GEO GROUP INC
For the period ended Sep 30, 2026. Filed Nov 6, 2026.
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, 2026 · Filed Nov 6, 2026
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 2026-06-30; filed 2026-08-06.
0001193125-26-337932
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-11-06.
0001193125-26-451881
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 214 previous paragraphs and 223 current paragraphs.
137 unchanged; 59 reworded; 27 added; 13 removed; 5 previous and 0 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 (27)
Current report
Recent Developments
Current report
On October 2, 2026 we entered into a Purchase and Sale Agreement and closed on the sale of our Adelanto West, Adelanto East and Desert View ICE Processing Centers located in Adelanto, California to the United States of America and its assigns, by and through the Department of Homeland Security, for an aggregate gross sales price of $950 million. We will continue to provide support services under our existing contract with ICE for Adelanto East, Adelanto West, and Desert View, which has a full term effective through December 19, 2034, inclusive of the current term ending December 19, 2029 and a five-year option period. Refer to Note 15 - Subsequent Events of the Notes to Unaudited Consolidated Financial Statements in Part I, Item 1 of this Quarterly Report on Form 10-Q for further discussion.
Current report
Debt Transactions
Current report
On October 15, 2026 we completed the redemption of all of the $650 million in outstanding aggregate principal amount of our 8.625% Senior Secured Notes due 2029. On October 5, 2026, we entered into the Amended and Restated Credit Agreement to extend the maturity of our $550 million Revolving Credit Facility to July 14, 2031 and to increase our restricted payments capacity. Refer to Note 15 - Subsequent Events of the Notes to Unaudited Consolidated Financial Statements in Part I, Item 1 of this Quarterly Report on Form 10-Q for further discussion.
Current report
Comparison of Third Quarter 2026 and Third Quarter 2025
Current report
Revenues for Electronic Monitoring and Supervision Services increased in Third Quarter 2026 compared to Third Quarter 2025 by $1.3 million primarily due to $3.1 million under our new skip tracing contract which was offset by decreases in average participant counts under the Intensive Supervision and Appearance Program ("ISAP"). We also experienced a steady and favorable technology shift to more intensive and higher priced monitoring devices such as ankle monitors which partially offset the decrease in revenue due to decreased average participant counts.
Current report
Operating expenses for Electronic Monitoring and Supervision Services increased in Third Quarter 2026 compared to Third Quarter 2025 by $1.0 million primarily due to expenses related to our new skip tracing contract.
Current report
Operating expenses for Reentry Services increased by $3.5 million during Third Quarter 2026 compared to Third Quarter 2025 which was primarily due to increased programming needs and referrals as well as new day reporting centers.
Current report
Electronic Monitoring and Supervision Services depreciation and amortization expense decreased slightly in Third Quarter 2026 compared to Third Quarter 2025 primarily due to certain assets becoming fully depreciated.
Current report
Reentry Services depreciation and amortization expense decreased slightly in Third Quarter 2026 compared to Third Quarter 2025 primarily due to certain assets becoming fully depreciated.
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
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.
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
Comparison of Nine Months 2026 and Nine Months 2025
Current report
Revenues for Electronic Monitoring and Supervision Services decreased in Nine Months 2026 compared to Nine Months 2025 primarily due to a decrease in average participant counts under ISAP which was partially offset by an increase of $4.6 million under our new skip tracing contract. We also experienced a steady and favorable technology shift to more intensive and higher priced monitoring devices such as ankle monitors which partially offset the decrease in revenue due to decreased average participant counts.
Current report
Operating expenses for Electronic Monitoring and Supervision Services decreased slightly in Nine Months 2026 compared to Nine Months 2025 due to a decrease in average participant counts under ISAP which was partially offset by an increase of approximately $1.0 million related to our new skip tracing contract.
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
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.
Current report
(Loss) Gain on Asset Divestitures/Impairment
Current report
On October 2, 2026 we entered into a Purchase and Sale Agreement for the sales of our Adelanto West, Adelanto East and Desert View ICE Processing Centers located in Adelanto, California to the United States of America and its assigns, by and through the Department of Homeland Security, for an aggregate gross sales price of $950 million. We will continue to provide support services under our existing contract with ICE for Adelanto East, Adelanto West, and Desert View, which has a full term effective through December 19, 2034, inclusive of the current term ending December 19, 2029 and a five-year option period. Refer to Note 15 - Subsequent Events of the Notes to Unaudited Consolidated Financial Statements in Part I, Item 1 of this Quarterly Report on Form 10-Q for further discussion.
Current report
Debt Transactions
Current report
On October 15, 2026 we completed the redemption of all of the $650 million in outstanding aggregate principal amount of our 8.625% Senior Secured Notes due 2029. On October 5, 2026, we entered into the Amended and Restated Credit Agreement to extend the maturity of our $550 million Revolving Credit Facility to July 14, 2031 and to increase our restricted payments capacity. Refer to Note 15 - Subsequent Events of the Notes to Unaudited Consolidated Financial Statements in Part I, Item 1 of this Quarterly Report on Form 10-Q for further discussion.
Removed paragraphs (13)
Previous report
the value of the collateral may not be sufficient to satisfy our obligations under the Secured Notes;
Previous report
Comparison of Second Quarter 2026 and Second Quarter 2025
Previous report
Revenues for Electronic Monitoring and Supervision Services decreased in Second Quarter 2026 compared to Second Quarter 2025 primarily due to a decrease in average participant counts under the Intensive Supervision and Appearance Program ("ISAP").
Previous report
Operating expenses for Electronic Monitoring and Supervision Services decreased in Second Quarter 2026 compared to Second Quarter 2025 primarily due to a decrease in average participant counts under the Intensive Supervision and Appearance Program ("ISAP").
Previous report
Operating expenses for Reentry Services increased by $1.2 million during Second Quarter 2026 compared to Second Quarter 2025. We experienced an aggregate net increase of $3.0 million due to increased programming needs and referrals due to new day reporting center contracts which was partially offset by a decrease of $1.8 million due to contract terminations.
Previous report
Electronic Monitoring and Supervision Services depreciation and amortization expense decreased slightly in Second Quarter 2026 compared to Second Quarter 2025 primarily due to certain assets becoming fully depreciated.
Previous report
Reentry Services depreciation and amortization expense decreased slightly in Second Quarter 2026 compared to Second Quarter 2025 primarily due to certain assets becoming fully depreciated.
Previous report
Loss on Asset Divestitures/Impairment
Previous report
Comparison of Six Months 2026 and Six Months 2025
Previous report
Revenues for Electronic Monitoring and Supervision Services decreased in Six Months 2026 compared to Six Months 2025 primarily due to a decrease in average participant counts under the Intensive Supervision and Appearance Program ("ISAP").
Previous report
Operating expenses for Electronic Monitoring and Supervision Services decreased in Six Months 2026 compared to Six Months 2025 primarily due to a decrease in average participant counts under the Intensive Supervision and Appearance Program ("ISAP").
Previous report
Loss on Asset Divestitures/Impairment
Reworded paragraphs (59)
Previous wording
the covenants in the indentures governing the Secured Notes and the Unsecured Notes and the Credit Agreement impose significant operating and financial restrictions which may adversely affect our ability to operate our business;
Current wording
the covenants in the indentures governing the Unsecured Notes and the Amended and Restated Credit Agreement impose significant operating and financial restrictions which may adversely affect our ability to operate our business;
Previous wording
because portions of our senior indebtedness have floating interest rates, an increase in interest rates would adversely affect cash flows;
Current wording
because historically portions of our senior indebtedness have had floating interest rates, an increase in interest rates would adversely affect cash flows;
Previous wording
At June 30, 2026, our worldwide operations include the management and/or ownership of approximately 75,000 beds at 96 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, 2026, our worldwide operations include the management and/or ownership of approximately 76,000 beds at 97 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, 2026 and 2025, we had consolidated revenues of $1,437.3 million and $1,241.5 million, respectively. We maintained an average company-wide facility occupancy rate of approximately 91% including 68,245 active beds and excluding 6,646 idle beds, which includes those being marketed to potential customers, for the six months ended June 30, 2026, and 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.
Current wording
For the nine months ended September 30, 2026 and 2025, we had consolidated revenues of $2,198.3 million and $1,923.9 million, respectively. We maintained an average company-wide facility occupancy rate of approximately 92% including 70,707 active beds and excluding 5,205 idle beds, which includes those being marketed to potential customers, for the nine months ended September 30, 2026, and 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.
Previous wording
On July 29, 2026, we announced that we have entered into a five-year support services contract with U.S. Immigration and Customs Enforcement (“ICE”) for the activation of a federal immigration processing center at the company-owned 1,320-bed Rivers Facility (the “Rivers Facility”) in Winton, North Carolina. Our support services are expected to include the exclusive use of the Rivers 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 November 2, 2026, we announced that the City of Big Spring, Texas has entered into a 10-year intergovernmental service agreement with U.S. Immigration and Customs Enforcement (“ICE”) for the activation of a federal immigration processing center at our previously idled 2,329-bed Big Spring Complex in Texas (the “Big Spring Complex”), comprised of the 1,404-bed Flightline Facility and the 925-bed Cedar Hill Facility. We will provide support services at the Big Spring Complex, which are expected to include the exclusive use of the Facility by ICE, along with security, maintenance, and food services, as well as access to recreational amenities, medical care, and transportation services.
Previous wording
On July 13, 2026, we announced that we have entered into a five-year support services contract with ICE for the activation of a federal immigration processing center at the 1,188-bed Big Horn Facility (the “Big Horn Facility”) in Hudson, Colorado. We have entered into a lease agreement with the Big Horn Facility owner. Our support services are expected to include the exclusive use of the Big Horn 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 October 29, 2026, we announced that we have entered into a new 10-year management contract for the continued provision of support services at the GEO-owned 1,635-bed Northwest ICE Processing Center located in Tacoma, Washington. Support services at the Northwest ICE Processing Center are expected to include security, maintenance, and food services, as well as access to recreational amenities, medical care, and transportation services.
Previous wording
Our U.S. Secure Services segment primarily encompasses our U.S.-based public-private partnership secure services business. Our Electronic Monitoring and Supervision Services segment, which conducts its services in the U.S., consists of our electronic monitoring and supervision services. Our Reentry Services segment consists of various community-based and reentry services. Our
Current wording
Our U.S. Secure Services segment primarily encompasses our U.S.-based public-private partnership secure services business. Our Electronic Monitoring and Supervision Services segment, which conducts its services in the U.S., consists of our electronic monitoring and supervision services. Our Reentry Services segment consists of various community-based and reentry services. Our International Services segment primarily consists of our public-private partnership secure services operations in Australia and South Africa.
Previous 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 $188.1 million as of June 30, 2026, 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) 5,205 vacant beds at seven idle facilities to potential customers. The carrying values of these idle facilities totaled $150.1 million as of September 30, 2026, 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, 2026, 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, 2025.
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, 2026, we did not experience any significant changes in estimates or judgments inherent in the preparation of our consolidated financial statements. A summary of our critical accounting policies and estimates is contained in Management's Discussion and Analysis of Financial Condition and Results of Operations included in our Annual Report on Form 10-K for the year ended December 31, 2025.
Previous wording
Revenues for U.S. Secure Services increased by $78.8 million in the second quarter ended June 30, 2026 (the "Second Quarter 2026") compared to the second quarter ended June 30, 2025 (the "Second Quarter 2025") due to increases of $60.6 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 and new transportation contracts. There were also aggregate net increases of $35.0 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 $16.8 million related to contract terminations.
Current wording
Revenues for U.S. Secure Services increased by $60.4 million in the third quarter ended September 30, 2026 (the "Third Quarter 2026") compared to the third quarter ended September 30, 2025 (the "Third Quarter 2025") due to increases of $26.4 million related to the activations and ramp up 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 and new transportation contracts. There were also aggregate net increases of $37.2 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 $3.2 million related to contract terminations.
Previous wording
The number of compensated mandays in U.S. Secure Services facilities was approximately 4.4 million in Second Quarter 2026 compared to approximately 4.2 million in Second Quarter 2025. 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 91% and 88% of capacity in Second Quarter 2026 and Second Quarter 2025, respectively, excluding idle facilities.
Current wording
The number of compensated mandays in U.S. Secure Services facilities was approximately 4.6 million in Third Quarter 2026 compared to approximately 4.5 million in Third Quarter 2025. 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 94% and 90% of capacity in Third Quarter 2026 and Third Quarter 2025, respectively, excluding idle facilities.
Previous wording
Revenues for Reentry Services increased by $1.1 million in Second Quarter 2026 compared to Second Quarter 2025 primarily due to aggregate net increases of $3.5 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 $2.4 million.
Current wording
Revenues for Reentry Services increased by $1.6 million in Third Quarter 2026 compared to Third Quarter 2025 primarily due to aggregate net increases of $4.6 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 $3.0 million.
Previous wording
Revenues for International Services increased by $18.7 million in Second Quarter 2026 compared to Second Quarter 2025. We experienced a net increase of $12.6 million primarily due to new health care contracts and increased populations at our Australian subsidiary. We also experienced an increase due to foreign exchange rate fluctuations of $6.1 million.
Current wording
Revenues for International Services increased by $15.4 million in Third Quarter 2026 compared to Third Quarter 2025. We experienced a net increase of $20.4 million primarily due to new health care contracts and increased populations at our Australian subsidiary. This increase was partially offset by a decrease due to foreign exchange rate fluctuations of $5.0 million.
Previous wording
Operating expenses for U.S. Secure Services increased by $40.3 million in Second Quarter 2026 compared to Second Quarter 2025 primarily due to aggregate net increases in connection with labor and medical costs, transportation services, increased occupancies and additional staffing and training costs of $24.2 million. We also experienced an increase of approximately $29.6 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 and new transportation contracts. Partially offsetting these increases were decreases of approximately $13.5 million related to contract terminations.
Current wording
Operating expenses for U.S. Secure Services increased by $28.3 million in Third Quarter 2026 compared to Third Quarter 2025 primarily due to aggregate net increases in connection with labor and medical costs, transportation services, increased occupancies and additional staffing and training costs of $20.1 million. We also experienced an increase of approximately $17.4 million related to the activation and ramp up 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 and new transportation contracts. Partially offsetting these increases were decreases of approximately $9.2 million related to contract terminations.
Previous wording
Operating expenses for International Services increased in Second Quarter 2026 compared to Second Quarter 2025 by $15.1 million. We experienced an increase of $9.7 million primarily due to new health care contracts and increased populations at our Australian subsidiary. We also experienced an increase of $5.4 million related to foreign exchange rate fluctuations.
Current wording
Operating expenses for International Services increased in Third Quarter 2026 compared to Third Quarter 2025 by $10.7 million. We experienced an increase of $6.7 million primarily due to new health care contracts and increased populations at our Australian subsidiary. We also experienced an increase of $4.0 million related to foreign exchange rate fluctuations.
Previous wording
U.S. Secure Services depreciation and amortization expense increased in Second Quarter 2026 compared to Second Quarter 2025 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 2026 compared to Third Quarter 2025 primarily due to renovations at certain of our company-owned and leased facilities.
Previous wording
International Services depreciation and amortization expense increased slightly in Second Quarter 2026 compared to Second Quarter 2025 primarily due to certain asset additions.
Current wording
International Services depreciation and amortization expense increased slightly in Third Quarter 2026 compared to Third Quarter 2025 primarily due to certain asset additions.
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 $9.2 million in Second Quarter 2026 compared to Second Quarter 2025 primarily due to higher employee related benefit costs and support for the revenue growth from our new contract awards.
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 $10.0 million in Third Quarter 2026 compared to Third Quarter 2025 primarily due to higher employee related benefit costs and support for the revenue growth from our new contract awards.
Previous wording
Interest income increased by $0.8 million in Second Quarter 2026 compared to Second Quarter 2025 primarily due to higher cash balances on hand internationally and the effect of foreign exchange rates.
Current wording
Interest income decreased by $0.5 million in Third Quarter 2026 compared to Third Quarter 2025 primarily due to lower cash balances on hand internationally and the effect of foreign exchange rates.
Previous wording
Interest expense decreased by $3.4 million in Second Quarter 2026 compared to Second Quarter 2025 primarily due to lower overall principal balances and lower interest rates. 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
Current wording
Interest expense decreased slightly in Third Quarter 2026 compared to Third Quarter 2025 primarily due to lower overall principal balances and lower interest rates. 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 10-Q for further discussion.
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.
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.
Previous wording
The provision for income taxes increased in Second Quarter 2026 compared to Second Quarter 2025 principally due to an increase in pre-tax income. In Second Quarter 2026, there was a $0.5 million as compared to a $0.3 million net discrete tax benefit in Second Quarter 2025. Included in the discrete tax benefit in Second Quarter 2026 was $0.4 million as compared to a $0.3 million discrete tax benefit in Second Quarter 2025. We estimate our 2026 annual effective tax rate to be in the range of approximately 29% to 31%, exclusive of any discrete items.
Current wording
The provision for income taxes decreased in Third Quarter 2026 compared to Third Quarter 2025. In Third Quarter 2026, there was a $2.2 million net discrete tax benefit as compared to a $54.9 million net discrete tax expense in Third Quarter 2025. Included in the net discrete tax benefit in Third Quarter 2026 was a $0.4 million discrete tax benefit compared to no discrete tax impact in Third Quarter 2025 related to stock compensation that vested during the quarter. Included in the net discrete tax expense in the Third Quarter 2025 was a $56.4 million discrete tax expense related to the sale of our Lawton facility. We estimate our 2026 annual effective tax rate to be in the range of approximately 29% to 31%, 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 decreased slightly during Second Quarter 2026 compared to Second Quarter 2025 primarily due to less 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 2026 compared to Third Quarter 2025.
Previous wording
Revenues for U.S. Secure Services increased by $175.7 million in the six months ended June 30, 2026 (the "Six Months 2026") compared to the six months ended June 30, 2025 (the "Six Months 2025") due to increases of $144.0 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 and new transportation contracts. There were also aggregate net increases of $70.3 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 $38.6 million related to contract terminations.
Current wording
Revenues for U.S. Secure Services increased by $236.2 million in the nine months ended September 30, 2026 (the "Nine Months 2026") compared to the nine months ended September 30, 2025 (the "Nine Months 2025") due to increases of $168.9 million related to the activation and ramp up 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 and new transportation contracts. There were also aggregate net increases of $110.7 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 $43.4 million related to contract terminations.
Previous wording
The number of compensated mandays in U.S. Secure Services facilities was approximately 8.9 million in Six Months 2026 compared to approximately 8.3 million in Six Months 2025. 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 91% and 88% of capacity in Six Months 2026 and Six Months 2025, respectively, excluding idle facilities.
Current wording
The number of compensated mandays in U.S. Secure Services facilities was approximately 13.6 million in Nine Months 2026 compared to approximately 12.7 million in Nine Months 2025. 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 93% and 88% of capacity in Nine Months 2026 and Nine Months 2025, respectively, excluding idle facilities.
Previous wording
Revenues for Reentry Services increased by $2.0 million in Six Months 2026 compared to Six Months 2025 primarily due to aggregate net increases of $6.0 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 $4.0 million.
Current wording
Revenues for Reentry Services increased by $3.6 million in Nine Months 2026 compared to Nine Months 2025 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. These increases were partially offset by decreases due to contract terminations of $7.0 million.
Previous wording
Revenues for International Services increased by $24.3 million in Six Months 2026 compared to Six Months 2025. We experienced a net increase of $12.5 million primarily due to new health care contracts and increased populations at our Australian subsidiary. We also experienced an increase due to foreign exchange rate fluctuations of $11.8 million.
Current wording
Revenues for International Services increased by $39.6 million in Nine Months 2026 compared to Nine Months 2025. We experienced a net increase of $57.7 million primarily due to new health care contracts and increased populations at our Australian subsidiary. This increase was partially offset by a decrease due to foreign exchange rate fluctuations of $18.1 million.
Previous wording
Operating expenses for U.S. Secure Services increased by $104.0 million in Six Months 2026 compared to Six Months 2025 primarily due to aggregate net increases in connection with labor and medical costs, transportation services, increased occupancies and additional staffing and training costs of $78.1 million. We also experienced an increase of approximately $59.6 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 and new transportation contracts. Partially offsetting these increases were decreases of approximately $33.7 million related to contract terminations.
Current wording
Operating expenses for U.S. Secure Services increased by $132.3 million in Nine Months 2026 compared to Nine Months 2025 primarily due to aggregate net increases in connection with labor and medical costs, transportation services, increased occupancies and additional staffing and training costs of $94.2 million. We also experienced an increase of approximately $86.4 million related to the activation and ramp up 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 and new transportation contracts. Partially offsetting these increases were decreases of approximately $48.3 million related to contract terminations.
Previous wording
Operating expenses for Reentry Services increased by $2.8 million during Six Months 2026 compared to Six Months 2025. We experienced an aggregate net increase of $5.9 million due to increased programming needs and referrals due to new day reporting center contracts which was partially offset by a decrease of $3.1 million due to contract terminations.
Current wording
Operating expenses for Reentry Services increased by $6.2 million during Nine Months 2026 compared to Nine Months 2025. We experienced an aggregate net increase of $7.4 million due to increased programming needs and referrals due to new day reporting center contracts which was partially offset by a decrease of $1.2 million due to contract terminations.
Previous wording
Operating expenses for International Services increased in Six Months 2026 compared to Six Months 2025 by $16.8 million. We experienced an increase of $6.6 million primarily due to new health care contracts and increased populations at our Australian subsidiary. We also experienced an increase of $10.2 million related to foreign exchange rate fluctuations.
Current wording
Operating expenses for International Services increased in Nine Months 2026 compared to Nine Months 2025 by $27.4 million. We experienced an increase of $13.3 million primarily due to new health care contracts and increased populations at our Australian subsidiary. We also experienced an increase of $14.1 million related to foreign exchange rate fluctuations.
Previous wording
U.S. Secure Services depreciation and amortization expense increased in Six Months 2026 compared to Six Months 2025 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 2026 compared to Nine Months 2025 primarily due to renovations at certain of our company-owned and leased facilities.
Previous wording
Electronic Monitoring and Supervision Services depreciation and amortization expense increased slightly in Six Months 2026 compared to Six Months 2025 primarily due to equipment additions.
Current wording
Electronic Monitoring and Supervision Services depreciation and amortization expense increased slightly in Nine Months 2026 compared to Nine Months 2025 primarily due to equipment additions.
Previous wording
Reentry Services depreciation and amortization expense decreased in Six Months 2026 compared to Six Months 2025 primarily due to certain assets becoming fully depreciated.
Current wording
Reentry Services depreciation and amortization expense decreased in Nine Months 2026 compared to Nine Months 2025 primarily due to certain assets becoming fully depreciated.
Previous wording
International Services depreciation and amortization expense increased slightly in Six Months 2026 compared to Six Months 2025 primarily due to certain asset additions.
Current wording
International Services depreciation and amortization expense increased slightly in Nine Months 2026 compared to Nine Months 2025 primarily due to certain asset additions.
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 $12.1 million in Six Months 2026 compared to Six Months 2025 primarily due to higher employee related benefit costs and support for the revenue growth from our new contract awards.
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 $22.1 million in Nine Months 2026 compared to Nine Months 2025 primarily due to higher employee related benefit costs and support for the revenue growth from our new contract awards.
Previous wording
Interest income increased by $0.4 million in Six Months 2026 compared to Six Months 2025 primarily due to higher cash balances on hand internationally and the effect of foreign exchange rates.
Current wording
Interest income decreased slightly in Nine Months 2026 compared to Nine Months 2025 primarily due to lower cash balances on hand internationally and the effect of foreign exchange rates.
Previous wording
Interest expense decreased by $7.5 million in Six Months 2026 compared to Six Months 2025 primarily due to lower overall principal balances and lower interest rates. 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 10-Q for further discussion.
Current wording
Interest expense decreased by $7.6 million in Nine Months 2026 compared to Nine Months 2025 primarily due to lower overall principal balances and lower interest rates. 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 10-Q 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.
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.
Previous wording
In Six Months 2026, we received a sale contract for two buildings in Pennsylvania and a sale contract for a parcel of land located in Illinois that were less than their carrying values which resulted in an impairment charge. We also experienced a loss on assets divested in connection with certain closed day reporting centers.
Current wording
In Nine Months 2026, we received a sale contract for two buildings in Pennsylvania and a sale contract for a parcel of land located in Illinois that were less than their carrying values which resulted in an impairment charge. We also experienced a loss on assets divested in connection with certain closed day reporting centers. In 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.
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.
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Previous report — wording carried elsewhere
International Services segment primarily consists of our public-private partnership secure services operations in Australia and South Africa.
Previous report — wording carried elsewhere
Note 10 - Debt of the Notes to Unaudited Consolidated Financial Statements in Part I, Item 1 of this Quarterly Report on Form 10-Q for further discussion.
Previous report — wording carried elsewhere
In Second Quarter 2026, we received a sale contract for two buildings in Pennsylvania and a sale contract for a parcel of land located in Illinois that were less than their carrying values which resulted in an impairment charge. We also experienced a loss on assets divested in connection with certain closed day reporting centers.
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
Agreement. A substantial decline in our financial performance could limit our access to capital pursuant to these covenants and have a material adverse effect on our liquidity and capital resources and, as a result, on our financial condition and results of operations. In addition to these foregoing potential constraints on our capital, and including the impact of the federal government shutdown, that ended on April 30, 2026, a number of state government agencies have been suffering from budget deficits and liquidity issues. While we were in compliance with our debt covenants as of June 30, 2026 and we expect to continue to be in compliance with our debt covenants, if these constraints were to intensify, our liquidity could be materially adversely impacted as could our ability to remain in compliance with these debt covenants.