Company: ACTG
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0000934549-25-000054
Chunk: 165

Company: ACACIA RESEARCH CORP
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 8
Chunk 165
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 expenses increased $4.7 million, from $11.2 million to $16.0 million in 2025 primarily due to expenses contributed from Manufacturing Operations of $4.6 million. Refer to "General and Administrative Expenses" below for further detail and discussion.

•Unrealized gain from the change in fair value of our equity securities was $900,000 in 2025, as compared to an unrealized loss of $4.1 million in the comparable prior period. The unrealized gain and loss were derived from our trading securities portfolio. Refer to "Equity Securities Investments" below for further discussion.

•Non-recurring legacy legal expense of $2.0 million in 2024 is related to the accrual recorded in connection with the settlement agreement with Slingshot. There were no comparable expenses for the three months ended September 30, 2025.

•Gain on derivatives decreased $6.2 million, from $8.0 million to $1.9 million in 2025 due to the commodity derivative activities contributed from our Energy Operations. Refer to Note 13 for additional information regarding Benchmark's gain on its commodity derivatives.

•Interest income decreased $1.5 million, from $4.5 million to $3.0 million  in 2025 due to the decrease in interest rates and a decrease in average cash balances. Refer to Note 2 included in our 2024 Annual Report for additional information regarding our cash and cash equivalents and investments in equity securities.

Results of Operations - nine months ended September 30, 2025 compared with the nine months ended September 30, 2024

Total revenues increased $161.6 million to $235.1 million for the nine months ended September 30, 2025, as compared to $73.5 million for the nine months ended September 30, 2024, primarily due to an increase in our Intellectual Property Operations revenues and increases in Energy Operations and Manufacturing Operations revenues from acquisitions in the comparable prior period. Intellectual Property Operations revenues increased due to an increase in average license fees, which contributed to Intellectual Property Operations revenues increasing by $58.6 million. Refer to “Investments in Patent Portfolios” above for additional information regarding the impact of portfolio acquisition trends on current and future licensing and enforcement related revenues. The increases were offset by a decrease in Industrial Operations of $1.3 million. Refer to “Industrial Operations – Revenues” below for further detailed discussion.

Income before income taxes was $25.4 million for the