Company: ACTG
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0000934549-25-000054
Chunk: 79

Company: ACACIA RESEARCH CORP
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 1
Chunk 79
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 information regarding the sale of Arix shares and refer to “Equity Securities Investments” below for further discussion.

•Non-recurring legacy legal expense of $14.9 million in 2024 is related to the AIP Matter (as defined in Note 15 to the consolidated financial statements elsewhere herein) and the settlement agreement with Slingshot. There were no comparable expenses for the nine months ended September 30, 2025.

•Gain on derivatives decreased $2.1 million, from $5.5 million to $3.5 million in 2025, primarily due to the commodity derivative activities contributed from our Energy Operations. Refer to Note 13 for additional information regarding Benchmark’s gain and loss on its commodity derivatives.

•Interest expense increased $2.9 million, from $4.1 million to $7.0 million in 2025, primarily due to the interest expense incurred in relation to the 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