Company: ACTG
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0000934549-25-000042
Chunk: 196

Company: ACACIA RESEARCH CORP
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 8
Chunk 196
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 ended June 30, 2024 due to the 2025 period reflecting the full impact of the Revolution Transaction which was consummated in April 2024. Revenues contributed from our Manufacturing Operations were $57.5 million for the six months ended June 30, 2025 with no prior period activity as the Deflecto acquisition was completed in the fourth quarter of 2024. 

Income before income taxes was $28.7 million for the six months ended June 30, 2025, as compared to a loss before income taxes of $17.2 million for the six months ended June 30, 2024. The net increase comprised the change in total revenues described above and other changes in operating expenses and other income or expense for the six months ended June 30, 2025 as compared to the six months ended June 30, 2024 as follows:

•Cost of revenues for Intellectual Property Operations increased by $21.7 million primarily due to an increase in inventor royalties, contingent legal fees and patent amortization expense.

◦Inventor royalties increased $15.3 million, from $1.4 million to $16.7 million in 2025, primarily due to higher license fees being generated in 2025 with inventor royalties. Refer to “Intellectual Property Operations – Cost of Revenues” below for further discussion.

◦Contingent legal fees increased $2.4 million, from $2.4 million to $4.8 million in 2025, primarily due to the change in Intellectual Property Operations revenues described above. Refer to “Intellectual Property Operations – Cost of Revenues” below for further discussion.

◦Amortization of patents expense from our Intellectual Property Operations increased $3.3 million, from $6.7 million to $9.9 million in 2025, due to an increase in amortization for the 2025 patent portfolio acquisition.

•Industrial Operations cost of revenues and sales and marketing expenses remained relatively flat, decreasing from $10.6 million for the six months ended June 30, 2024 to $10.5 million for the six months ended June 30, 2025. 

•Energy Operations cost of production for the six months ended June 30, 2025 increased by $13.6 million due to a full six months of activity for the assets acquired in the Revolution Transaction in April 2024. 

•Manufacturing Operations cost of revenues and sales and marketing expenses added operating expenses