GEO Revenue Rises to $761.1 Million in Third Quarter as It Cuts Debt
Key Facts
GEO Group reported revenue of $761.1 million in the third quarter of 2026, up 12% from $682.3 million in the same period a year earlier, according to a filing with the U.S. Securities and Exchange Commission. Adjusted EBITDA rose 21% to $145.3 million from $120.1 million a year earlier. Adjusted net income was $51.8 million, or $0.39 per diluted share, compared with $35 million and $0.25 per share in the third quarter of 2025, an increase of 48%. The results come as GEO moves to reduce debt after selling the Adelanto complex and using part of the proceeds to redeem notes. Reports that S&P raised the company’s rating to BB+ on November 10 could not be verified; a separate report in October had cited an upgrade to BB.
For the first nine months of the year, revenue rose 14% to $2.2 billion from $1.9 billion in the same period of 2025. Adjusted EBITDA increased 24% to $418.7 million from $338.5 million. The figures reflect growth in revenue and adjusted profitability over the period, alongside the improvement recorded in the third quarter. But accounting net income presents a different picture in the year-over-year quarterly comparison. Net income attributable to GEO operations was about $49.2 million, or $0.37 per diluted share, compared with $173.9 million and $1.24 per share a year earlier.
GEO said the third quarter of 2025 included gains from asset sales and other unusual or nonrecurring items, explaining part of the large difference in accounting net income between the periods. Adjusted net income therefore rose in the third quarter of 2026, while accounting net income was far below the year-earlier level. On the balance sheet, the company completed the sale of the Adelanto complex on October 2 for a total gross price of $950 million, with net proceeds of about $705 million after taxes and transaction expenses. GEO used the proceeds to redeem $650 million of secured notes bearing interest at 8.625% and due in 2029 on October 15. The company said its remaining total corporate debt was $625 million on November 5, all of it unsecured notes due in 2031.
GEO raised its 2026 guidance, projecting adjusted EBITDA of between $568 million and $573 million. It also targets adjusted net income of between $185 million and $190 million, or between $1.40 and $1.44 per diluted share. These estimates provide a framework for assessing the company’s performance through the rest of the year, alongside debt reduction and capital reallocation. According to its filing, GEO had repurchased about 10.1 million shares through November 5 at a cost of about $177 million. The purchases were made under a $1.25 billion authorization that runs through December 31, 2029, with about $1.07 billion remaining available.
Some of the company’s future growth is expected to come from the Big Spring complex in Texas, covered by a 10-year government services agreement between the city and U.S. Immigration and Customs Enforcement that took effect on November 1, 2026. The complex has a capacity of 2,329 beds, and GEO expects it to generate about $200 million in annual revenue in its first full year of operation. The company said full activation of the complex is expected by the end of the first quarter of 2027, with operations and earnings contributions reaching normalized levels in the second quarter of that year. At the same time, GEO said it continues to pursue the sale of several other company-owned facilities to ICE. It said there is no definitive agreement or precise timeline for completing any of the additional transactions, and no assurance they will be completed.