GEO : Annual Report – 2025

About this update from Geo Group Inc (the) Reit

2025 ANNUAL REPORT FINANCIAL HIGHLIGHTS $3,000 Total Revenues $ In Millions $2,631.5 GEO Care 23% 11% Reentry Services Business Unit % of Revenues GEO Secure Services 77% $2,500 $2,413.2 $2,423.7 $2,000 $1,500 $1,000 $500 12% Electronic Monitoring & Supervision Services 7% International 55% Federal 2023 2024 2025 Net Income $ In Millions $250 $200 $150 $107.2 $100 $50 $31.9 $254.3 15% State 2023 2024 2025 Adjusted EBITDA* $ In Millions 8% Other Non-Residential 1% South Africa 1% Texas 1% Georgia 1% New Jersey 1% Alaska 1% Oklahoma 2% Indiana 5% Florida 5% Arizona Customer % of Revenues 2% Various Others 48% ICE 1 $600 7% Australia $507.2 $300 $500 $463.5 $464.4 $400 16% U.S. Marshals 3% BOP 2023 2024 2025 1 Includes ICE Intensive Supervision Appearance Program (ISAP) Contract. *This annual report contains certain non-GAAP measures. Please refer to GEO's Fourth Quarter and Full Year 2025 Supplemental Disclosure published on February 12, 2026 for a description of such non-GAAP measures and a reconciliation of such non-GAAP measures to their most comparable GAAP measures. LETTER TO THE SHAREHOLDERS We believe we made significant progress toward meeting our financial and strategic objectives in 2025. GROWTH HIGHLIGHTS During the year, we were awarded new or expanded contracts totaling up to approximately $520 million in new incremental annualized revenues, representing the largest amount of new business we have won in a single year in our Company's history. In our GEO Secure Services segment, we entered into new contracts to house U.S. Immigration and Customs Enforcement (ICE) detainees at four facilities totaling approximately 6,000 beds. These facilities include three previously idle company-owned facilities: the 1,000-bed Delaney Hall in New Jersey; the 1,800-bed North Lake Facility in Michigan; and the 1,868-bed D. Ray James Facility in Georgia. Additionally, we entered into a joint-venture agreement to provide management services at the state-owned, 1,310-bed North Florida Detention Facility, which demonstrates GEO's ability to provide management services through alternative solutions such as the State of Florida's partnership with the federal government. During the third quarter of 2025, we also reactivated our company-owned 1,940-bed Adelanto ICE Processing Center in California, which was already under contract but had been underutilized due to a long-standing COVID-related court case. The activation of these five facilities represents the largest start-up activity in our Company's history, with a combined annualized revenue value of approximately $400 million, and involved the recruitment, hiring, and training of approximately 2,000 new employees. During the year, we also expanded the delivery of our secure transportation services on behalf of ICE and the U.S. Marshals Service (USMS) through our wholly-owned subsidiary, GEO Transport, Inc. (GTI), representing approximately $60 million in incremental annualized revenue. We entered into new or amended contracts to expand secure ground transportation services at seven ICE facilities, and the support services that GTI provides under our ICE air transportation subcontract continued to steadily increase. In addition to the secure ground transportation services we have historically provided for the USMS, in 2025, we signed a new five-year contract with the agency covering 26 federal judicial districts and spanning 14 states. At the state level, we were awarded two new managed-only contracts from the Florida Department of Corrections in 2025 for the 1,884-bed Graceville Facility and the 985-bed Bay Facility, which are scheduled to transition to GEO management on July 1, 2026 and have a combined annualized revenue value of approximately $100 million. Our GEO Reentry Services division successfully renewed 29 residential reentry center contracts and 38 non-residential day reporting center contracts, and our GEO Continuum of Care® achieved 6.8 million hours of enhanced rehabilitation programming and 163,000 total program completions. Of particular importance, in 2025, our wholly-owned subsidiary, BI Incorporated (BI) secured a new two-year contract for the Intensive Supervision and Appearance (ISAP) program following a competitive procurement process. ISAP is the only ICE program currently in place to provide electronic monitoring and case management services for individuals on the federal government's non-detained docket. We believe this important contract award is a testament to the high-quality electronic monitoring and case management services BI has consistently delivered under the ISAP contract through a nationwide network of approximately 100 offices and close to 1,000 employees. Finally, in December of 2025, BI was awarded a new two-year contract by ICE for the provision of skip tracing services, valued at up to $60 million in revenues per year. Skip tracing entails enhanced location research primarily with identifiable information and commercial data verification to verify current address information and investigate alternative address information for individuals on the federal government's non-detained docket. This two-year contract award follows an initial skip tracing pilot contract that BI successfully implemented during the fourth quarter of 2025. FINANCIAL PERFORMANCE AND SHAREHOLDER RETURNS The achievement of our operational and corporate milestones continues to support our financial success. For the full year 2025, we reported total revenues of $2.63 billion, Net Income of $254.3 million, Adjusted Net Income of $120.0 million, and Adjusted EBITDA of $464.4 million. Our strong financial performance has allowed us to continue to strengthen our capital structure by reducing our total net debt and deleveraging our balance sheet. These efforts were enhanced in 2025 with the successful sale of the Lawton, Oklahoma Facility for $312 million and the Hector Garza Facility in Texas for $10 million. We used approximately $60 million of the Lawton, Oklahoma Facility sale gain to purchase the 770-bed Western Region Detention Facility in downtown San Diego, California, which we have operated for the USMS for 25 years. The sale of the Lawton, Oklahoma Facility was transformative in allowing GEO to significantly reduce our overall debt. We closed 2025 with approximately $1.65 billion in net debt. We also began returning capital to shareholders through a share repurchase program that was initiated by our Board of Directors in August of 2025 and expanded to $500 million in November of 2025. As of year-end 2025, we had repurchased approximately 5 million shares for approximately $91 million, bringing our total shares outstanding to approximately 136 million. FUTURE GROWTH POTENTIAL Over the past year, we have captured new growth opportunities that could generate up to approximately $520 million in annualized revenues, making it the most successful period for new business wins in our Company's history. We expect the year ahead to be as active as 2025, and we believe we have upside potential across our diversified business segments. We have approximately 6,000 idle high-security beds that remain available, which could generate approximately $300 million in annualized revenues at full occupancy. We are also well positioned to continue to expand our delivery of electronic monitoring and case management services, as well as secure ground and air transportation services. Our Board of Directors and senior management team remain focused on the disciplined allocation of capital to enhance long-term value for our shareholders. With our strong financial performance, substantial reduction in our net debt, the intrinsic value of our assets, and future growth potential, we believe that our stock offers a very attractive investment opportunity. George C. Zoley Chairman, CEO, and Founder BOARD OF DIRECTORS GEORGE C. ZOLEY | CHAIRMAN, CEO, AND FOUNDER Dr. Zoley was appointed Chairman and Chief Executive Officer of The GEO Group, Inc., effective March 1, 2026. Dr. Zoley previously served as Executive Chairman from July 2021 through February 2026, and has served as Chairman since 2002. He served as GEO's Vice Chairman from January 1997 to May 2002. Dr. Zoley served as GEO's Chief Executive Officer since the company went public in 1994 through June 2021. Prior to 1994, Dr. Zoley served as President and Director since GEO's incorporation in 1988. Dr. Zoley founded GEO in 1984 and continues to be a major factor in GEO's development of new business opportunities in the areas of correctional and detention management, community reentry, electronic monitoring, offender rehabilitation, and other diversified government services. Dr. Zoley also serves as a director of several business subsidiaries through which The GEO Group, Inc. conducts its operations worldwide. Dr. Zoley has bachelor's and master's degrees in Public Administration from Florida Atlantic University (FAU) and a Doctorate Degree in Public Administration from Nova Southeastern University (NSU). For seven years, Dr. Zoley served as a member of the Board of Trustees of Florida Atlantic University in Boca Raton, Florida, and previously served as Chairman of the Board of Trustees. Dr. Zoley was born in Florina, Greece and was the recipient of the Ellis Island Medal of Honor in 2002. As GEO's founder, his knowledge, experience, and leadership are invaluable to the operation and development of the company. His more than 40 years with the company make him uniquely qualified to be GEO's Chairman and Chief Executive Officer. Areas of Expertise : • Company Founder • Strategic Leadership • Business Development Government Contracting JACK BREWER | LEAD INDEPENDENT DIRECTOR* CHAIR, NOMINATING AND CORPORATE GOVERNANCE COMMITTEE CHAIR, COMPENSATION COMMITTEE CHAIR, CRIMINAL JUSTICE AND REHABILITATION COMMITTEE Mr. Brewer has over 20 years of experience in leadership, business and consulting. Since 2001, Mr. Brewer has managed a portfolio of businesses, including an investment advisory firm, a hedge fund as well as a global sports management agency. Mr. Brewer leads global charity efforts delivering millions in emergency aid and providing programs to thousands living in extreme poverty in Africa and the Caribbean. Mr. Brewer also founded The Serving Institute, his Liberty University affiliated faith sports-based academy for at-risk youth in America. Mr. Brewer is an adjunct professor at Fordham Gabelli School of Business, where he teaches his business leadership and transition curriculum tailored to transitioning athletes as well as inmates in prison. In 2020, Mr. Brewer became the White House Appointee on the Congressional Commission for the Social Status of Black Men and Boys. Mr. Brewer was previously an NFL team captain for the Minnesota Vikings, New York Giants and Philadelphia Eagles. Mr. Brewer received a Bachelor of Science and Master's degree in Sports Management from the University of Minnesota. Mr. Brewer brings business leadership and educational experience working with individuals in transition, including inmates, to the Board of Directors. His experience in these areas and managing a portfolio of businesses, including an investment advisory firm, a hedge fund as well as global sports management agency will strengthen the Board of Directors' collective knowledge, capabilities and experience. He has served on GEO's Board of Directors since 2021. Areas of Expertise : • Offender Rehabilitation • GEO Continuum of Care ® Executive Leadership Development • Criminal Justice & Human Rights Advocacy Economic Development & Finance • International Crisis Response & Relief THOMAS C. BARTZOKIS, MD, FACC | INDEPENDENT DIRECTOR* CHAIR, HEALTH SERVICES COMMITTEE Dr. Bartzokis has over 30 years of experience in the medical field, specializing in cardiology. Dr. Bartzokis has served as Managing Member of Bartzokis, Rubenstein & Servoss, MD, PL, a cardiology medical practice, since 2011. Prior to that, Dr. Bartzokis served as a member of other medical practices from 1993 to 2011. Dr. Bartzokis received a Bachelor of Arts degree from Harvard University and a Medical Degree from Harvard Medical School. Dr. Bartzokis did his residency training at New England Deaconess Hospital and his post-graduate training at Stanford University Medical Center. Dr. Bartzokis brings extensive experience in the medical field to the Board of Directors. His expertise in the area will strengthen the Board of Directors' collective knowledge, capabilities and experience. He has served on GEO's Board of Directors since 2022. Areas of Expertise : • Medical Management and Research • Leadership Clinical Medicine DONNA A. KAURANEN | INDEPENDENT DIRECTOR* CHAIR, AUDIT AND FINANCE COMMITTEE CHAIR, CORPORATE PLANNING COMMITTEE Ms. Kauranen is an accomplished senior executive with over 30 years' experience. Ms. Kauranen has served as the President of Arduin, Laffer & Moore Econometrics LLC, a consulting firm, since 2005. Ms. Kauranen has also served as Policy Advisor for the Alaska Legislature since 2023. She has previously advised several state governments on transition, finance and budgetary matters, including Florida, California, Illinois and Montana, most recently advising the Montana Governor-elect Transition in 2020 and the Alaska OMB Director in 2019. Ms. Kauranen received a Bachelor of Arts in Economics, Public Policy from Duke University. Ms. Kauranen brings extensive finance, public policy and state government experience to the Board of Directors. Her experience advising state governments on transition, finance and budgetary matters strengthens the Board of Directors' collective knowledge, capabilities and experience. She has served on GEO's Board of Directors since 2024. Areas of Expertise : • Finance • Public Policy • State Government SCOTT M. KERNAN | INDEPENDENT DIRECTOR* CHAIR, OPERATIONS AND OVERSIGHT COMMITTEE Mr. Kernan served as the Agency Secretary of the California Department of Corrections and Rehabilitation ("CDCR") from January 2016 until August 2018. Prior to that time, Mr. Kernan was appointed the Undersecretary of Operations of CDCR beginning in September 2008 and served in that position until retiring in October 2011. In March of 2015, Mr. Kernan returned to the Undersecretary position from his retirement at the request of California Governor Jerry Brown and worked in that capacity until January 2016. From October 2011 until March 2015, Mr. Kernan owned his own independent consulting firm that specialized in corrections and criminal justice. From March 2007 to September 2008, Mr. Kernan served as the Chief Deputy Secretary of Adult Operations of CDCR. Prior to that time, Mr. Kernan served as the Deputy Director of the Division of Adult Institutions of CDCR from May 2006 to March 2007. Mr. Kernan has over 40 years of experience in corrections. He has served on GEO's Board of Directors since 2018. Areas of Expertise : • American Correctional Association (ACA) Standards Core Correctional Practices • Correctional Leadership *Applying NYSE Director Independence Standards BOARD OF DIRECTORS LINDSAY L. KOREN | INDEPENDENT DIRECTOR* CHAIR, HUMAN RIGHTS COMMITTEE CHAIR, LEGAL STEERING COMMITTEE Ms. Koren has served as Senior Vice President and General Counsel of Darden Restaurants since February 2026 and was previously Senior Vice President, Division General Counsel of Darden Restaurants, where she led the company's ethics and compliance program, privacy, and commercial law functions. She has been with Darden Restaurants since 2015. Ms. Koren served as a Senior Director for international compliance and an Assistant General Counsel at Walmart from January 2011 until early 2015. At Walmart, Ms. Koren advised the business on legal and compliance matters for Walmart's global business, operating in 26 countries. Ms. Koren also previously served as a trial attorney with the U.S. Department of Justice from 2004 to 2007, representing the government in appellate litigation matters, and as an attorney advisor to the Chief Immigration Judge. Ms. Koren brings extensive legal, compliance, including international compliance, immigration and appellate litigation experience to the Board of Directors. Her experience as a member of the general counsel's office of other companies strengthens the Board of Directors' collective knowledge, capabilities and experience. She has served on GEO's Board of Directors since 2022. Areas of Expertise : • Corporate Law • Government Law and Public Policy Ethics and Compliance JULIE M. WOOD | INDEPENDENT DIRECTOR* CHAIR, CYBER SECURITY AND ENVIRONMENTAL OVERSIGHT COMMITTEE Ms. Wood is currently the Chief Executive Officer of Guidepost Solutions LLC ("Guidepost"), a company specializing in monitoring, compliance, international investigations and risk management solutions, after joining the organization in 2012 as president of its Compliance, Federal Practice and Software Solutions division. Prior to joining the private sector, Ms. Wood served as the Head of Immigration and Customs Enforcement ("ICE") for the Department of Homeland Security ("DHS") from January 2006 until November 2008. Ms. Wood's previous leadership positions in the federal government include Assistant Secretary for Export Enforcement at the Department of Commerce, Chief of Staff for the Criminal Division at the Department of Justice and Deputy Assistant Secretary at the Treasury Department. Ms. Wood served as an Assistant U.S. Attorney for the Eastern District of New York. Ms. Wood brings extensive federal government, legal and management experience to the Board of Directors. Her experience in the private sector, including in compliance and risk assessments, and her former government positions, including as Head of Immigration and Customs Enforcement, strengthens the Board of Directors' collective knowledge, capabilities and experience. She has served on GEO's Board of Directors since 2014. Areas of Expertise : • U.S. Department of Homeland Security (DHS) • ICE Performance-Based National Detention Standards (PBNDS) SENIOR OFFICERS* 2025 ANNUAL REPORT George C. Zoley Chairman, CEO, and Founder Shayn P. March Senior Vice President and Chief Financial Officer Scott Schipma Senior Vice President, General Counsel, and Corporate Secretary Paul Laird Senior Vice President, GEO Secure Services David O. Meehan Senior Vice President, GEO Care Richard K. Long Senior Vice President, Project Development Matthew T. Albence Senior Vice President, Client Relations Christopher D. Ryan Senior Vice President, Human Resources Don Houston Senior Vice President, Health Services Daniel Ragsdale Senior Vice President, Contract Administration and Compliance *Senior Officers as of April 1, 2026. EASTERN REGIONAL OFFICE, CHARLOTTE, NC GEO SECURE SERVICES Established in 1984, GEO Secure Services oversees the delivery of support services for secure facilities and processing centers in the United States, Australia, and South Africa. GEO's U.S. Secure Services division oversees 51 secure facilities providing support services on behalf of the USMS, ICE and four state correctional agencies. CENTRAL REGIONAL OFFICE, SAN ANTONIO, TX The daily oversight of GEO's U.S. Secure Services facilities is coordinated from three regional offices located in Charlotte, North Carolina; San Antonio, Texas; and Los Angeles, California. Each regional operating structure is headed by a Regional Vice President who oversees approximately two dozen experts in security, medical, finance, contract compliance, human resources, and other support services. This regional operating structure enables GEO to implement superior quality controls, develop personalized professional relationships, and ensure the delivery of a full complement of high-quality support services, including: WESTERN REGIONAL OFFICE, LOS ANGELES, CA Secure custody services Food services Residential care Health and mental health care Facility management Physical plant maintenance 99.3% AVERAGE ACA ACCREDITATION SCORE IN 2025 51 U.S. SECURE SERVICES FACILITIES 62,302 U.S. SECURE SERVICES BEDS NORTH LAKE PROCESSING CENTER (MI) 1,800 BEDS D. RAY JAMES PROCESSING CENTER (GA) 1,868 BEDS ADELANTO ICE PROCESSING CENTER (CA) 1,940 BEDS INTERNATIONAL SERVICES FULHAM CORRECTIONAL CENTRE 922 BEDS RAVENHALL CORRECTIONAL CENTRE 1,300 BEDS KUTAMA SINTHUMULE CORRECTIONAL CENTRE 3,024 BEDS GEO's International Services division provides support services for secure facilities on behalf of government agencies in Australia and South Africa, managing three secure facilities encompassing approximately 5,200 beds. In Australia, GEO also provides primary health services across 14 public prisons in the State of Victoria on behalf of the Department of Justice and Community Safety. In the United Kingdom, GEO provides secure transportation services through a joint-venture. Through one wholly-owned subsidiary and two joint-venture companies, GEO's International Services division provides solutions that are fully customizable and tailored to each government agency's requirements and standards. THE GEO GROUP AUSTRALIA, SYDNEY, AUSTRALIA GEO AMEY Headquartered in Manchester, England, GEO's U.K. joint venture, GEOAmey, provides secure transportation and custody services. In England and Wales, GEOAmey provides services on behalf of the U.K. Ministry of Justice, and across Scotland, on behalf of the Scottish Prison Service and Criminal Justice Partners. GEOAMEY, MANCHESTER, ENGLAND SOUTH AFRICAN CUSTODIAL MANAGEMENT, JOHANNESBURG, SOUTH AFRICA SOUTH AFRICAN CUSTODIAL MANAGEMENT Located in Johannesburg, South Africa, South African Custodial Management provides secure facility support services for the Department of Correctional Services at the 3,024-bed Kutama Sinthumule Correctional Centre. 10 THE GEO GROUP AUSTRALIA Located in Sydney, Australia, The GEO Group Australia plays a key role in helping meet the need for correctional services in Australia. The GEO Group Australia provides support services at two secure facilities with approximately 2,200 beds, as well as health services at 14 public prisons in the State of Victoria. GEO TRANSPORT, INC. GEOAMEY VAN GEO's transportation subsidiary, GTI, provides secure transportation services to federal, state, and local government agencies. With the flexibility and resources to provide both ground and air transfer services, GTI helps government agencies meet their needs for secure transportation. GTI employs approximately 1,000 licensed transportation officers and operates a fleet of approximately 700 customized, U.S. Department of Transportation-compliant vehicles. Additionally, GTI employs approximately 515 Air Operation Flight Officers who provide transportation security services. In 2025, GTI provided support services for approximately 4,200 flight missions. GTI provides unmatched support services, including: Strategically located transportation centers nationwide Proprietary GPS satellite tracking software (GEOTrack) Two-way communications, in-vehicle recording Continuous vehicle monitoring Constant communication link with all service vehicles Ground support to book and re-route vehicles 700 SPECIAL SECURE USDOT COMPLIANT VEHICLES GPS Satellite Tracking on all vehicles ~19.3 Million+ MILES DRIVEN WORLDWIDE IN 2025 (Including GEOAmey/UK) GTI Transporters 6,431 RESIDENTIAL REENTRY BEDS 96 NON-RESIDENTIAL CENTERS 35 IN-PRISON TREATMENT SITES 276,000 DAILY INDIVIDUALS UNDER CARE GEO CARE 12 GEO Care CHANGING BEHAVIOR | CHANGING LIVES GEO Care provides flexible solutions that increase accountability, enhance public safety, reduce recidivism, and contain costs. As the leader in programming, technology, and innovation, GEO Care delivers high-quality and effective programs to rehabilitate, treat, and supervise individuals in community corrections. Services are provided through the GEO Continuum of Care®, in-custody treatment programs, residential and non-residential reentry centers, and electronic monitoring and supervision services. GEO Reentry Services REENTRY PROGRAMS THAT CHANGE LIVES GEO Reentry Services designs and delivers comprehensive programs tailored to meet individual participant's risks and needs. At the foundation of our approach is cognitive behavioral programming designed to address criminogenic needs (key life areas) of those we serve. This approach equips individuals with essential life skills and coping mechanisms crucial for successful community reintegration, thereby reducing the likelihood of recidivism. GEO Reentry delivers in-custody treatment services at state prisons and county jails, including validated assessments, case management services, evidence-based programming, and transitional planning. Through structured programming, initiated prior to release, individuals receive consistent support designed to accelerate positive behavioral changes and reduce recidivism, leading to successful community reintegration. GEO Reentry has been entrusted by some of the largest U.S. correctional agencies to operate community-based residential facilities. We combine our extensive experience operating secure facilities with our knowledge of evidence-based practices, case management, and treatment to enhance the individual's transition and help them navigate the challenges of reentry. Changing Behavior, Changing Lives GEO Reentry also operates full-service non-residential reentry centers, serving justice-involved individuals residing in the community. Diverting or releasing individuals early to a non-residential center reduces prison and jail populations, resulting in significant capital and operational cost savings. Through the delivery of highly structured evidence-based programming and treatment, GEO Reentry helps individuals change their behavior and successfully transition back into the community. GEO CONTINUUM OF CARE The GEO Continuum of Care® - an award-winning initiative we began in 2015 - provides enhanced in-custody rehabilitation programming, including cognitive behavioral treatment, integrated with post-release support services. This evidence-based treatment model begins with individualized risks and needs assessments and offers programs designed to address the specific needs of each participant based on their assessments. FACILITATING TRANSITION: GEO'S POST-RELEASE SUPPORT SERVICES Approximately 95 percent of all individuals released from prison return to their communities. GEO's Post-Release Support Services provide case management, develop and maintain community partnerships, and coordinate and distribute transitional resources based on individual need. These measures are aimed at reducing recidivism rates, as well as increasing public safety, reducing victimization, and improving the quality of life for released individuals upon returning to their communities. GEO understands the value of providing second chances to those impacted by the Criminal Justice System and continues to demonstrate this through our hiring practices. The GEO Continuum of Care® Post Release Call Center is over 75% staffed with returning citizens who have previously been incarcerated. 2025 POST-RELEASE SUPPORT FUNDING GEO allocated approximately $1.6M in annual funding in 2025 to assist those released from custody In addition to extended case management, education, training, and related services, GEO allocated approximately $1.6 million in company funding during 2025 to assist those released from custody in obtaining such necessities as: housing (52%); employment/education (23%); transportation (13%); food (4%); clothing (4%); and treatment services (4%). VOCATIONAL PARTNER, SKILL BUILDERS SOLUTIONS, WITH POST-RELEASE PARTICIPANT 14 2023-2025 GEO CONTINUUM OF CARE HIGHLIGHTS (COC) POPULATION 2025 2024 2023 Total Eligible Population 60,223 64,113 55,694 Total Program Participants 36,119 36,109 21,323 PARTICIPATION Total Programming Hours Completed 6,814,000 6,756,000 4,623,564 Total Programming Completions 173,517 125,147 94,868 Behavioral Program Completions 62,134 59,942 46,201 Individual Cognitive Behavioral Treatment Sessions Completed 51,217 43,112 36,309 Average Daily Vocational Attendance 7,113 6,004 5,112 Average Daily Academics Attendance 4,982 4,976 4,729 Average Daily Substance Abuse Treatment Attendance 9,010 9,002 7,113 Total Substance Abuse Treatment Completions 9,311 9,309 8,147 Total Vocational Completions 9,801 9,714 9,234 Total High School Equivalencies Issued 3,159 3,070 3,124 Average Program Participation Hours per Participant 188 480 217 POST-RELEASE SUPPORT SERVICES SUMMARY Total Post-Release Participants 3,625 3,336 3,166 Community-Based Participants 2,205 1,740 1,979 Participants Pending Release 1,420 1,596 1,187 Employed/Students 1,061 874 739 STAFF DEVELOPMENT Total Annual Trainings 17,619 17,434 12,879 Total Staff Training Hours 304,147 304,135 270,459 BI INCORPORATED HEADQUARTERS BOULDER, CO ELECTRONIC MONITORING & SUPERVISION STRENGTHENING COMMUNITIES THROUGH INNOVATION Established in 1978, BI is a wholly owned subsidiary of The GEO Group. For more than 45 years, BI has delivered innovative electronic monitoring technologies and case management services, offering a reliable, safe, and cost-effective way to monitor individuals as they live and work in the community. Our unwavering commitment to innovation is the cornerstone of our mission to support community corrections. BI heavily invests in research and development to create future-ready products that not only meet current needs, but also anticipate the challanges of tomorrow. Our continuum is backed by experienced customer support and training teams-unparalleled in the industry-and easy-to-use software that makes using our solutions a productive experience. Made in America +200,000 DEVICES MANUFACTURED ANNUALLY IN COLORADO +1,100 U.S. EMPLOYEES BI proudly designs, engineers, and manufactures 200,000+ electronic monitoring units annually in Boulder, Colorado and employs more than 1,100 highly trained employees nationally, including technicians, hardware and software engineers, assembly professionals, and call center representatives. BI offers government agencies a full array of compliance and tech-forward technologies and services, including: Wrist- and ankle-worn location tracking technology Mobile app and web-based monitoring options designed to enhance supervision Court admissible, breath alcohol and transdermal detection devices to test and report sobriety Radio frequency solutions, ideal for monitoring curfew compliance High-touch 24/7 administrative call center services 16 BI TotalAccess Monitoring Software BI SmartLINK ® Mobile App 2025 FINANCIAL HIGHLIGHTS FINANCIAL OVERVIEW Comparison Of Five-Year Cumulative Total Return Comparison of Five-Year Cumulative Total Return † for The GEO Group, Inc. and the Russell 2000, the S&P 500 Commercial Services and Supplies, and the MSCI U.S. REIT Indexes. (Performance through December 31, 2025) $2.63 Billion FY2025 Total Revenue $254.3 Million FY2025 Net Income $120.0 Million FY2025 Adjusted Net Income* $350 $300 $250 $200 $150 $100 $50 $0 2020 2021 2022 2023 2024 2025 The GEO Group, Inc . Russell 2000 S&P 500 Commercial Services and Supplies S&P 500 MSCI U.S. REIT Index MSCI The GEO Russell Commercial Services and U.S. REIT Date Group, Inc. 2000 Supplies Index Dec-31-20 $100.00 $100.00 $100.00 $100.00 Dec-31-21 $90.08 $113.69 $129.09 $138.77 Dec-31-22 $127.27 $89.18 $115.45 $100.84 Dec-31-23 $125.87 $102.64 $137.53 $109.87 Dec-31-24 $325.20 $112.81 $160.69 $114.92 Dec-31-25 $187.36 $125.68 $ 150.78 $113.59 $464.4 Million FY2025 Adjusted EBITDA* $1.65 Billion FY2025 Net Debt* 3.54x Adjusted EBITDA FY2025 Net Leverage* Assumes $100 invested on December 31, 2020 in The GEO Group, Inc. common stock and the respective Indexes. † Total return assumes reinvestment of dividends. (In thousands, except per share data) FY2025 FY2024 FY2023 Total Revenues $2,631,549 $2,423,702 $2,413,167 Net Income $254,306 $31,896 $107,183 Net Income Attributable to The GEO Group $254,372 $31,966 $107,325 Adjusted Net Income* $120,092 $100,974 $117,471 Adjusted EBITDA* $464,418 $463,489 $507,177 Net Income Attributable To GEO per Diluted Share $0.23 $0.22 $0.72 Total Assets $3,847,236 $3,632,080 $3,696,406 Shareholders' Equity $1,504,134 $1,333,414 $1,290,314 Diluted Weighted Average Common Shares Outstanding 139,723 134,064 123,698 *This annual report contains certain non-GAAP measures. Please refer to GEO's Fourth Quarter and Full Year 2025 Supplemental Disclosure published on February 12, 2026 for a description of such non-GAAP measures and a reconciliation of such non-GAAP measures to their most comparable GAAP measures. PART II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities Our common stock trades on the New York Stock Exchange under the symbol "GEO." As of February 23, 2026, we had 519 shareholders of record. Shareholders of record does not include shareholders who own shares held in "street name." In connection with terminating GEO's REIT status in 2021, the Board also voted unanimously to discontinue our quarterly dividend payments and prioritize allocating GEO's free cash flow to reduce debt. While we do not currently anticipate paying cash dividends, once we achieve our stated debt and leverage reduction goals, we expect to explore options to return capital to our shareholders, which may include the payment of dividends. Any future determination to pay dividends will be made at the discretion of our Board, subject to applicable laws and will depend upon, among other factors, our results of operations, financial condition, contractual restrictions and capital requirements. Performance Graph The following performance graph compares the performance of our common stock to the Russell 2000, the S&P 500 Commercial Services and Supplies Index, and the MSCI U.S. REIT Index and is provided in accordance with Item 201(e) of Regulation S-K. Comparison of Five-Year Cumulative Total Return* The GEO Group, Inc., Russell 2000, S&P 500 Commercial Services and Supplies Index and MSCI U.S. REIT Index (Performance through December 31, 2025) The GEO Group, Inc. Russell 2000 S&P 500 Commercial Services & Supplies MSCI U.S. REIT Index December 31, 2020 $ 100.00 $ 100.00 $ 100.00 $ 100.00 December 31, 2021 $ 90.08 $ 113.69 $ 129.09 $ 138.77 December 31, 2022 $ 127.27 $ 89.18 $ 115.45 $ 100.84 December 31, 2023 $ 125.87 $ 102.64 $ 137.53 $ 109.87 December 31, 2024 $ 325.20 $ 112.81 $ 160.69 $ 114.92 December 31, 2025 $ 187.36 $ 125.68 $ 150.78 $ 113.59 Assumes $100 invested on December 31, 2020 in our common stock and the respective Index. * Total return assumes reinvestment of dividends. Issuer Purchases of Equity Securities Approximate Total Number Dollar Value of of Shares Shares that Total Purchased as Part of May Yet Be Purchased Number Average Publicly Under the of Shares Purchased Price Paid per Announced Plans or Plans or Programs Period (1) Share Programs (in millions) October 1, 2025 to October 31, 2025 - $ - - $ - November 1, 2025 to November 30, 2025 508,831 $ 15.13 508,831 $ 450,816 December 1, 2025 to December 31, 2025 2,463,842 $ 16.77 2,463,842 $ 409,418 Total 2,972,673 2,972,673 (1) On August 4, 2025, our Board of Directors authorized a stock buyback program authorizing us to repurchase up to $300 million of our shares of common stock effective through June 30,2028. As of December 31, 2025, we have repurchased 4,939,452 of our common shares at an aggregate cost of $91.0 million, or an average price of $18.04. On November 4, 2025, our Board of Directors increased the authorization under our share buyback program to $500 million shares of common stock and extended the expiration date to December 31, 2029. Item 6. [Reserved] Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations Introduction The following discussion and analysis provides information which management believes is relevant to an assessment and understanding of our consolidated results of operations and financial condition. This discussion contains forward-looking statements that involve risks and uncertainties. Our actual results may differ materially from those anticipated in these forward-looking statements as a result of numerous factors including, but not limited to, those described above under "Item 1A. Risk Factors," and "Forward-Looking Statements - Safe Harbor" below. The discussion should be read in conjunction with the consolidated financial statements and notes thereto. This section of this Form 10-K generally discusses 2025 and 2024 items and year-to-year comparisons between 2025 and 2024. Discussions of 2023 items and year-to-year comparisons between 2024 and 2023 that are not included in this Form 10-K can be found in "Management's Discussion and Analysis of Financial Condition and Results of Operations" in Part II, Item 7 of the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2024 and are incorporated herein by reference. We specialize in the ownership, leasing and management of secure, reentry facilities and processing centers and the provision of community-based services in the United States, Australia and South Africa. We own, lease and operate a broad range of secure facilities including maximum, medium and minimum-security facilities, processing centers, and community-based reentry facilities. We offer counseling, education and/or treatment for alcohol and drug abuse problems at most of the domestic facilities we manage. We are also a provider of innovative compliance technologies, industry-leading monitoring services, and evidence-based supervision and treatment programs for community-based parolees, probationers and pretrial defendants. Additionally, we have a contract with ICE to provide supervision and reporting services designed to improve the participation of non-detained aliens in the immigration court system. We develop new facilities based on contract awards, using our project development expertise and experience to design, construct and finance what we believe are state-of-the-art facilities that maximize security and efficiency. We also provide secure transportation services for offender and detainee populations as contracted domestically and in the United Kingdom through our joint venture GEOAmey. As of December 31, 2025, our worldwide operations included the management and/or ownership of approximately 75,000 beds at 95 correctional, detention and reentry facilities, including idle facilities, and also included the provision of servicing individuals in a community-based environment on behalf of federal, state and local correctional agencies located throughout the country. For the years ended December 31, 2025 and 2024, we had consolidated revenues of $2.6 billion and $2.4 billion, respectively and we maintained an average company-wide facility occupancy rate of 89.2% including 68,157 active beds and excluding 6,646 idle beds for the year ended December 31, 2025, and 87.2% including 67,604 active beds and excluding 11,675 idle beds for the year ended December 31, 2024. Critical Accounting Policies and Estimates The consolidated financial statements in this report are prepared in conformity with U.S. generally accepted accounting principles, or GAAP. As such, we are required to make certain estimates, judgments, and assumptions that we believe are reasonable based upon the information available. These estimates and assumptions affect the reported amounts of assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. A summary of our significant accounting policies is described in Note 1 - Summary of Business Organization, Operations and Significant Accounting Policies of the notes to the audited consolidated financial statements contained in Part II, Item 8 of this Annual Report on Form 10-K. The significant accounting policies and estimates which we believe are the most critical to aid in fully understanding and evaluating our reported financial results include the following: Idle Facilities/Asset Impairments The following table summarizes our idled facilities as of December 31, 2025 and their respective carrying values, excluding equipment and other assets that can be easily transferred to other facilities. Secure Reentry Services Services Total Secure Services Reentry Services Net Carrying Value Net Carrying Value Net Carrying Value Design Capacity Design Capacity December 31, Facility Year Idled (beds) (beds) December 31, 2025 December 31, 2025 2025 Rivers Correctional Facility 2021 1,320 - 35,969 - 35,969 Big Spring Correctional Facility 2021 924 - 32,005 - 32,005 Flightline Correctional Facility 2021 1,452 - 39,761 - 39,761 McFarland Female Community Reentry Facility 2020 300 - 10,481 - 10,481 Cheyenne Mountain Recovery Center 2020 700 - 17,314 - 17,314 Lea County Correctional Facility Philadelphia Residential [1] 2025 2024 1,200 - - 400 45,412 - - 6,032 45,412 6,032 Coleman Hall [1] 2017 - 350 - 5,531 5,531 Total 5,896 750 $ 180,942 $ 11,563 $ 192,505 [1] We had entered into a purchase and sale agreement in the second quarter of 2024 for these facilities that was less than the net carrying values. As such, we recorded a total impairment loss for both facilities of approximately $2.3 million during the second quarter of 2024 which is included in gain (loss) on asset divestitures/impairment in the accompanying consolidated statements of operations. The purchase and sale agreement was later terminated. There was no indication of impairment related to our idle facilities during the year ended December 31, 2025 or 2023. We review long-lived assets to be held and used for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be fully recoverable. Events that would trigger an impairment assessment include deterioration of profits for a business segment that has long-lived assets, or when other changes occur that might impair recovery of long-lived assets such as the termination of a management contract or a prolonged decrease in population. If impairment indicators are present, we perform a recoverability test to determine whether or not an impairment loss should be measured. We test idle facilities for impairment upon notification that the facilities will no longer be utilized by the customer. If a long-lived asset is part of a group that includes other assets, the unit of accounting for the long-lived asset is its group. Generally, we group assets by facility for the purpose of considering whether any impairment exists. The estimates of recoverability are based on projected undiscounted cash flows associated with actual marketing efforts where available or, in other instances, projected undiscounted cash flows that are comparable to historical cash flows from management contracts achieved in the past at that facility or at similar facilities and probability weighted cash flows. Our probability weighted cash flows include adjustments to projected cash flows compared to the historical cash flows due to current business conditions which impact per diem rates as well as labor and other operating costs, changes related to facility mission due to changes in prospective clients, and changes in projected capacity and occupancy rates. We perform the impairment analysis on an annual basis for each of the idle facilities, or more frequently if needed, and take into consideration updates each quarter for market developments affecting the potential utilization of each of the facilities in order to identify events that may cause the Company to reconsider the most recent assumptions. Such events could include negotiations with a prospective customer for the utilization of an idle facility at terms significantly less favorable than the terms used in our most recent impairment analysis, or changes in legislation surrounding a particular facility that could impact our ability to house certain types of individuals at such facility. Further, a substantial increase in the number of available beds at other facilities we own, or in the marketplace, could lead to deterioration in market conditions and projected cash flows. Although they are not frequently received, an unsolicited offer to purchase any of our idle facilities, at amounts that are less than their carrying value could also cause us to reconsider the assumptions used in the most recent impairment analysis. We have identified marketing prospects to utilize each of the remaining currently idled facilities and have determined that no current impairment exists. However, we can provide no assurance that we will be able to secure management contracts to utilize our idle facilities, or that we will not incur impairment charges in the future. In all cases, the undiscounted cash flows in our analysis as of December 31, 2025, exceeded the carrying amounts of each facility, therefore no impairment charges were recorded. Reserves for Insurance Losses The nature of our business exposes us to various types of third-party legal claims, including, but not limited to, civil rights claims relating to conditions of confinement and/or mistreatment, sexual misconduct claims brought by individuals within our care, medical malpractice claims, product liability claims, intellectual property infringement claims, claims relating to employment matters (including, but not limited to, employment discrimination claims, union grievances and wage and hour claims), property loss claims, environmental claims, automobile liability claims, contractual claims and claims for personal injury or other damages resulting from contact with our facilities, programs, electronic monitoring products, personnel or individuals within our care, including damages arising from the escape of an individual in our care or from a disturbance or riot at a facility. In addition, our management contracts generally require us to indemnify the governmental agency against any damages to which the governmental agency may be subject in connection with such claims or litigation. We maintain a broad program of insurance coverage for these general types of claims, except for claims relating to employment matters, for which we carry no insurance. There can be no assurance that our insurance coverage will be adequate to cover all claims to which we may be exposed. It is our general practice to bring merged or acquired companies into our corporate master policies in order to take advantage of certain economies of scale. On October 1, 2021, GEO formed a wholly owned captive insurance subsidiary, Florina Insurance Company, Inc. ("Florina"), to enhance our risk financing strategies. Florina is incorporated in the state of Vermont and is licensed and regulated by the state of Vermont, including with respect to its insurance programs, levels of liquidity and other requirements. GEO began procuring insurance policies to cover deductibles for workers' compensation, general liability, automobile liability, medical professional liability and directors' and officers' liability as well as the option of procuring insurance policies for its excess liability and excess medical professional liability through Florina effective October 1, 2021. Florina holds cash and investments in order to meet solvency requirements and meet financial obligations as presented, including an investment portfolio of marketable fixed income and equity securities. We currently maintain a general liability policy and excess liability policies with total limits of $75.0 million per occurrence and $95.0 million total general liability annual aggregate limits covering the operations of U.S. Secure Services, Reentry Services and Electronic Monitoring and Supervision Services through commercial and captive policies. We have a professional liability insurance program with a specific loss limit of $45.0 million per occurrence and in the aggregate related to medical professional liability claims arising out of correctional healthcare services. We are uninsured for any claims in excess of these limits. We also maintain insurance to cover property and other casualty risks including, workers' compensation, environmental liability, cybersecurity liability and automobile liability. For most casualty insurance policies, we carry substantial deductibles or self-insured retentions of $4.0 million per occurrence for general liability and $5.0 million per occurrence for medical professional liability, $2.0 million per occurrence for workers' compensation, $2.3 million per occurrence for directors' and officers' liability and $1.0 million per occurrence for automobile liability. In addition, certain of our facilities located in Florida and other high-risk hurricane areas carry substantial windstorm deductibles. Since hurricanes are considered unpredictable future events, no reserves have been established to pre-fund for potential windstorm damage. Limited commercial availability of certain types of insurance relating to windstorm exposure in coastal areas and earthquake exposure mainly in California and the Pacific Northwest may prevent us from insuring some of our facilities to full replacement value. Of the insurance policies discussed above, our most significant insurance reserves relate to workers' compensation, general liability and auto claims. These reserves, which include Florina's reserves and GEO's legacy reserves and administrative costs for the plans, are undiscounted and were $67.3 million and $56.9 million as of December 31, 2025 and 2024, respectively, and are included in Accrued Expenses in the accompanying Consolidated Balance Sheets. We use statistical and actuarial methods to estimate amounts for claims that have been reported but not paid and claims incurred but not reported. In applying these methods and assessing their results, we consider such factors as historical frequency and severity of claims at each of our facilities, claim development, payment patterns and changes in the nature of our business, among other factors. Such factors are analyzed for each of our business segments. Our estimates may be impacted by such factors as increases in the market price for medical services and unpredictability of the size of jury awards. We also may experience variability between our estimates and the actual settlement due to limitations inherent in the estimation process, including our ability to estimate costs of processing and settling claims in a timely manner as well as our ability to accurately estimate our exposure at the onset of a claim. Because we have high deductible insurance policies, the amount of our insurance expense is dependent on our ability to control our claims experience. If actual losses related to insurance claims significantly differ from our estimates, our financial condition, results of operations and cash flows could be materially adversely impacted. With respect to operations in South Africa and Australia, we utilize locally-procured insurance to meet contractual insurance requirements and protect us. Recent Accounting Pronouncements The following accounting standard was adopted in the current period: In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. ASU 2023-09 focuses on the tax rate reconciliation and income taxes paid disclosure in the Provision for Income Taxes. ASU No. 2023-09 requires a public business entity (PBE) to annually disclose a tabular rate reconciliation using both percentages and currency amounts. The tabular information is to be broken out into specified categories. Information provided under the specified categories may need to be further broken out by nature and jurisdiction to the extent those items exceed a specified threshold, generally 5% of the federal tax amount. In addition, entities are required to disclose income taxes paid, net of refunds received disaggregated by federal, state/local, and foreign, with further disaggregation by jurisdiction, if the amount is at least 5% of total income tax paid, net of refunds received. For PBEs, the new standard is effective for annual periods beginning after December 15, 2024, with early adoption permitted. Entities may apply the amendments in this ASU prospectively by providing the revised disclosures for the period ended December 31, 2025, and continuing to provide the pre-ASU disclosures for the prior periods. Alternatively, entities may apply ASU 2023-09 retrospectively by providing the revised disclosures for all periods presented. We adopted this ASU prospectively for the period ended December 31, 2025, which impacted our disclosures with no impact to our financial condition and results of operations. Refer to Note 15 - Income Taxes of the notes to the audited consolidated financial statements included in Part II, Item 8 of this Annual Report on Form 10-K for further discussion. The following accounting standards will be adopted in future periods: In September 2025, the FASB issued ASU 2025-06, "Intangibles - Goodwill and Other - Internal-Use Software (Topic 350-40): Targeted Improvements to the Accounting for Internal-Use Software". This amendment modernizes and makes targeted improvements to the accounting for software costs found under Topic 350-40, effective for fiscal years and interim periods beginning after December 15, 2027, with early adoption permitted. We are evaluating the impact of adopting this standard on our consolidated financial statements and disclosures. In July 2025, the FASB issued ASU No. 2025-05, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets , which provides a practical expedient related to the estimation of expected credit losses for current accounts receivable and current contract assets arising from transactions accounted for under ASC 606. The ASU is effective for the Registrants for annual and interim periods beginning after December 15, 2025. The guidance should be applied on a prospective basis. Early adoption is permitted. We are currently assessing the impact of this standard on our Consolidated Financial Statements. In November 2024, the FASB issued ASU No. 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses. This ASU requires an entity to disclose the amounts of purchases of inventory, employee compensation, depreciation, and intangible asset amortization included in each relevant expense caption. It also requires an entity to include certain amounts that are already required to be disclosed under current GAAP in the same disclosure. Additionally, it requires an entity to disclose a qualitative description of the amounts remaining in relevant expense captions that are not separately disaggregated quantitatively, and to disclose the total amount of selling expenses and, in annual reporting periods, an entity's definition of selling expenses. The amendments in the ASU are effective for annual reporting periods beginning after December 15, 2026 and interim reporting periods beginning after December 15, 2027, with early adoption permitted. An entity may apply the amendments prospectively for reporting periods after the effective date or retrospectively to any or all prior periods presented in the financial statements. We expect this ASU will impact only our disclosures and not our financial condition and results of operations. Other recent accounting pronouncements issued by the FASB (including its Emerging Issues Task Force), the American Institute of Certified Public Accountants and the SEC did not, or are not expected to, have a material effect on our results of operations or financial position. Results of Operations The following discussion should be read in conjunction with our consolidated financial statements and the notes to the consolidated financial statements accompanying this report. This discussion contains forward-looking statements that involve risks and uncertainties. Our actual results may differ materially from those anticipated in the forward-looking statements as a result of certain factors, including, but not limited to, those described under "Item 1A. Risk Factors" and those included in other portions of this report. 2025 versus 2024 Revenues 2025 % of Revenue 2024 % of Revenue $ Change % Change (Dollars in thousands) U.S. Secure Services $1,827,000 69.4% $ 1,604,386 66.2 % $ 222,614 13.9% Electronic Monitoring and Supervision Services 320,919 12.2% 332,826 13.7 % (11,907 ) (3.6)% Reentry Services 286,521 10.9% 277,566 11.5 % 8,955 3.2% International Services 197,109 7.5% 208,924 8.6 % (11,815 ) (5.7)% Total $2,631,549 100.0% $ 2,423,702 100.0 % $ 207,847 8.6% U.S. Secure Services Revenues for U.S. Secure Services increased by $222.6 million in 2025 compared to 2024 due to aggregate net increases of $152.4 million related to the activations of our new contracts at our company-owned Delaney Hall, North Lake and D. Ray James facilities as well as our managed-only contract at the North Florida Detention Center and new transportation contracts. We also experienced an aggregate net increase of $121.3 million due to increases in occupancies, transportation services, rates and/or per diem amounts in connection with contract modifications. Partially offsetting these increases were decreases of approximately $51.1 million related to contract terminations. The number of compensated mandays in U.S. Secure Services facilities was approximately 17.2 million in 2025 and 16.6 million in 2024. We experienced an aggregate net increase of approximately 600,000 mandays as a result of contract activations and increases in occupancies discussed above. We look at the average occupancy in our facilities to determine how we are managing our available beds. The average occupancy is calculated by taking compensated mandays as a percentage of capacity. The average occupancy in our U.S. Secure Services facilities was 88.7% and 86.6% of capacity in 2025 and 2024, respectively, excluding idle facilities. Electronic Monitoring and Supervision Services Revenues for Electronic Monitoring and Supervision Services decreased by $11.9 million in 2025 compared to 2024 primarily due to decreases in average participant counts under the Intensive Supervision and Appearance Program ("ISAP"). Reentry Services Revenues for Reentry Services increased by $9.0 million in 2025 compared to 2024 primarily due to increases of $6.9 million due to new day reporting center contracts. We also experienced a net aggregate increase of $5.4 million primarily related to increased census levels at certain of our community-based and reentry centers due to increased programming needs and referrals. Partially offsetting these increases were decreases of $3.3 million due to contract terminations. International Services Revenues for International Services decreased by $11.8 million in 2025 compared to 2024. We experienced a net decrease of $14.6 million primarily due to the transition of our managed-only contract for the Junee Correctional Centre in Australia to the government effective March 31, 2025. Partially offsetting this decrease was an increase due to foreign exchange rate fluctuations of $2.8 million. Operating Expenses 2025 % of Segment Revenues 2024 % of Segment Revenues $ Change % Change (Dollars in thousands) U.S. Secure Services $1,407,622 77.0% $ 1,215,784 75.8 % $ 191,838 15.8% Electronic Monitoring and Supervision Services 170,522 53.1% 160,948 48.4 % 9,574 5.9% Reentry Services 212,123 74.0% 205,650 74.1 % 6,473 3.1% International Services 178,214 90.4% 192,097 91.9 % (13,883 ) (7.2)% Total $1,968,481 $ 1,774,479 $ 194,002 10.9% Operating expenses consist of those expenses incurred in the operation and management of our U.S. Secure Services, Electronic Monitoring and Supervision Services, Reentry Services and International Services segments. U.S. Secure Services Operating expenses for U.S. Secure Services increased by $191.8 million in 2025 compared to 2024 primarily due to aggregate net increases of $138.3 million in connection with labor and medical costs, transportation services, increased occupancies and additional staffing and training costs we continue to incur in preparation of expected future growth. We also experienced an increase of approximately $93.4 million related to the activations of our new contracts at our company-owned Delaney Hall, North Lake and D. Ray James facilities as well as our managed-only contract at the North Florida Detention Center and new transportation contracts. Partially offsetting these increases were decreases of approximately $39.9 million related to contract terminations. Electronic Monitoring and Supervision Services Operating expenses for Electronic Monitoring and Supervision Services increased by $9.6 million in 2025 compared to 2024 primarily due to an increase in fixed costs related to our conversion to a cloud based data platform and employee severance costs as part of our efficiency initiative. Reentry Services Operating expenses for Reentry Services increased by $6.5 million during 2025 compared to 2024 primarily due an increase of $5.7 million due to new day reporting center contracts. We also experienced an aggregate net increase of 9.1 million related to increased census levels at certain of our community-based and reentry centers due to increased programming needs and referrals and the associated variable costs. Partially offsetting these increases were decreases of $8.3 million due to contract terminations. International Services Operating expenses for International Services decreased in 2025 compared to 2024 by $13.9 million. We experienced a net decrease of $10.8 million primarily due to the transition of our managed-only contract for the Junee Correctional Centre in Australia to the government effective March 31, 2025. We also experienced a decrease of $3.1 million related to foreign exchange rate fluctuations. Depreciation and Amortization 2025 % of Segment Revenue 2024 % of Segment Revenue $ Change % Change (Dollars in thousands) U.S. Secure Services $ 90,823 5.0 % $ 85,685 5.3% $ 5,138 6.0 % Electronic Monitoring and Supervision Services 25,411 7.9 % 24,523 7.4% 888 3.6 % Reentry Services 13,405 4.7 % 13,619 4.9% (214 ) (1.6 )% International Services 2,400 1.2 % 2,393 1.1% 7 0.3% Total $ 132,039 5.0 % $ 126,220 5.2% $ 5,819 4.6 % U.S. Secure Services U.S. Secure Services depreciation and amortization expense increased in 2025 compared to 2024 primarily due to renovations at certain of our company-owned and leased facilities as well as the impact of our purchase of the Western Region Detention Center offset by the sale of our company-owned Lawton Correctional Facility in July 2025. Electronic Monitoring and Supervision Services Depreciation and amortization expense increased in 2025 compared to 2024 primarily due to renovations at certain of our leased centers. Reentry Services Reentry Services depreciation and amortization expense decreased in 2025 compared to 2024 primarily due to certain assets becoming fully depreciated and/or amortized as well as certain asset dispositions at our company-owned centers. International Services Depreciation and amortization expense was relatively consistent in 2025 compared to 2024. Other Unallocated Operating Expenses % of % of 2025 Revenue 2024 Revenue $ Change % Change (Dollars in thousands) General and Administrative Expenses $ 235,939 9.0 % $ 213,028 8.8 % $ 22,911 10.8% General and administrative expenses comprise substantially all of our other unallocated operating expenses which primarily includes, corporate management salaries and benefits, professional fees and other administrative expenses. General and administrative expenses increased by $22.9 million in 2025 compared to 2024 primarily due to the reorganization of our senior management team at the end of 2024, other employee restructuring expenses in 2025, higher employee related benefit costs and support for the revenue growth from our new contract awards. Contingent Litigation Reserve 2025 % of Revenue 2024 % of Revenue $ Change % Change (Dollars in thousands) Contingent Liability Reserve $ 37,600 1.4 % $ - (-)% $ 37,600 100.0 % During 2025, we incurred a non-cash contingent litigation reserve of $37.6 million in connection with a legal case in the State of Washington, Nwauzor v. GEO Group. Refer to Note 16 - Commitments, Contingencies and Other Matters of the notes to the audited consolidated financial statements included in Part II, Item 8 of this Annual Report on Form 10-K for further discussion. Non-Operating Income and Expense Interest Income and Interest Expense % of % of 2025 Revenue 2024 Revenue $ Change % Change (Dollars in thousands) Interest Income $ 9,076 0.3 % $ 8,787 0.4% $ 289 3.3 % Interest Expense $ 160,521 6.1 % $ 190,624 7.9% $ (30,103) (15.8 )% Interest income increased in 2025 compared to 2024 primarily due to the effect of foreign exchange rate fluctuations. Interest expense decreased by $30.1 million in 2025 compared to 2024 primarily due to our Senior Notes Offering and new Term Loan under our new credit agreement that closed on April 18, 2024 which resulted in overall lower interest expense due to lower interest rates. We also retired the majority of our 6.50% Exchangeable Senior Notes due 2026 during 2024 and had lower overall principal balances in 2025 compared to 2024. Additionally, on July 14, 2025, we amended our Credit Agreement which increased our borrowing capacity and lowered the applicable interest rate. Lastly, we paid off our Term Loan under the credit agreement in July 2025. Refer to Note 11 - Debt of the notes to the audited consolidated financial statements included in Part II, Item 8 of this Annual Report on Form 10-K for further discussion. Loss on Extinguishment of Debt % of % of 2025 Revenue 2024 Revenue $ Change % Change (Dollars in thousands) Loss on Extinguishment of Debt $ 8,446 0.3 % $ 86,637 3.6% $ (78,191) (90.3 )% During 2025, we paid off our Term Loan under our Credit Agreement. In connection with the repayment, we wrote off the related deferred financing costs and paid call premiums. During 2024, we completed a Senior Note Offering which resulted in a loss on extinguishment of debt of approximately $86.6 million which consisted of the write-off of existing deferred financing costs and net discounts/premiums and the payment of call premiums. Refer to Note 11- Debt of the notes to the consolidated financial statements included in Part II, Item 8 of this Annual Report on Form 10-K. Other Income 2025 % of Revenue 2024 % of Revenue $ Change % Change (Dollars in thousands) Other Income $ 5,514 0.2 % $ - 0.0 % $ 5,514 100.0% In 2025, we received an aggregate of $5.5 million under the Employee Retention Tax Credit provisions of the CARES Act. This amount was recognized as other income in the consolidated financial statements. Net Gain (Loss) on Asset Divestitures/Impairment 2025 % of Revenue 2024 % of Revenue $ Change % Change (Dollars in thousands) Net Gain (Loss) on Asset Divestitures/Impairment $ 232,381 8.8 % $ (2,907) (0.1)% $ 235,288 (8,093.8 )% During 2025, we experienced a gain on asset divestitures of approximately $232.4 million related to the sale of our company-owned 2,388-bed Lawton Correctional Facility located in Lawton Oklahoma to the State of Oklahoma. Also included in the gain is the sale of our company-owned and previously idled 139-bed Hector Garza Center in San Antonio, Texas. During 2024, we experienced an impairment loss of approximately $2.3 million related to two of our Company-owned facilities. We also donated a parcel of undeveloped land in Kern County, California which resulted in a loss on asset divestiture of approximately $0.6 million. Provision for Income Taxes Effective Effective 2025 Rate 2024 Rate $ Change % Change (Dollars in thousands) Provision for Income Taxes $ 85,720 25.6 % $ 9,401 24.4 % $ 76,319 811.8% The provision for income taxes in 2025 increased compared to 2024 along with the effective tax rate. In 2025 and 2024, there was a $53.4 million net discrete tax expense and $4.8 million net discrete tax benefit, respectively. Included in the provision for income taxes in 2025 and 2024 was a $3.2 million discrete tax benefit and a $1.1 million discrete tax benefit related to stock compensation that vested during the respective periods. Also included in the provision for income taxes in 2025 was a $56.6 million discrete tax expense related to the sale of our Lawton Facility and in the provision for income taxes in 2024 was a $3.5 million discrete tax benefit from the interest deduction related to GEO shares issued to the holders of our 6.50% Exchangeable Senior Notes due 2026 that participated in private exchange transactions. We estimate our 2026 annual effective tax rate to be in the range of 28% to 30%, exclusive of any discrete items. Equity in Earnings of Affiliates % of % of 2025 Revenue 2024 Revenue $ Change % Change (Dollars in thousands) Equity in Earnings of Affiliates $ 4,532 0.2 % $ 2,703 0.1 % $ 1,829 67.7% Equity in earnings of affiliates, presented net of income taxes, represents the earnings of SACS and GEOAmey in the aggregate. Equity in earnings of affiliates in 2025 compared to 2024 increased primarily due to favorable performance at SACS and GEOAmey. Financial Condition Capital Requirements Our current cash requirements consist of amounts needed for working capital, debt service, supply purchases, investments in joint ventures, and capital expenditures related to either the development of new secure, processing and reentry facilities, or the maintenance of existing facilities. In addition, some of our management contracts require us to make substantial initial expenditures of cash in connection with opening or renovating a facility. Generally, these initial expenditures are subsequently fully or partially recoverable as pass-through costs or are billable as a component of the per diem rates or monthly fixed fees to the contracting agency over the original term of the contract. Additional capital needs may also arise in the future with respect to possible acquisitions, other corporate transactions or other corporate purposes. As of December 31, 2025, we were developing a number of contractually committed projects that we estimate will cost approximately $90.5 million, of which $58.5 million was spent through December 31, 2025. We estimate our remaining contractually committed capital requirements to be approximately $32.0 million. These projects are expected to be completed through 2026. We plan to fund all of our capital needs, including capital expenditures, from cash on hand, cash from operations, borrowings under our Credit Agreement and any other financings which our management and Board, in their discretion, may consummate. Currently, our primary source of liquidity to meet these requirements is cash flow from operations and borrowings under our Credit Agreement. We completed our annual budgeting process, and for 2026, we will continue to strategically manage our capital expenditures to maintain both short and long term financial objectives. Additionally, we may from time to time pursue transactions for the potential sale of additional assets and businesses and/or other strategic transactions including potential acquisitions. Our management believes that cash on hand, cash flows from operations and availability under our Credit Agreement will be adequate to support our capital requirements for 2026 as disclosed under "Capital Requirements" above. Liquidity and Capital Resources Senior Notes Offering and Credit Agreement

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