CoreCivic's Q3 Profit Soars 25% on Strong Revenue Growth

TL;DR

**CXW is crushing it with an 81% net income jump, but watch those idle facilities – they're a drag.**

AI Summary

CoreCivic, Inc. (CXW) reported a significant increase in revenue and net income for the three and nine months ended September 30, 2025. Revenue for the three months increased to $580.4 million from $491.6 million in the prior year, a 17.9% rise. Net income for the three months jumped to $26.3 million, up from $21.1 million, representing a 24.6% increase. For the nine-month period, revenue grew to $1.61 billion from $1.48 billion, an 8.4% increase, while net income surged by 81.4% to $89.9 million from $49.6 million. The company's total assets increased to $3.11 billion as of September 30, 2025, from $2.93 billion at December 31, 2024. Key business changes include an acquisition of $73.4 million, expenditures for other capital improvements of $92.9 million, and a significant share repurchase program totaling $133.9 million for the nine months ended September 30, 2025. Risks include the ongoing negotiation for the sale of the Live Oak, California facility and the impairment charge of $1.5 million for the Longmont Community Treatment Center. The strategic outlook involves continuing to market five idle correctional facilities to potential government partners.

Why It Matters

CoreCivic's robust financial performance, with an 81.4% increase in nine-month net income, signals strong demand for its correctional and detention services, which could attract investors seeking stability in government-contracted sectors. The company's aggressive share repurchase of $133.9 million demonstrates management's confidence and commitment to shareholder value, potentially boosting stock price. However, the ongoing challenges with idle facilities and the impairment charge on the Longmont Community Treatment Center highlight operational risks and the need for efficient asset management. Competitors in the private corrections industry will be watching CoreCivic's ability to monetize its idle assets and navigate contract renewals, as these factors can influence market share and future growth prospects.

Risk Assessment

Risk Level: medium — The company faces medium risk due to its reliance on government contracts and the operational challenges of idle facilities. While net income increased significantly by 81.4% for the nine months ended September 30, 2025, the company recognized an asset impairment charge of $1.5 million on the Longmont Community Treatment Center and has five idle correctional facilities, representing potential underutilized assets and ongoing carrying costs.

Analyst Insight

Investors should consider CoreCivic's strong earnings growth and share repurchase program as positive indicators. However, they should also monitor the company's progress in selling or reactivating its idle facilities, as these represent potential future revenue streams or ongoing liabilities. A deeper dive into contract renewal rates and government policy changes affecting private corrections would be prudent.

Financial Highlights

debt To Equity

1.11

revenue

$1.61B

operating Margin

76.0%

total Assets

$3.11B

total Debt

$1.04B

net Income

$89.9M

eps

$0.85

gross Margin

76.0%

cash Position

$56.6M

revenue Growth

+8.4%

Revenue Breakdown

Key Numbers

• $580.4M — Q3 2025 Revenue (Up 17.9% from $491.6M in Q3 2024)
• $26.3M — Q3 2025 Net Income (Up 24.6% from $21.1M in Q3 2024)
• $1.61B — Nine-Month 2025 Revenue (Up 8.4% from $1.48B in nine-month 2024)
• $89.9M — Nine-Month 2025 Net Income (Up 81.4% from $49.6M in nine-month 2024)
• $133.9M — Common Stock Repurchases (For the nine months ended September 30, 2025, demonstrating capital return to shareholders)
• $1.5M — Asset Impairment Charge (Recognized in Q3 2025 for the Longmont Community Treatment Center)
• 104,584,655 — Shares Outstanding (As of October 31, 2025, reflecting share repurchases)
• $3.11B — Total Assets (As of September 30, 2025, an increase from $2.93B at December 31, 2024)
• $73.4M — Acquisitions, net of cash acquired (For the nine months ended September 30, 2025, indicating growth investments)
• 5 — Idle Correctional Facilities (As of September 30, 2025, representing potential future revenue or liabilities)

Key Players & Entities

• CoreCivic, Inc. (company) — Registrant
• SEC (regulator) — Securities and Exchange Commission
• FASB (regulator) — Financial Accounting Standards Board
• New York Stock Exchange (regulator) — Exchange where CXW is registered
• Boulder County, Colorado (company) — Customer extending contract for Longmont Community Treatment Center
• $580,437 (dollar_amount) — Revenue for the three months ended September 30, 2025
• $26,309 (dollar_amount) — Net income for the three months ended September 30, 2025
• $89,965 (dollar_amount) — Net income for the nine months ended September 30, 2025
• $133,905 (dollar_amount) — Purchase and retirement of common stock for the nine months ended September 30, 2025
• $1,482 (dollar_amount) — Asset impairment charge for the three and nine months ended September 30, 2025

FAQ

Risk Factors

• Government Contract Dependence [high — regulatory]: CoreCivic's revenue is heavily reliant on contracts with federal, state, and local governments. Changes in government policy, funding priorities, or contract renewals can significantly impact financial performance. The ongoing negotiation for the sale of the Live Oak, California facility highlights this dependence.
• Facility Occupancy and Utilization [medium — operational]: The company's profitability is tied to maintaining high occupancy rates in its correctional and detention facilities. Fluctuations in inmate populations or government demand for services can lead to underutilization of assets, impacting revenue and potentially leading to asset impairments, such as the $1.5 million charge for the Longmont Community Treatment Center.
• Debt Management [medium — financial]: CoreCivic carries a significant amount of debt, with total liabilities at $1.64 billion as of September 30, 2025. While interest expense has decreased year-over-year for the nine-month period, managing this debt load, especially in a fluctuating interest rate environment, remains a key financial consideration.
• Idle Facilities [low — operational]: The company has five idle correctional facilities as of September 30, 2025. While these represent potential future revenue streams, they also incur carrying costs and may require significant investment to re-activate, posing an ongoing operational and financial challenge.
• Litigation and Legal Proceedings [medium — legal]: As a company operating in the correctional services sector, CoreCivic is subject to various legal proceedings and potential litigation. While specific details are not elaborated in this section, such events can lead to significant financial and reputational damage.

Industry Context

The private correctional and detention services industry is characterized by its strong reliance on government contracts and fluctuating demand based on incarceration rates and government policies. CoreCivic operates within this environment, facing competition from other private providers and public correctional systems. Trends include increasing scrutiny on private prison operations and evolving government approaches to criminal justice.

Regulatory Implications

CoreCivic's operations are subject to extensive government regulation and oversight. Changes in federal, state, and local laws concerning detention standards, contract requirements, and the use of private facilities can significantly impact the company's business model and profitability. Compliance with these regulations is paramount.

What Investors Should Do

1. Monitor government contract renewals and new solicitations.
2. Analyze occupancy rates and facility utilization.
3. Evaluate the impact of the share repurchase program.
4. Assess the progress on the sale of the Live Oak, California facility.
5. Track the strategic marketing of idle facilities.

Key Dates

• 2025-09-30: End of Q3 2025 — Reporting period for the 10-Q, showing significant revenue and net income growth.
• 2025-10-31: Shares Outstanding Date — Reported 104,584,655 shares outstanding, reflecting the impact of the share repurchase program.
• 2025-12-31: End of Fiscal Year 2024 — Baseline for comparison of total assets, which increased to $3.11 billion by September 30, 2025.

Glossary

Accumulated deficit

The cumulative net losses of a company that have not been offset by net income. (CoreCivic's accumulated deficit decreased from ($239,979) thousand to ($150,014) thousand, indicating improved profitability over time.)

Assets held for sale

Assets that management has committed to selling and are available for immediate sale in their present condition. (The inclusion of $5.173 million in assets held for sale suggests potential divestitures or restructuring activities.)

Goodwill

An intangible asset that arises when one company acquires another for a price greater than the fair market value of its assets and liabilities. (An increase in goodwill from $4.844 million to $8.551 million suggests recent acquisitions or revaluation of acquired businesses.)

Depreciation and amortization

The systematic allocation of the cost of tangible (depreciation) and intangible (amortization) assets over their useful lives. (Depreciation and amortization expenses were $33.388 million for Q3 2025 and $95.014 million for the nine months, reflecting the cost of using long-term assets.)

Asset impairments

A reduction in the carrying value of an asset when its fair value falls below its book value. (A $1.482 million asset impairment charge for the Longmont Community Treatment Center was recognized, indicating a loss in value for that specific asset.)

Year-Over-Year Comparison

CoreCivic has demonstrated robust performance compared to the prior year. Revenue for the nine months ended September 30, 2025, increased by 8.4% to $1.61 billion, with a particularly strong Q3 showing a 17.9% rise to $580.4 million. Net income saw an even more dramatic improvement, surging 81.4% for the nine-month period to $89.9 million, and a 24.6% increase in Q3. Total assets have grown to $3.11 billion, supported by acquisitions and capital expenditures, while the company also returned significant capital to shareholders through repurchases totaling $133.9 million. New risks include an asset impairment charge of $1.5 million, while the ongoing negotiation for the Live Oak facility sale remains a key point of attention.

Key Financial Figures

• $0.01 — ch registered Common Stock, par value $0.01 per share CXW New York Stock Exchan

Filing Documents

• cxw-20250930.htm (10-Q) — 2608KB
• cxw-ex22_1.htm (EX-22.1) — 13KB
• cxw-ex31_1.htm (EX-31.1) — 15KB
• cxw-ex31_2.htm (EX-31.2) — 15KB
• cxw-ex32_1.htm (EX-32.1) — 9KB
• cxw-ex32_2.htm (EX-32.2) — 9KB
• 0001193125-25-269348.txt ( ) — 9373KB
• cxw-20250930.xsd (EX-101.SCH) — 1285KB
• cxw-20250930_htm.xml (XML) — 1642KB

Financial Statements

Financial Statements 1 a) Consolidated Balance Sheets as of September 30, 2025 (Unaudited) and December 31, 2024 1 b) Consolidated Statements of Operations (Unaudited) for the three and nine months ended September 30, 2025 and 2024 2 c) Consolidated Statements of Cash Flows (Unaudited) for the nine months ended September 30, 2025 and 2024 3 d) Consolidated Statement of Stockholders' Equity (Unaudited) for the quarterly periods during 2025 4 e) Consolidated Statement of Stockholders' Equity (Unaudited) for the quarterly periods during 2024 5 f)

Notes to Consolidated Financial Statements (Unaudited)

Notes to Consolidated Financial Statements (Unaudited) 6 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 22 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 42 Item 4.

Controls and Procedures

Controls and Procedures 43

– OTHER INFORMATION

PART II – OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 44 Item 1A.

Risk Factors

Risk Factors 44 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 44 Item 3. Defaults Upon Senior Securities 44 Item 4. Mine Safety Disclosures 44 Item 5. Other Information 45 Item 6. Exhibits 45

– F INANCIAL INFORMATION

PART I – F INANCIAL INFORMATION

– FINANCIAL STATEMENTS

ITEM 1. – FINANCIAL STATEMENTS. CORECIVIC, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (UNAUDITED AND AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) ASSETS September 30, 2025 December 31, 2024 Cash and cash equivalents $ 56,551 $ 107,487 Restricted cash 15,224 14,623 Accounts receivable, net of credit loss reserve of $ 4,358 and $ 4,471 , respectively 351,396 288,738 Prepaid expenses and other current assets 43,249 38,970 Assets held for sale 5,173 — Total current assets 471,593 449,818 Real estate and related assets: Property and equipment, net of accumulated depreciation of $ 1,982,156 and $ 1,905,508 , respectively 2,119,367 2,060,024 Other real estate assets 184,845 193,105 Goodwill 8,551 4,844 Other assets 325,775 224,100 Total assets $ 3,110,131 $ 2,931,891 LIABILITIES AND STOCKHOLDERS' EQUITY Accounts payable and accrued expenses $ 319,598 $ 273,724 Current portion of long-term debt 14,792 12,073 Total current liabilities 334,390 285,797 Long-term debt, net 1,028,319 973,073 Deferred revenue 10,148 12,399 Non-current deferred tax liabilities 93,395 89,207 Other liabilities 173,407 78,064 Total liabilities 1,639,659 1,438,540 Commitments and contingencies Preferred stock – $ 0.01 par value; 50,000 shares authorized; none issued and outstanding at September 30, 2025 and December 31, 2024 — — Common stock – $ 0.01 par value; 300,000 shares authorized; 105,383 and 109,861 shares issued and outstanding at September 30, 2025 and December 31, 2024, respectively 1,054 1,099 Additional paid-in capital 1,619,432 1,732,231 Accumulated deficit ( 150,014 ) ( 239,979 ) Total stockholders' equity 1,470,472 1,493,351 Total liabilities and stockholders' equity $ 3,110,131 $ 2,931,891 The accompanying notes are an integral part of these consolidated financial statements. 1 COR

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