0001193125-25-269348
SEC filingRevenue growth driven by ICE contracts; margin pressured by start-up costs and wage inflation; net income up strongly.
For the three months ended September 30, 2025, total revenue increased 18.1% to $580.4 million, driven by a 28.3% surge in federal management revenue ($70.9 million) as ICE detainee populations rose 36.9% since year-end. State revenue grew 3.6%, while lease revenue increased 14.6%. Net income rose 24.6% to $26.3 million ($0.24 per diluted share), benefiting from higher revenue and a $2.5 million gain on sale of the Columbine facility, partially offset by $1.5 million asset impairment (Longmont), $0.8 million M&A costs, and lower operating margins due to start-up expenses at three activated facilities. For the nine-month period, revenue increased 8.4% to $1.61 billion, and net income jumped 81.5% to $90.0 million ($0.83 per diluted share), aided by $11.0 million in employee retention credits and lower interest expense.
CoreCivic Safety remained the dominant segment, generating 92.0% of total segment net operating income (NOI) in the nine months. Revenue grew 9.5% to $1.50 billion, but facility NOI margins contracted to 23.9% from 24.1%, as start-up costs at the California City, West Tennessee, and Midwest facilities weighed on profitability. CoreCivic Community saw revenue up 2.4% to $90.5 million, with NOI margins expanding to 28.9% from 24.5%, driven by per diem increases and ERC benefits, partially offset by higher wage costs. CoreCivic Properties revenue declined 34.9% to $14.0 million, primarily due to the California City facility lease termination in early 2024 and its subsequent transfer to the Safety segment in April 2025.
Management expects continued growth from federal customers, particularly ICE, driven by executive orders and the Laken Riley Act. Five previously idled facilities are being activated, with combined expected annual revenue of approximately $500 million. Dilley reached stabilized occupancy in Q3 2025; West Tennessee and California City are expected to stabilize by Q1 2026, and Diamondback by Q2 2026. The Midwest Regional Reception Center remains subject to litigation delays. Operating margins near term will be pressured by start-up expenses (estimated $3.4 million in Q3), wage inflation, and labor shortages, but per diem increases and fixed-fee contract structures should provide offset. Capital expenditures for activations total $97.5–$99.5 million, with $51.6 million spent through September. The company has no debt maturities until October 2027 and $191.4 million available under its revolver, supporting growth and share repurchases ($121 million in 9M 2025).
As of September 30, 2025, CoreCivic reported cash and cash equivalents of $56.6 million and restricted cash of $15.2 million, totaling $71.8 million. Total assets stood at $3.11 billion, with total debt of $1.05 billion (net of unamortized issuance costs of $10.3 million). Shareholders' equity was $1.47 billion, reflecting accumulated deficit of $150.0 million. The debt structure includes a $65.0 million draw on the revolving credit facility, $114.1 million term loan, $238.5 million of 4.75% Senior Notes due 2027, $500.0 million of 8.25% Senior Notes due 2029, and $135.8 million Lansing non-recourse mortgage note. The company remains in compliance with all financial covenants.
The Notes disclose no material purchase commitments or contractual obligations beyond debt maturities. Scheduled debt principal payments for the remainder of 2025 through 2030 and thereafter are provided. Legal contingencies are discussed, including class action lawsuits related to detainee labor, a permit dispute in Leavenworth, Kansas, and a California City facility lawsuit. A jury verdict of $27.8 million in an inmate litigation matter is under appeal and substantially covered by insurance.
CoreCivic’s share repurchase program was increased to an aggregate authorization of $500.0 million on May 15, 2025. During the first nine months of 2025, the company repurchased 5.9 million shares for $121.0 million, leaving $197.9 million available. No dividends were paid on common stock. Net debt increased by $56.0 million during the period, driven by $175.0 million in borrowings (primarily revolving credit facility) offset by $119.0 million in repayments. Capital expenditures totaled $97.1 million, with $85.1 million directed to the Safety segment, reflecting facility activations and improvements.
CoreCivic reports three segments: Safety, Community, and Properties. In Q3 2025, Safety generated $545.1 million revenue (93.9% of total) and $122.4 million facility net operating income (NOI). Community contributed $30.7 million revenue and $6.1 million NOI. Properties added $4.7 million revenue and $2.4 million NOI. The Safety segment’s revenue growth of 18.7% YoY was driven by new contracts and reactivation of idle facilities, including the Dilley Immigration Processing Center and Farmville Detention Center acquisition. Community segment revenue grew 8.7% YoY. Properties segment NOI increased 80% YoY due to higher lease income.
No cash flow statement is available in the provided excerpt. The only financial data presented are cash and cash equivalents and restricted cash balances as of September 30, 2025 and December 31, 2024. Without operating, investing, or financing cash flow figures, an analysis of cash flow quality cannot be performed.