States dropped in 2026 to its lowest level in recent years. . . . . . . . Thus, looking within this Segment at our mortuary-only results, while revenue did increase by some 3% for the first half, profitability actually decreased some 9%. We believe that we have generally increased our market share, but it has been a struggle because of this year’s declining death rate. However, demonstrating the benefit of diversified income streams, our cemetery-only results showed an 11% revenue improvement with a 17% profitability improvement, basically as the result of improved preneed cemetery sales. ” (Editor’s Note: Bold emphasis added by Funeral Director Daily)

Regarding SNFC’s Life Insurance segment, for the 2nd Quarter of 2026 revenues decreased from $51.5 million to $47.8 million — a decrease of about 7.2% as compared to 2Q2025. Earnings before Taxes for the Life Insurance segment also dropped from 2Q2025’s number of $10.6 million to 2Q2026’s number of $8.54 million — a drop of about 19.5%.

Here’s how SNFC President Scott M. Quist summarized those results in his report:

“Our Life Insurance Segment also made very significant positive progress despite its top-line revenue decrease of 5.5% for the first half and a profitability decrease of 13%. I don’t believe those numbers are illustrative of the significant progress which has been accomplished in nearly all facets of our business. Regarding the revenue decrease there are two major components, which are premium revenue, the smaller component of the decrease, and investment income revenue. While there are numerous inputs into the reported premium amount, which makes generalizing somewhat hazardous, to me the premium revenue decline is primarily due to fewer single-premium products being sold in 2026, which in my view is our least profitable product. Our modal-pay product sales have actually increased year-to-date, but those effects won’t be realized in our financial statements for several periods.”

Tom Anderson
Funeral Director Daily

Funeral Director Daily take: Security National Financial Corporation, based in Utah, is an interesting public company. The third leg of their business stool, in addition to the Cemetery/Mortuary and Life Insurance segments, is the Mortgage segment. In essence, all three segments can help each other out. . . . .Preneed insurance can bring revenues and income to both the insurance segment in the way that the segment is operated and it can bring additional revenue to the Cemetery/Mortuary segment in the form of commissions.

The Mortgage segment, in addition to operating as a profitable mortgage lender, can help the preneed insurance segment in getting higher investment returns for the preneed policies it sells.

An interesting note on those investments is included in the 2Q2026 report where President Quist makes this comment:

“We have made specific strategic decisions to increase our landholdings, which in my view will lead to greater profits in the future, albeit at the cost of current profitability since we recognize no profit on land until it is either sold or a home on it has started construction. Many of our landholdings have a 12 to 24 month, or longer, time horizon, so increasing landholdings does suppress both revenue and profit in the current period, in favor of greater profitability in the future. . . . . . Utah new-home starts were down significantly in 2025 (which trend appears to be continuing in 2026), which led to decreased construction loans. Primarily due to lower loan production our cash position has increased by some $61MM since Dec 31, 2025, which does earn “bank interest” but at a rate below that of our lending activities. “

All in all, SFNC increased profitability in the quarter despite a 6.3% decrease in revenues. I think they are in great position for the future, especially if they can continue modal sales of insurance and lending for mortgages picks up.

Disclaimer — The author of this article for Funeral Director Daily is a shareholder in Security National Financial Corporation.

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