Acacia Research Corporation (ACTG) Q3 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

In context, in spite of the macroeconomic and geopolitical headwinds, the businesses we own are still delivering attractive return characteristics. As you've heard me say before, Acacia is focused on identifying and acquiring underloved, undermanaged, and undervalued businesses where we believe we can leverage our significant capital base and experienced leadership teams to streamline operations, materially improve performance, and drive long-term growth. As a result of our actions on a year-to-date annualized basis, Benchmark is generating a roughly high teens' free cash flow yield. Deflecto is generating a high single-digit free cash flow yield. Prior to the impact of our in-flight operational improvement initiatives, And Printronics is generating a high teen's free cash flow yield. With strong and improving cash yields at each of our operating companies and disciplined cost control at the parent, we believe we're creating significant equity value, which is not yet reflected in our share price. As we approach the end of the year, we remain focused on driving revenue, EBITDA, and free cash flow growth at each of our operating businesses, while at the same time growing our extensive pipeline of actionable M&A opportunities. With approximately $332 million in total cash, equity, securities, and loans receivable at September 30th, our strong balance sheet positions us well to pursue accretive, organic, and inorganic growth opportunities across our businesses to create differentiated value for our shareholders. I'd now like to discuss our operating segments. Within our energy operations, we continue to view benchmark as an attractive platform to allocate capital within the oil and gas industry. As you may recall, we acquired the business in two steps. First, through our...