Acacia Research Corporation Reports Third Quarter 2025 Financial Results

Total Revenue of $59.4 million, Up 155% Year Over Year

GAAP Net Loss of ($2.7) million and GAAP Diluted EPS of ($0.03)

Adjusted Net Loss¹ of ($1.1) million and Adjusted Diluted EPS¹ of $(0.01)

Total Company Adjusted EBITDA¹ of $8.0 million and Operated Segment Adjusted EBITDA¹ of $12.6 million

Total Cash, Cash Equivalents, Equity Securities and Loans Receivable of $332.4 million, or $3.45 per share

NEW YORK, November 05, 2025--(BUSINESS WIRE)--Acacia Research Corporation (Nasdaq: ACTG) ("Acacia" or the "Company"), which acquires and operates businesses across the industrial, energy and technology sectors, today reported financial results for the three and nine months ended September 30, 2025. The Company also posted its third quarter 2025 earnings presentation on its website at www.acaciaresearch.com under Quarterly Results.

Martin ("MJ") D. McNulty, Jr., Chief Executive Officer, stated, "Acacia delivered strong financial and operating results in the third quarter as we recorded total revenue of $59.4 million, Total Company Adjusted EBITDA of $8.0 million and Operated Segment Adjusted EBITDA of $12.6 million, with all metrics up significantly year-over-year. Against the backdrop of persistent macroeconomic uncertainty, our teams continued to execute against our disciplined and operationally focused strategy. We implemented several initiatives across our operating businesses, including targeted pricing strategies and cost savings measures to mitigate ongoing tariff pressures and streamline operations, all of which contributed to our strong quarterly performance.

Looking ahead, our focus remains on leveraging our significant capital base and experienced management team to drive long-term growth across our operating businesses. As of the end of the third quarter, cash, cash equivalents, equity securities and loans receivable was approximately $332.4 million, or $3.45 per share. Our strong cash position and balance sheet provides us with the flexibility to pursue accretive organic and inorganic growth opportunities across our businesses to create differentiated value for our shareholders."

Third Quarter 2025 Highlights

• Total revenue of $59.4 million for the quarter, up 155% compared to $23.3 million for the prior-year quarter, primarily driven by $30.8 million in revenue from our third full quarter of Manufacturing Operations.

• GAAP Net Loss of ($2.7) million, or ($0.03) GAAP Diluted EPS, for the three months ended September 30, 2025.

• Adjusted Net Loss of ($1.1) million, or ($0.01) Adjusted Diluted EPS, for the three months ended September 30, 2025.

• Operated Segment Adjusted EBITDA of $12.6 million for the three months ended September 30, 2025.

• Total Company Adjusted EBITDA of $8.0 million for the three months ended September 30, 2025.

• At quarter end, cash, cash equivalents, equity securities and loans receivable was approximately $332.4 million, or $3.45 per share.

Revenue

The following table provides a breakdown of the Company’s total revenue for the three and nine months ended September 30, 2025 and September 30, 2024. 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).

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 nine months ended September 30, 2025 and September 30, 2024.

The following table provides the Adjusted EBITDA for each of the Company’s operating segments for the three and nine months ended September 30, 2025 and September 30, 2024.

Adjusted Net Income (Loss) and Adjusted Diluted EPS

The following table provides a reconciliation of Net Income (Loss), the most directly comparable GAAP measure, to Adjusted Net Income (Loss) and Adjusted Diluted EPS for the three and nine months ended September 30, 2025 and September 30, 2024.

Free Cash Flow⁴

The following table provides a reconciliation of Free Cash Flow ("FCF") for the three and nine months ended September 30, 2025.

Balance Sheet and Capital Structure

• Cash, cash equivalents, equity securities measured at fair value and loans receivable totaled $332.4 million at September 30, 2025 compared to $297.0 million at December 31, 2024, an increase of $35.4 million. This increase in cash during the nine months ended September 30, 2025 was primarily due to cash generated from operating activities across all Operated Segments of $70.3 million. Cash was reduced by $2.2 million from net purchases of equity securities, Parent Costs of $8.2 million and further by $5.4 million and $0.7 million of capital expenditures at Benchmark and Deflecto, respectively, as well as $4.2 million in spend at Benchmark for new oil and gas leasehold interests. Additionally, cash used in financing activities reduced cash by $20.7 million, primarily from $12.0 million of debt repayment on the Benchmark revolving credit facility and $12.1 million of debt repayment on the Deflecto facility, offset by a $4.0 million draw on the Benchmark revolving credit facility for the purchase of additional leasehold interests.

• Equity securities without readily determinable fair value totaled $5.8 million at September 30, 2025, unchanged from December 31, 2024.

• Investment securities representing equity method investments totaled $19.9 million at September 30, 2025 (net of noncontrolling interests), unchanged from December 31, 2024. Acacia owns 64% of MalinJ1, which results in a 26% indirect ownership stake in Viamet Pharmaceuticals, Inc. for Acacia.

• Loans receivable totaled $3.4 million at September 30, 2025, which represents the commercial loans collateralized by Bitcoin that Acacia has purchased through its partnership with Unchained Capital.

• The Parent company’s total indebtedness was zero at September 30, 2025. On a consolidated basis, Acacia’s total indebtedness was $94.0 million, consisting of $58.5 million in non-recourse debt at Benchmark and $35.5 million in non-recourse debt at Deflecto as of September 30, 2025.

Book Value as of September 30, 2025

At September 30, 2025, Acacia’s book value (which includes noncontrolling interests) was $576.8 million and there were 96.5 million shares of common stock outstanding, for a book value per share of $5.98. This value is impacted by one-time expenses and other adjustments detailed in the above reconciliation from GAAP Net Income (Loss) to Adjusted Net Income (Loss).

Investor Conference Call

The Company will host a conference call today, November 5, 2025 at 8:00 a.m. Eastern Time (5:00 a.m. Pacific Time). To access the live call, please dial 877-545-0523 (U.S. and Canada) or 973-528-0016 (international) and if requested, reference the access code "796337." The conference call will also be simultaneously webcast at https://www.webcaster5.com/Webcast/Page/2371/53117 and on the investor relations section of the Company’s website at http://www.acaciaresearch.com under Events. Following the conclusion of the live call, a replay of the webcast will be available on the Company's website for at least 30 days.

About the Company

Acacia (Nasdaq: ACTG) is a publicly traded company that is focused on acquiring and operating attractive businesses across 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, with respect to Benchmark, hedging strategy, risks related to 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, 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, a health pandemic (similar to COVID-19), acts of war or terrorist acts and the government or military response thereto, 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 - SUPPLEMENTAL INFORMATION
NON-GAAP FINANCIAL MEASURE

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 and 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 the United States. A non-GAAP financial measure is a numerical measure of historical or future performance, financial position or cash flow that includes or excludes amounts that are excluded or included, respectively, in the most directly comparable measure calculated and presented in accordance with GAAP in the Company’s financial statements.

Total Company Adjusted EBITDA is defined as net income / (loss) 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, realized hedge gain / (loss), transaction-related costs, and costs related to the legacy items. 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 and depreciation and amortization expense. 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. 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 depreciation and amortization expense, severance, 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 Acacia’s GAAP Net Income (Loss) excluding costs related to certain legacy matters, stock-based compensation, transaction-related costs, amortization of acquired intangibles, 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 relative 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 nine months ended September 30, 2025 and September 30, 2024.

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Contacts

Investor Contact:

Gagnier Communications
ir@acaciares.com