--- title: "GEO | 10-Q: FY2026 Q1 Revenue Beats Estimate at USD 705.21 M" type: "News" locale: "en" url: "https://longbridge.com/en/news/285657713.md" datetime: "2026-05-08T03:23:50.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/285657713.md) - [en](https://longbridge.com/en/news/285657713.md) - [zh-HK](https://longbridge.com/zh-HK/news/285657713.md) --- # GEO | 10-Q: FY2026 Q1 Revenue Beats Estimate at USD 705.21 M Revenue: As of FY2026 Q1, the actual value is USD 705.21 M, beating the estimate of USD 688.49 M. EPS: As of FY2026 Q1, the actual value is USD 0.29, beating the estimate of USD 0.1875. EBIT: As of FY2026 Q1, the actual value is USD 125.93 M. The GEO Group, Inc. reported its financial and operational metrics for the three months ended March 31, 2026, compared to 2025, across its four segments: U.S. Secure Services, Electronic Monitoring and Supervision Services, Reentry Services, and International Services . #### Segment Revenue - **Total Revenues**: Increased to $705,213 thousand in 2026 from $604,647 thousand in 2025, representing a 16.6% increase . - **U.S. Secure Services**: Revenues increased by $96,942 thousand (23.9%) to $502,658 thousand in 2026, driven by new contract activations and increases in occupancies and rates, partially offset by contract terminations . - **Electronic Monitoring and Supervision Services**: Revenues decreased by - $3,469 thousand (-4.5%) to $74,244 thousand in 2026, primarily due to a decrease in average participant counts . - **Reentry Services**: Revenues increased by $862 thousand (1.2%) to $71,238 thousand in 2026, mainly due to increased census levels and new day reporting center contracts, partially offset by contract terminations . - **International Services**: Revenues increased by $6,231 thousand (12.3%) to $57,073 thousand in 2026, driven by new health care contracts and positive foreign exchange rate fluctuations, partially offset by a contract transition . #### Operational Metrics - **Total Operating Expenses**: Increased to $521,509 thousand in 2026 from $453,778 thousand in 2025, representing a 14.9% increase . - **U.S. Secure Services**: Operating expenses increased by $63,675 thousand (20.3%) to $377,885 thousand in 2026, primarily due to labor, medical costs, transportation services, increased occupancies, and staffing for new contracts . - **Electronic Monitoring and Supervision Services**: Operating expenses remained relatively consistent at $41,924 thousand in 2026 compared to $41,862 thousand in 2025 . - **Reentry Services**: Operating expenses increased by $1,609 thousand (3.1%) to $53,441 thousand in 2026, due to increased programming needs and new day reporting center contracts . - **International Services**: Operating expenses increased by $2,385 thousand (5.2%) to $48,259 thousand in 2026, primarily due to foreign exchange rate fluctuations . - **Total Operating Income from Segments**: Increased to $149,874 thousand in 2026 from $118,733 thousand in 2025 . - **U.S. Secure Services**: Operating income was $101,211 thousand in 2026, up from $69,231 thousand in 2025 . - **Electronic Monitoring and Supervision Services**: Operating income was $25,764 thousand in 2026, down from $29,989 thousand in 2025 . - **Reentry Services**: Operating income was $14,741 thousand in 2026, down from $15,102 thousand in 2025 . - **International Services**: Operating income was $8,158 thousand in 2026, up from $4,411 thousand in 2025 . - **Total Capital Expenditures**: Decreased to $21,729 thousand in 2026 from $30,771 thousand in 2025 . - **U.S. Secure Services**: Capital expenditures were $14,138 thousand in 2026, down from $19,313 thousand in 2025 . - **Electronic Monitoring and Supervision Services**: Capital expenditures were $3,223 thousand in 2026, down from $9,976 thousand in 2025 . - **Reentry Services**: Capital expenditures were $3,831 thousand in 2026, up from $977 thousand in 2025 . - **International Services**: Capital expenditures were $537 thousand in 2026, up from $505 thousand in 2025 . - **Total Depreciation and Amortization**: Increased to $33,830 thousand in 2026 from $32,136 thousand in 2025 . - **U.S. Secure Services**: Depreciation and amortization was $23,562 thousand in 2026, up from $22,275 thousand in 2025 . - **Electronic Monitoring and Supervision Services**: Depreciation and amortization was $6,556 thousand in 2026, up from $5,862 thousand in 2025 . - **Reentry Services**: Depreciation and amortization was $3,056 thousand in 2026, down from $3,442 thousand in 2025 . - **International Services**: Depreciation and amortization was $656 thousand in 2026, up from $557 thousand in 2025 . - **General and Administrative Expenses (Total)**: Increased by $2,826 thousand (4.9%) to $60,575 thousand in 2026, primarily due to higher employee-related benefit costs and support for revenue growth . - **Interest Income**: Decreased by - $325 thousand (-16.3%) to $1,672 thousand in 2026, mainly due to lower international cash balances and foreign exchange rates . - **Interest Expense**: Decreased by - $4,140 thousand (-9.8%) to - $38,301 thousand in 2026, driven by lower overall principal balances and interest rates . - **Provision for Income Taxes**: Increased significantly to $15,026 thousand in 2026 from $1,826 thousand in 2025, due to higher pre-tax income and lower discrete tax benefits . - **Equity in Earnings of Affiliates, net of Income Tax Provision**: Decreased by - $166 thousand (-20.0%) to $662 thousand in 2026, primarily due to less favorable performance at SACS . #### Cash Flow - **Net Cash Provided by Operating Activities**: Increased to $156,481 thousand in 2026 from $71,225 thousand in 2025 . - **Net Cash Used in Investing Activities**: - $22,181 thousand in 2026, compared to - $31,141 thousand in 2025 . - **Net Cash Used in Financing Activities**: - $117,294 thousand in 2026, compared to - $49,423 thousand in 2025, reflecting significant share repurchases and revolver payments . - **Cash, Cash Equivalents and Restricted Cash and Cash Equivalents (end of period)**: $141,764 thousand in 2026, up from $117,204 thousand in 2025 . #### Unique Metrics - **Average Occupancy (U.S. Secure Services)**: Approximately 91% of capacity in 2026, excluding idle facilities, compared to 87.6% in 2025 . - **Idle Facilities**: As of March 31, 2026, The GEO Group, Inc. was marketing 6,646 vacant beds at eight idle facilities with a combined net carrying value of $189.8 million . The estimated annual net carrying cost for these idle facilities in 2026 is $26.7 million, including $15.2 million in depreciation . If activated, these facilities could generate approximately $300 million in incremental annualized revenue and an annualized increase in earnings per share of approximately $0.25 to $0.30 . - **Lease Revenue**: Rental income from leased facilities was approximately $3.8 million for each of the three months ended March 31, 2026, and 2025, with future minimum rentals totaling $104,883 thousand . #### Outlook and Strategy The GEO Group, Inc. is preparing for expanded immigration enforcement opportunities, which will involve significant capital investment to enhance detention capacity, secure transportation, and electronic monitoring services . The company is also in discussions with ICE for the potential sale of multiple facilities, contingent on mutual agreement on price and continued management under long-term support services contracts . 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