NYSE:CXW
CoreCivic, Inc.
A leading provider of private prison management and detention services operating a network of correctional facilities for government clients across the U.S. and abroad.
Key Metrics
Investment Thesis
Bull Case
CXW presents a compelling value play for investors seeking exposure to essential public sector infrastructure with a clear path to earnings normalization. The company's ability to generate substantial operating cash flow and reduce its retained earnings deficit suggests improving financial health, supported by a revenue base that has grown consistently from $1.85B in 2022 to over $2B recently.
Bear Case
The stock carries elevated risk due to its exposure to political cycles and government budget constraints that could abruptly alter contract terms or funding levels. High leverage ratios and significant non-operating losses, including a -$864.3M cash flow from financing adjustments, highlight potential liquidity pressures if debt markets tighten or credit ratings are downgraded.
About CoreCivic, Inc.
CoreCivic Inc. (CXW) operates within the private prison management and detention services sector, providing essential correctional infrastructure and operational support to government agencies across the United States and internationally. The company generates revenue primarily through contracts for facility leasing, inmate care services, and related administrative functions, serving federal, state, and local jurisdictions. With total assets exceeding $3.2 billion and recent revenue growth to $2.21 billion in 2025, the firm maintains a significant footprint in the secure facilities industry.
Analysis
Management Discussion
Recent financial performance shows a robust rebound in profitability, with net profit surging to $116.5M in 2025 compared to $68.9M the previous year, reflecting improved operational efficiency and revenue expansion. Despite significant cash outflows from investing activities of -$206.1M likely tied to capital expenditures or acquisitions, the company maintained positive operating cash flow of $194.6M. The return to strong earnings aligns with the broader recovery in correctional facility demand.
Industry Overview
The private corrections industry serves as a critical supplement to public prison systems, addressing capacity shortages in the U.S. justice system through contracted management of detention facilities. This sector is characterized by high capital intensity, long-term government contracts, and strict regulatory oversight that defines competitive dynamics and profit margins for operators like CoreCivic.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $1.85B | $1.90B | $1.96B | $2.21B |
| Cost of Revenue | $0 | $0 | $0 | $0 |
| Gross Profit | $1.85B | $1.90B | $1.96B | $2.21B |
| Operating Expenses | $1.68B | $1.80B | $1.87B | $2.05B |
| Operating Income | $165.3M | $95.8M | $92.0M | $157.2M |
| G&A | $127.7M | $136.1M | $152.1M | $169.6M |
| Stock-Based Comp | $17.6M | $20.8M | $25.7M | $27.7M |
| D&A | $127.9M | $127.3M | $128.0M | $128.9M |
| Depreciation | $126.7M | $126.8M | $127.6M | $128.1M |
| Amortization | $1.3M | $500.0K | $500.0K | $800.0K |
| Other OpEx | $1.55B | $1.66B | $1.72B | $1.88B |
| Non-Operating Income | $0 | $0 | $0 | $0 |
| Interest Expense | $85.0M | $73.0M | $67.4M | $62.2M |
| Pre-Tax Income | $165.3M | $95.8M | $92.0M | $157.2M |
| Income Tax | $43.0M | $28.2M | $23.1M | $40.7M |
| Continuing Ops | $122.3M | $67.6M | $68.9M | $116.5M |
| Discontinued Ops | $0 | $0 | $0 | $0 |
| Net Income | $122.3M | $67.6M | $68.9M | $116.5M |
| Minority Interest | $0 | $0 | $0 | $0 |
| Net to Common | $122.3M | $67.6M | $68.9M | $116.5M |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Current Assets | $513.7M | $474.9M | $449.8M | $611.1M |
| Cash & Equivalents | $149.4M | $121.8M | $107.5M | $97.9M |
| Accounts Receivable | $312.4M | $312.2M | $288.7M | $446.2M |
| Prepaid Expenses | $32.1M | $26.3M | $39.0M | $49.9M |
| Other Current Assets | $19.7M | $14.6M | $14.6M | $17.0M |
| Long-Term Assets | $2.73B | $2.63B | $2.48B | $2.65B |
| PP&E (Net) | $2.18B | $2.11B | $2.06B | $2.13B |
| Goodwill | $4.8M | $4.8M | $4.8M | $8.6M |
| Operating Leases | $145.5M | $119.8M | $42.4M | $137.0M |
| Other LT Assets | $404.6M | $391.3M | $374.8M | $367.9M |
| Total Assets | $3.24B | $3.11B | $2.93B | $3.26B |
| Current Liabilities | $450.8M | $297.5M | $285.8M | $368.9M |
| Current Debt | $165.5M | $11.6M | $12.1M | $15.7M |
| Current Leases | $32.7M | $34.4M | $3.3M | $23.9M |
| Taxes Payable | $2.2M | $4.6M | $1.9M | $1.9M |
| Other Current Liab | $249.9M | $246.6M | $268.5M | $327.4M |
| Long-Term Liabilities | $1.36B | $1.33B | $1.15B | $1.48B |
| Long-Term Debt | $1.08B | $1.08B | $973.1M | $1.21B |
| LT Operating Leases | $96.9M | $70.9M | $17.7M | $100.1M |
| Other LT Liab | $157.2M | $157.7M | $149.5M | $168.8M |
| Total Liabilities | $1.81B | $1.63B | $1.44B | $1.85B |
| Shareholders' Equity | $1.43B | $1.48B | $1.49B | $1.41B |
| Retained Earnings | $-376.4M | $-308.8M | $-240.0M | $-123.5M |
| Total L&E | $3.24B | $3.11B | $2.93B | $3.26B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $122.3M | $67.6M | $68.9M | $116.5M |
| Non-Cash Adjustments | $20.3M | $169.3M | $203.9M | $-108.3M |
| Working Capital Changes | $10.9M | $-5.0M | $-3.6M | $186.4M |
| Cash from Operations | $153.6M | $231.9M | $269.2M | $194.6M |
| Cash from Investing | $73.0M | $-58.9M | $-53.8M | $-206.1M |
| Debt Issuances | $100.0M | $250.0M | $547.0M | $435.0M |
| Debt Repayments | $15.1M | $9.9M | $11.6M | $12.1M |
| Share Buybacks | $79.9M | $43.0M | $77.2M | $229.0M |
| Dividends Paid | $886.0K | $131.0K | $136.0K | $45.0K |
| Cash from Financing | $-375.2M | $-206.2M | $-222.2M | $1.8M |
| FX Effect | $0 | $0 | $0 | $0 |
| Net Change in Cash | $-148.5M | $-33.2M | $-6.8M | $-9.7M |
| Beginning Cash | $310.7M | $162.2M | $128.9M | $122.1M |
| Ending Cash | $162.2M | $129.0M | $122.1M | $112.4M |
Frequently Asked Questions
How does CoreCivic, Inc. make money?
The company's revenue is driven by core segments including public sector corrections (federal, state, and local contracts), international operations, and ancillary services such as food and industrial products sales to its facilities. Financial data indicates a diverse operational base with significant long-term assets of $2.65 billion supporting these multi-jurisdictional contracts.
What are the main risks for CXW?
Investors should monitor potential contract expirations or terminations by government clients, which could materially impact revenue stability. The company faces ongoing regulatory scrutiny regarding inmate treatment standards and labor practices that could lead to fines, reputational damage, or contract cancellations. Additionally, high levels of long-term debt ($1.21B) coupled with interest expenses of $62.2M create sensitivity to rising borrowing costs.
What is CXW's competitive advantage?
CoreCivic benefits from established long-term contracts with major government entities that provide stable, recurring revenue streams insulated from short-term market volatility. The company leverages its massive scale and specialized expertise in correctional facility management to secure complex bids that require significant capital investment and operational complexity, creating high barriers to entry for competitors.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.