ACTG · Acacia Research Corporation

Acacia Research Corporation announced first quarter 2026 results showing total revenue of $54.2 million, a decline from $124.4 million in the year-ago quarter primarily due to significantly lower paid-up license revenue from the Intellectual Property Operations segment, which dropped to $0.7 million from $69.9 million. Energy Operations (Benchmark) achieved $18.7 million in revenue, its strongest quarter since Acacia's acquisition in April 2024, supported by favorable oil prices and new well development including the Cherokee well. Industrial Operations (Printronix) reported $7.2 million and Manufacturing Operations (Deflecto) $27.7 million. Despite the revenue drop, operated segments generated $6.8 million in Adjusted EBITDA, with Energy at $7.7 million, though Total Company Adjusted EBITDA was $1.6 million after parent costs. GAAP results reflected a $15.7 million net loss, impacted by $10.7 million in net realized and unrealized losses on derivatives and $2.2 million on investments. CEO MJ McNulty highlighted operational execution, including pricing strategies, cost savings, and tariff countermeasures. Deflecto's facility consolidation is expected to yield annualized cost synergies, enhancing future cash flow. Balance sheet remains strong with $329.9 million in liquidity ($3.41 per share) and no parent debt, positioning Acacia for accretive growth opportunities amid an active acquisition pipeline. Book value stood at $5.87 per share.