The GEO Group, Inc.

Business and earnings

The GEO Group owns or operates detention, correctional and community reentry facilities for government agencies. It also provides electronic monitoring and related services.

Revenue depends on government contracts, occupied capacity, service levels and facility activation schedules. Property ownership and management services can be separated: GEO retained a service contract after selling the Adelanto complex.

Third-quarter results, USD millions except diluted earnings per share. Revenue, net income and EPS are GAAP; adjusted net income and adjusted EBITDA are non-GAAP.

Measure	2026	2025
Revenue	761.1	682.3
Net income attributable to GEO operations	49.2	173.9
Diluted EPS	$0.37	$1.24
Adjusted net income	51.8	35.0
Adjusted EBITDA	145.3	120.1

The prior-year quarter included a $232.4 million pretax asset gain. GEO removes asset gains and specified litigation, startup, restructuring and other items from adjusted earnings.

Current expectations

The November outlook calls for annual revenue of $2.975 billion to $3.025 billion, compared with $2.950 billion to $3.050 billion in August. The adjusted EBITDA forecast rose to $568 million to $573 million from $550 million to $560 million. Current adjusted net income guidance is $185 million to $190 million.

Annual GAAP net income guidance of $726.3 million to $730.5 million includes the October Adelanto property-sale gain and debt-extinguishment effects. Unreimbursed capital spending is forecast at $140 million to $150 million, up from $135 million to $145 million.

Contracts and completed transactions

The Big Horn and Rivers contracts, effective in July and August, respectively, are expected to generate about $85 million and $80 million in their first full operating years. GEO expects activation by year-end and normal contribution early in 2027. Big Spring's arrangement became effective November 1, with about $200 million in first-full-year revenue expected and normal contribution targeted for the second quarter of 2027. ICE funds startup costs and reimburses reactivation capital spending under all three contracts.

A new Northwest management contract effective October 28 continues service through October 2036, with about $140 million of annual revenue expected. The contract renews services at the existing facility.

GEO completed the Adelanto sale on October 2 for $950 million and estimated $705 million after taxes and fees. It retained the service contract through December 2034. It completed redemption of $650 million of 8.625% notes due in 2029 on October 15 for approximately $678 million before accrued interest.

Cash, debt and capital returns

September cash and cash equivalents were $216.0 million. Total consolidated debt at carrying value was $1.531 billion, including the revolver and other debt, before the October sale and note redemption. After the October redemption, GEO had $625 million of corporate notes outstanding, bearing 10.25% interest and due in 2031, alongside its other consolidated borrowing.

The amended $550 million revolving facility matures in July 2031. GEO reported approximately $600 million of available liquidity in November, including cash and borrowing availability.

Nine-month cash flows, USD millions, GAAP cash-flow statement measures.

Measure	2026	2025
Operating cash flow	445.4	189.9
Property and equipment cash spending	74.7	161.3

Billing, collection and payment timing contributed to operating cash flow. GEO spent $86.7 million on program share repurchases in the first nine months, with none in the third quarter. The board approved a total $1.25 billion authorization in September, publicly announced in October, extending through December 2029. By November 5, cumulative purchases under the program totaled about $177 million, leaving roughly $1.07 billion authorized.

See the analysis of GEO's higher operating forecast and faster cash growth.