Business Segments and Geographic Information

3 Months Ended

Mar. 31, 2025

Segment Reporting [Abstract]

Business Segments and Geographic Information

12. BUSINESS SEGMENTS AND GEOGRAPHIC INFORMATION

Operating and Reporting Segments

The Company's segments are determined as those operations whose results are reviewed regularly by the chief operating decision maker ("CODM"), who is the Company's Chief Executive Officer, in deciding how to allocate recourses and assess performance. The Company conducts its business through four reportable business segments: the U.S. Secure Services segment; the Electronic Monitoring and Supervision Services segment; the Reentry Services segment; and the International Services segment. The Company has identified these four reportable segments to reflect the current view that the Company operates four distinct business lines, each of which constitutes a material part of its overall business.

The U.S. Secure Services segment primarily encompasses U.S.-based secure services business. The Electronic Monitoring and Supervision Services segment, which conducts its services in the United States, represents services provided to adults for monitoring services and evidence-based supervision and treatment programs for community-based parolees, probationers, and pretrial defendants. The Reentry Services segment, which conducts its services in the United States represents services provided to adults for residential and non-residential treatment, educational and community-based programs, pre-release and half-way house programs. The International Services segment primarily consists of secure services operations in South Africa and Australia. Segment disclosures below (in thousands) reflect the results of continuing operations. All transactions between segments are eliminated. The accounting policies of the segments are the same as those described in the summary of significant accounting policies.

Revenue and operating income for each segment are used by the CODM to assess the performance of each segment in a financial period. The performance of the operating segments is evaluated based on segment operating income, which is defined as income before income taxes before the following: unallocated corporate general and administrative expenses, interest expense, net, and loss on extinguishment of debt not allocated to the operating segments. The CODM uses segment operating income as the measure to make resource (including financial or capital resources) allocation decisions for each segment, predominantly in the annual budget and forecasting process. The CODM considers budget-to-actual variances on a monthly and quarterly basis when evaluating performance for each segment and making decisions about capital allocation.

Summarized financial information for the Company's segments is shown in the following tables including a reconciliation of the Company’s total operating income from its reportable segments to the Company’s income before income taxes and equity in earnings of affiliates, in each case, during the three months ended March 31, 2025 and 2024, respectively.

Three Months Ended March 31, 2025	U.S. Secure Services		Electronic Monitoring and Supervision Services		Reentry Services		International Services		Total
Revenues	$	405,716	$	77,713	$	70,376	$	50,842	$	604,647
Less:
Labor and Related Taxes [1]		230,397		23,387		31,755		28,689		314,228
Medical Services and Supplies [1]		14,406		—		—		—		14,406
Other Segment Items [2]		91,682		24,337		23,519		17,742		157,280
Operating Income from Segments	$	69,231	$	29,989	$	15,102	$	4,411	$	118,733
Unallocated amounts:
General and administrative expense										(57,749	)
Net interest expense										(40,444	)
Loss on extinguishment of debt										—
Net loss on asset divestitures/impairment										—
Income before income taxes and equity in earnings of affiliates									$	20,540
Capital Expenditures	$	19,313	$	9,976	$	977	$	505	$	30,771
Depreciation and amortization	$	22,275	$	5,862	$	3,442	$	557	$	32,136

Three Months Ended March 31, 2024	U.S. Secure Services		Electronic Monitoring and Supervision Services		Reentry Services		International Services		Total
Revenues	$	400,940	$	86,784	$	67,830	$	50,118	$	605,672
Less:
Labor and Related Taxes [1]		219,009		22,457		31,552		29,302		302,320
Medical Services and Supplies [1]		18,721		—		—		—		18,721
Other Segment Items [2]		83,969		26,147		23,536		18,347		151,999
Operating Income from Segments	$	79,241	$	38,180	$	12,742	$	2,469	$	132,632
Unallocated amounts:
General and administrative expense										(53,070	)
Net interest expense										(48,821	)
Loss on extinguishment of debt										(39	)
Income before income taxes and equity in earnings of affiliates									$	30,702
Capital Expenditures	$	5,773	$	6,729	$	1,641	$	625	$	14,768
Depreciation and amortization	$	20,567	$	6,517	$	3,636	$	645	$	31,365

[1] The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM. Intersegment expenses are included in the amounts shown.

[2] Other segment items include:

U.S. Secure Services - depreciation and amortization, food services and supplies, utilities, repairs and maintenance, rent and lease expense and certain other overhead expenses.

Electronic Monitoring and Supervision Services - depreciation and amortization, cost of goods sold, rent and lease expense and certain other overhead expenses.

Reentry Services - depreciation and amortization, medical services and supplies, food services and supplies, rent and lease expense, utilities and certain other overhead expenses.

International Services - medical services and supplies, food services and supplies, utilities, repairs and maintenance and certain other overhead expenses.

Segment Assets

	March 31, 2025		December 31, 2024
	(In thousands)
Segment assets:
U.S. Secure Services	$	2,367,272	$	2,356,105
Electronic Monitoring and Supervision Services		507,221		504,782
Reentry Services		459,611		465,014
International Services		71,588		71,610
Total segment assets	$	3,405,692	$	3,397,511

Asset Reconciliation

The following is a reconciliation of the Company's reportable segment assets to the Company's total assets as of March 31, 2025 and December 31, 2024, respectively.

	March 31, 2025		December 31, 2024
	(In thousands)
Reportable segment assets	$	3,405,692	$	3,397,511
Cash		64,822		76,896
Deferred income tax assets		9,522		9,522
Restricted cash and investments, current and non-current		152,429		148,151
Total assets	$	3,632,465	$	3,632,080

Geographic Information

During each of the three months ended March 31, 2025 and 2024, the Company’s international operations were conducted through (i) the Company’s wholly owned Australian subsidiary, The GEO Group Australia Pty. Ltd., through which the Company has management contracts for three correctional facilities and a contract to provide health services for several public prisons, and (ii) the Company’s wholly-owned subsidiary in South Africa, SACM, through which the Company manages one correctional facility.

Three Months Ended March, 31,	March 31, 2025		March 31, 2024
	(In thousands)
Revenues:
U.S. operations	$	553,804	$	555,588
Australia operations		46,120		46,379
South African operations		4,723		3,705
Total revenues	$	604,647	$	605,672
As of,	March 31, 2025		December 31, 2024
	(In thousands)
Property and Equipment, net:
U.S. operations	$	1,891,453	$	1,890,662
Australia operations		8,932		8,944
South African operations		140		84
Total Property and Equipment, net	$	1,900,525	$	1,899,690

Sources of Revenue

The Company derives most of its revenue from the management of secure facilities through public-private partnerships. The Company also derives revenue from the provision of reentry services and electronic monitoring and evidence-based supervision and treatment programs in the United States, and expansion of new and existing secure facilities, processing centers and reentry centers.

Fiscal Year	2025		2024
	(In thousands)
Revenues:
Secure Services [1]	$	456,558	$	451,058
Electronic Monitoring and Supervision Services		77,713		86,784
Reentry Services		70,376		67,830
Total revenues	$	604,647	$	605,672

[1] Includes international secured services.

Equity in Earnings of Affiliates

Equity in earnings of affiliates includes the Company’s 50% owned joint ventures in South African Custodial Services Pty. Limited (“SACS”), located in South Africa, and GEOAmey located in the United Kingdom. The Company's investments in these entities are accounted for under the equity method of accounting. The Company’s investments in these entities are presented as a component of Other Non-Current Assets in the accompanying consolidated balance sheets.

The Company has recorded $0.1 million in earnings, net of tax, for SACS operations during the three months ended March 31, 2025, and $0.4 million in losses, net of tax, for SACS operations during the three months ended March 31, 2024, which are included in equity in earnings of affiliates, net of income tax provision in the accompanying consolidated statements of operations. As of March 31, 2025 and December 31, 2024, the Company’s investment in SACS was $7.1 million and $7.2 million, respectively, and represents its share of cumulative reported earnings.

The Company has recorded $0.7 million in earnings, net of tax, for GEOAmey's operations during the three months ended March 31, 2025, and $0.4 million in earnings, net of tax, for GEOAmey's operations during the three months ended March 31, 2024, which are included in equity in earnings of affiliates, net of income tax provision in the accompanying consolidated statements of operations. As of March 31, 2025 and December 31, 2024, the Company’s investment in GEOAmey was $8.1 million and $10.3 million, respectively, and represents its share of cumulative reported earnings.