Company: ACTG
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0000934549-25-000054
Chunk: 75

Company: ACACIA RESEARCH CORP
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 1
Chunk 75
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(45%)25,357 (23,348)48,705 (209%)Income tax benefit (expense)968 (5,497)6,465 (118%)(5,660)2,673 (8,333)(312%)Net (loss) income attributable to Acacia Research Corporation(2,730)(13,996)11,266 (80%)18,264 (22,628)40,892 (181%)

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

Total revenues increased $36.1 million to $59.4 million for the three months ended September 30, 2025, as compared to $23.3 million for the three months ended September 30, 2024, due to increases in our Manufacturing Operations revenue of $30.8 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,