CoreCivic (CXW) Financials

CoreCivic’s latest quarterly results show meaningful top-line and operating cash-flow growth, but the balance sheet is becoming more leveraged and reported earnings remain heavily affected by special charges. In the second quarter, revenue increased to $662.6 million from $525.6 million in the comparable 2025 quarter, $473.0 million in 2024 and $445.4 million in 2023. That represents an increase of nearly 49% over three years.

Net income has also improved from the prior-year period, although the progression is less consistent than revenue. Q2 net income was $37.1 million, compared with $38.5 million in Q2 2025, $19.0 million in Q2 2024 and $14.8 million in Q2 2023. Earnings per share remained at approximately $0.38, helped by a reduction in weighted-average shares outstanding to 98.9 million from 107.1 million a year earlier and 110.3 million two years earlier.

Cash generation was particularly strong in Q2 2026, with operating cash flow of $133.0 million, up from $96.7 million in Q2 2025 and $68.1 million in Q2 2024. However, cash flow remains volatile between quarters. Operating cash flow was only $13.8 million in Q1 2026 and was slightly negative in Q4 2025, primarily reflecting changes in operating assets and liabilities.

The main financial concern is leverage. Total debt rose to approximately $1.35 billion at June 30, 2026, including $1.23 billion of long-term debt, compared with roughly $1.02 billion of total debt at June 30, 2025. Interest expense increased to $22.3 million in Q2 2026 from $12.5 million in the restated Q2 2025 results. CoreCivic also invested $143.3 million in investment securities and spent $39.8 million on property and equipment during the latest quarter, producing negative investing cash flow of $182.3 million.

• Revenue has risen steadily in the comparable second-quarter periods, reaching $662.6 million in Q2 2026 versus $445.4 million in Q2 2023.
• Operating cash flow reached $133.0 million in Q2 2026, the strongest comparable second-quarter result in the provided data.
• The company has reduced its weighted-average share count by roughly 13% from Q2 2023 to Q2 2026, which supports earnings per share and indicates continued use of share repurchases.
• Net income remained positive in every reported quarter provided, and Q2 2026 net income of $37.1 million was more than double the Q2 2024 level.
• Premises and equipment increased to approximately $2.15 billion at June 30, 2026 from $2.06 billion a year earlier, suggesting continued investment in the operating asset base.
• Quarterly operating cash flow is uneven, ranging from a slight outflow in Q4 2025 to $133.0 million in Q2 2026, making individual-quarter comparisons less reliable.
• The latest filings include restated prior-period income statements and cash-flow statements, so investors should rely on the company’s revised historical figures when assessing long-term trends.
• Total liabilities increased to $2.02 billion at June 30, 2026 from $1.59 billion at June 30, 2025, while total equity declined to $1.44 billion from $1.48 billion.
• Interest expense is rising as debt increases: Q2 2026 interest expense of $22.3 million was approximately 78% higher than the restated Q2 2025 figure.
• Other special charges totaled $536.0 million in Q2 2026, consuming most of the company’s $662.6 million in reported revenue and leaving only $47.5 million of pretax income.

Overall, the data point to improving revenue, stronger recent operating cash flow and a materially lower share count. Nevertheless, investors should monitor whether special charges decline, whether operating cash flow remains positive after investment spending, and whether management can reduce debt without sacrificing growth.