Acacia Research (NASDAQ:ACTG) Posts Quarterly Earnings Results, Beats Estimates By $0.02 EPS

Key Points

• Acacia posted adjusted EPS of ($0.07), beating estimates by $0.02 and reporting revenue of $54.24M versus $50M expected, though the company swung from $0.25 EPS in the year-ago quarter.
• Operationally there are positives and negatives: a new Benchmark Cherokee well and record April production should boost Q2–Q3 results, but GAAP income was materially depressed this quarter by a ~$9.7M unrealized mark-to-market oil hedge loss and an episodic, weak IP segment.
• Shares trade around $4.65 with a market cap near $449M, heavy institutional ownership (~86.7%), and a consensus analyst view of "Moderate Buy" with an average target of $6.00.

Acacia Research (NASDAQ:ACTG - Get Free Report) posted its quarterly earnings data on Thursday. The business services provider reported ($0.07) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.09) by $0.02, FiscalAI reports. The business had revenue of $54.24 million during the quarter, compared to analysts' expectations of $50.00 million. Acacia Research had a net margin of 7.60% and a return on equity of 4.11%. During the same period last year, the firm posted $0.25 earnings per share.

Here are the key takeaways from Acacia Research's conference call:

• Benchmark drilled its first Cherokee well (online late March) at a development cost of about $11.5M, targeting >2.5x MOIC (>60% IRR) with company-record April production (over 63,000 barrels), which should begin to boost results in Q2–Q3.
• Acacia recorded a large unrealized mark-to-market hedge loss (~$9.7M) because oil hedges are struck near $70 while WTI was $101 at March 31, materially depressing GAAP net income and book value this quarter despite being non-cash.
• Deflecto completed the Portland→Dover consolidation and expects roughly $2M of annualized cost savings with benefits starting in H2 2026, though the company incurred near-term restructuring and CapEx.
• Printronix remained a steady cash generator, producing about $4.8M of cash flow over the past 12 months (~15% yield on acquisition) as it shifts toward a higher-consumables, recurring-revenue model.
• The intellectual property segment was episodic this quarter (only $0.7M revenue and a negative $3.5M adjusted EBITDA) with no Atlas-sized settlement like in Q1 2025, creating near-term volatility despite ongoing enforcement activity in R2/Atlas portfolios.

Acacia Research Price Performance

Shares of NASDAQ ACTG traded down $0.06 during trading on Friday, hitting $4.65. The company had a trading volume of 196,571 shares, compared to its average volume of 286,500. The company has a market cap of $448.66 million, a P/E ratio of 20.20 and a beta of 0.49. Acacia Research has a 52 week low of $3.12 and a 52 week high of $5.27. The business's 50-day moving average is $4.79 and its 200 day moving average is $4.13. The company has a debt-to-equity ratio of 0.10, a quick ratio of 8.64 and a current ratio of 9.18.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of ACTG. AQR Capital Management LLC bought a new position in shares of Acacia Research in the first quarter valued at $35,000. Empowered Funds LLC increased its holdings in shares of Acacia Research by 8.9% in the first quarter. Empowered Funds LLC now owns 177,666 shares of the business services provider's stock valued at $569,000 after buying an additional 14,590 shares in the last quarter. Jane Street Group LLC bought a new position in shares of Acacia Research in the first quarter valued at $169,000. American Century Companies Inc. increased its holdings in shares of Acacia Research by 6.4% in the second quarter. American Century Companies Inc. now owns 494,075 shares of the business services provider's stock valued at $1,769,000 after buying an additional 29,659 shares in the last quarter. Finally, First Trust Advisors LP increased its holdings in shares of Acacia Research by 2.8% in the second quarter. First Trust Advisors LP now owns 114,872 shares of the business services provider's stock valued at $411,000 after buying an additional 3,113 shares in the last quarter. Institutional investors own 86.69% of the company's stock.

Analyst Ratings Changes

Several research analysts have recently issued reports on the stock. Wall Street Zen cut shares of Acacia Research from a "buy" rating to a "hold" rating in a report on Saturday, March 14th. Craig Hallum increased their price objective on shares of Acacia Research from $5.00 to $6.00 and gave the company a "buy" rating in a report on Thursday, March 12th. Finally, Weiss Ratings upgraded shares of Acacia Research from a "sell (d+)" rating to a "hold (c-)" rating in a report on Friday, March 13th. One investment analyst has rated the stock with a Buy rating and one has given a Hold rating to the company's stock. According to MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average target price of $6.00.

About Acacia Research

Acacia Research Corporation is a publicly traded patent licensing company based in New York City. The firm specializes in acquiring patented technologies through a network of wholly owned subsidiaries and seeking licensing agreements or settlements with companies that utilize those technologies. Since its founding in 1993, Acacia has built a business model centered on identifying innovative inventions and monetizing them through patent enforcement and strategic partnerships.

The company's activities span a broad range of technology sectors, including life sciences, medical devices, software, telecommunications and consumer electronics.

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