v3.26.3
Shareholders' Equity
 9 Months Ended
Sep. 30, 2026
Equity [Abstract]  
Shareholders' Equity

6. SHAREHOLDERS’ EQUITY

The following tables present the changes in shareholders’ equity that are attributable to the Company’s shareholders and to noncontrolling interests for the three and nine months ended September 30, 2026 and 2025 (in thousands):

 

 

 

Common shares

 

 

Additional
Paid-In

 

 

 

 

 

Accumulated
Other
Comprehensive

 

 

Treasury shares

 

 

Noncontrolling

 

 

Total
Shareholders'

 

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Retained Earnings

 

 

Loss

 

 

Shares

 

 

Amount

 

 

Interests

 

 

Equity

 

For the Three Months Ended
   September 30, 2026

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, July 1, 2026

 

 

132,285

 

 

$

1,424

 

 

$

1,328,660

 

 

$

380,089

 

 

$

(15,983

)

 

 

10,098

 

 

$

(177,755

)

 

$

(1,755

)

 

$

1,514,680

 

Proceeds from exercise
   of stock options

 

 

123

 

 

 

1

 

 

 

2,017

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

2,018

 

Stock-based compensation
   expense

 

 

—

 

 

 

—

 

 

 

5,002

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

5,002

 

Restricted stock canceled

 

 

(31

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Shares withheld for net
   settlements of share-
   based awards [1]

 

 

(9

)

 

 

—

 

 

 

(271

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(271

)

Issuance of common
   stock - ESPP

 

 

1

 

 

 

—

 

 

 

38

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

38

 

Net income

 

 

—

 

 

 

—

 

 

 

—

 

 

 

49,214

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(11

)

 

 

49,203

 

Other comprehensive income (loss)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

13

 

 

 

—

 

 

 

—

 

 

 

(1

)

 

 

12

 

Balance, September 30, 2026

 

 

132,369

 

 

$

1,425

 

 

$

1,335,446

 

 

$

429,303

 

 

$

(15,970

)

 

 

10,098

 

 

$

(177,755

)

 

$

(1,767

)

 

$

1,570,682

 

 

 

 

 

Common shares

 

 

Additional
Paid-In

 

 

 

 

 

Accumulated
Other
Comprehensive

 

 

Treasury shares

 

 

Noncontrolling

 

 

Total
Shareholders'

 

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Retained Earnings (Accumulated Deficit)

 

 

Loss

 

 

Shares

 

 

Amount

 

 

Interests

 

 

Equity

 

For the Three Months Ended
   September 30, 2025

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, July 1, 2025

 

 

141,245

 

 

$

1,413

 

 

$

1,309,317

 

 

$

88,546

 

 

$

(16,254

)

 

 

—

 

 

$

—

 

 

$

(1,602

)

 

$

1,381,420

 

Proceeds from exercise of
   stock options

 

 

19

 

 

 

—

 

 

 

222

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

222

 

Stock-based compensation
   expense

 

 

—

 

 

 

—

 

 

 

7,627

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

7,627

 

Restricted stock canceled

 

 

(12

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

-

 

Shares withheld for net
   settlements of share-
   based awards [1]

 

 

(91

)

 

 

(1

)

 

 

(2,253

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(2,254

)

Purchase of treasury shares [2]

 

 

(1,967

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,967

 

 

 

(41,630

)

 

 

—

 

 

 

(41,630

)

Issuance of common
   stock - ESPP

 

 

2

 

 

 

—

 

 

 

40

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

40

 

Net income

 

 

—

 

 

 

—

 

 

 

—

 

 

 

173,940

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(18

)

 

 

173,922

 

Other comprehensive income (loss)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

649

 

 

 

—

 

 

 

—

 

 

 

(16

)

 

 

633

 

Balance, September 30, 2025

 

 

139,196

 

 

$

1,412

 

 

$

1,314,953

 

 

$

262,486

 

 

$

(15,605

)

 

 

1,967

 

 

$

(41,630

)

 

$

(1,636

)

 

$

1,519,980

 

 

 

 

 

 

 

Common shares

 

 

Additional
Paid-In

 

 

 

 

 

Accumulated
Other
Comprehensive

 

 

Treasury shares

 

 

Noncontrolling

 

 

Total
Shareholders'

 

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Retained Earnings

 

 

Loss

 

 

Shares

 

 

Amount

 

 

Interests

 

 

Equity

 

For the Nine Months Ended
   September 30, 2026

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance January 1, 2026

 

 

136,243

 

 

$

1,412

 

 

$

1,319,135

 

 

$

294,252

 

 

$

(17,972

)

 

 

4,939

 

 

$

(91,021

)

 

$

(1,672

)

 

$

1,504,134

 

Proceeds from exercise of
   stock options

 

 

376

 

 

 

4

 

 

 

5,029

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

5,033

 

Stock-based compensation
   expense

 

 

—

 

 

 

—

 

 

 

17,691

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

17,691

 

Restricted stock granted

 

 

1,527

 

 

 

15

 

 

 

(15

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Restricted stock canceled

 

 

(198

)

 

 

(2

)

 

 

2

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Shares withheld for net
   settlements of share-
   based awards [1]

 

 

(426

)

 

 

(4

)

 

 

(6,515

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(6,519

)

Issuance of common
   stock - ESPP

 

 

6

 

 

 

—

 

 

 

119

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

119

 

Purchase of treasury shares [2]

 

 

(5,159

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

5,159

 

 

 

(86,734

)

 

 

—

 

 

 

(86,734

)

Net income

 

 

—

 

 

 

—

 

 

 

—

 

 

 

135,051

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(82

)

 

 

134,969

 

Other comprehensive income (loss)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

2,002

 

 

 

—

 

 

 

—

 

 

 

(13

)

 

 

1,989

 

Balance, September 30, 2026

 

 

132,369

 

 

$

1,425

 

 

$

1,335,446

 

 

$

429,303

 

 

$

(15,970

)

 

 

10,098

 

 

$

(177,755

)

 

$

(1,767

)

 

$

1,570,682

 

 

 

 

Common shares

 

 

Additional
Paid-In

 

 

 

 

 

Accumulated
Other
Comprehensive

 

 

Treasury shares

 

 

Noncontrolling

 

 

Total
Shareholders'

 

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Retained Earnings (Accumulated Deficit)

 

 

Loss

 

 

Shares

 

 

Amount

 

 

Interests

 

 

Equity

 

For the Nine Months Ended
   September 30, 2025

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, January 1, 2025

 

 

140,181

 

 

$

1,402

 

 

$

1,315,256

 

 

$

39,880

 

 

$

(21,602

)

 

 

—

 

 

$

—

 

 

$

(1,522

)

 

$

1,333,414

 

Proceeds from exercise
   of stock options

 

 

293

 

 

 

3

 

 

 

4,387

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

4,390

 

Stock-based compensation
   expense

 

 

—

 

 

 

—

 

 

 

19,621

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

19,621

 

Restricted stock granted

 

 

1,827

 

 

 

18

 

 

 

(18

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

-

 

Restricted stock canceled

 

 

(146

)

 

 

(1

)

 

 

1

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

-

 

Shares withheld for net
   settlements of share-
   based awards [1]

 

 

(997

)

 

 

(10

)

 

 

(24,421

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(24,431

)

Purchase of treasury shares [2]

 

 

(1,967

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,967

 

 

 

(41,630

)

 

 

—

 

 

 

(41,630

)

Issuance of common
   stock - ESPP

 

 

5

 

 

 

—

 

 

 

127

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

127

 

Net income

 

 

—

 

 

 

—

 

 

 

—

 

 

 

222,606

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(68

)

 

 

222,538

 

Other comprehensive
   income (loss)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

5,997

 

 

 

—

 

 

 

—

 

 

 

(46

)

 

 

5,951

 

Balance, September 30, 2025

 

 

139,196

 

 

$

1,412

 

 

$

1,314,953

 

 

$

262,486

 

 

$

(15,605

)

 

 

1,967

 

 

$

(41,630

)

 

$

(1,636

)

 

$

1,519,980

 

 

[1] The Company withheld shares through net settlements to satisfy statutory tax withholding requirements upon the vesting of shares

of restricted stock held by employees.

 

[2] During the nine months ended September 30, 2026 and 2025, the Company repurchased 5,158,349 and 1,966,779 shares of its

common stock in the open market, respectively

 

 

Share Repurchase Program

 

On August 4, 2025, the Company's Board of Directors ("Board") authorized and approved a share repurchase program (the "Share Repurchase Program") covering the repurchase of up to $300 million of shares of the Company's common stock through an expiration date of June 30, 2028. On November 4, 2025, the Board authorized and approved an increase to the size of the Share Repurchase Program to $500 million and an extension of the expiration date to December 31, 2029. On September 17, 2026, the Board authorized and approved an increase to the size of the Share Repurchase Program from $500 million to $1.25 billion. Repurchases of the Company's common stock will be made in accordance with applicable securities laws and may be made at senior management’s discretion from time to time in the open market, by block purchase, through privately negotiated transactions, pursuant to a trading plan, or otherwise in compliance with Rule 10b-18 under the Securities Exchange Act of 1934, as amended. The authorization for the Share Repurchase Program may be extended, increased, decreased, suspended or terminated by the Board of Directors in its discretion at any time. Repurchases of the Company's common stock (and the timing thereof) will depend upon market conditions, regulatory requirements, the Company's existing obligations, including its Credit Agreement, other corporate liquidity requirements and priorities and other factors as may be considered in the Company's sole discretion. The authorization for the Share Repurchase Program does not obligate the Company to purchase any particular amount of the Company’s common stock. During the nine months ended September 30, 2026, the Company repurchased 5,158,349 shares of its common stock under the program.

 

Automatic Shelf Registration on Form S-3

On October 30, 2023, the Company filed an automatic shelf registration statement on Form S-3 with the Securities and Exchange Commission (the “SEC”) that enabled the Company to offer for sale, from time to time and as the capital markets permit, an unspecified amount of common stock, preferred stock, debt securities, guarantees of debt securities, warrants and units. The shelf registration statement became automatically effective upon filing and was valid for three years.

 

On October 30, 2026, the Company filed an automatic shelf registration statement on Form S-3 with the Securities and Exchange Commission (the “SEC”) that enables the Company to offer for sale, from time to time and as the capital markets permit, an unspecified amount of common stock, preferred stock, debt securities, guarantees of debt securities, warrants and units. The shelf registration statement became automatically effective upon filing and is valid for three years.

 

 

Prospectus Supplement

On December 28, 2023, in connection with the shelf registration, the Company filed with the SEC a prospectus supplement related to the offer and sale from time to time of our common stock at an aggregate offering price of up to $300 million through sales agents. Sales of shares of GEO's common stock under the prospectus supplement and equity distribution agreements entered into with the sales agents, if any, will be made in negotiated transactions or transactions that are deemed to be “at the market” offerings as defined in Rule 415 under the Securities Act of 1933. There were no shares of common stock sold under this prospectus supplement during the nine months ended September 30, 2026 or 2025.

 

 

Comprehensive Income (Loss)

Comprehensive income (loss) represents the change in shareholders' equity from transactions and other events and circumstances arising from non-shareholder sources. The Company's total comprehensive income (loss) is comprised of net income (loss) attributable to GEO, net loss attributable to noncontrolling interests, foreign currency translation adjustments that arise from consolidating foreign operations that do not impact cash flows, net unrealized gains and/or losses on derivative instruments, marketable securities and pension liability adjustments within shareholders' equity and comprehensive income (loss).

The components of accumulated other comprehensive loss attributable to GEO within shareholders' equity are as follows:

 

 

 

Nine Months Ended September 30, 2026

 

 

 

(In thousands)

 

 

 

Foreign currency
translation
adjustments,
net of tax (1)

 

 

Change
in fair
value of
derivatives,
net of tax

 

 

Change in marketable securities, net of tax

 

 

Pension
adjustments,
net of tax

 

 

Total

 

Balance, January 1, 2026

 

$

(21,440

)

 

$

2,744

 

 

$

476

 

 

$

248

 

 

$

(17,972

)

Current-period other comprehensive income (loss)

 

 

2,690

 

 

 

1,455

 

 

 

(2,162

)

 

 

19

 

 

 

2,002

 

Balance, September 30, 2026

 

$

(18,750

)

 

$

4,199

 

 

$

(1,686

)

 

$

267

 

 

$

(15,970

)

 

 

 

 

Nine Months Ended September 30, 2025

 

 

 

(In thousands)

 

 

 

Foreign currency
translation
adjustments,
net of tax (1)

 

 

Change
in fair
value of
derivatives,
net of tax

 

 

Change in marketable securities, net of tax

 

 

Pension
adjustments,
net of tax

 

 

Total

 

Balance, January 1, 2025

 

$

(26,939

)

 

$

3,833

 

 

$

(15

)

 

$

1,519

 

 

$

(21,602

)

Current-period other comprehensive income (loss)

 

 

6,833

 

 

 

(1,184

)

 

 

496

 

 

 

(148

)

 

 

5,997

 

Balance, September 30, 2025

 

$

(20,106

)

 

$

2,649

 

 

$

481

 

 

$

1,371

 

 

$

(15,605

)

 

(1)
The foreign currency translation related to noncontrolling interests was not significant at September 30, 2026 or 2025.