Geo Group (NYSE:GEO) Posts Earnings Results

Geo Group (NYSE:GEO) released its quarterly earnings results on Thursday. The real estate investment trust reported $0.39 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.35 by $0.04, FiscalAI reports. Geo Group had a return on equity of 10.42% and a net margin of 10.31%. The business had revenue of $761.06 million during the quarter, compared to the consensus estimate of $770.87 million. During the same period in the previous year, the company posted $0.25 EPS. The business’s quarterly revenue was up 11.5% compared to the same quarter last year.

Here are the key takeaways from Geo Group’s conference call:

• GEO reported record third-quarter revenue of $761.1 million and Adjusted EBITDA of $145.3 million, up 12% and 21% year over year, respectively. It raised its 2026 guidance and said it expects the fourth quarter to set another quarterly record.
• New and expanded ICE contracts are expected to add about $500 million in annual revenue once fully operational, including four facilities scheduled to activate in 2027. The company also cited potential upside from reactivating other idle beds and expanding services.
• GEO sold its Adelanto complex for $950 million and used proceeds to redeem $650 million of secured notes; management said net leverage is about 1x Adjusted EBITDA. It plans to prioritize share repurchases alongside debt reduction and is exploring sales of up to four more facilities, though no additional deals are assured.
• Electronic monitoring and supervision revenue increased 1.6% year over year, reversing a multiyear decline. Management pointed to growth in ISAP participation, ankle-monitor use and case-management services, while noting that the contract’s overall expansion has been slower than previously expected.

Geo Group Stock Performance

NYSE GEO traded up $2.68 on Friday, reaching $27.85. 5,210,383 shares of the stock were exchanged, compared to its average volume of 2,368,444. The company has a current ratio of 1.65, a quick ratio of 1.65 and a debt-to-equity ratio of 1.00. Geo Group has a one year low of $12.51 and a one year high of $33.17. The firm has a market capitalization of $3.67 billion, a PE ratio of 22.28, a PEG ratio of 1.50 and a beta of 0.78. The company’s 50-day simple moving average is $30.03 and its two-hundred day simple moving average is $24.49.

Insider Buying and Selling

In other news, VP Matthew Albence sold 11,797 shares of the stock in a transaction on Friday, September 11th. The shares were sold at an average price of $31.45, for a total value of $371,015.65. Following the completion of the sale, the vice president directly owned 87,602 shares of the company’s stock, valued at $2,755,082.90. This represents a 11.87% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, insider Ronald A. Brack sold 7,000 shares of the firm’s stock in a transaction on Friday, August 21st. The shares were sold at an average price of $32.00, for a total transaction of $224,000.00. Following the sale, the insider owned 71,614 shares in the company, valued at $2,291,648. The trade was a 8.90% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders sold 28,797 shares of company stock valued at $911,916. Company insiders own 4.98% of the company’s stock.

Key Headlines Impacting Geo Group

Here are the key news stories impacting Geo Group this week:

• Positive Sentiment: GEO reported Q3 adjusted EPS of $0.39, ahead of the $0.35 consensus and up from $0.25 a year earlier. Revenue grew 11.5% year over year to $761.1 million. Article: GEO Group Surpasses Q3 Earnings Estimates
• Positive Sentiment: Management forecast Q4 revenue of $777 million–$827 million and adjusted EBITDA of $149 million–$154 million, citing increased ICE activations—supporting expectations that government demand can drive further growth. Article: GEO Forecasts Q4 Revenue and EBITDA
• Positive Sentiment: JonesTrading raised its price target to $42.75 from $40 and maintained a Buy rating, signaling increased analyst optimism. JonesTrading Recommendations
• Negative Sentiment: Q3 revenue of $761.1 million missed the approximately $770.9 million analyst estimate. This shortfall may offset some of the positive impact of the EPS beat. Article: GEO Group Misses Q3 Revenue Estimates
• Negative Sentiment: GEO’s reliance on ICE and government contracts leaves it exposed to potential policy shifts; a pre-election report highlighted political uncertainty as a risk for private-prison operators. Article: Political Risks for GEO Group and CoreCivic

Wall Street Analysts Forecast Growth

Several analysts recently issued reports on the stock. Zacks Research upgraded shares of Geo Group from a “hold” rating to a “strong-buy” rating in a research report on Monday, July 20th. Wall Street Zen downgraded shares of Geo Group from a “buy” rating to a “hold” rating in a research report on Saturday, July 25th. JonesTrading lifted their price target on shares of Geo Group from $40.00 to $42.75 and gave the stock a “buy” rating in a research note on Thursday. UBS Group reissued a “buy” rating on shares of Geo Group in a research report on Tuesday, October 6th. Finally, Weiss Ratings restated a “hold (c+)” rating on shares of Geo Group in a research note on Friday, September 4th. One equities research analyst has rated the stock with a Strong Buy rating, four have given a Buy rating and one has issued a Hold rating to the stock. According to data from MarketBeat.com, Geo Group presently has an average rating of “Buy” and a consensus price target of $41.38.

Geo Group Company Profile

The GEO Group, Inc (NYSE: GEO) is a provider of correctional, detention and community-based services. The company develops and operates secure facilities for government agencies, offering services that can include facility management, housing, transportation, food services, medical care, education and rehabilitation programs.

GEO also provides reentry and community-based services designed to support individuals transitioning from incarceration. Through its electronic monitoring and supervision offerings, the company assists government and law-enforcement agencies with alternatives to secure detention, including GPS monitoring, case management and other post-release support services.

Founded in 1984 as Wackenhut Corrections Corporation, the company adopted the name The GEO Group in 2003.