Acacia Research Corporation Reports Record 2025 Financial Results; Announces Strategic Milestones and Strong Outlook

New York, NY, March 11, 2026 – Acacia Research Corporation (Nasdaq: ACTG), a value-driven acquirer and operator across the industrial, energy, and technology sectors, has reported its financial results for the fourth quarter and full year ended December 31, 2025. The results point to a remarkable year for the company, underpinned by record growth, operational improvements, and strategic execution.

Key Financial Highlights

• Record Full-Year Revenue: \$285.2 million, a 133% increase from \$122.3 million in 2024, setting an all-time high for the company.
• Fourth Quarter Revenue: \$50.1 million, up 3% year-over-year, driven primarily by continued strength in Manufacturing Operations.
• GAAP Net Income: \$21.7 million for 2025, compared to a loss of \$36.1 million in 2024. Fourth quarter net income was \$3.4 million, reversing a \$13.4 million loss in the prior year period.
• Adjusted Net Income: \$29.2 million for 2025, or \$0.30 per diluted share. Q4 adjusted net income was \$3.1 million, or \$0.03 per diluted share.
• Total Company Adjusted EBITDA: \$77.9 million for 2025, up substantially from \$17.0 million in 2024. Q4 Adjusted EBITDA was \$17.4 million.
• Operated Segment Adjusted EBITDA: \$96.4 million for the year, with Q4 at \$22.4 million, reflecting strong operating performance across multiple business units.
• Cash Position: Cash, cash equivalents, equity securities at fair value, and loans receivable totaled \$339.6 million (\$3.52 per share) at year-end, up from \$297.0 million a year earlier.
• Book Value: \$6.05 per share as of December 31, 2025, with total stockholders’ equity of \$584.0 million.
• Free Cash Flow: \$64.7 million for 2025, driven by robust cash generation across segments.

Operational and Strategic Updates

• Balanced Portfolio Growth: Revenue growth was broad-based. Manufacturing Operations delivered \$114.8 million in revenue (almost 40% of total revenue), Energy Operations contributed \$63.8 million, and Intellectual Property Operations saw a \$58.8 million increase in revenue to \$78.4 million year-over-year.
• Cost and Efficiency Initiatives: Management implemented targeted pricing strategies, cost-saving measures, facility consolidation:
  • Continued tariff countermeasures to offset macroeconomic uncertainty.
• Successful Energy Milestone: Benchmark Energy, Acacia’s Energy Operations subsidiary, successfully drilled its first Cherokee well, which is expected to begin producing in Q1 2026. This is a key operational milestone and supports future production growth.
• Strong Balance Sheet and Flexibility: The robust cash position provides flexibility for both organic and inorganic (acquisitive) growth, positioning Acacia to pursue new opportunities without the need for dilutive financing.
• Debt Profile: Parent-level debt was zero at year-end. Total consolidated indebtedness was \$92.1 million, comprised solely of non-recourse debt at Benchmark and Deflecto operating subsidiaries. This structure significantly reduces financial risk at the parent level.
• Strategic Investments: Equity method investments remain steady at \$19.9 million (net), and loans receivable of \$15.3 million are fully collateralized by Bitcoin through Acacia’s partnership with Unchained Capital. Acacia also maintains a 26% effective interest in Viamet Pharmaceuticals, Inc. via MalinJ1.
• No Share Dilution or Preferred Stock Issuance: Common shares outstanding were stable at 96.5 million, with no preferred stock issued or outstanding and no share buybacks or new equity raised in 2025.

Segment Performance Detail

Factors Important to Shareholders and Potential Price Sensitivity

• Record Profitability and Turnaround: 2025 saw a dramatic turnaround from a large net loss to meaningful profitability, both on a GAAP and adjusted basis. This reversal of fortunes is likely to support positive sentiment and potentially drive share price appreciation.
• Cash Generation & No Parent Debt: The significant increase in cash and absence of parent-level debt provide the company with strong financial flexibility, lowering risk and opening the door for shareholder returns or accretive acquisitions.
• Operational Execution: The successful drilling of the Cherokee well by Benchmark Energy provides potential upside in future quarters from oil and gas production, which may be material depending on well performance.
• Strong Growth in Intellectual Property Revenues: A notable \$58.8 million year-over-year increase in the IP segment signals successful monetization of Acacia’s portfolio and may drive further upside if sustained.
• Non-Recurring Gains: The 2025 results include a \$15.75 million service provider settlement and lack legacy legal costs that impacted prior periods. Investors should note the impact of these items when forecasting future earnings.
• Segment Diversification: Acacia’s diversified business model, spanning energy, industrial, manufacturing, and IP, reduces reliance on a single economic driver and helps mitigate risk.
• Forward-Looking Strategy: Management reiterated a focus on disciplined capital allocation, continued operational improvement, and pursuit of both organic and inorganic growth, aiming to deliver differentiated long-term value for shareholders.

Investor Call and Additional Information

Acacia will host a conference call on March 11, 2026, at 8:00 a.m. Eastern Time to discuss its results and outlook. The call will be webcast and a replay will be available for at least 30 days on the company’s investor relations website.

Conclusion

Acacia Research Corporation delivered a breakout year in 2025, with record annual revenues, a swing to profitability, strong cash generation, and operational milestones. The company’s financial flexibility, strategic execution, and diversified portfolio position it for continued growth and resilience. Shareholders should closely monitor upcoming developments, particularly the production results from Benchmark Energy’s Cherokee well and any new acquisitions or business launches, as these could have a significant impact on future performance and share value.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. All forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially. Investors should consult the company’s filings with the Securities and Exchange Commission and consider their own investment objectives and risk tolerance before making any investment decisions.

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