Core Insights - GEO Group reported Q3 CY2025 revenue of $682.3 million, exceeding Wall Street expectations by 2.5% and reflecting a year-on-year growth of 13.1% [1][5] - The company's GAAP profit per share was $1.24, which was 58.8% above analysts' consensus estimates [1][5] - However, the revenue guidance for Q4 CY2025 is $663.5 million, which is 4.7% below analysts' expectations [1][5] Revenue and Profitability - Revenue for Q3 CY2025 was $682.3 million, surpassing analyst estimates of $665.7 million [5] - Adjusted EBITDA was reported at $120.1 million, aligning with analyst expectations, resulting in a 17.6% margin [5] - Operating margin decreased to 6%, down from 13.7% in the same quarter last year [5] Management Commentary - Management attributed revenue growth to new and expanded contracts with U.S. Immigration and Customs Enforcement (ICE) and the U.S. Marshals, which increased facility occupancy and transportation services [3] - CEO George Zoley noted that total ICE capacity has increased to over 26,000 beds, with a current census exceeding 22,000, marking the highest ICE population to date [3] Future Outlook - The company faces uncertainty with guidance reflecting potential delays in new contract awards and challenges from government staffing and shutdowns [4] - CFO Mark Suchinski highlighted reduced contract pricing for the ISAP 5 electronic monitoring program and additional start-up costs as factors that will negatively impact margins in the upcoming quarter [4] - Management is focused on normalizing operations and integrating recent contract wins to support future revenue growth, but anticipates ongoing operating challenges [4]