The GEO Group — Third Quarter 2026 Earnings Summary

Financial Performance:

• Third quarter 2026 total revenues were $761.1 million, a 12% increase compared to $682.3 million in the third quarter of 2025.
• Net income attributable to GEO Operations for the third quarter 2026 was $49.2 million ($0.37 per diluted share), compared to $173.9 million ($1.24 per diluted share) in the third quarter of 2025, which included a gain on asset divestitures.
• Adjusted net income for the third quarter 2026 increased 48% to $51.8 million ($0.39 per diluted share), compared to $35.0 million ($0.25 per diluted share) in the third quarter of 2025.
• Adjusted EBITDA for the third quarter 2026 increased 21% to $145.3 million, compared to $120.1 million in the third quarter of 2025.
• For the first nine months of 2026, total revenues were $2.2 billion, a 14% increase compared to $1.9 billion in the same period of 2025.
• Net income attributable to GEO Operations for the first nine months of 2026 was $135.1 million ($1.02 per diluted share), compared to $222.6 million ($1.58 per diluted share) in the first nine months of 2025.
• Adjusted net income for the first nine months of 2026 increased 63% to $139.2 million ($1.05 per diluted share), compared to $85.3 million ($0.61 per diluted share) in the first nine months of 2025.
• Adjusted EBITDA for the first nine months of 2026 increased 24% to $418.7 million, compared to $338.5 million in the first nine months of 2025.
• Third quarter 2026 results included $3.5 million in pre-tax combined non-cash contingent liability, litigation, start-up, transaction, restructuring, and close-out expenses.
• First nine months 2026 results included $5.6 million in pre-tax combined loss on asset divestitures/impairment, non-cash contingent liability, litigation, start-up, transaction, restructuring, and close-out expenses.

Guidance and Future Outlook:

• Full year 2026 revenue guidance was increased to a range of $2.975 billion to $3.025 billion.
• Full year 2026 Net Income Attributable to GEO Operations guidance was increased to $726.3 million to $730.5 million, including the gain on the sale of the Adelanto Complex.
• Full year 2026 Adjusted Net Income guidance was increased to $185 million to $190 million ($1.40 to $1.44 per diluted share).
• Full year 2026 Adjusted EBITDA guidance was increased to $568 million to $573 million.
• Full year 2026 Adjusted Net Income guidance is based on an effective tax rate of approximately 28%.
• Full year 2026 unreimbursed capital expenditures are expected to be between $140 million and $150 million.
• Fourth quarter 2026 Net Income Attributable to GEO Operations guidance was increased to $591 million to $595.5 million.
• Fourth quarter 2026 Adjusted Net Income guidance was increased to $46 million to $51 million ($0.35 to $0.39 per diluted share) on quarterly revenues of $777 million to $827 million.
• Fourth quarter 2026 Adjusted EBITDA guidance was increased to $149 million to $154 million.

Business Segments and Product Lines:

• Entered a five-year support services contract with ICE effective July 9, 2026, for the Big Horn Facility in Hudson, Colorado (1,188 beds), expected to generate approximately $85 million in annual revenues.
• Entered a five-year support services contract with ICE effective August 1, 2026, for the Rivers Facility in Winton, North Carolina (1,320 beds), expected to generate approximately $80 million in annual revenues.
• Entered a 10-year intergovernmental service agreement with ICE effective November 1, 2026, for the Big Spring Complex in Texas (2,329 beds), expected to generate approximately $200 million in annual revenues.
• Entered a new 10-year management contract with ICE effective October 28, 2026, for the Northwest ICE Processing Center in Tacoma, Washington (1,635 beds), expected to generate approximately $140 million in annual revenues.
• Under the new contracts, ICE will reimburse GEO for capital expenditures needed to reactivate facilities and provide funding for start-up expenses.
• Big Horn and Rivers Facilities are expected to achieve normalized operations and earnings contribution in early 2027.
• Big Spring Complex is expected to achieve normalized operations and earnings contribution in the second quarter of 2027.
• New or expanded contracts entered into throughout 2025 and 2026 have an overall value of approximately $500 million in incremental annual revenues.

Market and Competitive Landscape:

• The Company operates 97 facilities totaling approximately 76,000 beds, including idle facilities and projects under development.
• The Company owns approximately 48,000 beds.
• The Company is engaged in an active process for the potential sale of multiple other company-owned facilities to ICE, subject to mutual agreement on price and continued management under long-term support services contracts.

Risks and Challenges:

• Forward-looking statements involve risks including the ability to meet financial guidance, execute share repurchase programs, and deleverage debt.
• Risks include the ability to identify and complete sales of company-owned assets or acquisitions on commercially advantageous terms.
• Changes in federal and state government policy, orders, directives, legislation, and regulations affecting public-private partnerships could impact results.
• Changes in federal immigration policy and public/political opposition to public-private partnerships are potential risks.
• Global pandemics, occupancy rate fluctuations, contract terminations, renegotiations, and increases in operating costs (including inflationary labor pressures) are risks.
• Risks include the ability to timely open facilities, control start-up costs, win new management contracts, and obtain future financing.
• Risks include the impact of federal government shutdowns and the outcome of the Nwauzor case appeal.

Management Commentary and Tone:

• Chairman, CEO, and Founder George C. Zoley stated that the third quarter 2026 results marked a record-breaking quarter with the highest quarterly revenues and adjusted EBITDA in company history.
• Management attributed better-than-expected performance to significant revenue growth from new or expanded contracts entered into throughout 2025.
• Management expressed satisfaction with the $950 million sale of the Adelanto Complex and believes the stock is significantly undervalued given intrinsic asset value and strong financial performance.
• Management identified share repurchases as a paramount capital allocation priority.

Other Key Points:

• Completed the sale of the Adelanto Complex (Adelanto West, Adelanto East, and Desert View Annex) to the U.S. Department of Homeland Security for an aggregate gross sales price of $950 million, with net proceeds of approximately $705 million.
• GEO will continue providing support services at the Adelanto Complex under an existing contract effective through December 19, 2034.
• On October 5, 2026, the Board approved a $750 million increase to the share repurchase program, raising the total authorization to $1.25 billion, effective through December 31, 2029.
• As of November 5, 2026, the Company had repurchased approximately 10.1 million shares at an aggregate cost of approximately $177 million, leaving approximately $1.07 billion of authorization available.
• On October 5, 2026, the Company entered into an Amended and Restated Credit Agreement extending the maturity of its $550 million Revolving Credit Facility to July 14, 2031.
• On October 15, 2026, the Company used proceeds from the Adelanto sale to redeem $650 million of 8.625% Senior Secured Notes due 2029.
• Outstanding corporate debt totals $625 million, consisting of 10.250% Senior Unsecured Notes due 2031.
• Available liquidity is approximately $600 million, including cash on hand and Revolving Credit Facility availability.
• The Company is permitted to make unlimited restricted payments, including share repurchases, subject to leverage ratio covenants (2.25 to 1.00 under Credit Agreement and 2.00 to 1.00 under the 2031 Notes Indenture).