The GEO Group (GEO) investor relations material

Executive summary

• Q1 2026 revenue reached $705.2 million, up 17% year-over-year, driven by new and expanded contracts, facility reactivations, and higher occupancy, with significant contributions from Secure Services and new ICE contracts.

• Net income attributable to operations nearly doubled to $38.3 million ($0.29 per diluted share), with adjusted EBITDA rising 32% to $131.4 million.

• Share repurchases continued, with 3.6 million shares bought in Q1 for $50 million, and $359 million remaining under the $500 million authorization.

• Full-year 2026 guidance was raised for revenue, net income, and adjusted EBITDA, reflecting strong contract wins and operational momentum.

• Average company-wide facility occupancy was 91%, up from 88% in Q1 2025.

Financial highlights

• Q1 2026 revenue rose to $705.2 million from $604.6 million, with net income at $38.3 million ($0.29 per diluted share), and adjusted EBITDA at $131.4 million, all up significantly year-over-year.

• Operating income increased to $89.3 million from $61.0 million; NOI rose to $187.3 million from $155.6 million.

• Operating expenses increased 15% due to new contracts and higher occupancy, but G&A expenses declined as a percentage of revenue.

• Net interest expense decreased by $4 million year-over-year; effective tax rate was 28.5%.

• Cash, cash equivalents, and restricted cash totaled $141.8 million at quarter-end; net cash provided by operating activities was $156.5 million.

Outlook and guidance

• Full-year 2026 guidance: revenue of $2.95–$3.1 billion, net income of $153–$166 million ($1.15–$1.25 per diluted share), and adjusted EBITDA of $525–$545 million.

• Q2 2026 guidance: net income of $33–$39 million, revenue of $715–$725 million, adjusted EBITDA of $130–$135 million.

• FY26 capital expenditures projected at $137.5–$162.5 million.

• Upside potential from further facility reactivations, higher ISAP V volumes, skip tracing ramp-up, and transportation segment growth.

• Annual effective tax rate for 2026 is estimated at 29% to 31%.