Geo Group Inc's stock experienced a significant pre-market plunge of 6.19% on Thursday, following the release of its fourth-quarter earnings and forward guidance.
The company reported mixed Q4 2025 results, with revenue of $707.7 million beating analyst estimates of $667.3 million, but adjusted net income of $34.8 million missing the consensus estimate of $38.26 million. More critically, the company's forward guidance fell short of market expectations. For the first quarter of 2026, Geo Group expects EPS in the range of $0.17 to $0.19, below the FactSet estimate of $0.24. For the full year 2026, the company guided for EPS between $0.99 and $1.07, significantly lower than the FactSet consensus estimate of $1.27.
Additionally, the company announced a corporate reorganization, with CEO J. David Donahue retiring effective February 28, 2026. Founder and Executive Chairman George C. Zoley will return as Chairman and CEO starting March 1. This leadership change, coupled with the disappointing guidance, appears to have driven the negative investor sentiment in the pre-market session.