Financial Data and Key Metrics Changes - For Q4 2025, the company reported net income of approximately $32 million, or $0.23 per diluted share, on revenues of approximately $708 million, compared to net income of approximately $15.5 million, or $0.11 per diluted share, on revenues of approximately $608 million in Q4 2024 [18] - Adjusted EBITDA for Q4 2025 was approximately $126 million, up from approximately $108 million in Q4 2024 [19] - For the full year 2025, net income attributable to GEO operations was approximately $254 million, or $1.82 per diluted share, on revenues of approximately $2.63 billion, compared to $32 million, or $0.22 per diluted share, on revenues of $2.42 billion in 2024 [23] Business Line Data and Key Metrics Changes - Owned and leased secure service revenues increased by approximately $70 million, or 23%, in Q4 2025 compared to Q4 2024, primarily driven by the activation of new company-owned facilities [19] - Managed-only contracts revenues increased by approximately $26 million, or 17%, driven by the joint venture agreement for the North Florida Detention Facility [20] - Revenues for electronic monitoring and supervision services increased by approximately 3% from the prior year's fourth quarter, reflecting a favorable technology and case management mix shift [21] Market Data and Key Metrics Changes - The census across active ICE facilities increased from approximately 22,000 in Q3 to approximately 24,000, the highest level of ICE populations recorded [5] - The current ICE detention census is approximately 70,000, distributed over 225 separate locations, primarily short-term jail facilities [10] - The company has approximately 6,000 idle beds at six company-owned facilities, which could generate over $300 million in annualized revenues at full capacity [11] Company Strategy and Development Direction - The company has been awarded new or expanded contracts representing approximately $520 million in new incremental annualized revenues, marking the largest amount of new business won in a single year in its history [3] - The company is exploring opportunities in the field of mental health services and is participating in a procurement for the management contract at a state forensic psychiatric hospital [15] - The company is cautiously participating in the federal government's procurement process for retrofitting commercial warehouses to increase detention capacity [12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth potential of the ICE contract, particularly with the increase in more intensive monitoring devices and case management services [8] - The company expects 2026 to be as active as 2025, with upside potential across diversified business segments [33] - Management noted that the federal government is focused on increasing immigration detention capacity and is looking for solutions to upscale to 100,000 beds or more [11] Other Important Information - The company completed the sale of the Lawton, Oklahoma facility for $312 million and the Hector Garza facility for $10 million, resulting in a $232 million pre-tax gain on asset sales [24] - The company initiated a share repurchase program in August 2025, expanding it to $500 million in November, with approximately 5 million shares repurchased for approximately $91 million by year-end 2025 [16] - The company closed 2025 with approximately $70 million in cash and approximately $1.65 billion in total debt [28] Q&A Session Summary Question: Regarding ICE's focus on warehouse initiatives and contract delays - Management indicated that ICE is pursuing both warehouse initiatives and utilizing existing private sector bed capacity, estimating a need for at least 20,000 new beds to reach a target of 100,000 [42][44] Question: On ISAP contract participation levels - Management confirmed that they are prepared to scale up monitoring devices and case management services to meet increased participation levels as requested by ICE [46] Question: Stock buyback strategy given low stock price - Management acknowledged the opportunity to be more aggressive with stock buybacks at current levels and emphasized their commitment to managing liquidity while taking advantage of the buyback program [47][48] Question: Monitoring service margins and mix shift - Management explained that margin compression is primarily due to a mix shift towards higher-cost ankle monitors and increased case management services [52][53] Question: Guidance for fiscal 2026 and startup expenses - Management stated that they are incorporating startup expenses related to the activation of idle facilities into their guidance, which is designed to be prudent and balanced [68][69]