The GEO Group, Inc.

What they do

GEO operates through four reportable segments: U.S. Secure Services, Electronic Monitoring and Supervision Services, Reentry Services, and International Services. It provides security, administrative, rehabilitation, education and food services at secure facilities; supervises individuals in community-based reentry programs; and offers electronic monitoring and supervision, including radio frequency, GPS and alcohol monitoring devices. As of December 31, 2025, worldwide operations included the management and/or ownership of approximately 75,000 beds at 95 secure and community-based facilities, including idle facilities.

Revenue drivers

• U.S. Secure Services — Public-private partnership secure services business in the U.S.; the 10-K describes it as a material part of the overall business and a distinct reportable segment.
• Electronic Monitoring and Supervision Services — U.S.-based electronic monitoring and supervision services, including radio frequency, GPS and alcohol monitoring devices, provided directly on behalf of government agencies.
• Reentry Services — Community-based and reentry services, including supervision, temporary housing, programming and employment assistance for residents reentering the community.
• International Services — Public-private partnership secure services operations in Australia and South Africa; secure transportation is also provided domestically and in the United Kingdom through the GEOAmey joint venture.

Recent performance

For the second quarter of 2026, GEO reported total revenues of $732.1 million, up 15 percent from $636.2 million in the second quarter of 2025. Net income attributable to GEO Operations was $47.5 million, or $0.36 per diluted share, an increase of 63 percent from $29.1 million, or $0.21 per diluted share. Adjusted EBITDA rose 20 percent to $142.0 million, and adjusted net income was $48.8 million, or $0.37 per diluted share. For the first six months of 2026, revenues were $1.44 billion versus $1.24 billion a year earlier, and net income attributable to GEO Operations was $85.8 million, or $0.65 per diluted share, up 76 percent.

Strategy

Management said second-quarter 2026 results reflect revenue growth from contracts entered into throughout 2025, with operating expenses favorably impacted by lower labor costs. The company described 2025 as the most successful period for new business wins in its history and expects 2026 to be very active as well. It is pursuing new growth opportunities and allocating capital to enhance long-term shareholder value; during the second quarter of 2026 it repurchased approximately 1.6 million shares for $36.6 million. GEO also entered a five-year support services contract effective July 9, 2026 with ICE to activate a federal immigration processing center at the 1,188-bed Big Horn Facility in Hudson, Colorado.

Risks

• Government dependence — Revenue depends on government customers' utilization of public-private partnerships, and modifications, reductions or discontinuations of such contracts could reduce revenues and occupancy.
• Debt and liquidity — The company carries long-term debt of $1.51 billion as of June 30, 2026 and cites risks around servicing indebtedness, deleveraging and addressing debt maturities.
• Idle facilities — As of December 31, 2025 the company had idle facilities, including Rivers Correctional Facility, Big Spring Correctional Facility and Flightline Correctional Facility, idled since 2021, with carrying values exposed to impairment.
• Legal and labor cost exposure — Risk factors cite ongoing litigation, including the Nwauzor case and possible additional accruals, plus exposure to rising medical costs and increases in unreimbursed labor rates.

Outlook

Management updated full-year 2026 guidance to revenues of $2.95-$3.05 billion, net income attributable to GEO Operations of $168-$175 million, or $1.27-$1.32 per diluted share, and Adjusted EBITDA of $550-$560 million. The company also provided financial guidance for the third and fourth quarters of 2026. Management said 2026 is expected to be very active for new business wins following 2025, and it continues to pursue growth opportunities while allocating capital to shareholder value.