Company: ACTG
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0000934549-25-000042
Chunk: 198

Company: ACACIA RESEARCH CORP
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 8
Chunk 198
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.6 million, from $2.1 million to $4.8 million in 2025, primarily due to the interest expense incurred in relation to the Benchmark Revolving Credit Facility and the Deflecto Facility. Interest expense from the Benchmark Revolving Credit Facility included six months of interest expense in 2025 compared to an approximate two month period in the prior year for the Revolution transaction which was partially funded by borrowings under the Revolving Credit Facility. Interest expense also increased for post-acquisition related interest expense on the Deflecto Facility. Refer to Note 11 to the consolidated financial statements elsewhere herein for additional information regarding the Benchmark Revolving Credit Facility and the Deflecto Facility. 

•Interest income decreased $4.6 million  for the six months ended June 30, 2025 from $10.0 million to $5.4 million in 2025 due to a decrease in interest rates and a decrease in average cash balances. 

Intellectual Property Operations

Revenues

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

Three Months EndedJune 30,Six Months EndedJune 30,20252024$ Change% Change20252024$ Change% Change(In thousands, except percentage change values and count totals)Paid-up license revenue agreements$— $4,888 $(4,888)(100%)$69,490 $17,253 $52,237 303%Recurring license revenue agreements329 445 (116)(26%)744 1,703 (959)(56%)Total revenues$329 $5,333 $(5,004)(94%)$70,234 $18,956 $51,278 271%New license agreements executed— 3 (3)(100%)4 9 (5)(56%)Licensing and enforcement programs   generating revenues3 5 (2)(40%)6 6 — —%

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 decreased $4.9 million for the three months ended June 30, 2025 compared to the three months ended June 30, 2024 due to an decrease in new license agreements executed. Recurring revenue,