GEO GROUP INC
For the period ended Jun 30, 2025. Filed Aug 6, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2025 · Filed Aug 6, 2025
GEO$27.80+10.4%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-31; filed 2025-05-07.
0000950170-25-065689
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-08-06.
0000950170-25-104173
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 193 previous paragraphs and 235 current paragraphs.
138 unchanged; 44 reworded; 43 added; 9 removed; 2 previous and 10 current paragraphs rearranged.
Tables are not compared: 11 previous and 23 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (43)
Current report
our ability to implement the Share Repurchase Program on the anticipated timeline, or at all;
Current report
On July 31, 2025, we entered into a 30-day interim agreement with ICE to extend our ISAP contract through August 31, 2025.
Current report
On June 16, 2025, we announced that our wholly-owned subsidiary, GEO Transport, Inc. has entered into a new five-year contract, inclusive of option periods, with the U.S. Marshals Service for the provision of secure transportation and contract detention officer services across three service regions covering 26 federal judicial districts and spanning 14 states.
Current report
On June 10, 2025, we announced that the U.S. District Court, Central District of California has approved a settlement in the case of Roman v. Wolf, which allows for immediate full intake at our company-owned, 1,940-bed Adelanto ICE Processing Center in California (the "Adelanto Center"). The court had previously issued several injunction orders, including an intake prohibition order issued more than four years ago, limiting the use of the Adelanto Center based on then-prevailing COVID-19 conditions. ICE and GEO entered into a 15-year contract on December 19, 2019, for the provision of secure residential housing and support services at the Adelanto Center, consisting of a five-year base period followed by two five-year option periods. The current contract option period is effective through December 19, 2029.
Current report
Asset Sale
Current report
On June 3, 2025, we entered into a Sale Agreement to sell our 2,388-bed Lawton Correctional Facility located in Lawton, Oklahoma for a sale price of $312 million. The Sale Agreement also contained certain customary representations, warranties and covenants that the parties made to each other. The sale closed on July 25, 2025 and we transitioned facility operations to the Oklahoma Department of Corrections simultaneously on July 25, 2025.
Current report
Refer to Note 15 - Subsequent Events of the Notes to Unaudited Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q for further discussion.
Current report
Asset Purchase
Current report
On July 1, 2025, we announced that we had entered into a purchase agreement to acquire the 770-bed Western Region Detention Facility located in San Diego, California for approximately $60 million. We previously leased the Western Region Detention Facility for approximately $5.1 million annually under a lease agreement that was scheduled to expire on March 31, 2029. We have a contract with the U.S. Marshals Service for the exclusive use of the Western Region Detention Facility.
Current report
The purchase of the Western Region Detention Facility closed on July 31, 2025 and was funded as a like kind real estate property exchange with proceeds from the sale of the Lawton Correctional Facility, which closed on July 25, 2025 as discussed above, resulting in an estimated capital gains cash tax savings of approximately $9.3 million.
Current report
Following the closing of the sale of the Lawton Correctional Facility and the purchase of the Western Region Detention Facility, we had approximately $222 million in net proceeds. We used the net proceeds, along with cash on hand and available liquidity, to pay off senior secured debt, including approximately $300 million in floating rate debt.
Current report
Refer to Note 15 - Subsequent Events of the Notes to Unaudited Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q for further discussion.
Current report
Comparison of Second Quarter 2025 and Second Quarter 2024
Current report
Operating expenses for Reentry Services decreased by $1.3 million during Second Quarter 2025 compared to Second Quarter 2024 primarily due to aggregate net decreases of $0.6 million related to decreased census levels at certain of our community-based and reentry centers and the associated variable costs. We also experienced a decrease of $0.7 million due to contract terminations.
Current report
Electronic Monitoring and Supervision Services depreciation and amortization expense was relatively consistent in Second Quarter 2025 compared to Second Quarter 2024.
Current report
Reentry Services depreciation and amortization expense increased slightly in Second Quarter 2025 compared to Second Quarter 2024 primarily due to renovations at certain of our company-owned centers.
Current report
International Services depreciation and amortization expense was relatively consistent in Second Quarter 2025 compared to Second Quarter 2024.
Current report
Other Income
Current report
In Second Quarter 2025, we received an aggregate of $5.5 million under the Employee Retention Tax Credit provisions of the CARES Act. This amount was recognized as other income in the consolidated financial statements.
Current report
Loss on Asset Divestitures/Impairment
Current report
During Second Quarter 2024, we experienced an impairment loss of approximately $2.3 million related to two of our Company-owned facilities. We also donated a parcel of undeveloped land in Kern County, California which resulted in a loss on asset divestiture of approximately $0.6 million.
Current report
Income Tax Provision (Benefit)
Current report
On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was enacted in the U.S. The OBBBA includes provisions related to the permanent extension of certain expiring provisions of the Tax Cuts and Jobs Act, modifications to the international tax framework and the restoration of favorable tax treatment for certain business provisions. The OBBBA has multiple effective dates, with certain provisions effective for the year ending December 31, 2025 while others are effective starting after this date. We are currently assessing OBBBA's impact on our consolidated financial statements.
Current report
Comparison of Six Months 2025 and Six Months 2024
Current report
Revenues
Current report
Revenues for U.S. Secure Services increased by $44.3 million in the six months ended June 30, 2025 (the "Six Months 2025") compared to the six months ended June 30, 2024 (the "Six Months 2024") due to aggregate net increases of $20.2 million related to the activations of our new contracts at our company-owned Delaney Hall, North Lake and D. Ray James facilities. We also experienced an aggregate net increase of $37.8 million due to increases in occupancies, rates and/or per diem amounts in connection with contract modifications. Partially offsetting these increases were decreases of approximately $13.7 million related to contract terminations.
Current report
Revenues for International Services decreased by $5.7 million in Six Months 2025 compared to Six Months 2024. We experienced a net decrease of $8.8 million primarily due to the transition of our managed-only contract for the Junee Correctional Centre in Australia to the government effective March 31, 2025. Partially offsetting this decrease was an increase due to foreign exchange rate fluctuations of $3.1 million.
Current report
Operating expenses for International Services decreased in Six Months 2025 compared to Six Months 2024 by $8.5 million. We experienced a net decrease of $5.7 million primarily due to the transition of our managed-only contract for the Junee Correctional Centre in Australia to the government effective March 31, 2025. We also experienced a decrease of $2.8 million related to foreign exchange rate fluctuations.
Current report
Depreciation and Amortization
Current report
U.S. Secure Services depreciation and amortization expense increased in Six Months 2025 compared to Six Months 2024 primarily due to renovations at certain of our company-owned and leased facilities.
Current report
General and administrative expenses comprise substantially all of our other unallocated operating expenses which primarily includes, corporate management salaries and benefits, professional fees and other administrative expenses. General and administrative expenses increased by $8.7 million in Six Months 2025 compared to Six Months 2024 primarily due to an increase in stock-based compensation expense of $3.2 million with the remaining increase related to increases in business development, consulting and other administrative expenses.
Current report
Non-Operating Expenses
Current report
Interest Income and Interest Expense
Current report
Loss on Extinguishment of Debt
Current report
During Six Months 2025, we made a mandatory quarterly payment on our Term Loan. In connection with the repayment, we wrote off the related deferred loan costs. During Six Months 2024, we completed a Senior Note Offering which resulted in a loss on extinguishment of debt of approximately $82.4 million which consisted of the write-off of existing deferred financing costs and net discounts/premiums and the payment of call premiums. Refer to Note 10 - Debt of the Notes to Unaudited Consolidated Financial Statements in Part I, Item 1 of this Quarterly Report on Form 10Q for further discussion.
Current report
Other Income
Current report
In Six Months 2025, we received an aggregate of $5.5 million under the Employee Retention Tax Credit provisions of the CARES Act. This amount was recognized as other income in the consolidated financial statements.
Current report
Loss on Asset Divestitures/Impairment
Current report
During Six Months 2024, we experienced an impairment loss of approximately $2.3 million related to two of our Company-owned facilities. We also donated a parcel of undeveloped land in Kern County, California which resulted in a loss on asset divestiture of approximately $0.6 million.
Current report
Income Tax Provision (Benefit)
Showing the first 40 of 43 passages. Open the source sections for the rest.
Removed paragraphs (9)
Previous report
On April 21, 2025, we received a notice of termination from the New Mexico Corrections Department for the contract for our company-owned 1200-bed Lea County Correctional Facility effective June 30, 2025.
Previous report
On March 20, 2025, we announced that we have entered into a contract with ICE for the immediate activation of a federal immigration processing center at our company-owned, 1-800 bed North Lake Facility in Baldwin Michigan. Within a few months, we expect to finalize a long-term contract with ICE to provide services under a multi-year contract.
Previous report
On March 10, 2025, we announced that ICE has entered into a contract modification of the current intergovernmental service agreement (“IGSA”) for our company-owned, 1,328-bed Karnes ICE Processing Center (the "Karnes Center") in Karnes City, Texas to transition the Karnes Center from housing adult males only to housing mixed populations. Subsequently, ICE decided to continue to house single adults at the Karnes ICE Center based on an assessment of the agency’s current needs. GEO provides support services for ICE at the Karnes Center under an IGSA between Karnes County and ICE, that is effective through August 2029. GEO’s support services include the exclusive use of the Karnes Center by ICE, along with security, maintenance, and food services, as well as access to recreational amenities, medical care, and legal counsel.
Previous report
Comparison of First Quarter 2025 and First Quarter 2024
Previous report
Operating Expenses
Previous report
General and Administrative Expenses
Previous report
Income Tax Provision
Previous report
Operating Expenses
Previous report
General and Administrative Expenses
Reworded paragraphs (44)
Previous wording
our ability to successfully pursue an appeal to reverse the recent unfavorable verdict and judgments in the retrial of the lawsuits in the State of Washington, our company being required to record an accrual for the judgments in the future, and our ability to defend similar other pending litigation and the effect such litigation may have on our company;
Current wording
our ability to successfully pursue an appeal to reverse the unfavorable verdict and judgments in the retrial of the lawsuits in the State of Washington, our company being required to record an accrual for the judgments in the future, and our ability to defend similar other pending litigation and the effect such litigation may have on our company;
Previous wording
we depend on a limited number of third parties to manufacture and supply quality infrastructure components for our electronic monitoring products. If our suppliers cannot provide the components or services we require in a timely manner and/or with such quality as we expect, our ability to market and sell our electronic monitoring products and services could be harmed;
Current wording
we depend on a limited number of third parties to manufacture and supply quality infrastructure components for our electronic monitoring products. If our suppliers cannot provide the components or services we require and with such quality and at such cost as we expect, our ability to market and sell our electronic monitoring products and services could be harmed;
Previous wording
The following discussion and analysis provides information which management believes is relevant to an assessment and understanding of our consolidated results of operations and financial condition. This discussion contains forward-looking statements that involve risks and uncertainties. Our actual results may differ materially from those anticipated in these forward-looking statements as a result of numerous factors including, but not limited to, those described above under “Forward-Looking Information”, and under “Part I - Item 1A. Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2024. This discussion should be read in conjunction with our unaudited consolidated financial statements and notes thereto included in this Quarterly Report on Form 10-Q.
Current wording
The following discussion and analysis provides information which management believes is relevant to an assessment and understanding of our consolidated results of operations and financial condition. This discussion contains forward-looking statements that involve risks and uncertainties. Our actual results may differ materially from those anticipated in these forward-looking statements as a result of numerous factors including, but not limited to, those described above under “Forward-Looking Information”, and under “Part I - Item 1A. Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2024 and under “Part II - Item 1A. Risk Factors” in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2025. This discussion should be read in conjunction with our unaudited consolidated financial statements and notes thereto included in this Quarterly Report on Form 10-Q.
Previous wording
For the three months ended March 31, 2025 and 2024, we had consolidated revenues of $604.6 million and $605.7 million, respectively. We maintained an average company-wide facility occupancy rate of approximately 88% including 69,125 active beds and excluding 7,453 idle beds, which includes those being marketed to potential customers, for the three months ended March 31, 2025, and approximately 88% including 69,834 active beds and excluding 11,421 idle beds, which includes those being marketed to potential customers, for the three months ended March 31, 2024.
Current wording
For the six months ended June 30, 2025 and 2024, we had consolidated revenues of $1,241.5 million and $1,212.9 million, respectively. We maintained an average company-wide facility occupancy rate of approximately 89% including 69,793 active beds and excluding 6,785 idle beds, which includes those being marketed to potential customers, for the six months ended June 30, 2025, and approximately 88% including 69,834 active beds and excluding 11,275 idle beds, which includes those being marketed to potential customers, for the six months ended June 30, 2024.
Previous wording
On February 27, 2025, we announced that we have been awarded a 15-year, fixed-price contract by ICE to provide support services for the establishment of a federal immigration processing center at the company-owned, 1,000-bed Delaney Hall Facility in Newark, New Jersey. Our support services include the exclusive use of the Delaney Hall Facility by ICE, along with security, maintenance, and food services, as well as access to recreational amenities, medical care, and legal counsel.
Current wording
On June 9, 2025, we announced that we have entered into a contract modification with ICE, effective June 6, 2025, to activate a federal immigration processing center at our company-owned, 1,868-bed, D. Ray James Facility in Folkston, Georgia under the existing intergovernmental service agreement involving the company-owned, 1,118-bed Folkston ICE Processing Center. Our support services will include the exclusive use of this federal facility by ICE, along with security, maintenance, and food services, as well as access to recreational amenities, medical care, and legal counsel.
Previous wording
We are currently marketing (or awaiting activation) 7,453 vacant beds at nine idle facilities to potential customers. The carrying values of these idle facilities totaled $184.0 million as of March 31, 2025, excluding equipment and other assets that can be easily transferred for use at other facilities. Refer to Note 11 - Commitments, Contingencies and Other Matters of the Notes to Unaudited Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q for further discussion.
Current wording
We are currently marketing (or awaiting activation) 6,785 vacant beds at nine idle facilities to potential customers. The carrying values of these idle facilities totaled $186.1 million as of June 30, 2025, excluding equipment and other assets that can be easily transferred for use at other facilities. Refer to Note 11 - Commitments, Contingencies and Other Matters of the Notes to Unaudited Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q for further discussion.
Previous wording
The accompanying unaudited consolidated financial statements are prepared in conformity with accounting principles generally accepted in the United States. As such, we are required to make certain estimates, judgments and assumptions that we believe are reasonable based upon the information available. These estimates and assumptions affect the reported amounts of assets and liabilities as of the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. We routinely evaluate our estimates based on historical experience and on various other assumptions that management believes are reasonable under the circumstances. Actual results may differ from these estimates under different assumptions or conditions. During the three months ended March 31, 2025, we did not experience any significant changes in estimates or judgments inherent in the preparation of our consolidated financial statements. A summary of our significant accounting policies is contained in Note 1 to our consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2024.
Current wording
The accompanying unaudited consolidated financial statements are prepared in conformity with accounting principles generally accepted in the United States. As such, we are required to make certain estimates, judgments and assumptions that we believe are reasonable based upon the information available. These estimates and assumptions affect the reported amounts of assets and liabilities as of the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. We routinely evaluate our estimates based on historical experience and on various other assumptions that management believes are reasonable under the circumstances. Actual results may differ from these estimates under different assumptions or conditions. During the six months ended June 30, 2025, we did not experience any significant changes in estimates or judgments inherent in the preparation of our consolidated financial statements. A summary of our significant accounting policies is contained in Note 1 to our consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2024.
Previous wording
Revenues for U.S. Secure Services increased by $4.8 million in the first quarter ended March 31, 2025 (the "First Quarter 2025") compared to the first quarter ended March 31, 2024 (the "First Quarter 2024") due to aggregate net increases of $12.7 million primarily due to increases in occupancies, rates and/or per diem amounts in connection with contract modifications. Partially offsetting this increase were decreases of approximately $7.9 million related to contract terminations.
Current wording
Revenues for U.S. Secure Services increased by $39.6 million in the second quarter ended June 30, 2025 (the "Second Quarter 2025") compared to the second quarter ended June 30, 2024 (the "Second Quarter 2024") due to increases of $17.5 million related to the activations of our new contracts at our company-owned Delaney Hall, North Lake and D. Ray James facilities and aggregate net increases of $28.4 million due to increases in occupancies, rates and/or per diem amounts in connection with contract modifications. Partially offsetting these increases were decreases of approximately $6.3 million related to contract terminations.
Previous wording
The number of compensated mandays in U.S. Secure Services facilities was approximately 4.1 million in First Quarter 2025 compared to approximately 4.2 million in First Quarter 2024. We look at the average occupancy in our facilities to determine how we are managing our available beds. The average occupancy is calculated by taking compensated mandays as a percentage of capacity. The average occupancy in our U.S. Secure Services facilities was 87.6% of capacity in First Quarter 2025 and First Quarter 2024, excluding idle facilities.
Current wording
The number of compensated mandays in U.S. Secure Services facilities was approximately 4.2 million in Second Quarter 2025 compared to approximately 4.3 million in Second Quarter 2024. We look at the average occupancy in our facilities to determine how we are managing our available beds. The average occupancy is calculated by taking compensated mandays as a percentage of capacity. The average occupancy in our U.S. Secure Services facilities was approximately 88% of capacity in Second Quarter 2025 and Second Quarter 2024, excluding idle facilities.
Previous wording
Revenues for Electronic Monitoring and Supervision Services decreased by $9.1 million in First Quarter 2025 compared to First Quarter 2024 primarily due to decreases in average participant counts under the Intensive Supervision and Appearance Program ("ISAP").
Current wording
Revenues for Electronic Monitoring and Supervision Services decreased by $5.8 million in Second Quarter 2025 compared to Second Quarter 2024 primarily due to decreases in average participant counts under the Intensive Supervision and Appearance Program ("ISAP").
Previous wording
Revenues for Reentry Services increased by $2.5 million in First Quarter 2025 compared to First Quarter 2024 primarily due to aggregate net increases of $3.7 million related to increased census levels at certain of our community-based and reentry centers due to increased programming needs and referrals due to new day reporting center contracts. These increases were partially offset by decreases due to contract terminations of $1.2 million.
Current wording
Revenues for Reentry Services increased by $2.4 million in Second Quarter 2025 compared to Second Quarter 2024 primarily due to aggregate net increases of $3.6 million related to increased census levels at certain of our community-based and reentry centers due to increased programming needs and referrals due to new day reporting center contracts. These increases were partially offset by decreases due to contract terminations of $1.2 million.
Previous wording
Revenues for International Services slightly increased in First Quarter 2025 compared to First Quarter 2024. We experienced a net increase of $2.8 million primarily due to increased populations at our Australian subsidiary and our new health care contract in Australia. Partially offsetting this increase was a decrease due to foreign exchange rate fluctuations of $2.1 million. Our managed-only contract for our Junee Correctional Centre in Australia was transitioned to the government effective March 31, 2025.
Current wording
Revenues for International Services decreased by $7.1 million in Second Quarter 2025 compared to Second Quarter 2024. We experienced a net decrease of $8.1 million primarily due to the transition of our managed-only contract for the Junee Correctional Centre in Australia to the government effective March 31, 2025. Partially offsetting this decrease was an increase due to foreign exchange rate fluctuations of $1.0 million.
Previous wording
Operating expenses for U.S. Secure Services increased by $13.1 million in First Quarter 2025 compared to First Quarter 2024 primarily due to aggregate net increases in connection with labor and medical costs, transportation services, increased occupancies and additional staffing and training costs we continue to incur in preparation of expected future growth of $19.3 million. We also experienced an increase of approximately $1.7 million related to the activation of our company-owned 1,000 bed Delaney Hall facility. Partially offsetting these increases were decreases of approximately $7.9 million related to contract terminations.
Current wording
Operating expenses for U.S. Secure Services increased by $41.2 million in Second Quarter 2025 compared to Second Quarter 2024 primarily due to aggregate net increases in connection with labor and medical costs, transportation services, increased occupancies and additional staffing and training costs we continue to incur in preparation of expected future growth of $35.4 million. We also experienced an increase of approximately $13.0 million related to the activations of our new contracts at our company-owned Delaney Hall, North Lake and D. Ray James facilities. Partially offsetting these increases were decreases of approximately $7.2 million related to contract terminations.
Previous wording
Operating expenses for Electronic Monitoring and Supervision Services decreased slightly in First Quarter 2025 compared to First Quarter 2024 primarily due to decreases in variable costs related to decreases in average participant counts under ISAP.
Current wording
Operating expenses for Electronic Monitoring and Supervision Services decreased slightly in Second Quarter 2025 compared to Second Quarter 2024 primarily due to decreases in variable costs related to decreases in average participant counts under ISAP.
Previous wording
Operating expenses for International Services decreased in First Quarter 2025 compared to First Quarter 2024 by $1.1 million primarily due to a net decrease in operating expenses of approximately $0.7 million primarily due to increased occupancies at our Australian subsidiary offset by a decrease related to foreign exchange rate fluctuations of $1.8 million.
Current wording
Operating expenses for International Services decreased in Second Quarter 2025 compared to Second Quarter 2024 by $8.1 million. We experienced a net decrease of $7.2 million primarily due to the transition of our managed-only contract for the Junee Correctional Centre in Australia to the government effective March 31, 2025. We also experienced a decrease of $0.9 million related to foreign exchange rate fluctuations.
Previous wording
U.S. Secure Services depreciation and amortization expense increased in First Quarter 2025 compared to First Quarter 2024 primarily due to renovations at certain of our company-owned and leased facilities.
Current wording
U.S. Secure Services depreciation and amortization expense increased in Second Quarter 2025 compared to Second Quarter 2024 primarily due to renovations at certain of our company-owned and leased facilities.
Previous wording
General and administrative expenses comprise substantially all of our other unallocated operating expenses which primarily includes, corporate management salaries and benefits, professional fees and other administrative expenses. General and administrative expenses increased by $4.7 million in First Quarter 2025 compared to First Quarter 2024 primarily due to the recent reorganization of our senior management team and additional associated professional fees which we incurred during First Quarter 2025 in preparation for expected future growth.
Current wording
General and administrative expenses comprise substantially all of our other unallocated operating expenses which primarily includes, corporate management salaries and benefits, professional fees and other administrative expenses. General and administrative expenses increased by $4.0 million in Second Quarter 2025 compared to Second Quarter 2024 primarily due to an increase in stock-based compensation expense of $2.4 million with the remaining increase related to increases in business development, consulting and other administrative expenses.
Previous wording
Interest income decreased by $0.5 million in First Quarter 2025 compared to First Quarter 2024 primarily due to lower cash balances on hand domestically and internationally and the effect of foreign exchange rates.
Current wording
Interest income increased by $0.5 million in Second Quarter 2025 compared to Second Quarter 2024 primarily due to higher cash balances on hand domestically and internationally and the effect of foreign exchange rates.
Previous wording
Interest expense decreased by $8.9 million in First Quarter 2025 compared to First Quarter 2024 primarily due to our Senior Notes Offering and new Term Loan under our new credit agreement that closed on April 18, 2024 which resulted in overall lower interest expense due to lower interest rates. We also retired the majority of our 6.50% Exchangeable Senior Notes due 2026 during 2024 and had lower overall principal balances compared to First Quarter 2024.
Current wording
Interest expense decreased by $8.7 million in Second Quarter 2025 compared to Second Quarter 2024 primarily due to our Senior Notes Offering and new Term Loan under our new credit agreement that closed on April 18, 2024 which resulted in overall lower interest expense due to lower interest rates. We also retired the majority of our 6.50% Exchangeable Senior Notes due 2026 during 2024 and had lower overall principal balances compared to Second Quarter 2024.
Previous wording
During First Quarter 2024, we redeemed our outstanding principal amount of our 5.875% Senior Notes due 2024. In connection with the repayment, we wrote off the related deferred loan costs.
Current wording
During Second Quarter 2025, we made a mandatory quarterly payment on our Term Loan. In connection with the repayment, we wrote off the related deferred loan costs. During Second Quarter 2024, we completed a Senior Note Offering which resulted in a loss on extinguishment of debt of approximately $82.3 million which consisted of the write-off of existing deferred financing costs and net discounts/premiums and the payment of call premiums. Refer to Note 10 - Debt of the Notes to Unaudited Consolidated Financial Statements in Part I, Item 1 of this Quarterly Report on Form 10Q for further discussion.
Previous wording
The provision for income taxes and the effective tax rate both decreased in First Quarter 2025 compared to the First Quarter 2024 principally due to lower pre-tax income and a higher discrete tax benefit. In First Quarter 2025, there was a $4.2 million net discrete tax benefit as compared to a $0.6 million net discrete tax benefit in First Quarter 2024. Included in the tax provision for income taxes in First Quarter 2025 was a $4.2 million discrete tax benefit as compared to a $0.9 million discrete tax benefit in First Quarter 2024 related to stock compensation that vested during the respective periods. We estimate our 2025 annual effective tax rate to be in the range of approximately 28% to 30%, exclusive of any discrete items.
Current wording
The provision for income taxes increased and the effective tax rate decreased in Second Quarter 2025 compared to Second Quarter 2024 principally due to pre-tax income compared to pre-tax losses, respectively. In Second Quarter 2025, there was a $0.3 million net discrete tax benefit as compared to a $4.5 million net discrete tax benefit in Second Quarter 2024. Included in the tax provision for income taxes in Second Quarter 2025 was a $0.3 million discrete tax benefit as compared to a $0.1 million discrete tax benefit in Second Quarter 2024 related to stock compensation that vested during the respective periods. Also included in the net discrete tax benefit in the Second Quarter 2024 was a $3.4 million discrete tax benefit from the interest deduction related to GEO shares provided to the holders of our 6.5% Exchangeable Senior Notes due 2026. We estimate our 2025 annual effective tax rate to be in the range of approximately 28% to 30%, exclusive of any discrete items.
Previous wording
Equity in earnings of affiliates, presented net of income tax provision, represents the earnings of SACS and GEOAmey in the aggregate. Equity in earnings of affiliates increased during First Quarter 2025 compared to First Quarter 2024 primarily due to favorable performance at GEOAmey.
Current wording
Equity in earnings of affiliates, presented net of income tax provision, represents the earnings of SACS and GEOAmey in the aggregate. Equity in earnings of affiliates increased during Second Quarter 2025 compared to Second Quarter 2024 primarily due to favorable performance at SACS.
Previous wording
Operating expenses for Reentry Services increased slightly during First Quarter 2025 compared to First Quarter 2024 primarily due to aggregate net increases of $0.9 million related to increased census levels at certain of our community-based and reentry centers due to increased programming needs and referrals and the associated variable costs. We also experienced an increase of $1.2 million due to new day reporting centers. Partially offsetting these increases was an aggregate net decrease of $1.7 million due to contract terminations.
Current wording
Operating expenses for Reentry Services decreased by $0.9 million during Six Months 2025 compared to Six Months 2024 primarily due to an aggregate net decrease of $2.8 million due to contract terminations. Partially offsetting this decrease were aggregate net increases of $1.9 million related to increased census levels at certain of our community-based and reentry centers and the associated variable costs.
Previous wording
Electronic Monitoring and Supervision Services depreciation and amortization expense decreased in First Quarter 2025 compared to First Quarter 2024 primarily due to certain assets becoming fully depreciated and/or amortized.
Current wording
Electronic Monitoring and Supervision Services depreciation and amortization expense decreased in Six Months 2025 compared to Six Months 2024 primarily due to certain assets becoming fully depreciated and/or amortized.
Previous wording
Reentry Services depreciation and amortization expense decreased in First Quarter 2025 compared to First Quarter 2024 primarily due to certain assets becoming fully depreciated and/or amortized as well as certain asset dispositions at our company-owned centers.
Current wording
Reentry Services depreciation and amortization expense decreased slightly in Six Months 2025 compared to Six Months 2024 primarily due to certain assets becoming fully depreciated and/or amortized as well as certain asset dispositions at our company-owned centers.
Previous wording
International Services depreciation and amortization expense slightly decreased in First Quarter 2025 compared to First Quarter 2024.
Current wording
International Services depreciation and amortization expense slightly decreased in Six Months 2025 compared to Six Months 2024 primarily due to certain assets becoming fully depreciated and/or amortized.
Previous wording
We currently have contractual commitments for a number of projects using Company financing. We estimate that the cost of these existing active capital projects will be approximately $47.1 million of which $14.2 million was spent through March 31, 2025. We estimate that the remaining capital requirements related to these capital projects will be $32.9 million which will be spent through the remainder of 2025.
Current wording
We currently have contractual commitments for a number of projects using Company financing. We estimate that the cost of these existing active capital projects will be approximately $54.1 million of which $35.9 million was spent through June 30, 2025. We estimate that the remaining capital requirements related to these capital projects will be $18.2 million which will be spent through the remainder of 2025.
Previous wording
On April 18, 2024, we announced the closing of our previously announced private offering of $1.275 billion aggregate principal amount of senior notes, comprised of $650.0 million aggregate principal amount of 8.625% senior secured notes due 2029 and $625.0 million aggregate principal amount of 10.250% senior notes due 2031.
Current wording
On April 18, 2024, we announced the closing of our private offering of $1.275 billion aggregate principal amount of senior notes, comprised of $650.0 million aggregate principal amount of 8.625% senior secured notes due 2029 and $625.0 million aggregate principal amount of 10.250% senior notes due 2031.
Previous wording
We also entered into a credit agreement, dated April 18, 2024 (the "Credit Agreement") to, among other things, evidence and govern a first-lien senior secured revolving credit facility and the commitments thereunder, and a first-lien senior secured term loan facility. The aggregate principal amount of revolving credit commitments under the senior revolving credit facility is $310 million (including a $175 million letter of credit subfacility) and the aggregate principal amount of the senior secured term loan facility is $450.0 million.
Current wording
We also entered into a credit agreement, dated April 18, 2024 (the "Credit Agreement") to, among other things, evidence and govern a first-lien senior secured revolving credit facility and the commitments thereunder, and a first-lien senior secured term loan facility. As of June 30, 2025, the aggregate principal amount of revolving credit commitments under the senior revolving credit facility was $310 million (including a $175 million letter of credit subfacility) and the aggregate principal amount of the senior secured term loan facility was $450.0 million.
Previous wording
During 2024, the Company exchanged approximately $229.9 million of aggregate principal amount of its outstanding 6.50% Exchangeable Senior Notes in private exchange transactions for an exchange value of approximately $410 million. The consideration consisted of cash and shares of GEO common stock. During the first quarter of 2025, we retired the remaining principal balance. Refer to Note 10 - Debt of the Notes to Unaudited Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q for further information.
Current wording
During 2024, the Company exchanged approximately $229.9 million of aggregate principal amount of its outstanding 6.50% Exchangeable Senior Notes in private exchange transactions for an exchange value of approximately $410 million. The consideration consisted of cash and shares of GEO common stock. During the first quarter of 2025, we retired the remaining principal balance of the
Previous wording
Indebtedness” in Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2024. We are exposed to various commitments and contingencies which may have a material adverse effect on our liquidity. We also have guaranteed certain obligations for certain of our international subsidiaries. These commitments, contingencies and guarantees are further discussed in our Annual Report on Form 10-K for the year ended December 31, 2024.
Current wording
Our debt outstanding under the Credit Agreement, the Secured Notes and the Unsecured Notes require cash expenditures for debt service. Our significant debt obligations could have material consequences. See “Risk Factors-Risks Related to Our High Level of Indebtedness” in Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2024. We are exposed to various commitments and contingencies which may have a material adverse effect on our liquidity. We also have guaranteed certain obligations for certain of our international subsidiaries. These commitments, contingencies and guarantees are further discussed in our Annual Report on Form 10-K for the year ended December 31, 2024.
Previous wording
(a) Includes amounts due from non-guarantor subsidiaries of $56.2 million and $55.9 million as of March 31, 2025 and December 31, 2024, respectively.
Current wording
(a) Includes amounts due from non-guarantor subsidiaries of $57.8 million and $55.9 million as of June 30, 2025 and December 31, 2024, respectively.
Previous wording
(b) Includes amounts due to non-guarantor subsidiaries of $46.3 million and $46.8 million as of March 31, 2025 and December 31, 2024, respectively.
Current wording
(b) Includes amounts due to non-guarantor subsidiaries of $46.7 million and $46.8 million as of June 30, 2025 and December 31, 2024, respectively.
Previous wording
Cash, cash equivalents and restricted cash and cash equivalents as of March 31, 2025 was $117.2 million compared to $195.3 million as of March 31, 2024.
Current wording
Cash, cash equivalents and restricted cash and cash equivalents as of June 30, 2025 was $120.6 million compared to $122.7 million as of June 30, 2024.
Previous wording
Net cash provided by operating activities amounted to $71.2 million for the three months ended March 31, 2025 versus net cash provided by operating activities of $83.3 million for the three months ended March 31, 2024. Cash provided by operating activities during the three months ended March 31, 2025 was positively impacted by non-cash expenses such as depreciation and amortization, amortization of debt issuance costs, discount and/or premium and other non-cash interest, dividends received from unconsolidated joint ventures and stock-based compensation expense. Equity in earnings of affiliates, net of tax and realized/unrealized gain on investments negatively impacted cash. Accounts receivable, prepaid expenses and other assets increased in total by $9.0 million, representing a negative impact on cash. The increase was primarily driven by the timing of billings and collections. Accounts payable, accrued expenses and other liabilities increased by $21.0 million which positively impacted cash. The increase was primarily driven by the timing of payments.
Current wording
Net cash provided by operating activities amounted to $110.4 million for the six months ended June 30, 2025 versus net cash provided by operating activities of $114.5 million for the six months ended June 30, 2024. Cash provided by operating activities during the six months ended June 30, 2025 was positively impacted by non-cash expenses such as depreciation and amortization, amortization of debt issuance costs, discount and/or premium and other non-cash interest, dividends received from unconsolidated joint ventures and stock-based compensation expense. Equity in earnings of affiliates, net of tax, gain on sale/disposal of property and equipment, net, and realized/unrealized gain on investments negatively impacted cash. Accounts receivable, prepaid expenses and other assets increased in total by $4.5 million, representing a negative impact on cash. The increase was primarily driven by the timing of billings and collections. Accounts payable, accrued expenses and other liabilities decreased by $6.8 million which negatively impacted cash. The increase was primarily driven by the timing of payments.
Previous wording
Net cash provided by operating activities during the three months ended March 31, 2024 was positively impacted by net income attributable to GEO, non-cash expenses such as depreciation and amortization, loss on sale/disposal of property and equipment, loss on extinguishment of debt, amortization of debt issuance costs, discount and/or premium and other non-cash interest, dividends received from unconsolidated joint ventures and stock-based compensation expense. Equity in earnings of affiliates, net of tax and unrealized/realized gain on investments negatively impacted cash. Accounts receivable, prepaid expenses and other assets decreased in total by $25.8 million, representing a positive impact on cash. The decrease was primarily driven by the favorable timing of billings and collections. Accounts payable, accrued expenses and other liabilities decreased by $6.4 million which negatively impacted cash. The decrease was primarily driven by the timing of payments.
Current wording
Net cash provided by operating activities during the six months ended June 30, 2024 was positively impacted by non-cash expenses such as depreciation and amortization, loss on sale/disposal of property and equipment, loss on extinguishment of debt, amortization of debt issuance costs, discount and/or premium and other non-cash interest, dividends received from unconsolidated joint ventures, loss on asset divestitures/impairment and stock-based compensation expense. Equity in earnings of affiliates, net of tax and realized/unrealized gain on investments negatively impacted cash. Accounts receivable, prepaid expenses and other assets increased in total by $16.8 million, representing a negative impact on cash. The increase was primarily driven by the timing of billings and collections. Accounts payable, accrued expenses and other liabilities decreased by $21.5 million which negatively impacted cash. The decrease was primarily driven by the timing of payments.
Previous wording
Net cash used in investing activities of $31.1 million during the three months ended March 31, 2025 was primarily the result of capital expenditures of $30.8 million, purchases of marketable securities of $1.0 million and proceeds from sales of marketable securities of $0.6 million. Net cash used in investing activities of $14.8 million during the three months ended March 31, 2024 was the result of capital expenditures of $14.8 million.
Current wording
Net cash used in investing activities of $81.8 million during the six months ended June 30, 2025 was primarily the result of capital expenditures of $67.6 million, purchases of marketable securities of $16.9 million and proceeds from sales of marketable securities of $2.7 million. Net cash used in investing activities of $37.0 million during the six months ended June 30, 2024 was primarily the result of capital expenditures of $39.2 million, purchases of marketable securities of $7.2 million and proceeds from sales of marketable securities of $9.4 million.
Previous wording
Net cash used in financing activities during the three months ended March 31, 2025 was approximately $49.4 million compared to net cash used in financing activities of $30.1 million during the three months ended March 31, 2024. Net cash used in financing activities during the three months ended March 31, 2025 was primarily the result of payments on revolver of $30.0 million, payments on long-term debt of $0.6 million, proceeds from the exercise of stock options of $3.3 million and taxes paid related to net share settlement of equity awards of $22.2 million. Net cash used in financing activities during the three months ended March 31, 2024 was primarily the result of payments on long-term debt of $23.3 million and taxes paid related to net share settlement of equity awards of $7.4 million.
Current wording
Net cash used in financing activities during the six months ended June 30, 2025 was approximately $37.6 million compared to net cash used in financing activities of $113.2 million during the six months ended June 30, 2024. Net cash used in financing activities during the six months ended June 30, 2025 was primarily the result of payments on the revolver of $30.0 million, proceeds from the revolver of $35.0 million, payments on long-term debt of $24.7 million, proceeds from the exercise of stock options of $4.2 million, and taxes paid related to net share settlement of equity awards of $22.2 million. Net cash used in financing activities during the six months ended June 30, 2024 was primarily the result of payments on long-term debt of $1,802.1 million, proceeds from the issuance of long-term debt of $1,720.5 million, proceeds from the revolver of $40.0 million, debt issuance costs of $30.6 million, payments for call premiums of $34.3 million and taxes paid related to net share settlement of equity awards of $7.5 million.
Previous wording
We believe that by removing the impact of our asset base (primarily depreciation and amortization) and excluding certain non-cash charges, amounts spent on interest and taxes, and certain other charges that are highly variable from year to year, EBITDA and Adjusted
Current wording
We believe that by removing the impact of our asset base (primarily depreciation and amortization) and excluding certain non-cash charges, amounts spent on interest and taxes, and certain other charges that are highly variable from year to year, EBITDA and Adjusted EBITDA provide our investors with performance measures that reflect the impact to operations from trends in occupancy rates, per diem rates and operating costs, providing a perspective not immediately apparent from net income.
Previous wording
Our reconciliation of net income to EBITDA and Adjusted EBITDA for the three months ended March 31, 2025 and 2024 is as follows (in thousands):
Current wording
Our reconciliation of net income to EBITDA and Adjusted EBITDA for the three and six months ended June 30, 2025 and 2024 is as follows (in thousands):
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Rearranged current paragraphs (10)
Current report — wording carried from elsewhere
The number of compensated mandays in U.S. Secure Services facilities was approximately 8.3 million in Six Months 2025 compared to approximately 8.5 million in Six Months 2024. We look at the average occupancy in our facilities to determine how we are managing our available beds. The average occupancy is calculated by taking compensated mandays as a percentage of capacity. The average occupancy in our U.S. Secure Services facilities was approximately 88% of capacity in Six Months 2025 and Six Months 2024, excluding idle facilities.
Current report — wording carried from elsewhere
Revenues for Electronic Monitoring and Supervision Services decreased by $14.9 million in Six Months 2025 compared to Six Months 2024 primarily due to decreases in average participant counts under the Intensive Supervision and Appearance Program ("ISAP").
Current report — wording carried from elsewhere
Revenues for Reentry Services increased by $4.9 million in Six Months 2025 compared to Six Months 2024 primarily due to aggregate net increases of $7.4 million related to increased census levels at certain of our community-based and reentry centers due to increased programming needs and referrals due to new day reporting center contracts. These increases were partially offset by decreases due to contract terminations of $2.5 million.
Current report — wording carried from elsewhere
Operating expenses for U.S. Secure Services increased by $54.2 million in Six Months 2025 compared to Six Months 2024 primarily due to aggregate net increases in connection with labor and medical costs, transportation services, increased occupancies and additional staffing and training costs we continue to incur in preparation of expected future growth of $54.2 million. We also experienced an increase of approximately $14.8 million related to the activations of our new contracts at our company-owned Delaney Hall, North Lake and D. Ray James facilities. Partially offsetting these increases were decreases of approximately $14.8 million related to contract terminations.
Current report — wording carried from elsewhere
Operating expenses for Electronic Monitoring and Supervision Services decreased slightly in Six Months 2025 compared to Six Months 2024 primarily due to decreases in variable costs related to decreases in average participant counts under ISAP.
Current report — wording carried from elsewhere
Interest income decreased slightly in Six Months 2025 compared to Six Months 2024 primarily due to lower cash balances on hand domestically and internationally and the effect of foreign exchange rates.
Current report — wording carried from elsewhere
Interest expense decreased by $17.6 million in Six Months 2025 compared to Six Months 2024 primarily due to our Senior Notes Offering and new Term Loan under our new credit agreement that closed on April 18, 2024 which resulted in overall lower interest expense due to lower interest rates. We also retired the majority of our 6.50% Exchangeable Senior Notes due 2026 during 2024 and had lower overall principal balances compared to Six Months 2024.
Current report — wording carried from elsewhere
The provision for income taxes increased and the effective tax rate decreased in Six Months 2025 compared to Six Months 2024 principally due to pre-tax income compared to pre-tax losses, respectively. In Six Months 2025, there was a $4.5 million net discrete tax benefit as compared to a $5.1 million net discrete tax benefit in Six Months 2024. Included in the tax provision for income taxes in Six Months 2025 was a $4.5 million discrete tax benefit as compared to a $1.0 million discrete tax benefit in Six Months 2024 related to stock compensation that vested during the respective periods. Also included in the net discrete tax benefit in the Six Months 2024 was a $3.4 million discrete tax benefit from the interest deduction related to GEO shares provided to the holders of our 6.5% Exchangeable Senior Notes due 2026. We estimate our 2025 annual effective tax rate to be in the range of approximately 28% to 30%, exclusive of any discrete items.
Current report — wording carried from elsewhere
Equity in Earnings of Affiliates, net of Income Tax Provision
Current report — wording carried from elsewhere
Equity in earnings of affiliates, presented net of income tax provision, represents the earnings of SACS and GEOAmey in the aggregate. Equity in earnings of affiliates increased during Six Months 2025 compared to Six Months 2024 primarily due to favorable performance at SACS.
Rearranged previous paragraphs (2)
Previous report — wording carried elsewhere
Our debt outstanding under the Credit Agreement, the Secured Notes and the Unsecured Notes require cash expenditures for debt service. Our significant debt obligations could have material consequences. See “Risk Factors-Risks Related to Our High Level of
Previous report — wording carried elsewhere
EBITDA provide our investors with performance measures that reflect the impact to operations from trends in occupancy rates, per diem rates and operating costs, providing a perspective not immediately apparent from net income.