$ACTG

ACACIA RESEARCH CORP

CIK:0000934549|SEC Filings

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Revenues:
Total revenues	$ 114,562	$ 51,237	$ 168,801	$ 175,659
Costs and expenses:
Cost of revenues - intellectual property operations	83,912	44,695	126,096	110,180
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
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)	0	(30,934)	0
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 income (loss) per common share (in usd per share)	$ 0	$ (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 income (loss) per common share (in usd per share)	$ 0	$ (0.03)	$ (0.16)	$ 0.22
Foreign currency translation	$ (204)	$ 863	$ (90)	$ 1,525
Other comprehensive loss	(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
Intellectual property operations
Revenues:
Total revenues	60,913	329	61,635	70,234
Costs and expenses:
Cost of revenues - intellectual property operations	46,230	6,558	51,063	34,470
Industrial operations
Revenues:
Total revenues	6,002	6,590	13,184	14,266
Costs and expenses:
Cost of revenues - intellectual property operations	3,042	3,406	6,321	7,470
Energy operations
Revenues:
Total revenues	20,545	15,317	39,214	33,623
Costs and expenses:
Cost of revenues - intellectual property operations	11,685	12,309	23,374	25,007
Manufacturing Operations
Revenues:
Total revenues	27,102	29,001	54,768	57,536
Costs and expenses:
Cost of revenues - intellectual property operations	$ 22,955	$ 22,422	$ 45,338	$ 43,233

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Cash flows from operating activities:
Net (loss) income including noncontrolling interests in subsidiaries	$ (26,043)	$ 22,091
Adjustments to reconcile net (loss) income including noncontrolling interests in subsidiaries to net cash provided by operating activities:
Impairment of equity method investment	30,934	0
Depreciation, depletion and amortization	15,053	22,055
Accretion of asset retirement obligation	912	867
Gain on disposal of assets	(487)	0
Compensation expense for share-based awards	2,216	1,876
Loss (gain) on foreign currency exchange	65	(435)
Change in fair value of equity securities	(3,350)	2,558
Gain on sale of equity securities	(3,917)	(3,512)
Unrealized loss (gain) on derivatives	4,554	(789)
Deferred income taxes	(5,467)	3,646
Changes in operating assets and liabilities:
Accounts receivable	(60,501)	3,501
Inventories	1,921	1,760
Prepaid expenses and other assets	2,074	(4,114)
Accounts payable and accrued expenses	4,209	2,646
Royalties and contingent legal fees payable	45,194	231
Deferred revenue	(60)	164
Net cash provided by operating activities	7,307	52,545
Cash flows from investing activities:
Acquisition, net of cash acquired and working capital adjustments	0	1,230
Patent acquisition	(1,750)	0
Purchases of equity securities	(2,522)	(12,543)
Sales of equity securities	8,221	15,165
Proceeds from loans receivable	7,460	0
Purchases of property and equipment	(1,683)	(940)
Net additions to oil and gas properties	(13,305)	(3,363)
Proceeds from disposition of property and equipment	1,581	0
Net cash used in investing activities	(1,998)	(451)
Cash flows from financing activities:
Paydown of Benchmark revolving credit facility	0	(8,500)
Paydown of Deflecto Facility	1,763	1,200
Taxes paid related to net share settlement of share-based awards	(3,096)	(670)
Proceeds from exercise of stock options	0	30
Net cash used in financing activities	(4,859)	(10,340)
Effect of exchange rates on cash and cash equivalents	466	1,087
Increase in cash and cash equivalents	916	42,841
Cash and cash equivalents, beginning of period	306,719	273,880
Cash and cash equivalents, end of period	307,635	316,721
Supplemental schedule of cash flow information:
Patent acquisition of prepaid option	$ 0	$ 15,000

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2026	Dec. 31, 2025
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	0	30,934
Loans receivable	7,825	15,300
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
Net Book Value	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
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 (Note 14)
Stockholders' equity:
Preferred stock, par value $0.001 per share; 10,000,000 shares authorized; no shares issued or outstanding	0	0
Common stock, par value $0.001 per share; 300,000,000 shares authorized; 97,586,805 and 96,475,469 shares issued and outstanding as of June 30, 2026 and December 31, 2025, respectively	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