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Earnings analysis · 10-Q

GEO earnings analysis

Filed May 7, 2026 · Our reading of the company's report

The latest report

The GEO Group, Inc. reported robust Q1 2026 results, with revenues of $705.2 million and EPS of $0.29, both exceeding expectations. Significant growth was observed in the U.S. Secure Services segment, while management…

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The GEO Group, Inc. reported robust Q1 2026 results, with revenues of $705.2 million and EPS of $0.29, both exceeding expectations. Significant growth was observed in the U.S. Secure Services segment, while management highlighted increased operational cash flow and raised full-year revenue and income guidance.

Read the original on SEC.gov

From revenue to operating profit

Where each $100 of revenue went in this report.

Of every $100 of revenue Cost of sales $0 Operating expenses $88 Left as operating profit $12

Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.

Where revenue came from

The business segments reported by the company.

U.S. Secure Services 71.3% Electronic Monitoring 10.5% Reentry Services 10.1% International Services 8.1%

Shares of the segments disclosed in this filing, largest first.

Reported figures

Earnings per share
$0.29

What stood out

  • Strong Revenue and EPS Beats

    Q1 revenue reached $705.2 million, up 16.6% from $604.6 million YoY; EPS was $0.29, exceeding estimates of $0.19.

  • Segment Growth in U.S. Secure Services

    This segment saw a revenue increase of $96.9 million, or 23.9%, reaching $502.7 million due to new contract activations.

  • Improved Operating Cash Flow

    Operating cash flow increased significantly to $156.5 million, compared to $71.2 million in Q1 2025.

  • Increased Guidance for 2026

    Management raised full-year revenue guidance to between $2.95 billion and $3.10 billion.

  • Reduction in Interest Expense

    Interest expense decreased to $38.3 million, down 9.8% from $42.4 million in Q1 2025.

  • Free Cash Flow Recovery

    Free cash flow grew to $40 million, significantly improving from -$2 million in the previous quarter.

What to watch

  • High Debt Levels

    Total noncurrent liabilities were $1.96 billion, representing ongoing liquidity concerns.

  • Dependence on Government Contracts

    A significant portion of revenue comes from government contracts, exposing the company to potential budget cuts.

  • Potential Operational Challenges

    Future operational stability could be impacted by government funding changes and political risk in the detention center landscape.

Management's outlook

Expectations for increased operational capacity to support growth.

This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.