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][19] - Adjusted EBITDA for Q4 2025 was approximately $126 million, up from approximately $108 million in Q4 2024 [20] - 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][24] 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 new contracts with ICE [20] - Managed-only contracts revenues increased by approximately $26 million, or 17%, due to the joint venture for the North Florida Detention Facility and transportation revenue increases [21] - Revenues for electronic monitoring and supervision services increased by approximately 3%, reflecting a favorable technology and case management mix shift [22] 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 recorded [6] - The current ICE detention census is approximately 70,000, distributed over 225 locations, primarily short-term jail facilities [11] - 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 [12] Company Strategy and Development Direction - The company aims to capture new growth opportunities that could generate up to $520 million in annualized revenues, marking the most successful period for new business wins in its history [3][32] - The company is exploring participation in the federal government's initiative to purchase and retrofit commercial warehouses for detention capacity, while also focusing on utilizing its idle facilities [13][42] - The company is pursuing additional opportunities in mental health services at the state level, indicating a diversification strategy [15] 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 monitoring services and case management [9][10] - The company expects 2026 to be as active as 2025, with potential upside across diversified business segments [32] - Management acknowledged the impact of government funding processes on operations but indicated strong liquidity and support from lenders [14][29] 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 significant pre-tax gain [24][30] - A share repurchase program was initiated in August 2025, with approximately 5 million shares repurchased for about $91 million by year-end 2025 [16][30] - 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 [40][41] Question: On ISAP contract participant levels and capacity - Management confirmed readiness to scale monitoring devices and case management services to meet increased participant levels as outlined in the new ISAP contract [44] Question: Stock buyback strategy given current stock price - Management acknowledged the potential for more aggressive buybacks at current stock levels, emphasizing a diligent approach to capital allocation [46][47] Question: Monitoring service margins and mix shifts - Management explained that margin compression is primarily due to a shift in service mix, with increased demand for higher-cost ankle monitors impacting overall margins [51][52] Question: Guidance for 2026 and startup expenses - Management provided insights into conservative guidance for 2026, factoring in startup expenses related to activating idle facilities, with expectations for margin normalization in the latter half of the year [70][71]

Financial Data and Key Metrics Changes - For Q1 2025, the company reported net income of approximately $19.6 million or $0.14 per diluted share on revenues of approximately $605 million, compared to net income of approximately $22.7 million or $0.14 per diluted share in Q1 2024 on revenues of approximately $606 million [24][25] - Adjusted EBITDA for Q1 2025 was approximately $100 million, down from approximately $118 million in the prior year's first quarter [24][25] - Operating expenses increased by approximately 3% year over year, reflecting higher labor costs and general administrative expenses [25][26] Business Line Data and Key Metrics Changes - Revenues from owned and leased secure service facilities increased by approximately 3% year over year, while revenues from electronic monitoring and supervision services declined by approximately 10% [24][25] - Combined revenues from owned and leased reentry centers, managed only facilities, and non-residential service contracts were largely unchanged compared to the prior year's first quarter [25] Market Data and Key Metrics Changes - Utilization at facilities under contract with ICE is currently at approximately 16,000 beds, the highest level of utilization in over five years, while ICE detention levels are estimated at about 48,000 beds nationwide [10][11] - The company has around 3,000 beds available under contract with the US Marshals Service and approximately 6,500 beds at idle facilities [10][11] Company Strategy and Development Direction - The company is focused on expanding its capabilities to assist the federal government with immigration enforcement priorities, including a $70 million investment to enhance detention capacity and related services [5][32] - The company has reorganized its corporate management structure to strengthen operational oversight in anticipation of expected growth [5][32] - The guidance for 2025 reflects a "tale of two halves," with the first half impacted by higher overhead and operating expenses, while growth is expected to begin in the second half [6][27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the anticipated growth opportunities due to increased immigration enforcement and the need for additional detention capacity [5][32] - The company expects to see additional contract awards in the second quarter of 2025, which will likely activate in the second half of the year [10][11] - Management highlighted the importance of the budget reconciliation process in Congress for future funding availability for ICE [19][80] Other Important Information - The company ended Q1 2025 with approximately $1.68 billion in total net debt and expects to reduce net debt by approximately $150 million to $175 million for the full year [19][30] - The company is exploring options for the potential purchase, leasing, or operation of third-party owned facilities to meet federal government needs [13][14] Q&A Session Summary Question: What caused the larger fall in operating income for the electronic monitoring segment? - Management indicated that the decline in profitability was due to a mix shift away from phone services to GPS monitoring devices, impacting margins [39][40] Question: Is the $45 billion funding for ICE detention inclusive of ATD? - Management noted that the focus is on interior enforcement and that as the budget process unfolds, greater utilization of electronic monitoring is expected [41][42][45] Question: What is the current status of ICE detainee numbers? - Management stated that the agency has rapidly increased the number of detainees, and new contracts will help expand capacity [46][48] Question: Will the company consider opportunities in Alabama for new facilities? - Management expressed openness to supporting any governmental client but emphasized the primary focus on federal partners [49][50] Question: What is the status of the Northlake contract? - Management clarified that capital investment for the Northlake facility is included in overall guidance and will be accretive over the contract timeline [72] Question: How does the company view the potential for share buybacks? - Management indicated that share buybacks would be considered once leverage levels are appropriate and after executing current commitments [89][90]