0001193125-26-211158
SEC filingQ1 2026 revenue surged 25.8% YoY to $614.7M, driven by ICE population growth and facility reactivations.
Total revenue for Q1 2026 reached $614.7 million, a 25.8% increase from $488.6 million in Q1 2025. The growth was driven by a 48.4% surge in federal revenue ($358.1M vs $241.3M), primarily from ICE detainee population growth and per diem rate increases. Management revenue rose 26.1% to $610.0M, with average daily compensated population up 11.3% to 57,243. Net income increased to $37.9 million ($0.38 per diluted share) from $25.1 million ($0.23), benefiting from $5.6 million in employee retention credits and higher operating leverage. Operating margin improved to 24.0% from 23.6%, with operating income per compensated man-day rising to $27.98 from $24.24.
CoreCivic Safety remained the primary growth engine, with revenue up 27.2% to $577.9M and segment net operating income (NOI) up 28.7% to $136.7M, representing 91.7% of total segment NOI. Operating margin in Safety expanded to 23.7% from 23.4%, helped by the activation of three idle facilities (California City, West Tennessee, Diamondback) which collectively generated $10.9M in operating income. The Dilley Facility resumed operations in March 2025 and contributed $45.9M in revenue during Q1 2026, compared to $5.5M in the prior year period. Community segment revenue grew 8.0% to $32.1M, with NOI up 30.5% to $8.0M, driven by higher occupancy and per diem increases. Properties segment revenue was flat at $4.7M, but NOI rose 56.9% to $2.4M due to the transfer of the California City facility to Safety in Q2 2025.
Management expects continued growth in federal demand, particularly from ICE, citing the impact of executive orders and the One Big Beautiful Bill Act which appropriates $75 billion for immigration enforcement. Five previously idled facilities have been activated, representing an estimated $500 million in annual revenue. Capital expenditures for 2026 are forecast at $40-45 million for further activations and transportation. The company anticipates higher operating cash flows in 2026 as the activated facilities reach stabilized occupancy, providing flexibility for share repurchases and acquisitions (e.g., CSP post-quarter end). However, risks include potential declines in ICE populations due to policy shifts, labor shortages, and litigation affecting facility operations.
As of March 31, 2026, CoreCivic held $209.7M in cash and equivalents, plus $14.6M restricted cash, totaling $224.3M. Total debt stood at $1,406.5M, up $176.1M from year-end 2025, primarily driven by increased borrowings under the Revolving Credit Facility ($425.0M outstanding). Shareholders' equity declined slightly to $1,395.6M due to share repurchases offsetting net income. Deferred revenue was $7.8M.
No significant purchase commitments or contractual obligations were disclosed beyond debt maturities. The company has a share repurchase authorization of $255.8M remaining and leases for certain facilities. Litigation contingencies are noted but not accrued as losses are not probable.
During Q1 2026, CoreCivic repurchased 2.3M shares for $44.7M (avg $19.08/share), leaving $255.8M authorization. No dividends were paid. Net debt increased $176.1M, with $310M drawn on credit facilities and $133.9M repaid. Capital expenditures totaled $20.7M, or 3.4% of revenue, with Safety accounting for $17.8M. Post-quarter, the company acquired Clinical Solutions Pharmacy for ~$148M and added a $100M Incremental Term Loan.
CoreCivic operates three segments: Safety (correctional/detention), Community (reentry), and Properties (real estate leasing). Safety generated 94% of total revenue ($577.9M) and $136.7M net operating income (23.7% margin). Community contributed $32.1M revenue with 24.8% margin, while Properties added $4.7M with 50.7% margin. All revenues are domestic.
The provided excerpt does not contain the actual cash flow statement. It includes only a reconciliation of cash, cash equivalents and restricted cash, which shows an increase from $112.4 million at December 31, 2025 to $224.3 million at March 31, 2026. Restricted cash remained relatively stable at $14.6 million. Debt outstanding rose from $1,230.3 million to $1,406.5 million, primarily due to draws on the revolving credit facility (from $245 million to $425 million). No operating cash flow, investing cash flow, financing cash flow, capital expenditures, share repurchases, or dividends are disclosed in this excerpt. Consequently, no assessment of cash flow quality, free cash flow generation, or capital returns coverage can be made. The analysis is limited to balance sheet liquidity and debt changes. A complete cash flow statement would be required for a comprehensive evaluation.