Company: ACTG
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0000934549-25-000054
Chunk: 168

Company: ACACIA RESEARCH CORP
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 8
Chunk 168
---
 Deflecto Facility associated with the acquisition of Deflecto in the fourth quarter of 2024. Refer to Note 11 to the consolidated financial statements elsewhere herein for additional information regarding the Deflecto Facility. 

•Interest income decreased $6.1 million, from $14.6 million to $8.4 million in 2025 due to lower 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.

53

Intellectual Property Operations

Revenues

ARG’s revenue activity for the periods presented included the following:

Three Months EndedSeptember 30,Nine Months EndedSeptember 30,20252024$ Change% Change20252024$ Change% Change(In thousands, except percentage change values and count totals)Paid-up license revenue agreements$7,375 $— $7,375 n/a$76,865 $17,253 $59,612 346%Recurring license revenue agreements420 486 (66)(14%)1,164 2,189 (1,025)(47%)Total revenues$7,795 $486 $7,309 1,504%$78,029 $19,442 $58,587 301%New license agreements executed4 — 4 n/a8 9 (1)(11%)Licensing and enforcement programs   generating revenues5 3 2 67%7 6 1 17%Licensing and enforcement programs   with initial revenues— — — n/a1 — 1 n/aNew patent portfolios— — — n/a1 — 1 n/a

For the periods presented above, the majority of the revenue agreements executed during the relevant period provided for the payment of one-time, paid-up license fees in consideration for the grant of certain IP Rights for patented technology owned by our operating subsidiaries. These rights were primarily granted on a perpetual basis, extending until the expiration of the underlying patents. Paid-up revenue increased $7.4 million for the three months ended September 30, 2025 compared to the three months ended September 30, 2024 due to an increase in new license agreements executed. Paid-up revenue increased $59.6 million for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 due