Company: ACTG
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0000934549-25-000054
Chunk: 84

Company: ACACIA RESEARCH CORP
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 1
Chunk 84
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 due to the full period impact of the assets acquired in the Revolution Transaction in April 2024.

56

Manufacturing Operations

Revenues

Deflecto’s net revenues included the following:

Three Months EndedSeptember 30,Nine Months EndedSeptember 30,20252025Air distribution$10,226 $29,684 Transportation safety11,287 32,420 Office products9,302 26,247 Total$30,815 $88,351 

Refer to Note 2 to the consolidated financial statements elsewhere herein for additional information regarding Deflecto’s revenue arrangements and related concentrations.

Cost of Revenues

Deflecto’s cost of revenues for the three and nine months ended September 30, 2025 was $23.3 million and $66.5 million, respectively. Refer to Note 2 included in our 2024 Annual Report for additional information regarding Deflecto’s cost of sales.

Operating Expenses

Three Months EndedSeptember 30,Nine Months EndedSeptember 30,20252024$ Change% Change20252024$ Change% Change(In thousands, except percentage change values)Sales and marketing expenses - industrial operations$1,250 $1,391 $(141)(10%)$4,059 $4,333 $(274)(6%)Sales and marketing expenses - manufacturing operations1,830 — 1,830 n/a5,714 — 5,714 n/aGeneral and administrative costs - intellectual property operations1,914 1,917 (3)0%6,783 7,078 (295)(4%)General and administrative costs - industrial operations1,746 2,194 (448)(20%)5,357 6,124 (767)(13%)General and administrative costs - energy operations1,162 1,024 138 13%3,684 2,292 1,392 61%General and administrative costs - manufacturing operations4,574 — 4,574 n/a15,348 — 15,348 n/aParent general and administrative expenses6,554 6,097 457 7%17,644 18,354 (710)(4%)Total general and administrative expenses15,950 11,232 4,718 42%48,816 33,848 14,968 44%Total$19,030 $12,623 $6,407 51%