Shares of Geo Group Inc (NYSE:GEO) tumbled 6.49% in pre-market trading on Wednesday following the release of its first-quarter 2025 financial results that fell short of analysts' expectations. The company, which specializes in privatized corrections, detention, and community reentry services, reported earnings that missed estimates and a decline in revenue compared to the same period last year.

Geo Group announced quarterly earnings of $0.14 per share, significantly below the analyst consensus estimate of $0.18, representing a 22.22% miss. This also marks a 22.22% decrease from earnings of $0.18 per share in the same quarter of the previous year. The company's revenue for Q1 came in at $604.65 million, falling short of the analyst consensus estimate of $611.81 million by 1.17%. Notably, this represents a slight decrease of 0.17% compared to sales of $605.67 million in the same period last year.

Despite the disappointing quarterly results, Geo Group provided guidance for the full fiscal year 2025. The company expects adjusted EBITDA to be in the range of $465-490 million. Additionally, Geo Group forecasts FY25 EPS between $0.77 and $0.89, which is considerably lower than the current analyst expectations of $1.17 per share. The lower-than-expected earnings guidance likely contributed to the sharp pre-market decline, as investors reassess the company's growth prospects for the year ahead.