Geo Group (NYSE:GEO) Releases Earnings Results, Beats Expectations By $0.04 EPS

Geo Group (NYSE:GEO) issued its quarterly earnings results on Thursday. The real estate investment trust reported $0.39 EPS for the quarter, topping 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 for the quarter, compared to analyst estimates of $770.87 million. During the same period last year, the company posted $0.25 earnings per share. Geo Group’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

Geo Group stock traded up $2.68 during midday trading on Friday, reaching $27.85. The stock had a trading volume of 5,210,383 shares, compared to its average volume of 2,228,448. Geo Group has a 12 month low of $12.51 and a 12 month high of $33.17. The firm’s 50-day moving average price is $30.12 and its 200 day moving average price is $24.44. The firm has a market capitalization of $3.69 billion, a PE ratio of 13.13, a P/E/G ratio of 1.48 and a beta of 0.78. The company has a quick ratio of 1.65, a current ratio of 1.65 and a debt-to-equity ratio of 1.00.

Wall Street Analysts Forecast Growth

A number of research analysts have recently weighed in on GEO shares. Zacks Research raised shares of Geo Group from a “hold” rating to a “strong-buy” rating in a research report on Monday, July 20th. 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 report on Thursday. Noble Financial reiterated an “outperform” rating on shares of Geo Group in a research note on Monday, August 10th. Wall Street Zen downgraded Geo Group from a “buy” rating to a “hold” rating in a research note on Saturday, July 25th. Finally, Weiss Ratings reissued a “hold (c+)” rating on shares of Geo Group in a report on Friday, September 4th. One analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating and one has assigned a Hold rating to the company’s stock. According to MarketBeat, the stock presently has a consensus rating of “Buy” and a consensus target price of $41.38.

Geo Group News Roundup

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

Insider Transactions at Geo Group

In other Geo Group news, insider Ronald A. Brack sold 7,000 shares of the stock in a transaction dated Friday, August 21st. The shares were sold at an average price of $32.00, for a total transaction of $224,000.00. Following the completion of the transaction, the insider owned 71,614 shares in the company, valued at $2,291,648. This trade represents a 8.90% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, VP Matthew Albence sold 11,797 shares of Geo Group stock in a transaction dated Friday, September 11th. The stock was sold at an average price of $31.45, for a total transaction of $371,015.65. Following the completion of the transaction, the vice president owned 87,602 shares of the company’s stock, valued at $2,755,082.90. The trade was a 11.87% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 28,797 shares of company stock valued at $911,916 in the last quarter. Company insiders own 4.98% of the company’s stock.

About Geo Group

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.