Company: ACTG
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0000934549-25-000042
Chunk: 76

Company: ACACIA RESEARCH CORP
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 1
Chunk 76
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 executives (the “AIP Matter”). There were no comparable expenses for the three months ended June 30, 2025.

•Gain on derivatives was $6.6 million in the three months ended June 30, 2025, as compared to a loss of $2.7 million in the comparable prior year period due to the commodity derivative activities contributed from our Energy Operations. 

•Interest expense increased by $0.5 million for the three months ended June 30, 2025 primarily related to the borrowings on the Deflecto facility in connection with the Deflecto Transaction. 

52

•Interest income decreased $2.1 million for the three months ended June 30, 2025 due to the decrease in interest rates and a decrease in average cash balances.

Results of Operations - six months ended June 30, 2025 compared with the six months ended June 30, 2024

Total revenues increased $125.5 million to $175.7 million for the six months ended June 30, 2025, as compared to $50.2 million for the six months ended June 30, 2024, primarily due to an increase in our Intellectual Property Operations revenues and increases in Energy Operations and Manufacturing Operations revenue from acquisitions in the prior year period. Intellectual Property Operations revenues increased due to a increase in average license fees, which contributed to Intellectual Property Operations revenues increasing by $51.3 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. Revenues contributed from Energy Operations were $33.6 million for the six months ended June 30, 2025, as compared to $16.0 million for the six months ended June 30, 2024 due to the 2025 period reflecting the full impact of the Revolution Transaction which was consummated in April 2024. Revenues contributed from our Manufacturing Operations were $57.5 million for the six months ended June 30, 2025 with no prior period activity as the Deflecto acquisition was completed in the fourth quarter of 2024. 

Income before income taxes was $28.7 million for the six months ended June 30, 2025, as compared to a loss before income taxes of $17.2 million for the six months ended June 30, 2024. The net increase comprised the change in total revenues described above and other changes in operating expenses and