Acacia Research Corporation Reports Second Quarter 2026 Financial Results
Total Revenue of
GAAP Net Income of
Adjusted Net Income1 of
Total Company Adjusted EBITDA1 of
Total Cash, Cash Equivalents, Equity Securities Measured at Fair Value and Loans Receivable of
Martin (“MJ”) D. McNulty, Jr., Chief Executive Officer, stated, “Acacia delivered strong financial and operating results for the second quarter, generating total revenue of
As we look ahead to the remainder of 2026, we remain focused on compounding long-term intrinsic value per share through disciplined capital allocation, active ownership of our operating businesses and selective investments across the public and private markets. As of the end of the second quarter, cash, cash equivalents, equity securities and loans receivable was approximately
| ___________________________________ |
| 1 Adjusted Net Income (Loss), Adjusted Diluted Earnings Per Share (EPS), Total Company Adjusted EBITDA and Operated Segment Adjusted EBITDA are non-GAAP financial measures. See below for reconciliations of Adjusted Net Income (Loss), Adjusted Diluted EPS, and Total Company Adjusted EBITDA to their most directly comparable GAAP financial measure. For the definition of these measures and a reconciliation of the components of Operated Segment Adjusted EBITDA to their most directly comparable GAAP financial measures, see the accompanying supplemental information section. |
Second Quarter 2026 Highlights:
-
Total revenue of
$114.6 million $51.2 million -
Benchmark Energy recorded revenue of
$20.5 million -
GAAP Net Income of
$47 thousand $0.00 -
Adjusted Net Income of
$12.8 million $0.13 -
Operated Segment Adjusted EBITDA of
$22.8 million -
Total Company Adjusted EBITDA of
$17.3 million -
At quarter end, cash, cash equivalents, equity securities measured at fair value and loans receivable totaled approximately
$334.6 million $3.43
Revenue
The following table provides a breakdown of the Company’s total revenue for the three and six months ended June 30, 2026 and June 30, 2025. For the purposes of financial reporting, Acacia's operations are broken out as follows: Energy Operations (Benchmark), Industrial Operations (Printronix), Manufacturing Operations (Deflecto) and Intellectual Property Operations (Acacia Research Group).
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||
|
2026 |
|
2025 |
|
2026 |
|
2025 |
||||
|
(In thousands, unaudited) |
||||||||||
Energy Operations |
$ |
20,545 |
|
$ |
15,317 |
|
$ |
39,214 |
|
$ |
33,623 |
Industrial Operations |
|
6,002 |
|
|
6,590 |
|
|
13,184 |
|
|
14,266 |
Manufacturing Operations |
|
27,102 |
|
|
29,001 |
|
|
54,768 |
|
|
57,536 |
Intellectual Property Operations |
|
60,913 |
|
|
329 |
|
|
61,635 |
|
|
70,234 |
Total Revenues |
$ |
114,562 |
|
$ |
51,237 |
|
$ |
168,801 |
|
$ |
175,659 |
Total Company Adjusted EBITDA
The following table provides a reconciliation of consolidated Net Income (Loss), the most directly comparable GAAP measure, to Total Company Adjusted EBITDA for the three and six months ended June 30, 2026 and June 30, 2025.
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||
|
|
2026 |
|
|
|
2025 |
|
|
|
2026 |
|
|
|
2025 |
|
|
(In thousands, unaudited) |
||||||||||||||
GAAP Net Income (Loss) |
$ |
47 |
|
|
$ |
(3,293 |
) |
|
$ |
(15,694 |
) |
|
$ |
20,994 |
|
Net (Income) Loss Attributable to Noncontrolling Interests |
|
(8,489 |
) |
|
|
1,856 |
|
|
|
(10,349 |
) |
|
|
1,097 |
|
Income Tax Expense (Benefit) |
|
(1,318 |
) |
|
|
547 |
|
|
|
(3,882 |
) |
|
|
6,628 |
|
Interest Expense |
|
1,829 |
|
|
|
2,329 |
|
|
|
3,715 |
|
|
|
4,780 |
|
Interest Income |
|
(2,658 |
) |
|
|
(2,936 |
) |
|
|
(5,473 |
) |
|
|
(5,446 |
) |
(Gain) Loss on Foreign Currency Exchange |
|
6 |
|
|
|
(280 |
) |
|
|
65 |
|
|
|
(435 |
) |
Net Realized and Unrealized (Gain) Loss on Derivatives |
|
(3,341 |
) |
|
|
(6,635 |
) |
|
|
7,358 |
|
|
|
(1,614 |
) |
Net Realized and Unrealized (Gain) Loss on Investments |
|
(9,431 |
) |
|
|
(4,126 |
) |
|
|
(7,267 |
) |
|
|
(954 |
) |
Impairment of Equity Method Investment |
|
30,934 |
|
|
|
— |
|
|
|
30,934 |
|
|
|
— |
|
Other Expense, net |
|
937 |
|
|
|
153 |
|
|
|
752 |
|
|
|
870 |
|
GAAP Operating Income (Loss) |
$ |
8,516 |
|
|
$ |
(12,385 |
) |
|
$ |
159 |
|
|
$ |
25,920 |
|
Depreciation, Depletion & Amortization |
|
6,566 |
|
|
|
11,445 |
|
|
|
15,053 |
|
|
|
22,055 |
|
Stock-Based Compensation |
|
1,216 |
|
|
|
954 |
|
|
|
2,216 |
|
|
|
1,876 |
|
Realized Hedge (Loss) Gain |
|
(1,831 |
) |
|
|
869 |
|
|
|
(2,804 |
) |
|
|
826 |
|
Transaction-Related Costs |
|
584 |
|
|
|
237 |
|
|
|
1,376 |
|
|
|
791 |
|
Legacy Matter Costs |
|
— |
|
|
|
1 |
|
|
|
— |
|
|
|
9 |
|
Severance Costs |
|
1,267 |
|
|
|
752 |
|
|
|
1,420 |
|
|
|
1,095 |
|
Restructuring Expense |
|
934 |
|
|
|
— |
|
|
|
1,396 |
|
|
|
— |
|
Total Company Adjusted EBITDA |
$ |
17,252 |
|
|
$ |
1,873 |
|
|
$ |
18,816 |
|
|
$ |
52,572 |
|
The following table provides the Adjusted EBITDA for each of the Company’s operating segments for the three and six months ended June 30, 2026 and June 30, 2025.
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||
|
|
2026 |
|
|
|
2025 |
|
|
|
2026 |
|
|
|
2025 |
|
|
(In thousands, unaudited) |
||||||||||||||
Energy Operations Adjusted EBITDA2 |
$ |
9,834 |
|
|
$ |
6,951 |
|
|
$ |
17,544 |
|
|
$ |
14,887 |
|
Industrial Operations Adjusted EBITDA2 |
|
1,038 |
|
|
|
620 |
|
|
|
2,430 |
|
|
|
1,641 |
|
Manufacturing Operations Adjusted EBITDA2 |
|
1,073 |
|
|
|
1,274 |
|
|
|
2,237 |
|
|
|
3,713 |
|
Operated Segment Adjusted EBITDA
|
$ |
11,945 |
|
|
$ |
8,845 |
|
|
$ |
22,211 |
|
|
$ |
20,241 |
|
Intellectual Property Operations Adjusted EBITDA2 |
|
10,855 |
|
|
|
(2,061 |
) |
|
|
7,346 |
|
|
|
41,204 |
|
Operated Segment Adjusted EBITDA |
$ |
22,800 |
|
|
$ |
6,784 |
|
|
$ |
29,557 |
|
|
$ |
61,445 |
|
Parent Costs2 |
|
(5,548 |
) |
|
|
(4,911 |
) |
|
|
(10,741 |
) |
|
|
(8,873 |
) |
Total Company Adjusted EBITDA |
$ |
17,252 |
|
|
$ |
1,873 |
|
|
$ |
18,816 |
|
|
$ |
52,572 |
|
Adjusted Net Income (Loss) and Adjusted Diluted EPS
The following table provides a reconciliation of Net Income (Loss) attributable to Acacia Research Corporation, the most directly comparable GAAP measure, to Adjusted Net Income (Loss) and Adjusted Diluted EPS for the three and six months ended June 30, 2026 and June 30, 2025.
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||
|
|
2026 |
|
|
|
2025 |
|
|
|
2026 |
|
|
|
2025 |
|
|
(In thousands, except share and per share data, unaudited) |
||||||||||||||
GAAP Net Income (Loss) |
$ |
47 |
|
|
$ |
(3,293 |
) |
|
$ |
(15,694 |
) |
|
$ |
20,994 |
|
Legacy Matter Costs3 |
|
— |
|
|
|
1 |
|
|
|
— |
|
|
|
259 |
|
Stock-Based Compensation |
|
1,216 |
|
|
|
954 |
|
|
|
2,216 |
|
|
|
1,876 |
|
Severance Costs |
|
1,267 |
|
|
|
752 |
|
|
|
1,420 |
|
|
|
1,095 |
|
Transaction-Related Costs |
|
739 |
|
|
|
237 |
|
|
|
1,531 |
|
|
|
791 |
|
Restructuring Expense |
|
934 |
|
|
|
— |
|
|
|
1,396 |
|
|
|
— |
|
Impairment of Equity Method Investment, Net of Noncontrolling Interests |
|
19,892 |
|
|
|
— |
|
|
|
19,892 |
|
|
|
— |
|
Amortization of Acquired Intangibles |
|
842 |
|
|
|
860 |
|
|
|
1,717 |
|
|
|
1,767 |
|
Unrealized (Gain) Loss on Securities |
|
(4,909 |
) |
|
|
(2,219 |
) |
|
|
(3,350 |
) |
|
|
2,558 |
|
Unrealized (Gain) Loss on Hedges |
|
(3,801 |
) |
|
|
(4,241 |
) |
|
|
3,347 |
|
|
|
(580 |
) |
Tax Effect of Adjustments |
|
(3,387 |
) |
|
|
1,004 |
|
|
|
(6,199 |
) |
|
|
(1,625 |
) |
Adjusted Net Income (Loss) |
$ |
12,840 |
|
|
$ |
(5,945 |
) |
|
$ |
6,276 |
|
|
$ |
27,135 |
|
|
|
|
|
|
|
|
|
||||||||
GAAP Diluted EPS |
$ |
— |
|
|
$ |
(0.03 |
) |
|
$ |
(0.16 |
) |
|
$ |
0.22 |
|
GAAP diluted weighted average shares |
|
98,117,805 |
|
|
|
96,244,590 |
|
|
|
96,671,521 |
|
|
|
96,964,308 |
|
Adjusted Diluted EPS |
$ |
0.13 |
|
|
$ |
(0.06 |
) |
|
$ |
0.06 |
|
|
$ |
0.28 |
|
Adjusted diluted weighted average shares |
|
98,117,805 |
|
|
|
96,244,590 |
|
|
|
98,071,078 |
|
|
|
96,964,308 |
|
| ___________________________________ |
| 2 Energy Operations Adjusted EBITDA, Industrial Operations Adjusted EBITDA, Manufacturing Operations Adjusted EBITDA, Intellectual Property Operations Adjusted EBITDA, and Parent Costs are non-GAAP financial measures. For the definitions of these measures and reconciliations of these measures to the most directly comparable GAAP financial measures, see the accompanying supplemental information section. |
| 3 Legacy Matter Costs for the six months ended June 30, 2025 includes |
Free Cash Flow4
The following table provides a reconciliation of Free Cash Flow (“FCF”) for the three and six months ended June 30, 2026.
|
Three Months Ended June 30, 2026 |
||||||||||||||||||||||
|
Energy Operations |
|
Industrial Operations |
|
Manufacturing Operations |
|
Intellectual Property Operations |
|
Parent Costs |
|
Consolidated Total |
||||||||||||
|
(In thousands, unaudited) |
||||||||||||||||||||||
Net Cash from (used in) Operating Activities (GAAP) |
$ |
10,493 |
|
|
$ |
916 |
|
|
$ |
(307 |
) |
|
$ |
(3,292 |
) |
|
$ |
(3,908 |
) |
|
$ |
3,902 |
|
Less: Capital Expenditures |
|
(3,973 |
) |
|
|
(6 |
) |
|
|
(758 |
) |
|
|
— |
|
|
|
— |
|
|
|
(4,737 |
) |
Free Cash Flow (Non-GAAP) |
$ |
6,520 |
|
|
$ |
910 |
|
|
$ |
(1,065 |
) |
|
$ |
(3,292 |
) |
|
$ |
(3,908 |
) |
|
$ |
(835 |
) |
|
Three Months Ended June 30, 2025 |
|||||||||||||||||||||
|
Energy Operations |
|
Industrial Operations |
|
Manufacturing Operations |
|
Intellectual Property Operations |
|
Parent Costs |
|
Consolidated Total |
|||||||||||
|
(In thousands, unaudited) |
|||||||||||||||||||||
Net Cash from (used in) Operating Activities (GAAP) |
$ |
6,032 |
|
|
$ |
895 |
|
|
$ |
1,109 |
|
|
$ |
44,047 |
|
$ |
(1,963 |
) |
|
$ |
50,120 |
|
Less: Capital Expenditures |
|
(1,981 |
) |
|
|
(23 |
) |
|
|
(200 |
) |
|
|
— |
|
|
(9 |
) |
|
|
(2,213 |
) |
Free Cash Flow (Non-GAAP) |
$ |
4,051 |
|
|
$ |
872 |
|
|
$ |
909 |
|
|
$ |
44,047 |
|
$ |
(1,972 |
) |
|
$ |
47,907 |
|
|
Six Months Ended June 30, 2026 |
||||||||||||||||||||||
|
Energy Operations |
|
Industrial Operations |
|
Manufacturing Operations |
|
Intellectual Property Operations |
|
Parent Costs |
|
Consolidated Total |
||||||||||||
|
(In thousands, unaudited) |
||||||||||||||||||||||
Net Cash from (used in) Operating Activities (GAAP) |
$ |
17,089 |
|
|
$ |
4,062 |
|
|
$ |
132 |
|
|
$ |
(6,212 |
) |
|
$ |
(7,764 |
) |
|
$ |
7,307 |
|
Less: Capital Expenditures |
|
(12,475 |
) |
|
|
(20 |
) |
|
|
(1,437 |
) |
|
|
(1,750 |
) |
|
|
— |
|
|
|
(15,682 |
) |
Free Cash Flow (Non-GAAP) |
$ |
4,614 |
|
|
$ |
4,042 |
|
|
$ |
(1,305 |
) |
|
$ |
(7,962 |
) |
|
$ |
(7,764 |
) |
|
$ |
(8,375 |
) |
|
Six Months Ended June 30, 2025 |
|||||||||||||||||||||
|
Energy Operations |
|
Industrial Operations |
|
Manufacturing Operations |
|
Intellectual Property Operations |
|
Parent Costs |
|
Consolidated Total |
|||||||||||
|
(In thousands, unaudited) |
|||||||||||||||||||||
Net Cash from (used in) Operating Activities (GAAP) |
$ |
11,484 |
|
|
$ |
3,425 |
|
|
$ |
2,125 |
|
|
$ |
41,781 |
|
$ |
(6,270 |
) |
|
$ |
52,545 |
|
Less: Capital Expenditures |
|
(3,853 |
) |
|
|
(28 |
) |
|
|
(413 |
) |
|
|
— |
|
|
(9 |
) |
|
|
(4,303 |
) |
Free Cash Flow (Non-GAAP) |
$ |
7,631 |
|
|
$ |
3,397 |
|
|
$ |
1,712 |
|
|
$ |
41,781 |
|
$ |
(6,279 |
) |
|
$ |
48,242 |
|
| ___________________________________ |
| 4 Free Cash Flow (FCF) is a non-GAAP financial measure. For a definition of this measure, see the accompanying supplemental information section. |
Balance Sheet and Capital Structure
-
Cash, cash equivalents, equity securities measured at fair value and loans receivable totaled
$334.6 million $339.6 million $5.0 million $15.1 million U.K . of$1.6 million $7.8 million $12.5 million $1.4 million $1.8 million $4.9 million $1.8 million $3.1 million $3.4 million -
Equity securities without readily determinable fair value totaled
$5.8 million -
Investment securities representing equity method investments (net of noncontrolling interests) decreased to zero at June 30, 2026, compared to
$19.9 million -
Loans receivable totaled
$7.8 million -
The Parent company’s total indebtedness was zero at June 30, 2026. On a consolidated basis, Acacia’s total indebtedness was
$90.4 million $59.5 million $30.9 million
Book Value as of June 30, 2026
At June 30, 2026, Acacia’s book value (which includes noncontrolling interests) was
Investor Conference Call
The Company will host a conference call today, August 5, 2026 at 8:00 a.m. Eastern Time (5:00 a.m. Pacific Time).
To access the live call, please dial 888-506-0062 (
About the Company
Acacia (Nasdaq: ACTG) is a value-oriented acquirer and operator of businesses across public and private markets and industries including the industrial, energy and technology sectors where it believes it can leverage its expertise, significant capital base, and deep industry relationships to drive value. Acacia evaluates opportunities based on the attractiveness of the underlying cash flows, without regard to a specific investment horizon. Acacia operates its businesses based on three key principles of people, process and performance and has built a management team with demonstrated expertise in research, transactions and execution, and operations and management. Additional information about Acacia and its subsidiaries is available at www.acaciaresearch.com.
Safe Harbor Statement
This news release contains forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These statements are based upon the Company’s current expectations and speak only as of the date hereof. All statements other than statements of historical fact are forward-looking statements and include statements related to estimates and projections with respect to, among other things, the Company’s anticipated financial condition, operating performance, the value of the Company’s assets, general economic and market conditions and other future circumstances and events. This news release attempts to identify forward-looking statements by using words such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “forecast,” “focus,” “future,” “guidance,” “intend,” “may,” “outlook,” “plan,” “potential,” “predict,” “project,” “seek,” “should,” “target” and “will,” and similar words and expressions; however, the absence of these words does not mean that the statements are not forward-looking. While the Company believes its assumptions concerning future events are reasonable, a number of factors could cause actual results to differ materially and adversely from those expressed or implied in any forward-looking statements, including, but not limited to: the Company’s ability to successfully identify, diligence, complete, and integrate strategic acquisitions of businesses, divisions, and/or assets, the performance of the Company’s businesses, divisions, and/or assets, disruptions or uncertainty caused by an ability to retain or changes to the employees or management teams of the Company’s businesses, changes to the Company’s relationship and arrangements with Starboard Value LP, any inability of the Company’s operating businesses to execute on their business and, risks to the Company’s operating businesses related to acts of war or terrorist acts and the government or military response thereto, price and other fluctuations in the oil and gas market, inflationary pressures, supply chain disruptions or labor shortages, the impact of tariffs and trade policy, non-performance by third parties of contractual or legal obligations, changes in the Company’s credit ratings or the credit ratings of the Company’s businesses, security threats, including cybersecurity threats and disruptions to the Company’s business and operations from breaches of information technology systems, or breaches of information technology systems and, with respect to Benchmark, risks related to its hedging strategy, development plan, facilities and infrastructure of third parties with which the Company transacts business, oil or natural gas production becoming uneconomic, causing write downs or adversely affecting Benchmark’s ability to borrow, Benchmark’s ability to replace reserves and efficiently develop current reserves, risks, operational hazards, unforeseen interruptions and other difficulties involved in the production of oil and natural gas, the impact of any seismic events, environmental liability risk, regulatory changes related to the oil and gas industry, the ability to successfully develop licensing programs and attract new business, changes in demand for current and future intellectual property rights, legislative, regulatory and competitive developments addressing licensing and enforcement of patents and/or intellectual property in general, the decrease in demand for Printronix' products, changes in safety, health, environmental, tax and other regulations, requirements or initiatives, hazards such as weather conditions, pandemics, general economic conditions, and the success of the Company’s investments. For further discussions of risks and uncertainties, you should refer to the Company’s filings with the Securities and Exchange Commission, including the “Risk Factors” section of the Company’s most recent Annual Report on Form 10-K and any subsequent Quarterly Reports on Form 10-Q. In addition, actual results may differ materially as a result of additional risks and uncertainties of which the Company is currently unaware or which the Company does not currently view as material. Except as otherwise required by applicable law, the Company undertakes no obligation to revise or update publicly any forward-looking statements for any reason.
ACACIA RESEARCH CORPORATION UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except share and per share data) |
|||||||
|
June 30, 2026 |
|
December 31, 2025 |
||||
ASSETS |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
307,635 |
|
|
$ |
306,719 |
|
Equity securities |
|
19,119 |
|
|
|
17,551 |
|
Equity securities without readily determinable fair value |
|
5,816 |
|
|
|
5,816 |
|
Equity method investments |
|
— |
|
|
|
30,934 |
|
Loans receivable |
|
7,825 |
|
|
|
15,299 |
|
Accounts receivable, net |
|
86,658 |
|
|
|
26,165 |
|
Inventories |
|
24,639 |
|
|
|
26,559 |
|
Prepaid expenses and other current assets |
|
14,444 |
|
|
|
21,050 |
|
Total current assets |
|
466,136 |
|
|
|
450,093 |
|
|
|
|
|
||||
Property, plant and equipment, net |
|
20,326 |
|
|
|
21,291 |
|
Oil and natural gas properties, net |
|
197,138 |
|
|
|
190,705 |
|
Goodwill |
|
25,572 |
|
|
|
25,790 |
|
Other intangible assets, net |
|
42,936 |
|
|
|
48,148 |
|
Operating lease, right-of-use assets |
|
10,628 |
|
|
|
11,500 |
|
Deferred income tax assets, net |
|
20,307 |
|
|
|
14,836 |
|
Other non-current assets |
|
8,486 |
|
|
|
8,593 |
|
Total assets |
$ |
791,529 |
|
|
$ |
770,956 |
|
|
|
|
|
||||
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Accounts payable |
$ |
16,270 |
|
|
$ |
13,358 |
|
Accrued expenses and other current liabilities |
|
19,221 |
|
|
|
19,661 |
|
Accrued compensation |
|
7,640 |
|
|
|
6,727 |
|
Current asset retirement obligation |
|
1,628 |
|
|
|
1,589 |
|
Royalties and contingent legal fees payable |
|
51,954 |
|
|
|
6,761 |
|
Deferred revenue |
|
1,112 |
|
|
|
945 |
|
Total current liabilities |
|
97,825 |
|
|
|
49,041 |
|
|
|
|
|
||||
Asset retirement obligation |
|
33,464 |
|
|
|
32,586 |
|
Long-term lease liabilities |
|
7,859 |
|
|
|
8,424 |
|
Deferred income tax liabilities, net |
|
2,156 |
|
|
|
2,152 |
|
Benchmark revolving credit facility |
|
59,500 |
|
|
|
59,500 |
|
Deflecto facility |
|
30,874 |
|
|
|
32,566 |
|
Other long-term liabilities |
|
2,830 |
|
|
|
2,655 |
|
Total liabilities |
|
234,508 |
|
|
|
186,924 |
|
|
|
|
|
||||
Commitments and contingencies |
|
|
|
||||
|
|
|
|
||||
|
|
|
|
||||
Stockholders' equity: |
|
|
|
||||
Preferred stock, par value |
|
— |
|
|
|
— |
|
Common stock, par value |
|
97 |
|
|
|
96 |
|
Treasury stock, at cost, 20,542,064 shares as of June 30, 2026 and December 31, 2025 |
|
(118,542 |
) |
|
|
(118,542 |
) |
Accumulated other comprehensive income |
|
580 |
|
|
|
670 |
|
Additional paid-in capital |
|
914,451 |
|
|
|
915,330 |
|
Accumulated deficit |
|
(269,798 |
) |
|
|
(254,104 |
) |
Total Acacia Research Corporation stockholders' equity |
|
526,788 |
|
|
|
543,450 |
|
|
|
|
|
||||
Noncontrolling interests |
|
30,233 |
|
|
|
40,582 |
|
|
|
|
|
||||
Total stockholders' equity |
|
557,021 |
|
|
|
584,032 |
|
|
|
|
|
||||
Total liabilities and stockholders' equity |
$ |
791,529 |
|
|
$ |
770,956 |
|
ACACIA RESEARCH CORPORATION UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (In thousands, except share and per share data) |
|||||||||||||||
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||
|
|
2026 |
|
|
|
2025 |
|
|
|
2026 |
|
|
|
2025 |
|
|
|
|
|
|
|
|
|
||||||||
Revenues: |
|
|
|
|
|
|
|
||||||||
Intellectual property operations |
$ |
60,913 |
|
|
$ |
329 |
|
|
$ |
61,635 |
|
|
$ |
70,234 |
|
Industrial operations |
|
6,002 |
|
|
|
6,590 |
|
|
|
13,184 |
|
|
|
14,266 |
|
Energy operations |
|
20,545 |
|
|
|
15,317 |
|
|
|
39,214 |
|
|
|
33,623 |
|
Manufacturing operations |
|
27,102 |
|
|
|
29,001 |
|
|
|
54,768 |
|
|
|
57,536 |
|
Total revenues |
|
114,562 |
|
|
|
51,237 |
|
|
|
168,801 |
|
|
|
175,659 |
|
|
|
|
|
|
|
|
|
||||||||
Costs and expenses: |
|
|
|
|
|
|
|
||||||||
Cost of revenues - intellectual property operations |
|
46,230 |
|
|
|
6,558 |
|
|
|
51,063 |
|
|
|
34,470 |
|
Cost of revenues - industrial operations |
|
3,042 |
|
|
|
3,406 |
|
|
|
6,321 |
|
|
|
7,470 |
|
Cost of production - energy operations |
|
11,685 |
|
|
|
12,309 |
|
|
|
23,374 |
|
|
|
25,007 |
|
Cost of revenues - manufacturing operations |
|
22,955 |
|
|
|
22,422 |
|
|
|
45,338 |
|
|
|
43,233 |
|
Sales and marketing expenses - industrial and manufacturing operations |
|
2,489 |
|
|
|
3,381 |
|
|
|
5,608 |
|
|
|
6,693 |
|
General and administrative expenses |
|
19,645 |
|
|
|
15,546 |
|
|
|
36,938 |
|
|
|
32,866 |
|
Total costs and expenses |
|
106,046 |
|
|
|
63,622 |
|
|
|
168,642 |
|
|
|
149,739 |
|
Operating income (loss) |
|
8,516 |
|
|
|
(12,385 |
) |
|
|
159 |
|
|
|
25,920 |
|
|
|
|
|
|
|
|
|
||||||||
Other income (expense): |
|
|
|
|
|
|
|
||||||||
Equity securities investments: |
|
|
|
|
|
|
|
||||||||
Change in fair value of equity securities |
|
4,909 |
|
|
|
2,219 |
|
|
|
3,350 |
|
|
|
(2,558 |
) |
Gain on sale of equity securities |
|
4,522 |
|
|
|
1,907 |
|
|
|
3,917 |
|
|
|
3,512 |
|
Net realized and unrealized gain |
|
9,431 |
|
|
|
4,126 |
|
|
|
7,267 |
|
|
|
954 |
|
Impairment of equity method investment |
|
(30,934 |
) |
|
|
— |
|
|
|
(30,934 |
) |
|
|
— |
|
Gain (loss) on derivatives - energy operations |
|
3,341 |
|
|
|
6,635 |
|
|
|
(7,358 |
) |
|
|
1,614 |
|
(Loss) gain on foreign currency exchange |
|
(6 |
) |
|
|
280 |
|
|
|
(65 |
) |
|
|
435 |
|
Interest expense |
|
(1,829 |
) |
|
|
(2,329 |
) |
|
|
(3,715 |
) |
|
|
(4,780 |
) |
Interest income |
|
2,658 |
|
|
|
2,936 |
|
|
|
5,473 |
|
|
|
5,446 |
|
Other expense, net |
|
(937 |
) |
|
|
(153 |
) |
|
|
(752 |
) |
|
|
(870 |
) |
Total other (expense) income |
|
(18,276 |
) |
|
|
11,495 |
|
|
|
(30,084 |
) |
|
|
2,799 |
|
|
|
|
|
|
|
|
|
||||||||
(Loss) income before income taxes |
|
(9,760 |
) |
|
|
(890 |
) |
|
|
(29,925 |
) |
|
|
28,719 |
|
|
|
|
|
|
|
|
|
||||||||
Income tax benefit (expense) |
|
1,318 |
|
|
|
(547 |
) |
|
|
3,882 |
|
|
|
(6,628 |
) |
|
|
|
|
|
|
|
|
||||||||
Net (loss) income including noncontrolling interests in subsidiaries |
|
(8,442 |
) |
|
|
(1,437 |
) |
|
|
(26,043 |
) |
|
|
22,091 |
|
|
|
|
|
|
|
|
|
||||||||
Net loss (income) attributable to noncontrolling interests in subsidiaries |
|
8,489 |
|
|
|
(1,856 |
) |
|
|
10,349 |
|
|
|
(1,097 |
) |
|
|
|
|
|
|
|
|
||||||||
Net income (loss) attributable to Acacia Research Corporation |
$ |
47 |
|
|
$ |
(3,293 |
) |
|
$ |
(15,694 |
) |
|
$ |
20,994 |
|
|
|
|
|
|
|
|
|
||||||||
Income (loss) per share: |
|
|
|
|
|
|
|
||||||||
Net income (loss) attributable to common stockholders - Basic |
$ |
47 |
|
|
$ |
(3,293 |
) |
|
$ |
(15,694 |
) |
|
$ |
20,994 |
|
Weighted average number of shares outstanding - Basic |
|
96,853,895 |
|
|
|
96,244,590 |
|
|
|
96,671,521 |
|
|
|
96,131,624 |
|
Basic net (loss) income per common share |
$ |
— |
|
|
$ |
(0.03 |
) |
|
$ |
(0.16 |
) |
|
$ |
0.22 |
|
Net income (loss) attributable to common stockholders - Diluted |
$ |
47 |
|
|
$ |
(3,293 |
) |
|
$ |
(15,694 |
) |
|
$ |
20,994 |
|
Weighted average number of shares outstanding - Diluted |
|
98,117,805 |
|
|
|
96,244,590 |
|
|
|
96,671,521 |
|
|
|
96,964,308 |
|
Diluted net (loss) income per common share |
$ |
— |
|
|
$ |
(0.03 |
) |
|
$ |
(0.16 |
) |
|
$ |
0.22 |
|
|
|
|
|
|
|
|
|
||||||||
Other comprehensive income (loss): |
|
|
|
|
|
|
|
||||||||
Foreign currency translation |
$ |
(204 |
) |
|
$ |
863 |
|
|
$ |
(90 |
) |
|
$ |
1,525 |
|
Total other comprehensive (loss) income, net |
|
(204 |
) |
|
|
863 |
|
|
|
(90 |
) |
|
|
1,525 |
|
Total comprehensive (loss) income |
|
(8,646 |
) |
|
|
(574 |
) |
|
|
(26,133 |
) |
|
|
23,616 |
|
Comprehensive loss (income) attributable to noncontrolling interests |
|
8,489 |
|
|
|
(1,856 |
) |
|
|
10,349 |
|
|
|
(1,097 |
) |
Comprehensive (loss) income attributable to Acacia Research Corporation |
$ |
(157 |
) |
|
$ |
(2,430 |
) |
|
$ |
(15,784 |
) |
|
$ |
22,519 |
|
ACACIA RESEARCH CORPORATION - SUPPLEMENTAL INFORMATION
NON-GAAP FINANCIAL MEASURES
This earnings release includes Adjusted EBITDA on a consolidated basis and for each of the Company’s segments. Total Company Adjusted EBITDA, Operated Segment Adjusted EBITDA, Adjusted EBITDA and Free Cash Flow (FCF) for each of the Company’s segments are supplemental non-GAAP financial measures used by management and external users of the Company’s consolidated financial statements. This earnings release also includes the Company’s Adjusted Net Income (Loss) and Adjusted Diluted Earnings Per Share (EPS), which are non-GAAP financial measures. GAAP refers to generally accepted accounting principles in
Total Company Adjusted EBITDA is defined as net income / (loss) attributable to Acacia Research Corporation before net income / (loss) attributable to noncontrolling interests, income tax (benefit) / expense, interest expense, interest income, and other expense, net and loss / (gain) on foreign currency exchange, net realized and unrealized (gain) / loss on derivatives, net realized and unrealized loss / (gain) on investments, non-recurring legacy legal expenses, depreciation, depletion and amortization, stock-based compensation, transaction-related costs, severance costs, restructuring expense, impairment of equity method investment, and costs related to the legacy items, and includes realized hedge gain / (loss) and service provider settlement income. Operated Segment Adjusted EBITDA is the aggregate of Energy Operations Adjusted EBITDA, Manufacturing Operations Adjusted EBITDA, Industrial Operations Adjusted EBITDA, and Intellectual Property Operations Adjusted EBITDA. See below for the definition of each of those measures. The Company is providing Total Company Adjusted EBITDA and Operated Segment Adjusted EBITDA, non-GAAP financial measures, because management believes these metrics provide investors with useful supplemental information in comparing the operating results across reporting periods by excluding items that are not considered indicative of core operating performance. These measures are not intended to replace the presentation of financial results in accordance with GAAP and may be different from or otherwise inconsistent with similar non-GAAP financial measures used by other companies. The presentation of these non-GAAP financial measures supplements other metrics the Company uses to internally evaluate its subsidiary businesses and facilitate the comparison of past and present operating performance. These measures should not be considered in isolation or as a substitute for measures calculated and presented in accordance with GAAP.
Energy Operations
Energy Operations Adjusted EBITDA is defined as operating income / (loss) for Acacia’s Energy Operations before depreciation, depletion and amortization expense and transaction-related costs, and including realized hedge gain / (loss). The Company is providing its Energy Operations Adjusted EBITDA, a non-GAAP financial measure, because the metric provides investors with useful supplemental information in comparing the operating results across reporting periods by excluding items that are not considered indicative of core operating performance.
Industrial Operations
Industrial Operations Adjusted EBITDA is defined as operating income / (loss) for Acacia’s Industrial Operations before amortization of acquired intangibles, depreciation and amortization expense, transaction-related costs, and severance costs. The Company is providing its Industrial Operations Adjusted EBITDA, a non-GAAP financial measure, because the metric provides investors with useful supplemental information in comparing the operating results across reporting periods by excluding items that are not considered indicative of core operating performance.
Intellectual Property Operations
Intellectual Property Operations Adjusted EBITDA is defined as operating income / (loss) for Acacia’s Intellectual Property Operations before patent amortization, depreciation expense and stock-based compensation, and including service provider settlement income. The Company is providing Intellectual Property Operations Adjusted EBITDA, a non-GAAP financial measure, because the metric provides investors with useful supplemental information in comparing the operating results across reporting periods by excluding items that are not considered indicative of core operating performance.
Manufacturing Operations
Manufacturing Operations Adjusted EBITDA is defined as operating income / loss for Acacia’s Manufacturing Operations before amortization of acquired intangibles, depreciation and amortization expense, severance costs, restructuring expense, and transaction-related costs. The Company is providing its Manufacturing Operations Adjusted EBITDA, a non-GAAP financial measure, because the metric provides investors with useful supplemental information in comparing the operating results across reporting periods by excluding items that are not considered indicative of core operating performance.
Parent Costs are defined as operating income / (loss) attributable to Parent before depreciation and amortization expense, stock-based compensation, transaction-related costs, and costs related to certain legacy matters attributable to the Parent organization. The Company is providing Parent Costs, a non-GAAP financial measure, because it believes it gives investors a clear picture of normalized Parent-level expenses.
Free Cash Flow is defined as net cash provided by (used in) operating activities, less net purchases of property and equipment, and patent acquisitions (“Capital Expenditures”). The Company is providing Free Cash Flow, a non-GAAP financial measure, because it believes free cash flow gives investors a good sense of how much cash flows are available to be used for de-levering, making acquisitions, repurchasing shares or similar uses of cash.
Adjusted Net Income (Loss)
Adjusted Net Income (Loss) is defined as GAAP Net Income (Loss) attributable to Acacia Research Corporation excluding costs related to certain legacy matters, stock-based compensation, transaction-related costs, amortization of acquired intangibles, severance costs, impairment of equity method investment (net of the portion attributable to noncontrolling interests), restructuring expense, any unrealized (gain) / loss on securities, any unrealized (gain) / loss on hedges, and any (gain) / loss on non-cash derivatives and taking into account the tax effect(s) of those adjustments. The Company is providing Adjusted Net Income (Loss), a non-GAAP financial measure, because the metric provides investors with useful supplemental information in comparing the operating results across reporting periods by excluding items that are not considered indicative of core operating performance.
Adjusted Diluted Earnings Per Share (EPS)
Adjusted Diluted EPS is defined as Adjusted Net Income (Loss) divided by the Company’s weighted average diluted share count as of the relevant period end date. The Company is providing its Adjusted Diluted EPS, a non-GAAP financial measure, because the metric provides investors with useful supplemental information in comparing the operating results across reporting periods by excluding items that are not considered indicative of core operating performance.
The following tables reconcile Operating Income (Loss), the most directly comparable GAAP financial measure, to Adjusted EBITDA for each of the Company’s operating segments and for Parent Costs for the three and six months ended June 30, 2026 and June 30, 2025.
|
Three Months Ended June 30, 2026 |
||||||||||||||||||||
Adjusted EBITDA |
Energy Operations |
|
Industrial Operations |
|
Manufacturing Operations |
|
Intellectual Property Operations |
|
Parent Costs |
|
Consolidated Total |
||||||||||
|
(In thousands, unaudited) |
||||||||||||||||||||
GAAP Operating Income (Loss) |
$ |
7,987 |
|
|
$ |
548 |
|
$ |
(2,053 |
) |
|
$ |
9,394 |
|
$ |
(7,360 |
) |
|
$ |
8,516 |
|
Depreciation, Depletion & Amortization |
|
3,678 |
|
|
|
490 |
|
|
925 |
|
|
|
1,461 |
|
|
12 |
|
|
|
6,566 |
|
Stock-Based Compensation |
|
— |
|
|
|
— |
|
|
— |
|
|
|
— |
|
|
1,216 |
|
|
|
1,216 |
|
Realized Hedge Gain (Loss) |
|
(1,831 |
) |
|
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
(1,831 |
) |
Service Provider Settlement, net |
|
— |
|
|
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
— |
|
Transaction-Related Costs |
|
— |
|
|
|
— |
|
|
— |
|
|
|
— |
|
|
584 |
|
|
|
584 |
|
Legacy Matter Costs |
|
— |
|
|
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
— |
|
Severance Costs |
|
— |
|
|
|
— |
|
|
1,267 |
|
|
|
— |
|
|
— |
|
|
|
1,267 |
|
Restructuring Expense |
|
— |
|
|
|
— |
|
|
934 |
|
|
|
— |
|
|
— |
|
|
|
934 |
|
Adjusted EBITDA |
$ |
9,834 |
|
|
$ |
1,038 |
|
$ |
1,073 |
|
|
$ |
10,855 |
|
$ |
(5,548 |
) |
|
$ |
17,252 |
|
Parent Interest Income |
|
|
|
|
|
|
|
|
$ |
2,552 |
|
|
|
||||||||
|
Three Months Ended June 30, 2025 |
||||||||||||||||||||
Adjusted EBITDA |
Energy Operations |
|
Industrial Operations |
|
Manufacturing Operations |
|
Intellectual Property Operations |
|
Parent Costs |
|
Consolidated Total |
||||||||||
|
(In thousands, unaudited) |
||||||||||||||||||||
GAAP Operating Income (Loss) |
$ |
2,093 |
|
$ |
74 |
|
$ |
(626 |
) |
|
$ |
(7,613 |
) |
|
$ |
(6,313 |
) |
|
$ |
(12,385 |
) |
Depreciation, Depletion & Amortization |
|
3,989 |
|
|
546 |
|
|
1,481 |
|
|
|
5,415 |
|
|
|
14 |
|
|
|
11,445 |
|
Stock-Based Compensation |
|
— |
|
|
— |
|
|
— |
|
|
|
137 |
|
|
|
817 |
|
|
|
954 |
|
Realized Hedge Gain (Loss) |
|
869 |
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
869 |
|
Transaction-Related Costs |
|
— |
|
|
— |
|
|
(333 |
) |
|
|
— |
|
|
|
570 |
|
|
|
237 |
|
Legacy Matter Costs |
|
— |
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
1 |
|
|
|
1 |
|
Severance Costs |
|
— |
|
|
— |
|
|
752 |
|
|
|
— |
|
|
|
— |
|
|
|
752 |
|
Restructuring Expense |
|
— |
|
|
— |
|
|
— |
|
|
|
— |
|
|
$ |
— |
|
|
|
— |
|
Adjusted EBITDA |
$ |
6,951 |
|
$ |
620 |
|
$ |
1,274 |
|
|
$ |
(2,061 |
) |
|
$ |
(4,911 |
) |
|
$ |
1,873 |
|
Parent Interest Income |
|
|
|
|
|
|
|
|
$ |
2,787 |
|
|
|
||||||||
|
Six Months Ended June 30, 2026 |
||||||||||||||||||||
Adjusted EBITDA |
Energy Operations |
|
Industrial Operations |
|
Manufacturing Operations |
|
Intellectual Property Operations |
|
Parent Costs |
|
Consolidated Total |
||||||||||
|
(In thousands, unaudited) |
||||||||||||||||||||
GAAP Operating Income (Loss) |
$ |
13,304 |
|
|
$ |
1,424 |
|
$ |
(2,509 |
) |
|
$ |
2,026 |
|
$ |
(14,086 |
) |
|
$ |
159 |
|
Depreciation, Depletion & Amortization |
|
7,044 |
|
|
|
1,006 |
|
|
1,758 |
|
|
|
5,222 |
|
|
23 |
|
|
|
15,053 |
|
Stock-Based Compensation |
|
— |
|
|
|
— |
|
|
— |
|
|
|
98 |
|
|
2,118 |
|
|
|
2,216 |
|
Realized Hedge Gain (Loss) |
|
(2,804 |
) |
|
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
(2,804 |
) |
Transaction-Related Costs |
|
— |
|
|
|
— |
|
|
172 |
|
|
|
— |
|
|
1,204 |
|
|
|
1,376 |
|
Severance Costs |
|
— |
|
|
|
— |
|
|
1,420 |
|
|
|
— |
|
|
— |
|
|
|
1,420 |
|
Restructuring Expense |
|
— |
|
|
|
— |
|
|
1,396 |
|
|
|
— |
|
|
— |
|
|
|
1,396 |
|
Adjusted EBITDA |
$ |
17,544 |
|
|
$ |
2,430 |
|
$ |
2,237 |
|
|
$ |
7,346 |
|
$ |
(10,741 |
) |
|
$ |
18,816 |
|
Parent Interest Income |
|
|
|
|
|
|
|
|
$ |
5,265 |
|
|
|
||||||||
|
Six Months Ended June 30, 2025 |
||||||||||||||||||
Adjusted EBITDA |
Energy Operations |
|
Industrial Operations |
|
Manufacturing Operations |
|
Intellectual Property Operations |
|
Parent Costs |
|
Consolidated Total |
||||||||
|
(In thousands, unaudited) |
||||||||||||||||||
GAAP Operating Income (Loss) |
$ |
6,094 |
|
$ |
376 |
|
$ |
(355 |
) |
|
$ |
30,895 |
|
$ |
(11,090 |
) |
|
$ |
25,920 |
Depreciation, Depletion & Amortization |
|
7,967 |
|
|
1,098 |
|
|
3,026 |
|
|
|
9,935 |
|
|
29 |
|
|
|
22,055 |
Stock-Based Compensation |
|
— |
|
|
— |
|
|
— |
|
|
|
374 |
|
|
1,502 |
|
|
|
1,876 |
Realized Hedge Gain (Loss) |
|
826 |
|
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
826 |
Transaction-Related Costs |
|
— |
|
|
— |
|
|
114 |
|
|
|
— |
|
|
677 |
|
|
|
791 |
Legacy Matter Costs |
|
— |
|
|
— |
|
|
— |
|
|
|
— |
|
|
9 |
|
|
|
9 |
Severance Costs |
|
— |
|
|
167 |
|
|
928 |
|
|
|
— |
|
|
— |
|
|
|
1,095 |
Restructuring Expense |
|
— |
|
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
— |
Adjusted EBITDA |
$ |
14,887 |
|
$ |
1,641 |
|
$ |
3,713 |
|
|
$ |
41,204 |
|
$ |
(8,873 |
) |
|
$ |
52,572 |
Parent Interest Income |
|
|
|
|
|
|
|
|
$ |
5,209 |
|
|
|
||||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20260805535898/en/
Investor Contact:
Gagnier Communications
ir@acaciares.com
Source: Acacia Research Corporation