GEO GROUP INC
For the period ended Sep 30, 2025. Filed Nov 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.
Sep 30, 2025 · Filed Nov 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 2025-06-30; filed 2025-08-06.
0000950170-25-104173
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSCurrent report: 10-Q
Period ended 2025-09-30; filed 2025-11-06.
0001193125-25-269401
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 235 previous paragraphs and 235 current paragraphs.
147 unchanged; 62 reworded; 25 added; 23 removed; 3 previous and 1 current paragraphs rearranged.
Tables are not compared: 23 previous and 24 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 (25)
Current report
any adverse impact on our financial results caused by the federal government shutdown;
Current report
We entered into a two-year contract with ICE for the continued provision of electronic monitoring, case management and supervision services under the Intensive Supervision and Appearance Program ("ISAP"). The contract has an initial term of one-year, effective October 1, 2025, with an additional one-year option period.
Current report
The Florida Department of Corrections has issued Notices of Intent to Award three managed-only contracts to GEO for the assumption of management and support services at the 985-bed Bay Correctional and Rehabilitation Facility and the 1,884-bed Graceville Correctional and Rehabilitation Facility and for the continuation of management and support services at the 985-bed Moore Haven Correctional and Rehabilitation Facility. The three contracts are expected to have an initial term of three years, effective July 1, 2026, with unlimited two-year renewal option periods
Current report
On August 28, 2025, we entered into an agreement with another contractor to form an entity to provide management services for the State of Florida at the state-owned 1,310-bed North Florida Detention Facility in Baker County, Florida.
Current report
Comparison of Third Quarter 2025 and Third Quarter 2024
Current report
The average occupancy in our U.S. Secure Services facilities was approximately 90% and 88% of capacity in Third Quarter 2025 and Third Quarter 2024, respectively, excluding idle facilities.
Current report
Operating expenses for Reentry Services decreased by $3.5 million during Third Quarter 2025 compared to Third Quarter 2024. We experienced a decrease of $5.4 million due to contract terminations which was partially offset by aggregate net increases of $1.9 million due to increased programming needs and referrals due to new day reporting center contracts.
Current report
Electronic Monitoring and Supervision Services depreciation and amortization expense increased in Third Quarter 2025 compared to Third Quarter 2024 primarily due to increases in monitoring equipment.
Current report
International Services depreciation and amortization expense was relatively consistent in Third Quarter 2025 compared to Third Quarter 2024.
Current report
Contingent Litigation Reserve
Current report
During Third Quarter 2025, we incurred a non-cash contingent litigation reserve of $37.6 million in connection with a legal case in the State of Washington. The plaintiffs claim that State of Washington minimum wage laws should be enforced with respect to detainees who volunteer to participate in a VWP administered by GEO at the Northwest ICE Processing Center (the "Center") as required by the U.S. Department of Homeland Security under the terms of GEO’s contract. We believe that we operate the voluntary work program in full compliance with our contract with ICE and all applicable laws, regulations and standards.
Current report
The United States Department of Justice through the Office of the Solicitor General, under both the Biden and Trump administrations, has also strongly supported GEO regarding this case and have filed Statements of Interest and Amicus Briefs in support of GEO. No other Company has ever been successfully required to pay the state minimum wage to volunteer detainees in an ICE facility. As such, we strongly dispute this claim and will be filing a Petition for Writ of Certiorari to the United States Supreme Court in due course. We are also in active discussions with both the Department of Justice and Department of Homeland Security on securing their amicus support for our Petition for Writ of Certiorari to the Supreme Court.
Current report
Interest expense decreased by $7.3 million in Third Quarter 2025 compared to Third Quarter 2024. On July 14, 2025, we amended our Credit Agreement which increased our borrowing capacity and lowered the applicable interest rate. We also paid off our Term Loan under the credit agreement in July 2025. 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
Gain on Asset Divestitures
Current report
During Third Quarter 2025, we experienced a gain on asset divestitures of approximately $232.4 million related to the sale of our company-owned 2,388-bed Lawton Correctional Facility located in Lawton Oklahoma to the State of Oklahoma. Also included in the gain is the sale of our company-owned and previously idled 139-bed Hector Garza Center in San Antonio, Texas.
Current report
Income Tax Provision
Current report
Comparison of Nine Months 2025 and Nine Months 2024
Current report
Electronic Monitoring and Supervision Services depreciation and amortization expense was relatively consistent in Nine Months 2025 compared to Nine Months 2024.
Current report
Reentry Services depreciation and amortization expense was relatively consistent in Nine Months 2025 compared to Nine Months 2024.
Current report
International Services depreciation and amortization expense was relatively consistent in Nine Months 2025 compared to Nine Month 2024.
Current report
Contingent Litigation Reserve
Current report
During Nine Months 2025, we incurred a non-cash contingent litigation reserve of $37.6 million in connection with a legal case in the State of Washington. The plaintiffs claim that State of Washington minimum wage laws should be enforced with respect to detainees who volunteer to participate in a VWP administered by GEO at the Northwest ICE Processing Center (the "Center") as required by the U.S. Department of Homeland Security under the terms of GEO’s contract. We believe that we operate the voluntary work program in full compliance with our contract with ICE and all applicable laws, regulations and standards.
Current report
The United States Department of Justice through the Office of the Solicitor General, under both the Biden and Trump administrations, has also strongly supported GEO regarding this case and have filed Statements of Interest and Amicus Briefs in support of GEO. No other Company has ever been successfully required to pay the state minimum wage to volunteer detainees in an ICE facility. As such, we strongly dispute this claim and will be filing a Petition for Writ of Certiorari to the United States Supreme Court in due course. We are also in active discussions with both the Department of Justice and Department of Homeland Security on securing their amicus support for our Petition for Writ of Certiorari to the Supreme Court.
Current report
Gain (Loss) on Asset Divestitures/Impairment
Current report
Asset Sale and Term Loan Payoff
Removed paragraphs (23)
Previous report
On July 31, 2025, we entered into a 30-day interim agreement with ICE to extend our ISAP contract through August 31, 2025.
Previous 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.
Previous 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.
Previous report
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 report
Asset Sale
Previous report
Asset Purchase
Previous 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.
Previous 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.
Previous 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.
Previous 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.
Previous report
Comparison of Second Quarter 2025 and Second Quarter 2024
Previous 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.
Previous report
Electronic Monitoring and Supervision Services depreciation and amortization expense was relatively consistent in Second Quarter 2025 compared to Second Quarter 2024.
Previous report
International Services depreciation and amortization expense was relatively consistent in Second Quarter 2025 compared to Second Quarter 2024.
Previous report
Loss on Asset Divestitures/Impairment
Previous report
Comparison of Six Months 2025 and Six Months 2024
Previous report
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 report
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 report
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 report
Other Income
Previous report
Loss on Asset Divestitures/Impairment
Previous report
Income Tax Provision (Benefit)
Previous report
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 on our indebtedness.
Reworded paragraphs (62)
Previous 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;
Current wording
the risks associated with the U.S. Supreme Court agreeing to hear our appeal in the Nwauzor case and our ability to prevail on the merits, our company being required to record an additional 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
our ability to implement the Share Repurchase Program on the anticipated timeline, or at all;
Current wording
our ability to execute on the Share Repurchase Program on the anticipated timeline;
Previous wording
At June 30, 2025, our worldwide operations include the management and/or ownership of approximately 77,000 beds at 98 secure services and community based facilities, including idle facilities, and also include the provision of community supervision services for individuals through an array of technology products including radio frequency, GPS, and alcohol monitoring devices.
Current wording
At September 30, 2025, our worldwide operations include the management and/or ownership of approximately 75,000 beds at 95 secure services and community based facilities, including idle facilities, and also include the provision of community supervision services for individuals through an array of technology products including radio frequency, GPS, and alcohol monitoring devices.
Previous 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.
Current wording
For the nine months ended September 30, 2025 and 2024, we had consolidated revenues of $1,923.9 million and $1,816.0 million, respectively. We maintained an average company-wide facility occupancy rate of approximately 89% including 68,157 active beds and excluding 6,646 idle beds, which includes those being marketed to potential customers, for the nine months ended September 30, 2025, and approximately 88% including 68,004 active beds and excluding 11,275 idle beds, which includes those being marketed to potential customers, for the nine months ended September 30, 2024.
Previous 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.
Current wording
We are currently marketing (or awaiting activation) 6,646 vacant beds at eight idle facilities to potential customers. The carrying values of these idle facilities totaled $181.1 million as of September 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 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.
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 nine months ended September 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 $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.
Current wording
Revenues for U.S. Secure Services increased by $80.7 million in the third quarter ended September 30, 2025 (the "Third Quarter 2025") compared to the third quarter ended September 30, 2024 (the "Third Quarter 2024") due to increases of $55.8 million related to the activations of our new contracts at our company-owned Delaney Hall, North Lake and D. Ray James facilities as well as our managed-only contract at the North Florida Detention Center. There were also aggregate net increases of $42.4 million due to increases in occupancies, transportation, rates and/or per diem amounts in connection with contract modifications. Partially offsetting these increases were decreases of approximately $17.5 million related to contract terminations.
Previous 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.
Current wording
The number of compensated mandays in U.S. Secure Services facilities was approximately 4.5 million in Third Quarter 2025 compared to approximately 4.2 million in Third 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.
Previous 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").
Current wording
Revenues for Electronic Monitoring and Supervision Services increased slightly in Third Quarter 2025 compared to Third Quarter 2024 primarily due to a slight increase in average participant counts under the Intensive Supervision and Appearance Program ("ISAP").
Previous 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.
Current wording
Revenues for Reentry Services increased by $2.5 million in Third Quarter 2025 compared to Third Quarter 2024 primarily due to aggregate net increases of $3.3 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 $0.8 million.
Previous 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.
Current wording
Revenues for International Services decreased by $4.5 million in Third Quarter 2025 compared to Third Quarter 2024. We experienced a net decrease of $5.4 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 $0.9 million.
Previous 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.
Current wording
Operating expenses for U.S. Secure Services increased by $76.4 million in Third Quarter 2025 compared to Third 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 $54.1 million. We also experienced an increase of approximately $32.2 million related to the activations of our new contracts at our company-owned Delaney Hall, North Lake and D. Ray James facilities as well as our managed-only contract at the North Florida Detention Center. Partially offsetting these increases were decreases of approximately $9.9 million related to contract terminations.
Previous 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.
Current wording
Operating expenses for Electronic Monitoring and Supervision Services decreased slightly in Third Quarter 2025 compared to Third 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 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.
Current wording
Operating expenses for International Services decreased in Third Quarter 2025 compared to Third Quarter 2024 by $5.3 million. We experienced a net decrease of $4.5 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 $0.8 million related to foreign exchange rate fluctuations.
Previous 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.
Current wording
U.S. Secure Services depreciation and amortization expense increased in Third Quarter 2025 compared to Third Quarter 2024 primarily due to renovations at certain of our company-owned and leased facilities.
Previous wording
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 wording
Reentry Services depreciation and amortization expense increased slightly in Third Quarter 2025 compared to Third Quarter 2024 primarily due to renovations at certain of our company-owned centers.
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 $4.0 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.
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 $15.0 million in Third Quarter 2025 compared to Third Quarter 2024 primarily due to the reorganization of our senior management team at the end of 2024, higher employee related benefit costs and support for the revenue growth from our new contract awards.
Previous wording
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 wording
Refer to Note 11 - Commitments, Contingencies and Other Matters of the Notes to Unaudited Consolidated Financial Statements in Part I, Item 1 of this Quarterly Report on Form 10Q for further information.
Previous 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.
Current wording
Interest income decreased by $0.6 million in Third Quarter 2025 compared to Third Quarter 2024 primarily due to lower cash balances on hand internationally and the effect of foreign exchange rates.
Previous 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.
Current wording
During Third Quarter 2025, we paid off our Term Loan under our Credit Agreement. In connection with the repayment, we wrote off the related deferred financing costs and paid call premiums. During Third Quarter 2024, we wrote off deferred financing costs in connection with mandatory payments made on our Term Loan. 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 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.
Current wording
The provision for income taxes increased and the effective tax rate decreased in Third Quarter 2025 compared to Third Quarter 2024 principally due to significant discrete tax expenses and an increase in pre-tax income. In Third Quarter 2025, there was a $54.9 million net discrete tax expense as compared to a $0.3 million net discrete tax benefit in Third Quarter 2024. In the Third Quarter 2025 and Third Quarter 2024 there was no discrete tax expense or benefit related to stock compensation that vested during the respective quarters. Included in the net discrete tax expense for Third Quarter 2025 was a $56.4 million discrete tax expense related to the sale of our Lawton Facility. We estimate our 2025 annual effective tax rate to be in the range of approximately 29% to 31%, exclusive of any discrete items.
Previous wording
On July 4, 2025, the 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 wording
On July 4, 2025, the OBBBA was enacted. 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 evaluating the OBBBA enacted during the quarter and estimates its impact on the consolidated financial statements to be immaterial. We will continue to evaluate the full impact of these legislative changes as additional guidance becomes available.
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 Second Quarter 2025 compared to Second Quarter 2024 primarily due to favorable performance at SACS.
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 was relatively consistent during Third Quarter 2025 compared to Third Quarter 2024.
Previous wording
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 wording
Revenues for U.S. Secure Services increased by $125.1 million in the nine months ended September 30, 2025 (the "Nine Months 2025") compared to the nine months ended September 30, 2024 (the "Nine Months 2024") due to aggregate net increases of $76.0 million related to the activations of our new contracts at our company-owned Delaney Hall, North Lake and D. Ray James facilities as well as our managed-only contract at the North Florida Detention Center. We also experienced an aggregate net increase of $82.0 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 $32.9 million related to contract terminations.
Previous wording
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 wording
The number of compensated mandays in U.S. Secure Services facilities was approximately 12.7 million in each of Nine Months 2025 and Nine 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 Nine Months 2025 and Nine Months 2024, excluding idle facilities.
Previous wording
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 wording
Revenues for Electronic Monitoring and Supervision Services decreased by $14.4 million in Nine Months 2025 compared to Nine Months 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 $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 wording
Revenues for Reentry Services increased by $7.4 million in Nine Months 2025 compared to Nine Months 2024 primarily due to aggregate net increases of $10.6 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 $3.2 million.
Previous wording
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 wording
Revenues for International Services decreased by $10.2 million in Nine Months 2025 compared to Nine Months 2024. We experienced a net decrease of $14.2 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. Partially offsetting this decrease was an increase due to foreign exchange rate fluctuations of $4.0 million.
Previous wording
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 wording
Operating expenses for U.S. Secure Services increased by $130.6 million in Nine Months 2025 compared to Nine 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 $101.2 million. We also experienced an increase of approximately $47.0 million related to the activations of our new contracts at our company-owned Delaney Hall, North Lake and D. Ray James facilities as well as our managed-only contract at the North Florida Detention Center. Partially offsetting these increases were decreases of approximately $17.6 million related to contract terminations.
Previous wording
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 wording
Operating expenses for Electronic Monitoring and Supervision Services decreased slightly in Nine Months 2025 compared to Nine Months 2024 primarily due to decreases in variable costs related to decreases in average participant counts under ISAP.
Previous 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.
Current wording
Operating expenses for Reentry Services decreased by $4.3 million during Nine Months 2025 compared to Nine Months 2024 primarily due to an aggregate net decrease of $8.2 million due to contract terminations. Partially offsetting this decrease were aggregate net increases of $3.9 million related to increased census levels at certain of our community-based and reentry centers and the associated variable costs.
Previous wording
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 wording
Operating expenses for International Services decreased in Nine Months 2025 compared to Nine Months 2024 by $13.9 million. We experienced a net decrease of $10.3 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 $3.6 million related to foreign exchange rate fluctuations.
Previous wording
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 wording
U.S. Secure Services depreciation and amortization expense increased in Nine Months 2025 compared to Nine Months 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 $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 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 $23.8 million in Nine Months 2025 compared to Nine Months 2024 primarily due to the reorganization of our senior management team at the end of 2024, higher employee related benefit costs and support for the revenue growth from our new contract awards.
Previous wording
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 wording
Interest income decreased slightly in Nine Months 2025 compared to Nine Months 2024 primarily due to lower cash balances on hand internationally and the effect of foreign exchange rates.
Previous wording
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 wording
Interest expense decreased by $24.9 million in Nine Months 2025 compared to Nine 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 Nine Months 2024. Additionally, on July 14, 2025, we amended our Credit Agreement which increased our borrowing capacity and lowered the applicable interest rate. Lastly we paid off our Term Loan under the credit agreement in July 2025. 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
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 wording
During Nine Months 2025, we paid off our Term Loan under our Credit Agreement In connection with the repayment, we wrote off the related deferred financing costs and paid call premiums. During Nine Months 2024, we completed a Senior Note Offering which resulted in a loss on extinguishment of debt of approximately $85.3 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
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 wording
In Nine 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.
Previous wording
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 wording
During Nine Months 2025, we experienced a gain on asset divestitures of approximately $232.4 million related to the sale of our company-owned 2,388-bed Lawton Correctional Facility located in Lawton Oklahoma to the State of Oklahoma. Also included in the gain is the sale of our company-owned and previously idled 139-bed Hector Garza Center in San Antonio, Texas. During Nine 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.
Previous wording
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 wording
The provision for income taxes and the effective tax rate increased in Nine Months 2025 compared to Nine Months 2024 principally due to significant discrete tax expenses and pre-tax income compared to pre-tax losses, respectively. In Nine Months 2025, there was a $50.5 million net discrete tax expense as compared to a $5.4 million net discrete tax benefit in Nine Months 2024. Included in the tax provision for income taxes in Nine Months 2025 was a $4.5 million discrete tax benefit as compared to a $1.0 million discrete tax benefit in Nine Months 2024 related to stock compensation that vested during the respective periods. Also included in the net discrete tax expense in the Nine Months 2025 was a $56.4 million discrete tax expense related to the sale of our Lawton Facility and in the Nine Months 2024 was a $3.5 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 29% to 31%, exclusive of any discrete items.
Showing the first 40 of 62 pairs. Open the source sections for the rest.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
Refer to Note 11 - Commitments, Contingencies and Other Matters of the Notes to Unaudited Consolidated Financial Statements in Part I, Item 1 of this Quarterly Report on Form 10Q for further information.
Rearranged previous paragraphs (3)
Previous report — wording carried elsewhere
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 report — wording carried elsewhere
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.
Previous report — wording carried elsewhere
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.