Acacia Research Corporation · NASDAQ:ACTG
Acacia Research — Investor Presentation (June 2025)
48 slides from Acacia Research's investor presentation, Jun 11, 2025
Slide 1: Corporate Presentation
Corporate Presentation June 10, 2025 | NASDAQ: ACTG
Slide 2: Disclosures: Forward-Looking Statements
Disclosures 2 Forward-Looking Statements This presentation 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 current expectations of Acacia Research Corporation ("Acacia"
Slide 3: Why Invest In Acacia
3 Why Invest In Acacia Value-oriented capital allocator with a focus on acquiring and operating businesses that provide essential products and services with a view towards strong free cash flow generation Strategic relationship with Starboard Value expands Acacia’s sourcing capability, operating net
Slide 4: Company Overview
m& QCQCIOA Company Overview
Slide 5: ACTG At A Glance
5 Acacia (NASDAQ: ACTG) is a value-oriented acquirer of businesses across public and private markets. We acquire businesses where we can tap into our deep industry relationships, significant capital base, and transaction expertise to materially improve performance, creating long- term value for shar
Slide 6: Leadership & Deal Team
6 Leadership & Deal Team Cycle-Tested Acquisition and Structuring Experience Domain Expertise Across the Industrials, Energy, and Technology Sectors Long-Term Relationships, Partnership-Oriented Culture MJ McNulty Chief Executive Officer ~25 Years Kirsten Hoover Chief Financial Officer ~20 Years Dan
Slide 7: Creating Shareholder Value By Building Excellent Businesses
7 Creating Shareholder Value By Building Excellent Businesses We acquire undervalued businesses with significant optionality and partner with experienced operators to maximize value Identify Target Sector: Industrials Energy Technology Opportunistic Step 1 Source Aggressively: Initial approach of a
Slide 8: The Evolution of Acacia
8 The Evolution of Acacia Where We Started ▪ Legacy business comprised of balance sheet cash, intellectual property operations, and non-core minority investments ▪ New management optimized and monetized legacy assets to streamline the portfolio and generate shareholder value Where We Are Now ▪ Targe
Slide 9: Growing Portfolio of Assets
9 Growing Portfolio of Assets Acacia focuses on strategic opportunities within the industrials, energy, and technology sectors Non-Core Opportunistic Life Sciences Life Sciences Equity / Credit Positions Acacia is focused on acquiring and building businesses with stable cash flow generation and scal
Slide 10: Acacia Valuation Considerations
10 Acacia Valuation Considerations Note: All values shown in millions, except for per share data. Per share values based on common shares outstanding of 96,171,702 on March 31, 2025. (1) See Appendix for more information regarding Parent Costs, which is a non-GAAP financial measure. Sum-of-the-Parts
Slide 11: Key Takeaways
11 Key Takeaways Value-Oriented Value-oriented acquirer targeting strong free cash flow generation and high risk-adjusted returns Strong Cash Position Significant capital resources and flexibility to take advantage of unique situations with multiple “ways-to-win” Targeted Strategy Focused on growing
Slide 12: Key Performance Metrics
12 Key Performance Metrics | Consolidated Note: All values shown in millions, unless noted otherwise. Quarters based on calendar year. (1) See Appendix for more information regarding Total Company Adjusted EBITDA, which is a non-GAAP financial measure. Book Value Per Share Total Company Adjusted EBI
Slide 13: Operated Segments | Quarterly Highlights
13 Operated Segments | Quarterly Highlights Note: All values shown in millions, unless noted otherwise. Quarters based on calendar year. Given episodic nature of IP settlements, Total Revenue and Operated Segment Adjusted EBITDA shown including and excluding IP results for comparison purposes. (1) O
Slide 14: Operated Segments | LTM Highlights
14 Operated Segments | LTM Highlights Note: All values shown in millions, unless noted otherwise. Quarters based on calendar year. Represents results for the last twelve months as of each quarter end. Given episodic nature of IP settlements, Total Revenue and Operated Segment Adjusted EBITDA shown i
Slide 15: Focused on Driving Profitable Growth
15 Focused on Driving Profitable Growth Note: All values shown in millions, unless noted otherwise. Quarters based on calendar year. Given episodic nature of IP settlements, Operated Segment Adjusted EBITDA shown excluding IP results. (1) See Appendix for more information regarding Parent Costs, whi
Slide 16: Operated Segments Business & Financial Overview
Operated Segments Business & Financial Overview
Slide 17: Energy Operations
17 Energy Operations Note: All values shown in millions, unless noted otherwise. Quarters based on calendar year. (1) See Appendix for more information regarding Energy Operations Adjusted EBITDA, which is a non-GAAP financial measure. (2) Represents results for the period from 11/13/2023 – 12/31/20
Slide 18: Energy Operations (Cont'd)
18 ▪ Benchmark’s acquisition of the Revolution assets provides the geographic density and financial scale to operate efficiently ▪ The acquisition included significant undeveloped acreage in the valuable Cherokee and Cleveland formations which can be monetized through a variety of “capital light” so
Slide 19: Manufacturing Operations
19 Manufacturing Operations ▪ Acquired Deflecto in October 2024 for $103M ▪ Deflecto is a specialty manufacturer and supplier of essential, regulatory mandated products to a blue-chip customer base via long-term relationships with more than 1,500 leading retail, wholesale and OEM customers and distr
Slide 20: Industrial Operations
20 Industrial Operations ▪ Acquired Printronix in October 2021 for $37M ▪ Printronix is a leading manufacturer and distributor of industrial impact printers, also known as line matrix printers, and related consumables and services ▪ Printronix’s line matrix printers are used for labeling and invento
Slide 21: Intellectual Property Operations
21 Intellectual Property Operations ▪ Acacia’s intellectual property business is engaged in the licensing and enforcement of patent portfolios and patented technologies, through obtaining the rights in the patent portfolio or purchasing the patent portfolio outright ▪ Operates as a wholly owned subs
Slide 22: Operated Segments | Revenue
22 Operated Segments | Revenue Note: All values shown in millions, unless noted otherwise. Quarters based on calendar year. (1) Represents results for the period from 11/13/2023 – 12/31/2023 following the acquisition of Benchmark Energy. (2) Includes partial impact from Revolution acquisition on Apr
Slide 23: Operated Segments | Adjusted EBITDA
23 Operated Segments | Adjusted EBITDA Note: All values shown in millions, unless noted otherwise. Quarters based on calendar year. See Appendix for more information regarding Adjusted EBITDA, which is a non-GAAP financial measure. (1) Represents results for the period from 11/13/2023 – 12/31/2023 f
Slide 24: Leadership Deal Team & Board of Directors
Leadership Deal Team & Board of Directors
Slide 25: Leadership & Deal Team
25 Leadership & Deal Team Cycle-Tested Acquisition and Structuring Experience Domain Expertise Across the Industrials, Energy, and Technology Sectors Long-Term Relationships, Partnership-Oriented Culture MJ McNulty Chief Executive Officer ~25 Years Kirsten Hoover Chief Financial Officer ~20 Years Da
Slide 26: Board of Directors
26 Board of Directors Committed to Sustained Growth, Innovation, and Best-in-Class Governance Focused on Delivering Consistent Value to Shareholders Distinguished Board With Diverse Expertise and Backgrounds Michelle Felman Independent Director Since 2024 ~30 Years of Experience Isaac T. Kohlberg In
Slide 27: Strategic Relationship with Starboard Value
Strategic Relationship with Starboard Value 27 Acacia’s strategic relationship with Starboard Value provides the Company with: ▪ A trusted, transparent, and long-term equity holder aligned with management's views on driving future value creation, with... ▪ Expanded access to industry expertise, and…
Slide 28: Financial Reconciliations and Supplemental Financial Information
Financial Reconciliations and Supplemental Financial Information
Slide 29: Use of Non-GAAP Financial Information
Use of Non-GAAP Financial Information 29 GAAP or U.S. GAAP refer to generally accepted accounting principles in the United States. From time to time the Company may include certain “non-GAAP” financial measures in its investor presentations, earnings releases, earnings conference calls or other disc
Slide 30: Total Revenue By Segment
30 Total Revenue By Segment Note: All values shown in millions, unless noted otherwise. Three Three Three Three Months Ended Months Ended Months Ended Months Ended LTM June 30 September 30 December 31 March 31 March 31 2024 2024 2024 2025 2025 Energy Operations $14.2 $15.8 $17.3 $18.3 $65.6 Industri
Slide 31: Adjusted Net Income / (Loss) and Adjusted EPS
31 Adjusted Net Income / (Loss) and Adjusted EPS Note: All values shown in millions, unless noted otherwise. (1) Reflects expenses related to legacy legal matters, which have now been settled. (2) Other Legacy Matter Costs for the three months ended March 31, 2025, includes $250K related to a one-ti
Slide 32: Adjusted EBITDA Reconciliation | LTM Q1 2025
32 Adjusted EBITDA Reconciliation | LTM Q1 2025 Note: All values shown in millions, unless noted otherwise. (1) Reflects expenses related to legacy legal matters, which matters have now been settled. (2) Transaction-Related Costs represent deal fees. (3) Consists of employee severance obligations an
Slide 33: Adjusted EBITDA Reconciliation | Full-Year 2024
33 Adjusted EBITDA Reconciliation | Full-Year 2024 Three Three Three Three Months Ended Months Ended Months Ended Months Ended LTM March 31, June 30, September 30, December 31, December 31, 2024 2024 2024 2024 2024 GAAP Net (Income) / Loss ($0.2) ($8.4) ($14.0) ($13.4) ($36.1) Net (Income) / Loss At
Slide 34: Adjusted EBITDA By Segment | LTM Q1 2025
34 Adjusted EBITDA By Segment | LTM Q1 2025 Note: All values shown in millions, unless noted otherwise. Three Three Three Three Months Ended Months Ended Months Ended Months Ended LTM June 30, September 30, December 31, March 31, March 31, 2024 2024 2024 2025 2025 Energy Operations $7.0 $8.4 $8.4 $7
Slide 35: Adjusted EBITDA By Segment | Full-Year 2024
35 Adjusted EBITDA By Segment | Full-Year 2024 Note: All values shown in millions, unless noted otherwise. Three Three Three Three Months Ended Months Ended Months Ended Months Ended LTM March 31, June 30, September 30, December 31, December 31, 2024 2024 2024 2024 2024 Energy Operations $1.4 $7.0 $
Slide 36: Adjusted EBITDA By Segment | Full-Year 2023
36 Adjusted EBITDA By Segment | Full-Year 2023 Note: All values shown in millions, unless noted otherwise. Three Three Three Three Months Ended Months Ended Months Ended Months Ended LTM March 31, June 30, September 30, December 31, December 31, 2023 2023 2023 2023 2023 Energy Operations -- -- -- $0
Slide 37: Adjusted EBITDA | Q1 2025
37 Adjusted EBITDA | Q1 2025 Note: All values shown in millions, unless noted otherwise. (1) Transaction-Related Costs represent deal fees. (2) Reflects expenses related to legacy legal matters, which matters have now been settled. (3) Consists of employee severance obligations and related costs. Th
Slide 38: Adjusted EBITDA | Q4 2024
38 Adjusted EBITDA | Q4 2024 Three Months Ended December 31, 2024 Intellectual Energy Industrial Manufacturing Property Parent Consolidated Operations Operations Operations Operations Costs Total Consolidated Operations GAAP Operating Income / (Loss) $3.0 $0.9 ($0.0) ($7.7) ($12.0) ($15.8) Depreciat
Slide 39: Adjusted EBITDA | Q3 2024
39 Adjusted EBITDA | Q3 2024 Three Months Ended September 30, 2024 Intellectual Energy Industrial Manufacturing Property Parent Consolidated Operations Operations Operations Operations Costs Total Consolidated Operations GAAP Operating Income / (Loss) $3.1 ($0.1) -- ($7.1) ($6.1) ($10.3) Depreciatio
Slide 40: Adjusted EBITDA | Q2 2024
40 Adjusted EBITDA | Q2 2024 Three Months Ended June 30, 2024 Intellectual Energy Industrial Manufacturing Property Parent Consolidated Operations Operations Operations Operations Costs Total Consolidated Operations GAAP Operating Income / (Loss) $3.2 ($0.2) -- ($2.3) ($5.5) ($4.8) Depreciation, Dep
Slide 41: Adjusted EBITDA | Q1 2024
41 Adjusted EBITDA | Q1 2024 Three Months Ended March 31, 2024 Intellectual Energy Industrial Manufacturing Property Parent Consolidated Operations Operations Operations Operations Costs Total Consolidated Operations GAAP Operating Income / (Loss) $0.2 $1.2 -- $3.3 ($6.7) ($2.1) Depreciation, Deplet
Slide 42: Adjusted EBITDA | Q4 2023
42 Adjusted EBITDA | Q4 2023 Three Months Ended December 31, 2023 Intellectual Energy Industrial Manufacturing Property Parent Consolidated Operations Operations Operations Operations Costs Total Consolidated Operations GAAP Operating Income / (Loss) ($0.1) $0.5 -- $61.8 ($6.3) $55.9 Depreciation, D
Slide 43: Adjusted EBITDA | Q3 2023
43 Adjusted EBITDA | Q3 2023 Three Months Ended September 30, 2023 Intellectual Energy Industrial Manufacturing Property Parent Consolidated Operations Operations Operations Operations Costs Total Consolidated Operations GAAP Operating Income / (Loss) -- $0.2 -- ($5.5) ($7.8) ($13.2) Depreciation, D
Slide 44: Adjusted EBITDA | Q2 2023
44 Adjusted EBITDA | Q2 2023 Three Months Ended June 30, 2023 Intellectual Energy Industrial Manufacturing Property Parent Consolidated Operations Operations Operations Operations Costs Total Consolidated Operations GAAP Operating Income / (Loss) -- ($0.5) -- ($6.2) ($5.8) ($12.5) Depreciation, Depl
Slide 45: Adjusted EBITDA | Q1 2023
45 Adjusted EBITDA | Q1 2023 Three Months Ended March 31, 2023 Intellectual Energy Industrial Manufacturing Property Parent Consolidated Operations Operations Operations Operations Costs Total Consolidated Operations GAAP Operating Income / (Loss) -- $0.6 -- ($2.5) ($7.4) ($9.3) Depreciation, Deplet
Slide 46: Free Cash Flow By Segment | Q1 2025
46 Free Cash Flow By Segment | Q1 2025 Note: All values shown in millions, unless noted otherwise. Three Months Ended March 31, 2025 Intellectual Energy Industrial Manufacturing Property Parent Consolidated Operations Operations Operations Operations Costs Total Consolidated Operations Net Cash From
Slide 47: Cash & Public Securities
47 Cash & Public Securities As of As of As of As of As of March 31, June 30, September 30, December 31, March 31, 2025 2024 2024 2024 2024 2025 Cash & Public Securities Cash and Cash Equivalents $272.0 $438.8 $387.0 $360.1 $273.9 $272.0 Equity Securities 18.1 22.9 18.2 14.1 23.1 18.1 Cash & Public S
Slide 48: Acacia Research Corporation Contact Us
48 Acacia Research Corporation 767 Third Avenue, Floor 6 New York , NY 10017 (332) 236-8484 IR@acaciares.com www.acaciaresearch.com Transfer Agent: ComputerShare P.O. Box 43006 Providence RI 02940-3078 150 Royall St., Suite 101 Canton, MA 02021 Shareholder Services: 800-962-4284 or international +1