Thank you, operator. Good afternoon, everyone, and thank you for joining us for today's discussion of The GEO Group's third quarter 2026 earnings results.

With us today are George Zoley, Chairman, Chief Executive Officer, and Founder; and Shayn March, Senior Vice President and Chief Financial Officer. This afternoon, we will discuss our third quarter results as well as our outlook.

We will conclude the call with a question-and-answer session. This conference call is also being webcast live on our investor website at investors.geogroup.com.

Today, we will discuss non-GAAP basis information. A reconciliation from non-GAAP basis information to GAAP basis results is included in the press release and the supplemental disclosure we issued this morning.

Additionally, much of the information we will discuss today, including the answers we give in response to your questions, may include forward-looking statements regarding our beliefs and current expectations with respect to various matters. These forward-looking statements are intended to fall within the safe harbor provisions of the securities laws.

Our actual results may differ materially from those in the forward-looking statements as a result of various factors contained in our Securities and Exchange Commission filings, including the Form 10-K, 10-Q, and 8-K reports. With that, please allow me to turn this call over to our Chairman, CEO, and Founder, George Zoley.

George?

Thank you, Pablo, and good afternoon, everyone, and thank you for joining us. Our diversified business units have continued to deliver strong financial and operational performance through 2026, and our third quarter 2026 results marked a record-breaking quarter for GEO.

Compared to the same period in 2025, our third quarter 2026 revenues increased 12% to approximately $761.1 million, while our third quarter 2026 net income attributable to GEO operations was approximately $49.2 million. Compared to the same period in 2025, our third quarter 2026 adjusted EBITDA increased 21% to approximately $145.3 million, and our adjusted net income increased 48% to approximately $51.8 million.

These results represent the highest level of quarterly revenues and adjusted EBITDA ever reported in our company's history. Even better than expected performance in 2026 has been driven by the significant revenue growth from the new contracts that we entered into throughout 2025.

They included the activation of four facilities to house ICE detainees, totaling 6,000 beds, valued at approximately $280 million in annual revenues. Far in 2026, we have had an even more successful year for the new and expanded services, entering into new contracts for the activation of four additional facilities to house ICE detainees, totaling approximately 4,800 beds.

These contracts, along with the expanded scope of services at existing facilities, created an overall value of approximately $500 million in incremental annual revenues. First, we entered into a five-year support services contract with ICE for the activation of a federal immigration processing center at the 1,188-bed Big Horn Facility in Hudson, Colorado, while also entering into a lease agreement with the facility owner.

The Big Horn support services contract is expected to generate approximately $85 million in annual revenues in the first full year of operations, starting in the first quarter of 2027. We then entered into a five-year support services contract with ICE for the activation of a federal immigration processing center in the GEO-owned 1,320-bed Rivers Facility in Winton, North Carolina.

The Rivers support services contract is expected to generate approximately $80 million in annual revenues in the first full year of operations, also starting in the first quarter of 2027. More recently, we announced earlier this week the city of Big Spring in Texas has entered into a 10-year intergovernmental service agreement with ICE for the activation of a federal immigration processing center at the 2,329-bed Big Spring Complex, comprised of the 1,404-bed Flightline Facility and the 925-bed Cedar Hill Facility.

GEO will provide support services at the Big Spring Complex, which is expected to generate approximately $200 million in annual revenues for GEO in the first full year of operations, starting in the second quarter of 2027. Under all three of these contracts, ICE will reimburse GEO for the capital expenditures needed to reactivate these four facilities as well as providing funding for start-up expenses during the activation period.

Following the activation of these four facilities, our total ICE beds under contract will increase to approximately 33,000 beds at 29 facilities. The current census across our active ICE facilities is approximately 24,000, representing approximately one-third of the current national ICE population of approximately 73,000.

Over the past two quarters, we have also entered into new or modified contracts for the continued provision of support services at existing ICE processing centers. First, during the third quarter, we entered into a contract modification to increase staffing levels at the 1,940-bed Adelanto ICE Processing Center to support the increase in the scope of services at the facility, adding $60 million in incremental annual revenues.

More recently, last week, we announced that we have entered into a new 10-year management contract with expanded support services at incremental annual revenue value of $50 million at the GEO-owned 1,635-bed Northwest ICE Processing Center in Tacoma, Washington. The new 10-year contract is expected to generate approximately $140 million in total annual revenues for GEO and continue through October 27th, 2036, making it the first contract we have entered into ICE with a full base term of 10 years.

This new contract was awarded under an ongoing procurement that involves three other GEO-owned facilities: the Aurora Facility, the Moshannon Valley Facility, and Broward ICE Processing Center, which are also expected to receive new 10-year contract awards. ICE enforcement initiatives nationwide are supported by significant funding that has already been approved by the United States Congress.

ICE was allocated $45 billion for detention under the one big beautiful bill, which is available through September 30th, 2029. We believe that less than $10 billion of the $45 billion has been spent so far.

Under the Secure America Act, ICE also received $38.5 billion in baseline appropriations funding as well as an additional $30 billion for other priorities under the one big beautiful bill, all of which is also available through September 30th, 2029. As ICE continues to pursue these enforcement initiatives, we expect GEO to continue to be part of the solution as a 40-year partner to the agency.

Following our recent contract announcements, we now have approximately 2,900 idle beds that remain available at four company-owned facilities, which are well-suited for the needs of the federal government. At full capacity, these 2,900 idle beds could generate approximately $170 million in combined incremental revenues.

Additionally, we have expansion capacity of several thousands of beds at existing GEO-managed ICE facilities. Our third quarter 2026 results also reflect a significant expansion in our secure transportation services on behalf of ICE and the US Marshals Service as a result of new or amended contracts we entered into in 2025.

The support services that we provide under ICE air transportation subcontract have continued to steadily grow, driven by the increase in the number of removal flights. Additionally, our new Big Horn, Rivers, and Big Spring contracts with ICE are expected to generate approximately $28 million in combined in additional annual transportation services revenues once normalized in 2027.

Importantly, during the third quarter of 2026, our ISAP contract continued to experience a steady technology shift to more intensive and higher-priced monitoring devices such as ankle monitors. ISAP is the only ICE program currently in place to provide electronic monitoring and case management services for individuals on the non-detained docket.

The program relies on several forms of monitoring, including GPS ankle bracelets or wrist-worn devices that provide real-time tracking, as well as the SmartLINK phone app, which relies on facial recognition, voice ID, and GPS to confirm a person's location during the predetermined check-ins. The current overall ISAP count is approximately 190,000 participants, up from 184,000 participants three months ago.

The number of ISAP participants on GPS ankle monitors has increased to approximately 58,000 currently, from 17,000 early in 2025. We also continue to experience a steady increase in the number of ISAP participants assigned to case management services, which involves staff interaction and monitoring for approximately 121,000 individuals currently.

As a result of these trends, revenue and net operating income for our electronic monitoring and supervision services segment increased during the third quarter of 2026 compared to the same period a year ago, reversing a multi-year trend of revenue and net operating income declines. Additionally, during the third quarter of 2026, we generated revenues of approximately $3 million from our skip tracing contracts.

Moving to our outlook, we have increased our net income and adjusted EBITDA guidance for 2026 to reflect the strength of our results in the first three quarters of the year. Our fourth quarter 2026 revenue and adjusted EBITDA guidance exceeds our third quarter 2026 results, positioning GEO to set another record-breaking quarter.

Looking forward to 2027, there are several sources of future upside compared to our 2026 guidance. They include: the expected activation of four new ICE facilities at Big Horn, Rivers, and the Big Spring Complex, comprised of two facilities; additional growth in our additional secure services segment from the reactivation of additional idle facilities and/or higher overall populations across our active facilities; the expected transition of our previously announced managed-only contracts for the 1,884-bed Graceville Facility and the 985-bed Bay Facility in the state of Florida, which are expected to occur on July 1st, 2027; additional volume increases and/or accelerated technology service mix in our ISAP contract; additional growth in our secure transportation services business; and additional revenue from higher utilization of our skip tracing contracts.

Before I turn the call over to our CFO, Shayn March, for a more detailed review of our third quarter results and guidance, I'd like to provide you with an update regarding the plan by ICE and DHS to purchase existing privately owned turnkey ICE processing centers. As we announced last month, we completed the sales of our 1,280-bed Adelanto West ICE Processing Center, 660-bed Adelanto East ICE Processing Center, and our 704-bed Desert View Annex to DHS for an aggregate gross sales price of $950 million and net proceeds, after taxes and transaction fees and expenses, of approximately $705 million.

We expect to continue providing support services at the Adelanto Complex under our existing contract with ICE, which has a full effective term through December 19th, 2034. We used proceeds from the sales for the redemption of our $650 million 2029 senior secured notes, and we also entered into an amended and restated credit agreement extending the maturity of our $550 million revolving credit facility to July 2031, and also increasing our restricted payment capacity, including share repurchases.

Following the redemption of the 2029 secured service notes, our total outstanding corporate debt consists of our 2031 senior unsecured notes, totaling $625 million. As we previously announced, our board of directors has increased our share repurchase authorization, which is effective through December 31st, 2029, by $750 million to $1.25 billion.

Based on our current leverage and so long as we remain below specified leverage levels, GEO is permitted to make unlimited restricted payments, including share repurchases, under both the amended credit facility agreement and the senior unsecured note indenture. Given the intrinsic value of our assets, including 48,000 owned beds, our strong financial performance in providing diversified secure support services, and our expected future growth, we believe that our stock continues to be significantly undervalued and offers a very attractive investment opportunity.

Therefore, in addition to further debt reduction and other general corporate purposes, we intend to allocate a substantial portion of future facility sales proceeds and recurring free cash flow toward our expanded share repurchase authorization, which may include structured share repurchases on an accelerated basis. Following the recently completed asset sales, ICE now uses approximately 34 existing detention sites nationwide that are owned and operated by private contractors.

CoreCivic now owns and operates approximately 12 ICE detention facilities, while GEO owns and operates 20 ICE detention facilities. In addition to the facility sales we completed last month, we remain engaged in active proceeds for the sale of multiple other company-owned facilities to ICE, subject to mutual agreement on price and GEO's continued management of those facilities under long-term support services contracts.

We believe we have two types of assets: the buildings and the businesses of providing support services. We are pursuing additional potential sales of the buildings, but we want to retain the business of providing support services.

We continue to consider ourselves primarily a support services operator and will place particular importance on our ability to continue our support services at any additional facilities sold to ICE. Specifically, we believe that our current active negotiations could result in additional sales before the end of 2026 for up to four additional facilities.

We believe that the future sales are likely to have similar valuations to the transactions that have already been completed by ICE, with standard adjustments with respect to geography, facility size, and age. It is possible that the number of facilities targeted for acquisition by ICE could continue to grow in the future.

At this time, there is no definitive agreement in place and no precise timeline for the closing of any additional transactions, and GEO can provide no assurance that any additional transactions will, in fact, occur. While the exact timing of government actions is always difficult to estimate, we remain focused on pursuing new growth opportunities and allocating capital to enhance long-term value for our shareholders.

At this time, I will turn the call over to Shayn to review our quarterly results and increased guidance.

Thank you, George. Good afternoon, everyone.

The third quarter of 2026 set all-time highs for GEO in quarterly revenues and adjusted EBITDA, and also an all-time high in quarterly adjusted net income under a non-REIT corporate structure. Revenues for the third quarter of 2026 increased by approximately $761.1 million, up from approximately $682.3 million for the prior year's third quarter, reflecting a 12% increase.

For the third quarter of 2026, we reported net income attributable to GEO operations of approximately $49.2 million, or 37 cents per diluted share. This compares to net income attributable to GEO operations of approximately $173.9 million, or $1.24 per diluted share, in the third quarter of 2025, which included the $228 million gain on the sale of the Lawton, Oklahoma facility.

Adjusting for unusual and non-recurring items, third quarter 2026 adjusted net income increased to approximately $51.8 million, or 39 cents per diluted share, up from approximately $35 million, or 25 cents per diluted share, in the prior year's third quarter. Our adjusted EBITDA for the third quarter of 2026 increased to approximately $145.3 million, up from approximately $120.1 million in the prior year's third quarter, reflecting a 21% increase.

Driving this historical quarterly performance, our owned and leased secure services revenues increased by approximately $46 million, or 13%, compared to prior year's third quarter. This increase was driven by the activation of three company-owned facilities under new contracts with ICE, which was partly offset by revenue lost from the sale of the Lawton, Oklahoma facility.

Quarterly revenues for our managed-only contracts increased by approximately $31 million, or 19%, from the prior year's third quarter. This increase was primarily driven by the joint venture agreement for the management of the North Florida Detention Facility, as well as certain transportation revenue increases that are reported in this segment.

Quarterly revenues for our owned and leased reentry services increased by approximately $3.5 million, partly offset by a $3 million decline in non-residential services revenues, compared to the prior year's third quarter. Finally, third quarter 2026 revenues for our electronic monitoring and supervision services increased by approximately 1.6% compared to the third quarter of 2025, reversing a multi-year trend of quarterly revenue declines for this important segment and demonstrating the strength of the continued favorable technology and case management mix shift in our ISAP contract, which more than offset some price reductions previously reported.

Turning to expenses, during the third quarter of 2026, our operating expenses increased by approximately 8.5% as a result of the activation of our ICE facility contracts and increased occupancy compared to prior year's third quarter. Our general and administrative expenses for the third quarter of 2026 increased modestly to approximately 9.5% of revenue, from approximately 9.1% of the prior year's third quarter revenue, the result of additional business development expenses.

Our third quarter 2026 net interest expense remained steady at approximately $36 million compared to the prior year's third quarter. Our effective tax rate for the third quarter of 2026 was approximately 27%.

Moving to our outlook, we have updated our guidance for the fourth quarter and the full year 2026. For the fourth quarter 2026, we have increased our GAAP net income guidance to a range of $591 million to $595.5 million, which includes the gain on the sale of the Adelanto, California ICE complex.

We have also increased fourth quarter 2026 adjusted net income guidance to a range of $46 million to $51 million, or a range of 35 cents to 39 cents per diluted share, on a quarterly revenue of $777 million to $827 million. We have increased our fourth quarter 2026 adjusted EBITDA guidance to a range of $149 million to $154 million.

If this guidance is achieved, the fourth quarter for 2026 would set another record-breaking quarter for GEO, while also positioning our company for a strong 2027 outlook. For the full year 2026, we have increased GAAP net income guidance to a range of $726.3 million to $730.5 million, which includes the gain on the sale of the Adelanto, California ICE complex in the fourth quarter of 2026.

We have also increased full year 2026 adjusted net income guidance to a range of $185 million to $190 million, or a range of $1.40 to $1.44 per diluted share, on annual revenues of $2.975 billion to $3.025 billion, and based on an effective tax rate of approximately 28%, inclusive of known discrete items. This represents a 56% increase over 2025 adjusted net income at the midpoint of $187.5 million.

We have increased our full year 2026 adjusted EBITDA guidance to a range of $568 million to $573 million, representing a 23% increase at the midpoint of $570.5 million. We expect total unreimbursed capital expenditures for the full year 2026 to be between $140 million and $150 million, and expect normal unreimbursed CapEx to decline to approximately $100 million in 2027.

Moving to our balance sheet, following the sale of the Adelanto complex in October, we completed the redemption of our $650 million senior secured notes and executed an amendment to our $550 million revolving credit facility, extending its maturity and increasing our restricted payments capacity, including share repurchases. Our total outstanding corporate debt consists of our 2031 senior unsecured notes, totaling $625 million.

Our available liquidity is approximately $600 million, including cash on hand and revolver availability. Net of cash, our current leverage is approximately 1 times adjusted EBITDA, and based on our current outlook, we have reset our capital strategy to remain at or below this net leverage level going forward.

Based on our current leverage and so long as we remain below specified leverage levels, GEO is permitted to make unlimited restricted payments, including share repurchases, under both the amended credit facility agreement and the senior unsecured note indenture. Given what I believe is a significant discount on our stock's valuation, our board of directors, as previously reported, increased our share repurchase authorization, which is effective through December 31st, 2029, by $750 million to $1.25 billion.

We plan to remain active under this program regardless of future asset sales. At this time, I will turn the call back to George.

Thank you, Shayn. To recap, our third quarter 2026 was a historic quarter for our company, setting new all-time highs for GEO for quarterly revenues and adjusted EBITDA.

Based on our increased guidance, we expect the fourth quarter of 2026 to be another record-setting quarter. This historic financial performance in 2026 will position GEO for a very strong outlook in 2027, with several sources of potential further upside heading into next year, including: the expected activation of four new ICE facilities at Big Horn, Rivers, and the Big Spring Complex; additional growth in our secure services segment from the reactivation of additional idle facilities and overall higher populations across our active facilities; the expected transition of our previously announced managed-only contracts for the 1,884-bed Graceville Facility and the 985-bed Bay Facility in the state of Florida, which are expected to transition on July 1st, 2027; the additional volume increases and/or accelerated technology and service mix in our ISAP contract; additional growth in our secure transportation services business; and additional revenue from higher utilization of our skip tracing contracts.

In addition to our strong financial performance and significant expected future growth, we believe that additional asset sales could be completed before the end of 2026. Having already completed the sale of the Adelanto Complex for $950 million, we believe it's possible that up to four additional facilities owned by GEO could be sold in the fourth quarter of 2026.

These potential asset sales would represent another significant liquidity and shareholder value creation event for our company. Given the intrinsic value of our assets, including 48,000 owned beds, our strong financial performance in providing diversified secure support services, and our expected future growth, we believe that our stock continues to be significantly undervalued and share repurchases are, therefore, a paramount capital allocation priority for our company.

That completes our remarks, and we would be glad to take any questions. Thank you.

Good afternoon. Thanks for taking my questions.

Good afternoon.

One to start out, George, looking at 93% occupancy at the end of the quarter, how much additional utilization upside remains in your view?

At existing facilities, mathematically, it would be 7%. We are now transitioning four new facilities, as I discussed, two of which will open by January 1, representing about 2,500 beds, and two more facilities by March 1, representing about 2,300 beds.

Those are major increases in our capacity.

Thanks for that. Then maybe you can talk a little bit more about the ISAP contract.

Obviously, it hasn't gone as the government had said, looking at numbers significantly higher than where we are today. I think there's about one year left on that contract.

Obviously, you guys have won that contract on multiple occasions, but just want to get your view or your thoughts on ISAP and is ICE going to eventually start to use that contract, and your expectations when it comes up for renewal?

Okay. Remember, the ISAP contract is under a program called Alternatives to Detention.

The focus has obviously been under this administration to increase detention capacity, and we've participated in that initiative increasing our contracted bed space at this point to 33,000 beds, which is almost the entirety of the number of beds that was under the Biden administration. It's been very significant.

The ISAP contract didn't develop as we expected two years ago, but we're very pleased that the technology mix has shifted towards these more intensive electronic devices, but including increasing case management. We do think that contract will continue to grow and expand as the capacity or the detention capacity is achieved by this administration in this country.

Once that is achieved, we think ISAP will continue to grow as it has, and particularly with regard to the technology mix.

Great. Thanks for that.

I'll pass it on.

Hey, good afternoon, George and Shayn. Thanks for taking the questions.

Wondering how you're thinking about ICE's timeframe for additional facility sales if they were to occur, and maybe if you could discuss kind of how you expect to split incremental proceeds for debt paydown versus repurchases, and would you consider an ASR like we've seen from your public peer?

I'll take the first part of that question. We do think there is a reasonable chance of multiple sales occurring before the end of this year involving our company.

It is a complicated process because the facilities are located in different states, they're different designs, different cost of replacement construction for each facility, and we've required that the facilities' contracts continue for a significant period of time, which further complicates and lengthens the process. We are reasonably optimistic, as I say, that one or multiple facilities could be purchased by ICE from our company before the end of this quarter.

With regard to the use of proceeds, I'll defer to Shayn March.

Regarding proceed application, we really don't have that much debt left, it's the $625 million of unsecured notes. Any significant asset sale, we would definitely use to reduce our indebtedness, and we would absolutely consider any type of return of capital back to shareholders, including accelerated-type structured transactions.

We're evaluating all the different options, and we'll act accordingly once those sales were to occur.

Got it. That's very helpful.

To follow up on the previous question as it relates to ISAP, and I know ICE is very detention-focused, but wondering if you could touch on how populations have trended with respect to the ISAP contract?

The population is slightly trended up. It's gone from, I think, 185,000 to approximately 190,000.

Importantly, within that mix are the changes, as I've been discussing, in the electronic devices that are used. They've gone to the more costly and more secure ankle monitors rather than phones.

The other part is the increase in case management, which involves our staff being involved on an interactive basis with people in the program to make sure we know who they are, where they are, and that they're going to be attending their meetings on-site with our company as well as the court hearings that will adjudicate their cases.

Got it. Thanks very much.

I'll pass it on.

Great. Good afternoon.

Appreciate you taking my questions. Just wanted to start off on the new Adelanto management contract.

I think you mentioned there was a contract modification there that added roughly $60 million in annual revenue, and I believe it was due to staffing level increases. Is that baked into the guidance at this point for this year?

Yes, sir. Yep, that is baked in for the rest of this year.

Got it. That's helpful.

Can you remind us of the contract economics there and maybe talk about the margin profile of that management contract and compare it to the margin profile of how it looked under ownership?

It was an owned facility. It's now an acquired facility.

Normally, you expect that there would be a price reduction on the ownership cost issues that are still to be negotiated. They haven't occurred yet.

Concurrently, we've had as the process of renegotiation of that facility, an expanded scope of services that was desired by ICE to add several more staff for several more purposes, and that will offset any decrease in the ownership funding of the facility.

Understood. I appreciate the detail.

Last question, it looks like there's a large implied step-up for capital expenditures for Q4 of this year. Is it safe to assume that's mostly reactivation spending that will be reimbursed by ICE?

That's correct. It's that plus obviously we've pushed some CapEx scheduled for earlier in the year to the fourth quarter, it's a combination of both.

It's predominantly going to be tied to activations of the ICE facilities.

Understood. That's all for me, and congrats on a good quarter.

Thank you.

Okay. Thank you, everyone, for joining us today, and we look forward to our next call.