GEO Group "Secret" Subscription Business
GEO Group $GEO along with CoreCivic $CXW are the two main players in the private prison industry and with all the political controversy surrounding the industry, they have a moat. GEO Group has also a subscription-based business, which is their second largest revenue segment.
GEO Group owns a subsidiary, BI Incorporated, which is an electronic monitoring business. The margins of BI Incorporated are higher compared to the main business and soon it will be the largest source of profits. The main client of BI Incorporated is ICE (Immigration and Customs Enforcement).
During the pandemic, the US Government implemented Title 42, which expelled people entering the US illegally, without admitting them. Title 42 is expected to be repealed on the 23rd of May 2023, which means that ICE will require more electronic monitoring as the crisis on the US-Mexico border intensifies.