Company: ACTG
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0000934549-25-000054
Chunk: 164

Company: ACACIA RESEARCH CORP
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 8
Chunk 164
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8 million from the recent acquisition (refer to Note 3) and in our Intellectual Property Operations revenue of $7.3 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 Energy Operations revenue of $1.6 million and in Industrial Operations revenues of $347,000. Refer to “Energy Operations - Revenues” and “Industrial Operations – Revenues” below for further detailed discussion.

Loss before income taxes was $3.4 million for the three months ended September 30, 2025, as compared to loss of $6.2 million in the comparable prior period. The decrease comprised the change in total revenues described above and other changes in operating expenses and other income or expense for the three months ended September 30, 2025 as compared to the three months ended September 30, 2024 as follows:

•Cost of revenues for Intellectual Property Operations increased $2.6 million, from $5.7 million to $8.3 million in 2025 primarily due to an increase in contingent legal fees, litigation and licensing expenses and patent amortization expense.

◦Contingent legal fees increased $1.4 million, from $(22,000) to $1.3 million in 2025, as there was no paid-up license revenue recognized in the comparable prior period. Refer to "Intellectual Property Operations – Cost of Revenues" below for further discussion.

◦Litigation and licensing expenses increased $499,000, from $797,000 to $1.3 million in 2025, primarily due to a net increase in litigation support and third-party technical consulting expenses associated with ongoing litigation. Refer to "Intellectual Property Operations – Cost of Revenues" below for further discussion.

◦Amortization of patents expense from our Intellectual Property Operations increased $573,000, from $4.7 million to $5.3 million in 2025, due to an increase in amortization from the patent portfolio acquisition in 2025.

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•Manufacturing Operations cost of revenues and sales and marketing expenses for the third quarter of 2025 added an additional $25.1 million to our consolidated operating expenses as the Deflecto acquisition closed in the fourth quarter of 2024 and there is no comparable prior period. Refer to "Manufacturing Operations – Cost of Revenues" below for further discussion.

•General and administrative