CoreCivic Reports Third Quarter 2026 Financial Results
Residential operating margin slipped to 22.3% despite higher occupancy, as four facilities remained in various stages of activation.
Sentiment and the balance of points
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Rhea-AI Summary
CoreCivic (NYSE: CXW) reported third-quarter 2026 net income of $1,344.1 million, with earnings lifted by gains on detention-facility sales.
Revenue rose 28.2% to $744.1 million. Diluted earnings were $14.49 per share versus $0.24 a year earlier; adjusted diluted earnings rose to $0.49 from $0.24. Four facility sales generated $2.2 billion in gross proceeds and approximately $1.6 billion after taxes and transaction costs. CoreCivic repaid over $700 million of debt and paid $500 million under an accelerated share repurchase agreement.
Residential occupancy increased to 84.0% from 76.7%. The company expects four facilities under activation to generate approximately $320.0 million in annual revenue once fully activated. The board added $500.0 million to repurchase authorization. Lucibeth Mayberry became president and CEO following Patrick Swindle's departure for health reasons.
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Hollow bars mark forward-looking points. How the balance works
Positive
- Major pointNet income reached $1,344.1 million, versus $26.3 million in the prior-year quarter; diluted EPS rose to $14.49 from $0.24.
- Major pointFour facility sales generated $2.2 billion gross and approximately $1.6 billion after taxes and transaction costs. 72% of market cap
- Moderate pointRevenue rose 28.2% to $744.1 million in the third quarter of 2026.
- Moderate pointAdjusted net income rose to $45.7 million from $26.2 million; adjusted diluted EPS increased 104.2% to $0.49.
- Moderate pointOver $700 million of debt repaid; net-debt leverage fell to (0.1)x from 2.5x a year earlier. 23% of market cap
- Moderate point$500.0 million accelerated repurchase payment secured an initial delivery of 12.4 million common shares. 16% of market cap
- Moderate pointAdditional $500.0 million repurchase authorization leaves $755.8 million available before additional accelerated repurchase settlements. 16% of market cap
- Moderate pointResidential occupancy increased to 84.0% from 76.7% in the third quarter of 2025.
- Moderate point. Forward-looking: it has not happened yet and may not happen.Approximately $320.0 million annual revenue expected from those four facilities once fully activated, CoreCivic projects.
- Moderate pointNew ICE management contract covers activation of the previously idle 1,600-bed Appleton Detention Facility.
- Moderate pointResidential federal-customer revenue increased $71.3 million, or 22.2%, versus the prior-year quarter.
- Moderate pointAdjusted EBITDA rose 32.6% to $117.8 million; earnings before interest, taxes, depreciation and amortization reached $1,899.9 million.
- Moderate pointFunds from operations rose to $78.3 million, or $0.84 per diluted share, from $51.5 million, or $0.48.
6 minor points
- Minor pointNet real-estate sale gains totaled $1,770.7 million in the third quarter of 2026.
- Minor pointWeighted average diluted shares fell 13.8% from the prior-year quarter, primarily through repurchases.
- Minor pointFour facilities under activation generated $19.9 million in third-quarter net operating income.
- Minor pointServices net operating income rose to $9.6 million from $1.1 million, primarily reflecting the April 1, 2026 CSP acquisition.
- Minor pointNormalized funds from operations reached $69.9 million, versus $52.1 million; per-share results rose 56.3% to $0.75.
- Minor pointLower net interest expense reflected debt repayments and higher interest income on larger cash balances.
Negative
- Moderate pointApproximately $0.5 billion in federal and state income taxes, plus transaction costs, reduced facility-sale proceeds. 16% of market cap
- Moderate pointPatrick Swindle stepped down as president and CEO for health reasons; Lucibeth Mayberry assumed the roles.
- Minor pointResidential operating margin declined to 22.3% from 22.5%; facilities under activation had not reached fully activated margins.
- Minor pointHigher general and administrative expenses reflected incentive compensation, executive-transition expenses and technology expenditures.
- Minor pointDebt-repayment and acquisition expenses, plus executive-transition settlement compensation, partly offset special-item gains.
3 minor points
- Minor point. Forward-looking: it has not happened yet and may not happen.Accelerated repurchase settlement may require shares or cash from CoreCivic; settlement is scheduled before second-quarter 2027 ends.
- Minor point. Forward-looking: it has not happened yet and may not happen.Sold-facility management terms are expected to change to reflect ownership changes, CoreCivic said.
- Minor pointPotential additional facility-sale discussions with ICE remain preliminary; no additional sale has been completed.
News Explained
The extra authorization creates no required purchase; the ASR is contracted and awaits settlement that may change shares or cash.
The ASR has delivered 12.4 million shares to CoreCivic after its
At settlement, the dealer may deliver additional shares, or CoreCivic may deliver shares or make a cash payment to the dealer. The expanded program leaves
Key Figures
- Total revenue
- $744.1 million; 28.2% increase
- Third quarter 2026 versus prior-year quarter
- Adjusted diluted EPS
- $0.49; 104.2% increase
- Third quarter 2026 versus prior-year quarter
- Adjusted EBITDA
- $117.8 million; 32.6% increase
- Third quarter 2026 versus prior-year quarter
- Normalized FFO per diluted share
- $0.75; 56.3% increase
- Third quarter 2026 versus prior-year quarter
- Gain on sale of real estate assets, net
- $1,770.7 million
- Third quarter 2026
- Facility sales gross proceeds
- $2.2 billion
- Four detention facilities sold during the third quarter
- Debt repayment
- Over $700.0 million
- Paid using a portion of facility-sale net proceeds
- Share repurchase authorization
- $1.7 billion
- Aggregate authorization after an additional $500.0 million increase
Previous Earnings Reports
-
Revenue, adjusted diluted EPS and adjusted EBITDA increased; facility sales and debt-repayment plans were disclosed.
-
Revenue, earnings and adjusted EBITDA increased, and management raised full-year 2026 guidance.
-
Revenue increased, but the company lowered full-year guidance amid facility-activation start-up impacts.
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Key Terms
volume-weighted average price financial
funds from operations financial
generally accepted accounting principles financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
Strong Financial Performance Propelled by Facility Sales And Occupancy Gains
Board of Directors Expands Share Repurchase Authorization By An Additional
BRENTWOOD, Tenn., Nov. 04, 2026 (GLOBE NEWSWIRE) -- CoreCivic, Inc. (NYSE: CXW) (CoreCivic or the Company) announced today its third quarter 2026 financial results.
Financial Highlights – Third Quarter 2026
| For the Three Months Ended September 30, 2026 | % Increase from Prior Year Quarter | ||
| • Total revenue | |||
| • Gain on sale of real estate assets, net | NM | ||
| • Net Income | NM | ||
| • Diluted EPS | NM | ||
| • Adjusted Diluted EPS | |||
| • Normalized FFO per diluted share | |||
| • Adjusted EBITDA | |||
| NM – Not Meaningful | |||
- Sold four detention facilities containing 7,187 beds for gross proceeds of
$2.2 billion - Repaid over
$700 million of debt, resulting in a reduction in leverage (net debt to Adjusted EBITDA) to (0.1)x from 2.5x as of September 30, 2026 and 2025, respectively, using the trailing twelve months - Entered into
$500 million Accelerated Share Repurchase Agreement (ASR) - Continued activating four previously idle facilities and entered into a new management contract to activate the previously idled 1,600-bed Appleton Detention Facility
- Occupancy increases to
84.0% in the third quarter of 2026 from76.7% in the prior year quarter
Lucibeth Mayberry, CoreCivic's President and Chief Executive Officer, commented, "We delivered strong financial results in a very active quarter, driven by increased demand for our services from U.S. Immigration and Customs Enforcement (ICE), including higher utilization of recently activated facilities, as well as the contribution from our acquisition of Clinical Solutions Pharmacy earlier this year. Our capital allocation strategy also contributed to improved results through lower interest expense and a reduction in weighted average shares outstanding, which benefited our per share earnings and valuation metrics."
Mayberry continued, "The sale of four detention facilities to the federal government during the third quarter generated total gross proceeds of
Mayberry concluded, "This quarter also marked a significant leadership transition following Patrick Swindle's decision to step down as President and Chief Executive Officer due to health reasons. This was a difficult development for the CoreCivic team. We are thankful for Patrick's leadership and dedication during his 19 years of service with CoreCivic and that he will continue to be a trusted advisor to me. As I assume this role, I remain committed to executing our strategy, which remains unchanged, delivering high-quality services for our government partners and generating long-term shareholder value."
Third Quarter 2026 Financial Results Compared With Third Quarter 2025
Net income in the third quarter of 2026 was
The increases in Diluted EPS and Adjusted Diluted EPS compared with the prior year quarter resulted from continued occupancy increases at previously idle facilities resulting from new contract awards in the CoreCivic Residential segment at our 600-bed West Tennessee Detention Facility (West Tennessee Facility), the 2,560-bed California City Detention Facility (California City Facility), our 2,160-bed Diamondback Correctional Facility (Diamondback Facility), and the 1,033-bed Midwest Regional Reception Center (Midwest Facility). These four facilities are expected to generate total annual revenue of approximately
The solutions we provide for our federal customers, including primarily ICE and the U.S. Marshals Service (USMS), continue to be a significant component of our business. The federal customers in our Residential segment generated
Operating margin in the CoreCivic Residential segment was relatively flat at
Net operating income in the CoreCivic Services segment increased
Earnings before interest, taxes, depreciation and amortization (EBITDA) was
Funds From Operations (FFO), which excludes the after-tax impact of the gain on sale of real estate assets, for the third quarter of 2026 was
Adjusted Net Income, EBITDA, Adjusted EBITDA, FFO, and Normalized FFO, and, where appropriate, their corresponding per share amounts, are financial measures calculated and presented on the basis of methodologies other than in accordance with generally accepted accounting principles (GAAP). Please refer to the Supplemental Financial Information and the note following the financial statements herein for further discussion and reconciliations of these measures to net income, the most directly comparable GAAP financial measure.
Facility Sales & Continuing Management
As previously announced, we completed the sales on July 2, 2026, of our California City Facility and our Otay Mesa Detention Center (Otay Mesa Facility), both located in California. On August 4, 2026, after announcing a new management contract with ICE to activate the Appleton Detention Facility, formerly known as the Prairie Correctional Facility (Appleton Facility), as further described hereinafter, we completed the sales of our Appleton Facility and our Midwest Facility. The gross sales price for these four facility sales totaled
We currently expect to continue to manage these four facilities under existing management contracts with ICE, although we expect the terms of the management contracts to be modified to reflect the change in ownership. However, since all of our contracts with ICE provide it with the ability to terminate our contracts for non-appropriation of funds or for convenience, we can provide no assurance that we will continue to manage these facilities in the future, or that the terms of the management agreements will remain the same. The management contract for the California City Facility expires in August 2027 and the management contract for the Otay Mesa Facility expires in December 2029 and contains a five-year extension option. The management contract for the Midwest Facility expires in August 2027, and the management contract for the Appleton Facility expires in August 2031.
In addition to the facility sales completed to-date, we have been in discussions with ICE about the potential acquisition of additional detention facilities from us. These discussions are in preliminary stages, and we can provide no assurance that any additional sales will occur.
Capital Strategy
Accelerated Share Repurchase Agreement. On August 4, 2026, our board of directors (BOD) authorized an increase to our existing share repurchase program pursuant to which we may purchase up to an additional
Following entry into the ASR Agreement and using a portion of the net proceeds from the facility sales, we made a payment of
Increase in Share Repurchase Authorization. On November 3, 2026, the BOD authorized an increase to its existing share repurchase program pursuant to which CoreCivic may purchase up to an additional
Debt Repayments. As previously announced, during the third quarter of 2026, a portion of the net proceeds from the facility sales was used to pay down the then outstanding balances under our Bank Credit Facility, including all of the
Other Business Developments
CEO Transition. On September 24, 2026, the BOD appointed Lucibeth N. Mayberry, who most recently served as the Company's Executive Vice President and Chief Strategy Officer, as President and Chief Executive Officer of the Company. Patrick D. Swindle stepped down as President and Chief Executive Officer due to health reasons. Mr. Swindle had served as President and Chief Executive Officer since January 1, 2026, following his appointment as President and Chief Operating Officer on January 1, 2025. In addition, Mr. Swindle resigned from CoreCivic’s Board, and Ms. Mayberry was appointed to fill the vacancy.
Activation of the Appleton Facility. On August 3, 2026, we were awarded a new management contract with ICE to utilize the Appleton Facility. The new contract commenced on August 11, 2026, for a term of five years. The agreement provides for a fixed monthly payment plus an incremental per diem payment based on detainee populations. Taking into account start-up activities and the phased commencement of intake operations, we currently expect an immaterial impact to earnings for the remainder of 2026. Once the facility is fully activated, we expect this facility to generate total annual revenue of approximately
2026 Financial Guidance
Based on current business conditions, we are providing the following updated financial guidance for the full year 2026:
| Updated Guidance Full Year 2026 | Prior Guidance Full Year 2026 | |
| • Net income | ||
| • Adjusted Net Income | ||
| • Diluted EPS | ||
| • Adjusted Diluted EPS | ||
| • FFO per diluted share | ||
| • Normalized FFO per diluted share | ||
| • EBITDA | ||
| • Adjusted EBITDA | ||
We continue to manage the four facilities we sold to DHS under the existing management contracts with ICE. Although we and ICE have not yet modified the management contracts for these facilities to reflect the change in ownership, the range of our guidance incorporates our best estimate of the financial impact of the change in ownership.
In addition to the facility sales completed to-date, we have been in discussions with ICE about the potential acquisition of additional detention facilities from us. These discussions are in preliminary stages, and we can provide no assurance that any additional facility sales will occur. Our updated guidance does not include the impact of any potential additional facility sales.
During 2026, we expect to invest
Supplemental Financial Information and Investor Presentations
We have made available on our website supplemental financial information and other data for the third quarter of 2026. Interested parties may access this information through our website at http://ir.corecivic.com/ under “Financial Information” of the Investors section. We do not undertake any obligation and disclaim any duties to update any of the information disclosed in this report.
Management may meet with investors from time to time during the fourth quarter of 2026. Written materials used in the investor presentations will also be available on our website beginning on or about November 17, 2026. Interested parties may access this information through our website at http://ir.corecivic.com/ under “Events & Presentations” of the Investors section.
Conference Call, Webcast and Replay Information
We will host a webcast conference call at 10:00 a.m. central time (11:00 a.m. eastern time) on Thursday, November 5, 2026, which will be accessible through the Company's website at www.corecivic.com under the “Events & Presentations” section of the "Investors" page. To participate via telephone and join the call live, please register in advance here https://edge.media-server.com/mmc/p/si7rqqax/lan/en/. Upon registration, telephone participants will receive a confirmation email detailing how to join the conference call, including the dial-in number and a unique passcode.
About CoreCivic
CoreCivic is a diversified, government-solutions company with the scale and experience needed to solve tough government challenges in flexible, cost-effective ways. We provide a broad range of solutions to government partners that help build safer, healthier, and more productive communities one person at a time through residential corrections, detention, and reentry management, complementary service offerings to the corrections industry that include pharmaceutical, transportation, and alternatives to incarceration, and government real estate solutions. We are the nation’s largest owner of partnership correctional, detention and residential reentry facilities, and one of the largest operators of such facilities in the United States. We have been a flexible and dependable partner for government for more than 40 years. Our employees are driven by a deep sense of service, high standards of professionalism and a responsibility to help government better the public good. Learn more at www.corecivic.com.
Forward-Looking Statements
This press release contains statements as to our beliefs and expectations of the outcome of future events that are "forward-looking" statements as defined within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. All statements other than statements of current or historical fact contained herein, including statements regarding our future financial position, business strategy, budgets, projected costs and plans, and objectives of management for future operations, are forward-looking statements. The words "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "plan," "projects," "will," and similar expressions, as they relate to us, are intended to identify forward-looking statements. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from the statements made. These include, but are not limited to, the risks and uncertainties associated with: (i) changes in government policy, legislation and regulations that affect utilization of the private sector for corrections, detention, and residential reentry services, in general, or our business, in particular, including, but not limited to, the continued utilization of our correctional and detention facilities by the federal government as a consequence of presidential executive orders, changes in how the federal government, including ICE, elects to use our detention capacity or otherwise procures alternative detention capacity, and the impact of any changes to immigration reform and sentencing laws (we do not, under longstanding policy, lobby for or against policies or legislation that would determine the basis for, or duration of, an individual’s incarceration or detention); (ii) our ability to obtain and maintain correctional, detention, and residential reentry facility management contracts because of reasons including, but not limited to, sufficient governmental appropriations, contract compliance, negative publicity and effects of inmate disturbances; (iii) changes in the privatization of the corrections and detention industry, the acceptance of our services, the timing of the opening of new facilities and the commencement of new management contracts (including the extent and pace at which new contracts are utilized), as well as our ability to utilize available beds; (iv) our ability to successfully activate idle facilities in a timely manner in order to meet the growth in demand for our facilities and services from the federal government that has occurred as a result of changes in policies and actions of the current presidential administration, and to realize projected returns resulting therefrom; (v) general economic and market conditions, including, but not limited to, the impact governmental budgets can have on our contract renewals and renegotiations, per diem rates, and occupancy; (vi) fluctuations in our operating results because of, among other things, changes in occupancy levels; competition; contract renegotiations or terminations including as a result of a change in facility ownership; inflation and other increases in costs of operations, including a rise in labor costs; fluctuations in interest rates and risks of operations; (vii) government budget uncertainty, the impact of debt ceilings and government shutdowns, including partial shutdowns, and changing budget priorities; (viii) our ability to successfully identify and consummate future development and acquisition opportunities, integrate their operations, and realize projected returns resulting therefrom; (ix) the availability of debt and equity financing on terms that are favorable to us, or at all; and (x) our ability to successfully consummate the sales of additional company-owned assets, including the potential sale of additional facilities to ICE, on a timely basis and on commercially favorable terms. Other factors that could cause operating and financial results to differ are described in the filings we make from time to time with the Securities and Exchange Commission.
We take no responsibility for updating the information contained in this press release following the date hereof to reflect events or circumstances occurring after the date hereof or the occurrence of unanticipated events or for any changes or modifications made to this press release or the information contained herein by any third-parties, including, but not limited to, any wire or internet services, except as may be required by law.
| CORECIVIC, INC. AND SUBSIDIARIES | ||||||||
| CONSOLIDATED BALANCE SHEETS | ||||||||
| (UNAUDITED AND AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) | ||||||||
| ASSETS | September 30, 2026 | December 31, 2025 | ||||||
| Cash and cash equivalents | $ | 547,229 | $ | 97,929 | ||||
| Restricted cash | 14,414 | 14,517 | ||||||
| Accounts receivable, net of credit loss reserve of | 535,336 | 446,224 | ||||||
| Prepaid expenses and other current assets | 113,804 | 49,904 | ||||||
| Assets held for sale | 2,513 | 2,513 | ||||||
| Total current assets | 1,213,296 | 611,087 | ||||||
| Real estate and related assets: | ||||||||
| Property and equipment, net of accumulated depreciation of | 1,822,817 | 2,132,206 | ||||||
| Other real estate assets | 174,435 | 182,479 | ||||||
| Goodwill | 65,916 | 8,551 | ||||||
| Other assets | 404,727 | 322,420 | ||||||
| Total assets | $ | 3,681,191 | $ | 3,256,743 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| Accounts payable and accrued expenses | $ | 497,536 | $ | 353,173 | ||||
| Current portion of long-term debt | 6,720 | 15,701 | ||||||
| Total current liabilities | 504,256 | 368,874 | ||||||
| Long-term debt, net | 616,394 | 1,205,037 | ||||||
| Deferred revenue | 5,998 | 8,719 | ||||||
| Non-current deferred tax liabilities | 107,891 | 98,364 | ||||||
| Other liabilities | 168,542 | 170,500 | ||||||
| Total liabilities | 1,403,081 | 1,851,494 | ||||||
| Commitments and contingencies | ||||||||
| Preferred stock – | — | — | ||||||
| Common stock – | 865 | 1,001 | ||||||
| Additional paid-in capital | 981,529 | 1,527,724 | ||||||
| Retained earnings (deficit) | 1,295,716 | (123,476 | ) | |||||
| Total stockholders' equity | 2,278,110 | 1,405,249 | ||||||
| Total liabilities and stockholders' equity | $ | 3,681,191 | $ | 3,256,743 | ||||
| CORECIVIC, INC. AND SUBSIDIARIES | |||||||||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||
| (UNAUDITED AND AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) | |||||||||||||||
| For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||
| REVENUE: | $ | 744,094 | $ | 580,437 | $ | 2,043,740 | $ | 1,607,229 | |||||||
| EXPENSES: | |||||||||||||||
| Operating | 586,922 | 449,556 | 1,590,624 | 1,222,635 | |||||||||||
| General and administrative | 56,406 | 45,288 | 144,208 | 125,186 | |||||||||||
| Depreciation and amortization | 33,917 | 33,388 | 103,066 | 95,014 | |||||||||||
| Asset impairments | — | 1,482 | — | 1,482 | |||||||||||
| 677,245 | 529,714 | 1,837,898 | 1,444,317 | ||||||||||||
| OTHER INCOME (EXPENSE): | |||||||||||||||
| Interest expense, net | (7,017 | ) | (16,628 | ) | (46,977 | ) | (44,398 | ) | |||||||
| Expenses associated with debt repayments and refinancing transactions | (4,004 | ) | — | (4,004 | ) | — | |||||||||
| Gain on sale of real estate assets, net | 1,770,664 | 2,461 | 1,770,664 | 2,461 | |||||||||||
| Contingent consideration for acquisition of businesses | 22,134 | — | 22,134 | — | |||||||||||
| Other income (expense) | 810 | 4 | 1,599 | (66 | ) | ||||||||||
| INCOME BEFORE INCOME TAXES | 1,849,436 | 36,560 | 1,949,258 | 120,909 | |||||||||||
| Income tax expense | (505,298 | ) | (10,251 | ) | (530,066 | ) | (30,944 | ) | |||||||
| NET INCOME | $ | 1,344,138 | $ | 26,309 | $ | 1,419,192 | $ | 89,965 | |||||||
| BASIC EARNINGS PER SHARE | $ | 14.62 | $ | 0.25 | $ | 14.99 | $ | 0.83 | |||||||
| DILUTED EARNINGS PER SHARE | $ | 14.49 | $ | 0.24 | $ | 14.89 | $ | 0.83 | |||||||
CORECIVIC, INC. AND SUBSIDIARIES
SUPPLEMENTAL FINANCIAL INFORMATION
(UNAUDITED AND AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
CALCULATION OF ADJUSTED NET INCOME AND ADJUSTED DILUTED EPS
| For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||
| Net income | $ | 1,344,138 | $ | 26,309 | $ | 1,419,192 | $ | 89,965 | |||||||
| Special items: | |||||||||||||||
| Expenses associated with debt repayments and refinancing transactions | 4,004 | — | 4,004 | — | |||||||||||
| Expenses associated with mergers and acquisitions | 277 | 781 | 3,425 | 2,319 | |||||||||||
| Contingent consideration for acquisition of businesses | (22,134 | ) | — | (22,134 | ) | — | |||||||||
| Settlement compensation associated with executive transition | 6,428 | — | 6,428 | — | |||||||||||
| Gain on sale of real estate assets, net | (1,770,664 | ) | (2,461 | ) | (1,770,664 | ) | (2,461 | ) | |||||||
| Asset impairments | — | 1,482 | — | 1,482 | |||||||||||
| Income tax expense (benefit) for special items | 483,612 | 55 | 482,751 | (372 | ) | ||||||||||
| Adjusted net income | $ | 45,661 | $ | 26,166 | $ | 123,002 | $ | 90,933 | |||||||
| Weighted average common shares outstanding - basic | |||||||||||||||
| Effect of dilutive securities: | 91,936 | 106,853 | 94,681 | 108,313 | |||||||||||
| Restricted stock-based awards | 797 | 668 | 649 | 726 | |||||||||||
| Weighted average shares and assumed conversions - diluted | 92,733 | 107,521 | 95,330 | 109,039 | |||||||||||
| Adjusted Diluted EPS | $ | 0.49 | $ | 0.24 | $ | 1.29 | $ | 0.83 | |||||||
CORECIVIC, INC. AND SUBSIDIARIES
SUPPLEMENTAL FINANCIAL INFORMATION
(UNAUDITED AND AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
CALCULATION OF FUNDS FROM OPERATIONS AND NORMALIZED FUNDS FROM OPERATIONS
| For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||
| Net income | $ | 1,344,138 | $ | 26,309 | $ | 1,419,192 | $ | 89,965 | |||||||
| Depreciation and amortization of real estate assets | 24,282 | 25,916 | 75,461 | 75,434 | |||||||||||
| Impairment of real estate assets | — | 1,482 | — | 1,482 | |||||||||||
| Gain on sale of real estate assets, net | (1,770,664 | ) | (2,461 | ) | (1,770,664 | ) | (2,461 | ) | |||||||
| Income tax expense for special items | 480,511 | 273 | 480,511 | 273 | |||||||||||
| Funds From Operations | $ | 78,267 | $ | 51,519 | $ | 204,500 | $ | 164,693 | |||||||
| Expenses associated with debt repayments and refinancing transactions | 4,004 | — | 4,004 | — | |||||||||||
| Expenses associated with mergers and acquisitions | 277 | 781 | 3,425 | 2,319 | |||||||||||
| Contingent consideration for acquisition of businesses | (22,134 | ) | — | (22,134 | ) | — | |||||||||
| Settlement compensation associated with executive transition | 6,428 | — | 6,428 | — | |||||||||||
| Income tax expense (benefit) for special items | 3,101 | (218 | ) | 2,240 | (645 | ) | |||||||||
| Normalized Funds From Operations | $ | 69,943 | $ | 52,082 | $ | 198,463 | $ | 166,367 | |||||||
| Funds from Operations Per Diluted Share | $ | 0.84 | $ | 0.48 | $ | 2.15 | $ | 1.51 | |||||||
| Normalized Funds From Operations Per Diluted Share | $ | 0.75 | $ | 0.48 | $ | 2.08 | $ | 1.53 | |||||||
CALCULATION OF EBITDA AND ADJUSTED EBITDA
| For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||
| Net income | $ | 1,344,138 | $ | 26,309 | $ | 1,419,192 | $ | 89,965 | |||||||
| Interest expense | 16,520 | 19,082 | 63,956 | 55,891 | |||||||||||
| Depreciation and amortization | 33,917 | 33,388 | 103,066 | 95,014 | |||||||||||
| Income tax expense | 505,298 | 10,251 | 530,066 | 30,944 | |||||||||||
| EBITDA | $ | 1,899,873 | $ | 89,030 | $ | 2,116,280 | $ | 271,814 | |||||||
| Expenses associated with debt repayments and refinancing transactions | 4,004 | — | 4,004 | — | |||||||||||
| Expenses associated with mergers and acquisitions | 277 | 781 | 3,425 | 2,319 | |||||||||||
| Contingent consideration for acquisition of businesses | (22,134 | ) | — | (22,134 | ) | — | |||||||||
| Settlement compensation associated with executive transition | 6,428 | — | 6,428 | — | |||||||||||
| Gain on sale of real estate assets, net | (1,770,664 | ) | (2,461 | ) | (1,770,664 | ) | (2,461 | ) | |||||||
| Asset impairments | — | 1,482 | — | 1,482 | |||||||||||
| Adjusted EBITDA | $ | 117,784 | $ | 88,832 | $ | 337,339 | $ | 273,154 | |||||||
CORECIVIC, INC. AND SUBSIDIARIES
SUPPLEMENTAL FINANCIAL INFORMATION
(UNAUDITED AND AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
GUIDANCE -- CALCULATION OF ADJUSTED NET INCOME, FUNDS FROM OPERATIONS, NORMALIZED FUNDS FROM OPERATIONS, EBITDA, AND ADJUSTED EBITDA
| Guidance Range | |||||||
| For the Year Ending | |||||||
| December 31, 2026 | |||||||
| Low End of | High End of | ||||||
| Guidance | Guidance | ||||||
| Net income | $ | 1,461,190 | $ | 1,467,190 | |||
| Expenses associated with debt repayments and refinancing transactions | 4,004 | 4,004 | |||||
| Expenses associated with mergers and acquisitions | 3,425 | 3,425 | |||||
| Contingent consideration for acquisition of businesses | (22,134 | ) | (22,134 | ) | |||
| Settlement compensation associated with executive transition | 6,428 | 6,428 | |||||
| Gain on sale of real estate assets, net | (1,770,664 | ) | (1,770,664 | ) | |||
| Income tax expense for special items | 482,751 | 482,751 | |||||
| Adjusted net income | $ | 165,000 | $ | 171,000 | |||
| Net income | $ | 1,461,190 | $ | 1,467,190 | |||
| Depreciation and amortization of real estate assets | 98,500 | 99,500 | |||||
| Gain on sale of real estate assets, net | (1,770,664 | ) | (1,770,664 | ) | |||
| Income tax expense for special items | 480,558 | 480,558 | |||||
| Funds From Operations | $ | 269,584 | $ | 276,584 | |||
| Expenses associated with debt repayments and refinancing transactions | 4,004 | 4,004 | |||||
| Expenses associated with mergers and acquisitions | 3,425 | 3,425 | |||||
| Contingent consideration for acquisition of businesses | (22,134 | ) | (22,134 | ) | |||
| Settlement compensation associated with executive transition | 6,428 | 6,428 | |||||
| Income tax expense for special items | 2,193 | 2,193 | |||||
| Normalized Funds From Operations | $ | 263,500 | $ | 270,500 | |||
| Diluted EPS | $ | 15.42 | $ | 15.48 | |||
| Adjusted Diluted EPS | $ | 1.74 | $ | 1.80 | |||
| FFO per diluted share | $ | 2.85 | $ | 2.92 | |||
| Normalized FFO per diluted share | $ | 2.78 | $ | 2.85 | |||
| Net income | $ | 1,461,190 | $ | 1,467,190 | |||
| Interest expense | 76,000 | 75,000 | |||||
| Depreciation and amortization | 137,000 | 136,000 | |||||
| Income tax expense | 547,251 | 546,251 | |||||
| EBITDA | $ | 2,221,441 | $ | 2,224,441 | |||
| Expenses associated with debt repayments and refinancing transactions | $ | 4,004 | $ | 4,004 | |||
| Expenses associated with mergers and acquisitions | 3,425 | 3,425 | |||||
| Contingent consideration for acquisition of businesses | (22,134 | ) | (22,134 | ) | |||
| Settlement compensation associated with executive transition | 6,428 | 6,428 | |||||
| Gain on sale of real estate assets, net | (1,770,664 | ) | (1,770,664 | ) | |||
| Adjusted EBITDA | $ | 442,500 | $ | 445,500 | |||
NOTE TO SUPPLEMENTAL FINANCIAL INFORMATION
Adjusted Net Income, EBITDA, Adjusted EBITDA, FFO, and Normalized FFO, and, where appropriate, their corresponding per share metrics are non-GAAP financial measures. The Company believes that these measures are important operating measures that supplement discussion and analysis of the Company's results of operations and are used to review and assess operating performance of the Company and its properties and their management teams. The Company believes that it is useful to provide investors, securities analysts, and other interested parties disclosures of its results of operations on the same basis that is used by management.
FFO, in particular, is a widely accepted non-GAAP supplemental measure of performance of real estate companies, grounded in the standards for FFO established by the National Association of Real Estate Investment Trusts (NAREIT). NAREIT defines FFO as net income computed in accordance with GAAP, excluding gains (or losses) from sales of property and extraordinary items, plus depreciation and amortization of real estate and impairment of depreciable real estate and after adjustments for unconsolidated partnerships and joint ventures calculated to reflect funds from operations on the same basis. As a company with extensive real estate holdings, we believe FFO and FFO per share are important supplemental measures of our operating performance and believe they are frequently used by securities analysts, investors and other interested parties in the evaluation of REITs and other real estate operating companies, many of which present FFO and FFO per share when reporting results. EBITDA, Adjusted EBITDA, and FFO are useful as supplemental measures of performance of the Company's properties because such measures do not take into account depreciation and amortization, or with respect to EBITDA, the impact of the Company's tax provisions and financing strategies. Because the historical cost accounting convention used for real estate assets requires depreciation (except on land), this accounting presentation assumes that the value of real estate assets diminishes at a level rate over time. Because of the unique structure, design and use of the Company's properties, management believes that assessing performance of the Company's properties without the impact of depreciation or amortization is useful. The Company may make adjustments to FFO from time to time for certain other income and expenses that it considers non-recurring, infrequent or unusual, even though such items may require cash settlement, because such items do not reflect a necessary or ordinary component of the ongoing operations of the Company. Normalized FFO excludes the effects of such items. The Company calculates Adjusted Net Income by adding to GAAP Net Income expenses associated with the Company’s debt repayments and refinancing transactions, and certain impairments and other charges that the Company believes are unusual or non-recurring, and by deducting the gain on sale of real estate assets and certain other gains, which the Company believes are not indicative of its ongoing operating performance to provide an alternative measure of comparing operating performance for the periods presented.
Other companies may calculate Adjusted Net Income, EBITDA, Adjusted EBITDA, FFO, and Normalized FFO differently than the Company does, or adjust for other items, and therefore comparability may be limited. Adjusted Net Income, EBITDA, Adjusted EBITDA, FFO, and Normalized FFO and, where appropriate, their corresponding per share measures are not measures of performance under GAAP, and should not be considered as an alternative to cash flows from operating activities, a measure of liquidity or an alternative to net income as indicators of the Company's operating performance or any other measure of performance derived in accordance with GAAP. This data should be read in conjunction with the Company's consolidated financial statements and related notes included in its filings with the Securities and Exchange Commission.
The Company’s operating and reportable segments are CoreCivic Residential, CoreCivic Services, and CoreCivic Properties. The operating performance of each segment is measured based on its net operating income, which the Company defines as a reportable segment’s revenue less operating expenses. Segment net operating income is the measure used by the Company’s chief operating decision maker to assess segment performance and allocate resources, and is presented in accordance with Accounting Standards Codification Topic 280, Segment Reporting (ASC 280).
| Contact: | Investors: Jeb Bachmann - Managing Director, Investor Relations - (615) 263-3024 Media: Steve Owen - Vice President, Communications - (615) 263-3107 |
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