0001193125-26-060669
SEC filingMD&A reports 12.7% revenue growth to $2.21B driven by ICE demand; net income up 69% to $116.5M; margins pressured by start-up costs.
CoreCivic describes itself as a diversified government solutions company with the scale and experience needed to solve tough government challenges. Through three segments, it provides corrections and detention management, residential reentry centers, and government real estate solutions. The company has been a partner for government for over 40 years and is the nation's largest owner of partnership correctional, detention, and residential reentry facilities.
CoreCivic Safety operates 44 correctional and detention facilities, 40 of which are owned or controlled via long-term lease, with a total design capacity of approximately 68,000 beds (67,785 as detailed). This segment includes TransCor, a transportation services subsidiary. In 2025, Safety contributed 91.7% of total segment net operating income.
CoreCivic Community operates 20 residential reentry centers owned or controlled via long-term lease, with design capacity of approximately 4,000 beds (4,099 detailed). It also includes electronic monitoring and case management services. Community contributed 5.1% of segment net operating income in 2025.
CoreCivic Properties owns five correctional properties with design capacity of approximately 8,000 beds (7,754 detailed) held for lease. This segment contributed 3.2% of segment net operating income in 2025.
The company offers a range of rehabilitation and educational programs including basic education, faith-based services, life skills and employment training, and substance abuse treatment. Named programs include the 'Go Further' reentry strategy and its 'Go Further Discovery' learning management system, 'Reel Resilience' film-based program, 'The Dash' assessment tool, and 'Go Further Release' post-incarceration coaching. Other initiatives include the Residential Drug Abuse Program, Victim Impact Programs, 'Finding the Good Life' curriculum, and vocational training partnerships such as 'Vehicles for Change'.
Customers are primarily federal, state, and local government agencies. Federal customers (ICE, USMS, BOP) accounted for 54% of total revenue in 2025. ICE alone represented 35% and USMS 18%. The largest state customer is Tennessee at 9%. Contracts typically have terms of one to five years with multiple renewal options; most allow termination without cause. The company is compensated on a per diem basis based on actual or minimum guaranteed occupancy. The contract renewal rate for owned/leased facilities was approximately 97% over the five years ended December 31, 2025.
CoreCivic competes primarily with The GEO Group, Inc. and Management and Training Corporation, as well as government agencies operating their own facilities. Competition is based on bed availability, cost, quality of services, experience, and reputation. The company also faces competition from small local firms and potential new entrants.
Strategic priorities include maintaining and expanding existing customer relationships, filling existing capacity, enhancing contract terms, leasing facilities to government or third parties, pursuing mission-critical real estate solutions for corrections, expanding community corrections and reentry programming, and exploring non-residential correctional alternatives. The company also pursues asset acquisitions and business combinations.
As of December 31, 2025, CoreCivic employed 13,651 full- and part-time employees. Approximately 1,825 employees (13.4%) at 13 facilities are represented by labor unions. The company emphasizes leadership development through programs like CLEAR, and 6,028 employees have graduated from operational and leadership programs. In 2025, 95% of eligible employees completed annual performance reviews. The company invested approximately $8.7 million in talent attraction and received over 133,000 job applications.
For the year ended December 31, 2025, total revenue increased 12.7% to $2.21 billion from $1.96 billion in 2024, primarily driven by a 19.1% surge in federal revenue ($1.19 billion) as immigration enforcement actions boosted ICE populations. Management revenue rose 13.3% to $2.19 billion, reflecting a 7.3% increase in average revenue per compensated man-day and a 6.1% rise in average daily compensated population (54,266 vs. 51,165). Net income climbed 69.1% to $116.5 million ($1.08 per diluted share) from $68.9 million ($0.62), supported by revenue growth and $11.0 million in employee retention credits (ERCs), partially offset by $1.5 million in asset impairments, $3.0 million in M&A expenses, and higher operating costs. Consolidated operating margin declined 40 basis points to 23.6%, reflecting start-up expenses at four activated facilities and wage inflation, though ERCs and per diem increases provided some relief.
Management expects demand from ICE to further increase under the current administration, driving higher utilization of existing and idle capacity. Five previously idle facilities were activated in 2025, with estimated annual revenue potential of $500 million once fully stabilized (Q1–Q2 2026). The company anticipates $35–$40 million in capital expenditures for facility activations in 2026, down from $75 million in 2025, improving free cash flow. Operating margins are expected to improve as activated facilities reach stabilized occupancy and start-up costs abate. Share repurchases remain a priority, with $300.5 million of authorization remaining. The company sees long-term growth opportunities from state and county customers facing infrastructure and staffing challenges.
As of December 31, 2025, CoreCivic held $97.9M in cash and cash equivalents, plus $14.5M of restricted cash (total $112.4M). Total debt stood at $1.23B, an increase of $232.9M from year-end 2024, primarily due to borrowings under the revolving credit facility ($245M drawn) and the existing term loan. The company had $311.4M of unused borrowing capacity under its $575M revolving facility. Shareholders' equity was $1.41B, down from $1.49B due to share repurchases.
The notes disclose idle facilities with a collective net carrying value of $149.7M at December 31, 2025. The company has no significant purchase commitments disclosed in the notes. Operating lease liabilities total $123.9M (present value) with future payments of $143M. The company also has a financing receivable from the Lansing lease of $131.2M.
Share repurchases were aggressive: 11.2M shares for $218.4M in 2025, with $300.5M remaining under the $700M program authorized as of November 2025. No dividends were paid (REIT revoked in 2021). Capital expenditures totaled $140.6M (6.4% of revenue), including $133.3M for other capital improvements and $7.3M for development. Debt issuance included $435M of borrowings and $190M of repayments under the credit facility; the company's leverage ratio remained compliant with covenants.
Segment-level financial data is not disclosed in the notes to financial statements. The notes only describe the three operating segments (Safety, Community, Properties) qualitatively.
The provided filing excerpt does not contain the Consolidated Statement of Cash Flows for the years ended December 31, 2025, 2024, and 2023. Therefore, direct analysis of operating cash flow, investing activities, financing activities, and free cash flow is not possible. From the balance sheet, we observe a decrease in cash and cash equivalents from $107.5 million to $97.9 million, a reduction of approximately $9.6 million. Restricted cash was nearly unchanged ($14.6M to $14.5M). The company reported $1.2 billion in long-term debt and $15.7 million in current debt maturities. Without the cash flow statement, we cannot assess cash generation from operations or capital expenditure intensity. Further information is needed to evaluate cash flow quality and capital returns.