v3.26.3
Business Segments and Geographic Information
 9 Months Ended
Sep. 30, 2026
Segment Reporting [Abstract]  
Business Segments and Geographic Information

12. BUSINESS SEGMENTS AND GEOGRAPHIC INFORMATION

Operating and Reporting Segments

The Company's segments are determined as those operations whose results are reviewed regularly by the chief operating decision maker ("CODM"), who is the Company's Chairman and Chief Executive Officer, in deciding how to allocate resources and assess performance. The Company conducts its business through four reportable business segments: the U.S. Secure Services

segment; the Electronic Monitoring and Supervision Services segment; the Reentry Services segment; and the International Services segment. The Company has identified these four reportable segments to reflect the current view that the Company operates four distinct business lines, each of which constitutes a material part of its overall business.

The U.S. Secure Services segment primarily encompasses U.S.-based secure services business. The Electronic Monitoring and Supervision Services segment, which conducts its services in the United States, represents services provided to adults for monitoring services and evidence-based supervision and treatment programs for community-based parolees, probationers, and pretrial defendants. The Reentry Services segment, which conducts its services in the United States represents services provided to adults for residential and non-residential treatment, educational and community-based programs, pre-release and half-way house programs. The International Services segment primarily consists of secure services operations in South Africa and Australia. Segment disclosures below (in thousands) reflect the results of continuing operations. All transactions between segments are eliminated. The accounting policies of the segments are the same as those described in the summary of significant accounting policies.

Revenue and operating income for each segment are used by the CODM to assess the performance of each segment in a financial period. The performance of the operating segments is evaluated based on segment operating income, which is defined as income before income taxes before the following: unallocated corporate general and administrative expenses, interest expense, net, gain/loss on asset divestitures/impairment, contingent litigation reserve, other income and loss on extinguishment of debt not allocated to the operating segments. The CODM uses segment operating income as the measure to make resource (including financial or capital resources) allocation decisions for each segment, predominantly in the annual budget and forecasting process. The CODM considers budget-to-actual variances on a monthly and quarterly basis when evaluating performance for each segment and making decisions about capital allocation.

Summarized financial information for the Company's segments is shown in the following tables including a reconciliation of the Company’s total operating income from its reportable segments to the Company’s income before income taxes and equity in earnings of affiliates, in each case, during the three and nine months ended September 30, 2026 and 2025, respectively.

 

Three Months Ended September 30, 2026

 

U.S. Secure Services

 

 

Electronic Monitoring and Supervision Services

 

 

Reentry Services

 

 

International Services

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

542,060

 

 

$

81,816

 

 

$

74,300

 

 

$

62,886

 

 

$

761,062

 

Less:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    Labor and Related Taxes [1]

 

 

303,430

 

 

 

23,946

 

 

 

32,528

 

 

 

32,800

 

 

 

392,704

 

    Medical Services and Supplies [1]

 

 

16,344

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

16,344

 

    Other Segment Items [2]

 

 

108,485

 

 

 

24,026

 

 

 

23,626

 

 

 

21,366

 

 

 

177,503

 

Operating Income from Segments

 

$

113,801

 

 

$

33,844

 

 

$

18,146

 

 

$

8,720

 

 

$

174,511

 

Unallocated amounts:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

        General and administrative expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(72,122

)

        Net interest expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(36,092

)

        Loss on asset divestitures

 

 

 

 

 

 

 

 

 

 

 

 

 

 

—

 

Income before income taxes and equity in earnings of affiliates

 

 

 

 

 

 

 

 

 

 

 

 

 

$

66,297

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital Expenditures

 

$

13,654

 

 

$

13,280

 

 

$

3,578

 

 

$

784

 

 

$

31,296

 

Depreciation and amortization

 

$

23,961

 

 

$

6,492

 

 

$

3,006

 

 

$

723

 

 

$

34,182

 

 

 

Three Months Ended September 30, 2025

 

U.S. Secure Services

 

 

Electronic Monitoring and Supervision Services

 

 

Reentry Services

 

 

International Services

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

481,628

 

 

$

80,538

 

 

$

72,657

 

 

$

47,518

 

 

$

682,341

 

Less:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    Labor and Related Taxes [1]

 

 

272,379

 

 

 

23,514

 

 

 

31,991

 

 

 

25,065

 

 

 

352,949

 

    Medical Services and Supplies [1]

 

 

15,583

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

15,583

 

    Other Segment Items [2]

 

 

110,420

 

 

 

23,576

 

 

 

21,050

 

 

 

18,342

 

 

 

173,388

 

Operating Income from Segments

 

$

83,246

 

 

$

33,448

 

 

$

19,616

 

 

$

4,111

 

 

$

140,421

 

Unallocated amounts:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

        General and administrative expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(62,121

)

        Net interest expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(35,676

)

        Loss on extinguishment of debt

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(7,851

)

       Contingent litigation reserve

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(37,600

)

        Gain on asset divestitures

 

 

 

 

 

 

 

 

 

 

 

 

 

 

232,381

 

Income before income taxes and equity in earnings of affiliates

 

 

 

 

 

 

 

 

 

 

 

 

 

$

229,554

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital Expenditures

 

$

85,044

 

 

$

5,665

 

 

$

2,987

 

 

$

841

 

 

$

94,537

 

Depreciation and amortization

 

$

22,424

 

 

$

6,619

 

 

$

3,372

 

 

$

624

 

 

$

33,039

 

 

Nine Months Ended September 30, 2026

 

U.S. Secure Services

 

 

Electronic Monitoring and Supervision Services

 

 

Reentry Services

 

 

International Services

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

1,565,190

 

 

$

232,220

 

 

$

217,971

 

 

$

182,966

 

 

$

2,198,347

 

Less:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    Labor and Related Taxes [1]

 

 

870,433

 

 

 

69,765

 

 

 

97,208

 

 

 

96,807

 

 

 

1,134,213

 

    Medical Services and Supplies [1]

 

 

49,791

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

49,791

 

    Other Segment Items [2]

 

 

316,541

 

 

 

71,750

 

 

 

71,884

 

 

 

62,610

 

 

 

522,785

 

Operating Income from Segments

 

$

328,425

 

 

$

90,705

 

 

$

48,879

 

 

$

23,549

 

 

$

491,558

 

Unallocated amounts:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

        General and administrative expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(198,167

)

        Net interest expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(108,049

)

        Loss on asset divestitures

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(673

)

Income before income taxes and equity in earnings of affiliates

 

 

 

 

 

 

 

 

 

 

 

 

 

$

184,669

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital Expenditures

 

$

38,554

 

 

$

24,376

 

 

$

9,920

 

 

$

1,860

 

 

$

74,710

 

Depreciation and amortization

 

$

71,953

 

 

$

19,077

 

 

$

9,104

 

 

$

2,074

 

 

$

102,208

 

 

 

Nine Months Ended September 30, 2025

 

U.S. Secure Services

 

 

Electronic Monitoring and Supervision Services

 

 

Reentry Services

 

 

International Services

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

1,329,009

 

 

$

237,176

 

 

$

214,343

 

 

$

143,326

 

 

$

1,923,854

 

Less:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    Labor and Related Taxes [1]

 

 

751,690

 

 

 

70,262

 

 

 

95,365

 

 

 

78,681

 

 

 

995,998

 

    Medical Services and Supplies [1]

 

 

45,734

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

45,734

 

    Other Segment Items [2]

 

 

302,192

 

 

 

70,958

 

 

 

68,619

 

 

 

52,980

 

 

 

494,749

 

Operating Income from Segments

 

$

229,393

 

 

$

95,956

 

 

$

50,359

 

 

$

11,665

 

 

$

387,373

 

Unallocated amounts:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

        General and administrative expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(176,116

)

        Net interest expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(115,561

)

        Loss on extinguishment of debt

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(8,446

)

        Other income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

5,514

 

        Contingent litigation reserve

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(37,600

)

        Gain on asset divestitures

 

 

 

 

 

 

 

 

 

 

 

 

 

 

232,381

 

Income before income taxes and equity in earnings of affiliates

 

 

 

 

 

 

 

 

 

 

 

 

 

$

287,545

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital Expenditures

 

$

128,102

 

 

$

24,843

 

 

$

6,382

 

 

$

1,959

 

 

$

161,286

 

Depreciation and amortization

 

$

67,143

 

 

$

18,764

 

 

$

10,241

 

 

$

1,759

 

 

$

97,907

 

[1] The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM. Intersegment expenses are included in the amounts shown.

[2] Other segment items include:

U.S. Secure Services - depreciation and amortization, food services and supplies, utilities, repairs and maintenance, rent and lease expense and certain other overhead expenses.

Electronic Monitoring and Supervision Services - depreciation and amortization, cost of goods sold, rent and lease expense and certain other overhead expenses.

Reentry Services - depreciation and amortization, medical services and supplies, food services and supplies, rent and lease expense, utilities and certain other overhead expenses.

International Services - medical services and supplies, food services and supplies, utilities, repairs and maintenance and certain other overhead expenses.

 

Segment Assets

 

 

September 30, 2026

 

 

December 31, 2025

 

 

 

 

(In thousands)

 

 

Segment assets:

 

 

 

 

 

 

 

U.S. Secure Services

 

$

2,481,696

 

 

$

2,547,537

 

 

Electronic Monitoring and Supervision Services

 

 

565,022

 

 

 

519,274

 

 

Reentry Services

 

 

436,009

 

 

 

439,656

 

 

International Services

 

 

79,244

 

 

 

76,400

 

 

Total segment assets

 

$

3,561,971

 

 

$

3,582,867

 

 

 

 

Asset Reconciliation

 

The following is a reconciliation of the Company's reportable segment assets to the Company's total assets as of September 30, 2026 and December 31, 2025, respectively.

 

 

 

September 30, 2026

 

 

December 31, 2025

 

 

 

(In thousands)

 

Reportable segment assets

 

$

3,561,971

 

 

$

3,582,867

 

Cash

 

 

215,955

 

 

 

68,995

 

Deferred income tax assets

 

 

9,396

 

 

 

9,396

 

Restricted cash and investments, current and non-current

 

 

197,305

 

 

 

182,364

 

Total assets

 

$

3,984,627

 

 

$

3,843,622

 

 

Geographic Information

During each of the three and nine months ended September 30, 2026 and 2025, the Company’s international operations were conducted through (i) the Company’s wholly owned Australian subsidiary, The GEO Group Australia Pty. Ltd., through which the Company has management contracts for three correctional facilities and a contract to provide health services for several public prisons, and (ii) the Company’s wholly-owned subsidiary in South Africa, SACM, through which the Company manages one correctional facility.

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30, 2026

 

 

September 30, 2025

 

 

September 30, 2026

 

 

September 30, 2025

 

 

 

(In thousands)

(In thousands)

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. operations

 

$

698,176

 

 

$

634,823

 

 

$

2,015,381

 

 

$

1,780,528

 

Australia operations

 

 

57,080

 

 

 

42,367

 

 

 

166,076

 

 

 

128,602

 

South African operations

 

 

5,806

 

 

 

5,151

 

 

 

16,890

 

 

 

14,724

 

Total revenues

 

$

761,062

 

 

$

682,341

 

 

$

2,198,347

 

 

$

1,923,854

 

 

 

 

September 30, 2026

 

 

December 31, 2025

 

 

 

 

(In thousands)

Property and Equipment, net:

 

 

 

 

 

 

 

U.S. operations

 

$

1,704,288

 

 

$

1,874,746

 

 

Australia operations

 

 

9,605

 

 

 

9,372

 

 

South African operations

 

 

25

 

 

 

80

 

 

Total Property and Equipment, net

 

$

1,713,918

 

 

$

1,884,198

 

 

 

Sources of Revenue

The Company derives most of its revenue from the management of secure facilities through public-private partnerships. The Company also derives revenue from the provision of reentry services and electronic monitoring and evidence-based supervision and treatment programs in the United States, and expansion of new and existing secure facilities, processing centers and reentry centers.

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30, 2026

 

 

September 30, 2025

 

 

September 30, 2026

 

 

September 30, 2025

 

 

 

(In thousands)

(In thousands)

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

Secure Services [1]

 

$

604,946

 

 

$

529,146

 

 

$

1,748,156

 

 

$

1,472,335

 

Electronic Monitoring and Supervision Services

 

 

81,816

 

 

 

80,538

 

 

 

232,220

 

 

 

237,176

 

Reentry Services

 

 

74,300

 

 

 

72,657

 

 

 

217,971

 

 

 

214,343

 

Total revenues

 

$

761,062

 

 

$

682,341

 

 

$

2,198,347

 

 

$

1,923,854

 

 

 

[1] Includes international secure services.

 

Equity in Earnings of Affiliates

Equity in earnings of affiliates includes the Company’s 50% owned joint ventures in South African Custodial Services Pty. Limited (“SACS”), located in South Africa, and GEOAmey located in the United Kingdom. The Company's investments in these entities are accounted for under the equity method of accounting. The Company’s investments in these entities are presented as a component of Other Non-Current Assets in the accompanying consolidated balance sheets.

The Company has recorded approximately $0.1 million in losses, net of tax, for SACS operations during the three and nine months ended September 30, 2026, and $0.1 million and $1.9 million in earnings, net of tax, for SACS operations during the three and nine months ended September 30, 2025, respectively, which are included in equity in earnings of affiliates, net of income tax provision in the accompanying consolidated statements of operations. As of September 30, 2026 and December 31, 2025, the Company’s investment in SACS was $4.2 million and $5.9 million, respectively, and represents its share of cumulative reported earnings.

The Company has recorded $0.9 million and $2.2 million in earnings, net of tax, for GEOAmey's operations during the three and nine months ended September 30, 2026, respectively, and $0.7 million and $1.9 million in earnings, net of tax, for GEOAmey's operations during the three and nine months ended September 30, 2025, respectively, which are included in equity in earnings of affiliates, net of income tax provision in the accompanying consolidated statements of operations. As of September 30, 2026 and December 31, 2025, the Company’s investment in GEOAmey was $9.7 million and $7.7 million, respectively, and represents its share of cumulative reported earnings.