GEO GROUP INC (GEO) AI Stock Summary

Snapshot

GEO is a profitable operator of correctional and reentry facilities with $2.63B in FY 2025 revenue, up 8.6% year-over-year. The business produced $254.4M in net income but posted negative free cash flow of $124.9M due to heavy capital expenditures of $197.5M. It carries $1.73B in debt against $69M in cash. The stock is currently near its 52-week high after the company reported strong Q2 earnings and raised full-year guidance.

What's Happening Right Now

• Thu 6th Aug '26 · Earnings: GEO reported Q2 revenue of $732.1 million, up 15% year-over-year, and raised its full-year 2026 guidance to between $2.95 billion and $3.05 billion.
• Wed 29th Jul '26 · Contract: GEO signed a five-year support services contract with U.S. Immigration and Customs Enforcement for the Rivers Facility in North Carolina, expected to generate about $80 million in annual revenue.
• Mon 13th Jul '26 · Contract: GEO secured a five-year contract with U.S. Immigration and Customs Enforcement for the Big Horn Facility in Colorado, expected to generate about $85 million in annual revenue.
• Fri 10th Jul '26 · Investigation: Glancy Prongay Wolke & Rotter LLP announced an investigation into GEOs board regarding potential breaches of fiduciary duties tied to a New Jersey lawsuit over facility conditions.

Ownership

Institutions hold 100.0%, insiders hold 4.1%.

Bottom Line

GEO is a growing, profitable business seeing a tailwind from new federal contracts, which drove a recent earnings beat and guidance raise. The financial picture is sound despite high debt and a cash flow dip caused by facility investments. Investors should weigh the positive operational momentum against legal challenges regarding facility conditions and the fact that the stock is trading near its peak.