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Business Segments and Geographic Information
 9 Months Ended
Sep. 30, 2025
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 Chief Executive Officer, in deciding how to allocate resourses 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, 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, 2025 and 2024, respectively.

 

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

)

        Contingent litigation reserve

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(37,600

)

        Net interest expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(35,676

)

        Loss on extinguishment of debt

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(7,851

)

        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

 

 

Three Months Ended September 30, 2024

 

U.S. Secure Services

 

 

Electronic Monitoring and Supervision Services

 

 

Reentry Services

 

 

International Services

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

400,908

 

 

$

80,067

 

 

$

70,112

 

 

$

52,038

 

 

$

603,125

 

Less:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    Labor and Related Taxes [1]

 

 

220,373

 

 

 

23,065

 

 

 

31,396

 

 

 

30,939

 

 

 

305,773

 

    Medical Services and Supplies [1]

 

 

13,326

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

13,326

 

    Other Segment Items [2]

 

 

87,846

 

 

 

23,991

 

 

 

24,968

 

 

 

17,769

 

 

 

154,574

 

Operating Income from Segments

 

$

79,363

 

 

$

33,011

 

 

$

13,748

 

 

$

3,330

 

 

$

129,452

 

Unallocated amounts:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

        General and administrative expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(47,081

)

        Net interest expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(42,330

)

        Loss on extinguishment of debt

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2,920

)

Loss before income taxes and equity in earnings of affiliates

 

 

 

 

 

 

 

 

 

 

 

 

 

$

37,121

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital Expenditures

 

$

13,327

 

 

$

3,073

 

 

$

2,220

 

 

$

114

 

 

$

18,734

 

Depreciation and amortization

 

$

21,989

 

 

$

5,940

 

 

$

3,237

 

 

$

590

 

 

$

31,756

 

 

 

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

)

        Contingent litigation reserve

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(37,600

)

        Net interest expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(115,561

)

        Loss on extinguishment of debt

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(8,446

)

        Other income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

5,514

 

        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

 

 

Nine Months Ended September 30, 2024

 

U.S. Secure Services

 

 

Electronic Monitoring and Supervision Services

 

 

Reentry Services

 

 

International Services

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

1,203,945

 

 

$

251,596

 

 

$

206,902

 

 

$

153,539

 

 

$

1,815,982

 

Less:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    Labor and Related Taxes [1]

 

 

659,015

 

 

 

68,050

 

 

 

94,844

 

 

 

91,765

 

 

 

913,674

 

    Medical Services and Supplies [1]

 

 

44,643

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

44,643

 

    Other Segment Items [2]

 

 

261,914

 

 

 

74,078

 

 

 

73,413

 

 

 

53,833

 

 

 

463,238

 

Operating Income from Segments

 

$

238,373

 

 

$

109,468

 

 

$

38,645

 

 

$

7,941

 

 

$

394,427

 

Unallocated amounts:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

        General and administrative expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(152,349

)

        Net interest expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(139,803

)

        Loss on extinguishment of debt

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(85,298

)

        Loss on asset divestitures/impairment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2,907

)

Loss before income taxes and equity in earnings of affiliates

 

 

 

 

 

 

 

 

 

 

 

 

 

$

14,070

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital Expenditures

 

$

35,047

 

 

$

17,442

 

 

$

4,305

 

 

$

1,115

 

 

$

57,909

 

Depreciation and amortization

 

$

63,731

 

 

$

18,709

 

 

$

10,177

 

 

$

1,817

 

 

$

94,434

 

 

[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, 2025

 

 

December 31, 2024

 

 

 

 

(In thousands)

 

 

Segment assets:

 

 

 

 

 

 

 

U.S. Secure Services

 

$

2,397,293

 

 

$

2,356,105

 

 

Electronic Monitoring and Supervision Services

 

 

538,356

 

 

 

504,782

 

 

Reentry Services

 

 

437,879

 

 

 

465,014

 

 

International Services

 

 

72,322

 

 

 

71,610

 

 

Total segment assets

 

$

3,445,850

 

 

$

3,397,511

 

 

 

Asset Reconciliation

 

The following is a reconciliation of the Company's reportable segment assets to the Company's total assets as of September 30, 2025 and December 31, 2024, respectively.

 

 

 

September 30, 2025

 

 

December 31, 2024

 

 

 

(In thousands)

 

Reportable segment assets

 

$

3,445,850

 

 

$

3,397,511

 

Cash

 

 

183,945

 

 

 

76,896

 

Deferred income tax assets

 

 

9,522

 

 

 

9,522

 

Restricted cash and investments, current and non-current

 

 

169,956

 

 

 

148,151

 

Total assets

 

$

3,809,273

 

 

$

3,632,080

 

 

Geographic Information

During each of the nine months ended September 30, 2025 and 2024, 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, 2025

 

 

September 30, 2024

 

 

September 30, 2025

 

 

September 30. 2024

 

 

 

(In thousands)

(In thousands)

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. operations

 

$

634,823

 

 

$

551,087

 

 

$

1,780,528

 

 

$

1,662,443

 

Australia operations

 

 

42,367

 

 

 

47,279

 

 

 

128,602

 

 

 

141,010

 

South African operations

 

 

5,151

 

 

 

4,759

 

 

 

14,724

 

 

 

12,529

 

Total revenues

 

$

682,341

 

 

$

603,125

 

 

$

1,923,854

 

 

$

1,815,982

 

 

 

 

 

September 30, 2025

 

 

December 31, 2024

 

 

 

 

(In thousands)

Property and Equipment, net:

 

 

 

 

 

 

 

U.S. operations

 

$

1,875,231

 

 

$

1,890,662

 

 

Australia operations

 

 

9,308

 

 

 

8,944

 

 

South African operations

 

 

129

 

 

 

84

 

 

Total Property and Equipment, net

 

$

1,884,668

 

 

$

1,899,690

 

 

 

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, 2025

 

 

September 30, 2024

 

 

September 30, 2025

 

 

September 30, 2024

 

 

 

(In thousands)

(In thousands)

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

Secure Services [1]

 

$

529,146

 

 

$

452,946

 

 

$

1,472,335

 

 

$

1,357,484

 

Electronic Monitoring and Supervision Services

 

 

80,538

 

 

 

80,067

 

 

 

237,176

 

 

 

251,596

 

Reentry Services

 

 

72,657

 

 

 

70,112

 

 

 

214,343

 

 

 

206,902

 

Total revenues

 

$

682,341

 

 

$

603,125

 

 

$

1,923,854

 

 

$

1,815,982

 

 

[1] Includes international secured 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 $1.9 million in earnings, net of tax, for SACS operations during the nine months ended September 30, 2025, and $0.1 million in losses, net of tax, for SACS operations during the nine months ended September 30, 2024, 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, 2025 and December 31, 2024, the Company’s investment in SACS was $8.4 million and $8.1 million, respectively, and represents its share of cumulative reported earnings.

The Company has recorded $1.9 million in earnings, net of tax, for GEOAmey's operations during the nine months ended September 30, 2025, and $1.5 million in earnings, net of tax, for GEOAmey's operations during the nine months ended September 30, 2024, 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, 2025 and December 31, 2024, the Company’s investment in GEOAmey was $9.6 million and $10.3 million, respectively, and represents its share of cumulative reported earnings.