Acacia Research Corporation (ACTG) Market Cap
Acacia Research Corporation has a market capitalization of $476.6M.
Financials based on reported quarter end 2025-12-31
Price: $4.94
▼ -0.03 (-0.60%)
Market Cap: 476.59M
NASDAQ · time unavailable
CEO: Martin D. McNulty Jr.
Sector: Industrials
Industry: Specialty Business Services
IPO Date: 2002-12-16
Website: https://www.acaciaresearch.com
Acacia Research Corporation (ACTG) - Company Information
Market Cap: 476.59M · Sector: Industrials
Acacia Research Corporation, together with its subsidiaries, invests in intellectual property and related absolute return assets; and engages in the licensing and enforcement of patented technologies. The company operates through two segments, Intellectual Property Operations and Industrial Operations. The company owns or controls the rights to various patent portfolios, which include U.S. patents and foreign counterparts covering technologies used in a range of industries. It has executed approximately 1,600 license agreements, and approximately 200 patent portfolio licensing and enforcement programs. It also designs manufactures printers and parts, and consumable products through dealers and distributors for various industrial printing applications. In addition, the company offers supply-chain printing solutions for manufacturing, transportation and logistics, retail distribution, food and beverage distribution, and pharmaceutical distribution industries; and line matrix printers for mission critical applications within labeling and inventory management, build sheets, invoicing, manifests and bills of lading, and reporting industries. Acacia Research Corporation was incorporated in 1993 and is based in New York, New York.
Analyst Sentiment
Based on 7 ratings
Consensus Price Target
No data available
Price & Moving Averages
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Fundamentals Overview
📊 AI Financial Analysis
Powered by StockMarketInfo"ACTG reported revenue of $50.13M and net income of $3.42M for the most recent quarter. The company has a positive operating cash flow of $13.15M and a free cash flow of $6.82M, indicating solid cash generation capabilities. With total assets of $770.96M and liabilities of $186.92M, ACTG maintains a robust balance sheet with total equity of $584.03M and a net debt of -$206.23M, suggesting a strong liquidity position. The stock price has appreciated by 48.24% over the past year, indicating strong market performance, although no dividends have been paid recently. This performance reflects significant investor enthusiasm, likely driven by growth prospects. With its current revenue and profitability metrics, ACTG demonstrates resilience, but closely monitoring future performance and market conditions is essential for assessing sustainability."
Revenue Growth
Steady revenue growth evident; strong performance in recent quarters.
Profitability
Positive net income indicating effective cost management.
Cash Flow Quality
Healthy cash flow generation with significant free cash flow.
Leverage & Balance Sheet
Strong balance sheet with negative net debt indicating good liquidity.
Shareholder Returns
High stock price appreciation reflects strong shareholder interest.
Analyst Sentiment & Valuation
Positive sentiment with room for valuation recovery.
Disclaimer:This analysis is AI-generated for informational purposes only. Accuracy is not guaranteed and this does not constitute financial advice.
So what for ACTG in Q4’25: the earnings base is increasingly driven by operating segments with strong year-over-year scale, while key volatility remains centered in Deflecto (Class 8 + Canadian housing + tariffs). Consolidated results showed record revenue of $285.2M (+133% YoY) and improved profitability, with Q4 GAAP net income of $0.04/share vs a $0.14/share loss a year ago. The company emphasized concrete cost actions at Deflecto—Portland-to-Dover consolidation and lean manufacturing—targeting ~$2M annualized savings and monetization proceeds (~$5M net proceeds from asset sales). On the energy side, Benchmark’s Cherokee well is expected to come online imminently, with a hedging overlay that management says is fully hedged for 2026 at an average ~$70/bbl (Q4 included $1.7M hedge gains not in revenue). Net tariff pressure is reducing: China 20%→10% and Canada 25%→10%, with a recent court ruling pointing to net benefit and 2026 relief. Overall: improving fundamentals, but cyclical/macro tariff effects still drive near-term uncertainty.
Growth Catalysts
- Deflecto: Portland facility consolidation into Dover, Ohio; plant consolidation expected to deliver ~${2} million of total annualized cost savings once complete (plus nearly $5 million net proceeds from asset sales).
- Deflecto: expected 2026 relief from tariff changes after a recent court ruling; Directional positive for earnings power at Deflecto.
- Benchmark: Cherokee play—first new Cherokee well completed last week and anticipated to begin producing this week; designed to high-grade acreage and potentially lift production later in 2026.
- Printronix: continued execution/operational efficiencies driving higher margins and optimized product mix (consistent revenue/free cash flow).
Business Development
- Benchmark: acquired/traded land packages assembling a Cherokee position (referenced as built via prior acquisition activity, including Wainwright and Revolution assets).
- Acquisition/transactions: completed acquisition of a portfolio of commercial loans collateralized by Bitcoin through partnership with Build Asset Management.
- Benchmark/hedging & operations: hedging strategy applied to operated oil & gas production (approx. 75% hedged).
- Deflecto: Air Distribution and Safety segments exposed to tariffs (specific customers not named).
Financial Highlights
- Q4 2025 revenue: $50.1M (+3% YoY), primarily driven by Deflecto having a full quarter.
- Q4 2025 total company adjusted EBITDA: $17.4M; Q4 2025 operated segment adjusted EBITDA (incl. IP): $22.4M.
- Full-year 2025 revenue: $285.2M (+133% YoY); full-year total company adjusted EBITDA: $77.9M; full-year operated segment adjusted EBITDA: $96.4M.
- Q4 GAAP net income attributable to Acacia: $3.4M ($0.04/share) vs net loss of $13.4M ($0.14/share) in prior year.
- Q4 adjusted net income attributable to Acacia: $3.1M ($0.03/share).
- Book value per share: $6.05 at Dec 31, 2025 vs $5.75 at Dec 31, 2024 (+5% YoY).
- Tariff exposure: Deflecto paid ~$2.4M tariffs in 2025; ~$2.0M impacted earnings; management expects net benefit after recent court ruling and incremental 2026 relief tied to Section 122 tariffs.
- Tariff rate changes cited: China imports 20% -> 10%; Canada imports 25% -> 10%.
- Energy realized hedge gains not included in revenue: $1.7M in Q4 2025 vs $1.0M in Q4 2024.
- Parent cost control: reported Q4 parent G&A decreased from $12.0M to $7.0M (-$5.0M YoY) driven by lower transaction costs after Deflecto acquisition.
- Nonrecurring items: IP Q4 EBITDA benefited from a settlement offset by prior-period related costs.
Capital Funding
- Cash & securities/loans receivable: $339.6M at Dec 31, 2025 (vs $332.4M at Sep 30, 2025; vs $297.0M at Dec 31, 2024).
- Cash generation (full year): operating cash flow $75.2M; cash generated from operating activities across segments $86.7M (offset by parent costs and capex).
- Debt (parent): total indebtedness 0 at Dec 31, 2025.
- Debt (consolidated): $92.1M total indebtedness at Dec 31, 2025—$59.5M Benchmark and $32.6M Deflecto (nonrecourse).
- Debt paydown: Benchmark paid down ~$23M total debt since Revolution asset acquisition (Apr 2024); Deflecto paid down ~$16M total debt since acquisition (Oct 2024).
- CapEx: Q4 energy CapEx ~$4.6M (Cherokee development); Benchmark and Deflecto capex reductions noted for full-year cash flow (Benchmark $9.7M; Deflecto $1.4M in capex).
- Buybacks: none mentioned in transcript.
Strategy & Ops
- Deflecto: consolidation of Portland facility into Dover, Ohio; sale of portion of a U.K. facility not currently occupied in Q1 2026; divested a small segment of office products business in Q4.
- Deflecto: margin defense via price increases and cost concessions; defended market share despite delayed customer purchases due to IEEPA tariffs.
- Benchmark: hedging strategy to manage commodity volatility—hedges approx. 75% of operated oil & gas production; management notes ability to layer hedges out past 2028.
- Benchmark: fully hedged for 2026; average hedge price about $70/barrel; management expects benefiting from front-end curve (oil moved above $90/barrel in question context).
- Deflecto: operational initiatives including lean manufacturing initiatives on the shop floor (mentioned as in-progress).
- Network/talent expansion plan: augment U.S. and Canadian sales teams to attack underserved areas in the Canadian housing market (Air Distribution).
- Energy growth approach: production maintained by high-ROI projects using existing cash flows rather than borrowing to materially increase production.
Market Outlook
- Class 8 trucking market green shoots (Deflecto Safety): after 11 straight months of YoY declines, Class 8 orders improved Dec-Feb by +23%, +25%, and +156% YoY; dealer inventories began to fall; freight rates improving.
- Benchmark: Cherokee first well expected to begin producing imminently (“this week” as of call).
- Hedging outlook: management stated they are fully hedged for 2026; will hedge volumes coming on from the new well; continue to layer hedges out past 2028.
- 2026 tariff outlook: net benefit expected after court ruling; relief in 2026; China and Canada tariff reductions to 10% directionally positive for Deflecto earnings power.
- No explicit numeric 2026/near-term consolidated guidance provided in the transcript.
Risks & Headwinds
- Deflecto: meaningful macro headwinds—uncertainty in Class 8 trucking market, Canadian housing slowdown/velocity of sales, and tariff-related demand/cost pressures.
- Deflecto: tariff administrative recoup/reimbursement process impacts timing; inability to fully offset costs from new Section 122 tariffs (partial relief expected).
- Input/shipping costs: potential cost pressure in Deflecto and Printronix due to oil price upside risk (shipping/input cost exposure).
- Industrial operations: negative impacts from FX fluctuations plus tariff-related payments and working capital timing affecting free cash flow.
- Energy operations: realized hedge gains improve results but remain dependent on commodity price volatility and execution of hedging strategy.
Sentiment: MIXED
Note: This summary was synthesized by AI from the ACTG Q4 2025 earnings transcript. Financial data is complex; please verify all metrics against official SEC filings before making investment decisions.