GEO GROUP INC Segments Disclosure
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 , in deciding how to allocate recourses 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, loss on extinguishment of debt, and certain gains and losses 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 years ended December 31, 2025, 2024 and 2023, respectively.
Fiscal Year 2025 |
|
U.S. Secure Services |
|
|
Electronic Monitoring and Supervision Services |
|
|
Reentry Services |
|
|
International Services |
|
|
Total |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Revenues |
|
$ |
1,827,000 |
|
|
$ |
320,919 |
|
|
$ |
286,521 |
|
|
$ |
197,109 |
|
|
$ |
2,631,549 |
|
Less: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Labor and Related Taxes [1] |
|
|
1,050,275 |
|
|
|
96,234 |
|
|
|
128,684 |
|
|
|
108,013 |
|
|
|
1,383,206 |
|
Medical Services and Supplies [1] |
|
|
60,261 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
60,261 |
|
Other Segment Items [2] |
|
|
387,909 |
|
|
|
99,699 |
|
|
|
96,844 |
|
|
|
72,601 |
|
|
|
657,053 |
|
Operating Income from Segments |
|
$ |
328,555 |
|
|
$ |
124,986 |
|
|
$ |
60,993 |
|
|
$ |
16,495 |
|
|
$ |
531,029 |
|
Unallocated amounts: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
General and administrative expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(235,939 |
) |
||||
Contingent litigation reserve |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(37,600 |
) |
||||
Net interest expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(151,445 |
) |
||||
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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
335,494 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Capital Expenditures |
|
$ |
148,877 |
|
|
$ |
36,211 |
|
|
$ |
8,856 |
|
|
$ |
3,568 |
|
|
$ |
197,512 |
|
Depreciation and amortization |
|
$ |
90,823 |
|
|
$ |
25,411 |
|
|
$ |
13,405 |
|
|
$ |
2,400 |
|
|
$ |
132,039 |
|
Fiscal Year 2024 |
|
U.S. Secure Services |
|
|
Electronic Monitoring and Supervision Services |
|
|
Reentry Services |
|
|
International Services |
|
|
Total |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Revenues |
|
$ |
1,604,386 |
|
|
$ |
332,826 |
|
|
$ |
277,566 |
|
|
$ |
208,924 |
|
|
$ |
2,423,702 |
|
Less: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Labor and Related Taxes [1] |
|
|
885,863 |
|
|
|
91,262 |
|
|
|
126,610 |
|
|
|
122,039 |
|
|
|
1,225,774 |
|
Medical Services and Supplies [1] |
|
|
63,585 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
63,585 |
|
Other Segment Items [2] |
|
|
352,021 |
|
|
|
94,209 |
|
|
|
92,659 |
|
|
|
72,451 |
|
|
|
611,340 |
|
Operating Income from Segments |
|
$ |
302,917 |
|
|
$ |
147,355 |
|
|
$ |
58,297 |
|
|
$ |
14,434 |
|
|
$ |
523,003 |
|
Unallocated amounts: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
General and administrative expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(213,028 |
) |
||||
Net interest expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(181,837 |
) |
||||
Loss on extinguishment of debt |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(86,637 |
) |
||||
Net gain on asset divestitures/impairment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2,907 |
) |
||||
Income before income taxes and equity in earnings of affiliates |
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
38,594 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Capital Expenditures |
|
$ |
46,837 |
|
|
$ |
24,190 |
|
|
$ |
6,206 |
|
|
$ |
1,458 |
|
|
$ |
78,691 |
|
Depreciation and amortization |
|
$ |
85,685 |
|
|
$ |
24,523 |
|
|
$ |
13,619 |
|
|
$ |
2,393 |
|
|
$ |
126,220 |
|
Fiscal Year 2023 |
|
U.S. Secure Services |
|
|
Electronic Monitoring and Supervision Services |
|
|
Reentry Services |
|
|
International Services |
|
|
Total |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Revenues |
|
$ |
1,518,292 |
|
|
$ |
425,879 |
|
|
$ |
275,102 |
|
|
$ |
193,894 |
|
|
$ |
2,413,167 |
|
Less: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Labor and Related Taxes [1] |
|
|
824,893 |
|
|
|
96,510 |
|
|
|
125,626 |
|
|
|
104,028 |
|
|
|
1,151,057 |
|
Medical Services and Supplies [1] |
|
|
71,483 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
71,483 |
|
Other Segment Items [2] |
|
|
351,927 |
|
|
|
116,466 |
|
|
|
100,741 |
|
|
|
78,338 |
|
|
|
647,472 |
|
Operating Income from Segments |
|
$ |
269,989 |
|
|
$ |
212,903 |
|
|
$ |
48,735 |
|
|
$ |
11,528 |
|
|
$ |
543,155 |
|
Unallocated amounts: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
General and administrative expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(190,766 |
) |
||||
Net interest expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(210,500 |
) |
||||
Loss on extinguishment of debt |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(8,532 |
) |
||||
Net gain on asset divestitures/impairment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,691 |
|
||||
Income before income taxes and equity in earnings of affiliates |
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
138,048 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Capital Expenditures |
|
$ |
48,270 |
|
|
$ |
17,434 |
|
|
$ |
4,403 |
|
|
$ |
2,895 |
|
|
$ |
73,002 |
|
Depreciation and amortization |
|
$ |
78,917 |
|
|
$ |
28,053 |
|
|
$ |
16,588 |
|
|
$ |
2,226 |
|
|
$ |
125,784 |
|
[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
|
|
2025 |
|
|
2024 |
|
|
||
|
|
(In thousands) |
|
|
|||||
Segment assets: |
|
|
|
|
|
|
|
||
U.S. Secure Services |
|
$ |
2,547,537 |
|
|
$ |
2,356,105 |
|
|
Electronic Monitoring and Supervision Services |
|
|
519,274 |
|
|
|
504,782 |
|
|
Reentry Services |
|
|
439,656 |
|
|
|
465,014 |
|
|
International Services |
|
|
76,400 |
|
|
|
71,610 |
|
|
Total segment assets |
|
$ |
3,582,867 |
|
|
$ |
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 December 31, 2025 and 2024, respectively.
|
|
2025 |
|
|
2024 |
|
||
|
|
(In thousands) |
|
|||||
Reportable segment assets |
|
$ |
3,582,867 |
|
|
$ |
3,397,511 |
|
Cash |
|
|
68,995 |
|
|
|
76,896 |
|
Deferred income tax assets |
|
|
9,396 |
|
|
|
9,522 |
|
Restricted cash and investments, current and non-current |
|
|
182,364 |
|
|
|
148,151 |
|
Total assets |
|
$ |
3,843,622 |
|
|
$ |
3,632,080 |
|
Geographic Information
During each of the years ended December 31, 2025, 2024 and 2023, the Company’s international operations were conducted through 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 the Company’s wholly-owned subsidiary in South Africa, SACM, through which the Company manages one correctional facility.
Fiscal Year |
|
2025 |
|
|
2024 |
|
|
2023 |
|
|||
|
|
(In thousands) |
|
|||||||||
Revenues: |
|
|
|
|
|
|
|
|
|
|||
U.S. operations |
|
$ |
2,434,440 |
|
|
$ |
2,214,778 |
|
|
$ |
2,219,400 |
|
Australia operations |
|
|
177,030 |
|
|
|
190,872 |
|
|
|
177,653 |
|
South African operations |
|
|
20,079 |
|
|
|
18,052 |
|
|
|
16,114 |
|
Total revenues |
|
$ |
2,631,549 |
|
|
$ |
2,423,702 |
|
|
$ |
2,413,167 |
|
Property and Equipment, net: |
|
|
|
|
|
|
|
|
|
|||
U.S. operations |
|
$ |
1,874,746 |
|
|
$ |
1,890,662 |
|
|
$ |
1,933,460 |
|
Australia operations |
|
|
9,372 |
|
|
|
8,944 |
|
|
|
10,700 |
|
South African operations |
|
|
80 |
|
|
|
84 |
|
|
|
118 |
|
Total Property and Equipment, net |
|
$ |
1,884,198 |
|
|
$ |
1,899,690 |
|
|
$ |
1,944,278 |
|
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.
Fiscal Year |
|
2025 |
|
|
2024 |
|
|
||
|
|
(In thousands) |
|||||||
Revenues: |
|
|
|
|
|
|
|
||
Secure Services [1] |
|
$ |
2,024,109 |
|
|
$ |
1,813,310 |
|
|
Electronic Monitoring and Supervision Services |
|
|
320,919 |
|
|
|
332,826 |
|
|
Reentry Services |
|
|
286,521 |
|
|
|
277,566 |
|
|
Total revenues |
|
$ |
2,631,549 |
|
|
$ |
2,423,702 |
|
|
[1] Includes international secured services
Equity in Earnings of Affiliates
Equity in earnings of affiliates for 2025, 2024 and 2023 includes the operating results of the Company’s joint ventures in SACS and GEOAmey. These joint ventures are accounted for under the equity method and the Company’s investments in SACS and GEOAmey are presented as a component of other non-current assets in the accompanying Consolidated Balance Sheets.
The Company has recorded $1.9 million, $0.3 million and $1.7 million in earnings, net of tax impact, for SACS operations during the years ended December 31, 2025, 2024 and 2023, respectively, which are included in equity in earnings of affiliates, net of income tax provision in the accompanying Consolidated Statements of Operations. As of December 31, 2025 and 2024, the Company’s investment in SACS was $5.9 million and $7.2 million, respectively. The investment is included in other non-current assets in the accompanying Consolidated Balance Sheets. The Company received dividend distributions of $4.2 million, $1.9 million and $2.2 million, in 2025, 2024 and 2023, respectively, from this unconsolidated joint venture.
The Company has recorded $2.6 million, $2.4 million and $2.9 million in earnings, net of tax impact, for GEOAmey’s operations during the years ended December 31, 2025, 2024 and 2023, respectively, which are included in equity in earnings of affiliates, net of income tax provision, in the accompanying Consolidated Statements of Operations. As of December 31, 2025 and 2024, the Company’s investment in GEOAmey was $7.7 million and $10.3 million, respectively, and represents its share of cumulative reported earnings. The Company received dividend distributions of $5.9 million, $3.2 million and $0.8 million in 2025, 2024 and 2023, respectively, from this unconsolidated joint venture.
Business Concentration
Except for the major customer noted in the following table, no other single customer made up greater than 10% of the Company’s consolidated revenues for the following fiscal years:
Customer |
|
2025 |
|
|
2024 |
|
|
2023 |
|
|||
Various agencies of the U.S. Federal Government: |
|
|
67 |
% |
|
|
62 |
% |
|
|
63 |
% |
Concentration of credit risk related to the major customer above for accounts receivable is as follows:
Customer |
|
2025 |
|
|
2024 |
|
||
Various agencies of the U.S. Federal Government: |
|
|
78 |
% |
|
|
64 |
% |
The concentrations above relate primarily to the Company's U.S. Secure Services and its Electronic Monitoring Supervision segments.
In addition, the ISAP contract accounted for 10% and 14% of the Company's consolidated revenues for the years ended December 31,
2024 and 2023, respectively. For the year ended December 31, 2025, the ISAP contract accounted for less than 10% of the Company's
consolidated revenues.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 25, 2026 | Showing above |
| 2024 | Feb 28, 2025 | |
| 2023 | Feb 29, 2024 | |
| 2022 | Feb 27, 2023 | |
| 2021 | Feb 28, 2022 | |
| 2020 | Feb 16, 2021 | |
| 2019 | Feb 26, 2020 | |
| 2018 | Feb 25, 2019 | |
| 2017 | Feb 26, 2018 | |
| 2016 | Feb 27, 2017 | |
| 2015 | Feb 26, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.