# EDGAR Filing Document

**Accession Number:** 0000934549
**File Stem:** 0000934549-25-000039
**Filing Date:** 2025-8
**Character Count:** 46291
**Document Hash:** c9abbcbaaf49ac85cc8811a24cfa4274
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0000934549-25-000039.hdr.sgml**: 20250806

**ACCESSION NUMBER**: 0000934549-25-000039

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 14

**CONFORMED PERIOD OF REPORT**: 20250806

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20250806

**DATE AS OF CHANGE**: 20250806

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** ACACIA RESEARCH CORP
- **CENTRAL INDEX KEY:** 0000934549
- **STANDARD INDUSTRIAL CLASSIFICATION:** PATENT OWNERS & LESSORS [6794]
- **ORGANIZATION NAME:** 05 Real Estate & Construction
- **EIN:** 954405754
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-37721
- **FILM NUMBER:** 251187446

**BUSINESS ADDRESS:**
- **STREET 1:** 767 3RD AVENUE, 6TH FLOOR
- **CITY:** NEW YORK
- **STATE:** NY
- **ZIP:** 10017
- **BUSINESS PHONE:** 332-236-8500

**MAIL ADDRESS:**
- **STREET 1:** 767 3RD AVENUE, 6TH FLOOR
- **CITY:** NEW YORK
- **STATE:** NY
- **ZIP:** 10017

?xml version='1.0' encoding='ASCII'? actg-20250806

 **UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 8-K**

**CURRENT REPORT**

**PURSUANT TO SECTION 13 OR 15(d) OF**

**THE SECURITIES EXCHANGE ACT OF 1934**

Date of Report (Date of earliest event reported): August 6, 2025

**ACACIA RESEARCH CORPORATION**

(Exact name of registrant as specified in its charter)

---

| | | |
|:---|:---|:---|
| **Delaware** | **001-37721** | **95-4405754** |
| (State or other jurisdiction of <br>incorporation) | (Commission <br>File Number) | (I.R.S. Employer <br>Identification No.) |

---

---

| | |
|:---|:---|
| **767 Third Avenue,** | |
| **6th Floor** | |
| **New York,** | |
| **NY** | **10017** |
| (Address of principal executive offices) | (Zip Code) |

---

**(Registrant's telephone number, including area code): (332) 236-8500**

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

□ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

□ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

□ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

□ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

---

| | | |
|:---|:---|:---|
| **Title of each class** | **Trading Symbol** | **Name of each exchange on which registered** |
| Common Stock, par value $0.001 per share | ACTG | The Nasdaq Stock Market LLC |

---

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

------

**Item 2.02.Results of Operations and Financial Condition.**

On August 6, 2025, Acacia Research Corporation (the "Corporation) issued a press release announcing its financial results for the quarter ended June 30, 2025. A copy of that release is furnished as Exhibit 99.1 to this Current Report on Form 8-K (this "Report").

The information contained within this Report and the exhibit attached hereto as Exhibit 99.1 are being furnished pursuant to Item 2.02 and shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that Section. The information in this Report and the exhibit attached hereto as Exhibit 99.1 shall not be incorporated by reference into any registration statement or other document filed pursuant to the Securities Act of 1933, as amended, regardless of any general incorporation by reference language in such filings, except as shall be expressly set forth by specific reference in such filing.

**Item 9.01.Financial Statements and Exhibits.**

(d)*Exhibits*

---

| | |
|:---|:---|
| Exhibit No. | Description of Exhibit |
| 99.1 | <u>[Press Release dated August 6, 2025 of Acacia Research Corporation](actg-2025630xex991.htm)</u> |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). |

---

------

**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

---

| | | |
|:---|:---|:---|
| Dated: August 6, 2025 |  |  |
|  | ACACIA RESEARCH CORPORATION | ACACIA RESEARCH CORPORATION |
|  | By: | /s/ Martin D. McNulty Jr. |
|  | Name: | Martin D. McNulty Jr. |
|  | Title: | Chief Executive Officer |

---

## Exhibit 99.1

**Exhibit 99.1**

![logoa.jpg](logoa.jpg)

**Acacia Research Corporation Reports Second Quarter 2025 Financial Results**

*Total Revenue of $51.2 million for the Quarter*

*GAAP Net Loss of ($3.3) million and GAAP Diluted EPS of ($0.03) for the Quarter*

*Adjusted Net Loss*<sup>1</sup> *of ($5.9) million and Adjusted Diluted EPS*<sup>1</sup> *of ($0.06) for the Quarter*

*Total Company Adjusted EBITDA*<sup>1</sup> *of $1.9 million and Operated Segment Adjusted EBITDA*<sup>1</sup> *of $6.8 million for the Quarter*

*Total Cash, Cash Equivalents, and Equity Securities of $338.2 million, or $3.51 per share*

*Announces Partnership with Unchained and Build Asset Management for a Bitcoin-Backed Commercial Loan Strategy* 

**New York, NY, August 6, 2025** - Acacia Research Corporation (Nasdaq: ACTG) ("**Acacia**" or the "**Company**"), which acquires and operates businesses across the industrial, energy and technology sectors, today reported financial results for the three and six months ended June 30, 2025. The Company also posted its second quarter 2025 earnings presentation on its website at www.acaciaresearch.com under Events & Presentations.

Martin ("MJ") D. McNulty, Jr., Chief Executive Officer, stated, "While we have been presented with a unique operating environment in both the U.S. and global economies, our diversified set of businesses and risk management approach has enabled us to manage and protect against some of these challenges. Our strategy remains focused on acquiring fundamentally strong businesses where our management processes can drive incremental value. In this economic environment, our teams have been highly focused on improving efficiencies, strengthening market positioning, and upgrading operational capabilities so that we are best positioned when markets normalize. In the second quarter, we continued to execute our strategy of building businesses with stable cash flow generation and scalability. We believe the opportunities we are identifying within our existing businesses and our strong balance sheet will ensure Acacia continues to deliver long-term shareholder value. As of the end of the second quarter, cash, cash equivalents, and equity securities was approximately $338.2 million, or $3.51 per share. Our strong cash position and balance sheet provides us with substantial dry powder to grow our businesses and positions us to pursue accretive acquisition opportunities that become available. Finally, we are excited to announce a partnership with Unchained Capital and Build Asset Management for a Bitcoin-backed commercial loan strategy. More information about this partnership can be found in a press release issued earlier today and posted to our website."

**Second Quarter 2025 Highlights**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Total revenue of $51.2 million for the quarter, up 98% compared to $25.8 million for the prior-year quarter, primarily driven by $29.0 million in revenue from our second full quarter of Manufacturing Operations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*•* GAAP Net Loss of ($3.3) million, or ($0.03) GAAP Diluted EPS, for the three months ended June 30, 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*•* Adjusted Net Loss of ($5.9) million, or ($0.06) Adjusted Diluted EPS, for the three months ended June 30, 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Operated Segment Adjusted EBITDA of $6.8 million for the three months ended June 30, 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Total Company Adjusted EBITDA of $1.9 million for the three months ended June 30, 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• At quarter end, cash, cash equivalents, and equity securities was approximately $338.2 million, or $3.51 per share.

<sup>1</sup> Adjusted Net Income (Loss), Adjusted Diluted Earnings Per Share (EPS), Total Company Adjusted EBITDA and Operated Segment Adjusted EBITDA are non-GAAP financial measures. See below for reconciliations of Adjusted Net Income (Loss), Adjusted Diluted EPS, and Total Company Adjusted EBITDA to their most directly comparable GAAP financial measure. For the definition of these measures and a reconciliation of the components of Operated Segment Adjusted EBITDA to their most directly comparable GAAP financial measures, see the accompanying supplemental information section.

------

**Revenue**

The following table provides a breakdown of the Company's total revenue for the three and six months ended June 30, 2025 and June 30, 2024. For the purposes of financial reporting, Acacia's operations are broken out as follows: Energy Operations (Benchmark), Industrial Operations (Printronix), Manufacturing Operations (Deflecto), and Intellectual Property Operations (Acacia Research Group).

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| | (In thousands, unaudited) | (In thousands, unaudited) | (In thousands, unaudited) | (In thousands, unaudited) |
| Energy Operations | $15317 | 14170 | 33623 | 16026 |
| Industrial Operations | 6590 | 6335 | 14266 | 15176 |
| Manufacturing Operations | 29001 |  | 57536 |  |
| Intellectual Property Operations | 329 | 5333 | 70234 | 18956 |
| &nbsp;&nbsp;&nbsp;Total Revenues | $51237 | $25838 | $175659 | $50158 |

---

**Adjusted EBITDA**

The following table provides a reconciliation of consolidated Net Income (Loss), the most directly comparable GAAP measure, to Total Company Adjusted EBITDA for the three and six months ended June 30, 2025 and June 30, 2024.

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| | (In thousands, unaudited) | (In thousands, unaudited) | (In thousands, unaudited) | (In thousands, unaudited) |
| GAAP Net Income (Loss) | $(3293) | $(8446) | $20994 | $(8632) |
| Net (Income) Loss Attributable to Noncontrolling Interests | 1856 | (383) | 1097 | (386) |
| Income Tax Expense (Benefit) | 547 | (7061) | 6628 | (8170) |
| Interest Expense | 2329 | 1814 | 4780 | 2140 |
| Interest (Income) | (2936) | (4991) | (5446) | (10033) |
| (Gain) Loss on Foreign Currency Exchange | (280) | 134 | (435) | 202 |
| Net Realized and Unrealized (Gain) Loss on Derivatives | (6635) | 2659 | (1614) | 2488 |
| Net Realized and Unrealized (Gain) Loss on Investments | (4126) | 4744 | (954) | 2584 |
| Non-recurring Legacy Legal Expense |  | 6614 |  | 12857 |
| Other (Income) Expense, net | 153 | 158 | 870 | 105 |
| &nbsp;&nbsp;&nbsp;&nbsp;GAAP Operating Income (Loss) | $(12385) | $(4758) | $25920 | $(6845) |
| Depreciation, Depletion & Amortization | 11445 | 7405 | 22055 | 11973 |
| Stock-Based Compensation | 954 | 891 | 1876 | 1749 |
| Realized Hedge Gain (Loss) | 869 | 113 | 826 | 913 |
| Transaction-Related Costs | 237 | 222 | 791 | 222 |
| Legacy Matter Costs | 1 | 216 | 9 | 2409 |
| Severance Costs | 752 |  | 1095 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total Company Adjusted EBITDA | $1873 | $4089 | $52572 | $10421 |

---

------

The following table provides the Adjusted EBITDA for each of the Company's operating segments for the three and six months ended June 30, 2025 and June 30, 2024.

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| | (In thousands, unaudited) | (In thousands, unaudited) | (In thousands, unaudited) | (In thousands, unaudited) |
| Energy Operations Adjusted EBITDA<sup>2</sup> | $6951 | $7039 | $14887 | $8417 |
| Industrial Operations Adjusted EBITDA<sup>2</sup> | 620 | 449 | 1641 | 2346 |
| Manufacturing Operations Adjusted EBITDA<sup>2</sup> | 1274 |  | 3713 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Operated Segment Adjusted EBITDA<br> (excluding Intellectual Property Operations) | $8845 | $7488 | 20241 | 10763 |
| Intellectual Property Operations Adjusted EBITDA<sup>2</sup> | (2061) | 1309 | 41204 | 8469 |
| &nbsp;&nbsp;&nbsp;&nbsp;Operated Segment Adjusted EBITDA | $6784 | $8797 | 61445 | 19232 |
| Parent Costs<sup>2</sup> | (4911) | (4708) | (8873) | (8811) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total Company Adjusted EBITDA | $1873 | $4089 | $52572 | $10421 |

---

**Adjusted Net Income (Loss) and Adjusted Diluted EPS**

The following table provides a reconciliation of Net Income (Loss), the most directly comparable GAAP measure, to Adjusted Net Income (Loss) and Adjusted Diluted EPS for the three months ended June 30, 2025 and June 30, 2024.

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| | (In thousands, except share and per share data, unaudited) | (In thousands, except share and per share data, unaudited) | (In thousands, except share and per share data, unaudited) | (In thousands, except share and per share data, unaudited) |
| GAAP Net Income (Loss) | $(3293) | $(8446) | $20994 | $(8632) |
| Non-recurring Legacy Legal Expense |  | 6614 |  | 12857 |
| Legacy Matter Costs<sup>3</sup> | 1 | 216 | 259 | 2409 |
| Stock-Based Compensation | 954 | 891 | 1876 | 1749 |
| Transaction-Related Costs | 237 | 163 | 791 | 163 |
| Severance Costs | 752 |  | 1095 |  |
| Amortization of Acquired Intangibles | 860 | 433 | 1767 | 866 |
| Unrealized Loss (Gain) on Securities | (2219) | 4744 | 2558 | 31445 |
| Unrealized Loss (Gain) on Hedges | (4241) | 2038 | (580) | 2355 |
| Tax Effect of Adjustments | 1004 | (8024) | (1625) | (16124) |
| Adjusted Net Income (Loss) | $(5945) | $(1371) | 27135 | 27088 |
| GAAP Diluted EPS | $(0.03) | $(0.08) | $0.22 | $(0.09) |
| GAAP weighted average diluted shares | 96244590 | 100079803 | 96964308 | 99912854 |
| Adjusted Diluted EPS | $(0.06) | $(0.01) | $0.28 | $0.27 |
| Adjusted diluted weighted average shares | 96244590 | 100079803 | 96964308 | 100745538 |

---

<sup>2</sup> Energy Operations Adjusted EBITDA, Industrial Operations Adjusted EBITDA, Manufacturing Operations Adjusted EBITDA, Intellectual Property Operations Adjusted EBITDA, and Parent Costs are non-GAAP financial measures. For the definitions of these measures and reconciliations of these measures to the most directly comparable GAAP financial measures, see the accompanying supplemental information section.

<sup>3</sup> Legacy Matter Costs for the six months ended June 30, 2025 includes $250,000 related to a one-time legacy tax matter at Printronix that has been settled, which amount is included within Other Expense, Net in Acacia's condensed consolidated statement of operations.

------

**Free Cash Flow**<sup>4</sup> The following table provides a reconciliation of Free Cash Flow (FCF) for the three and six months ended June 30, 2025.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** |
| | **Energy Operations** | **Industrial Operations** | **Manufacturing Operations** | **Intellectual Property Operations** | **Parent Costs** | **Consolidated Total** |
| | (In thousands, unaudited) | (In thousands, unaudited) | (In thousands, unaudited) | (In thousands, unaudited) | (In thousands, unaudited) | (In thousands, unaudited) |
| Net Cash from Operating Activities (GAAP) | $6032 | $895 | $1109 | $44047 | $(1963) | $50120 |
| Less: Capital Expenditures | (1981) | (23) | (200) |  | (9) | (2213) |
| Free Cash Flow (Non-GAAP) | $4051 | $872 | $909 | $44047 | $(1972) | $47907 |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** |
| | **Energy Operations** | **Industrial Operations** | **Manufacturing Operations** | **Intellectual Property Operations** | **Parent Costs** | **Consolidated Total** |
| | (In thousands, unaudited) | (In thousands, unaudited) | (In thousands, unaudited) | (In thousands, unaudited) | (In thousands, unaudited) | (In thousands, unaudited) |
| Net Cash from Operating Activities (GAAP) | $11484 | $3425 | $2125 | $41781 | $(6270) | $52545 |
| Less: Capital Expenditures | (3853) | (28) | (413) |  | (9) | (4303) |
| Free Cash Flow (Non-GAAP) | $7631 | $3397 | $1712 | $41781 | $(6279) | $48242 |

---

**Balance Sheet and Capital Structure**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Cash, cash equivalents, and equity securities measured at fair value totaled $338.2 million at June 30, 2025 compared to $297.0 million at December 31, 2024, an increase of $41.2 million. The increase in cash was primarily due to cash generated from operating activities across all Operated Segments of $58.8 million, plus $2.6 million in net proceeds from the purchase and sale of equity securities. Cash was reduced by Parent Costs of $6.3 million and further by $3.9 million and $0.4 million of capital expenditures at Benchmark and Deflecto, respectively. Additionally, cash used in financing activities reduced cash by $10.3 million, primarily from $8.5 million of debt repayment on the Benchmark revolving credit facility and $1.2 million of principal repayment on the Deflecto Term Loan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Equity securities without readily determinable fair value totaled $5.8 million at June 30, 2025, unchanged from December 31, 2024.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Investment securities representing equity method investments totaled $19.9 million at June 30, 2025 (net of noncontrolling interests), unchanged from December 31, 2024. Acacia owns 64% of MalinJ1, which results in a 26% indirect ownership stake in Viamet Pharmaceuticals, Inc. for Acacia.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Parent company's total indebtedness was zero at June 30, 2025. On a consolidated basis, Acacia's total indebtedness was $104.4 million, consisting of $58.0 million in non-recourse debt at Benchmark and $46.4 million in non-recourse debt at Deflecto as of June 30, 2025.

**Book Value as of June 30, 2025**

At June 30, 2025, Acacia's book value (which includes noncontrolling interests) was $577.5 million and there were 96.4 million shares of common stock outstanding, for a book value per share of $5.99. This value is impacted by one-time expenses and other adjustments detailed in the above reconciliation from GAAP Net Income (Loss) to Adjusted Net Income (Loss).

<sup>4</sup> Free Cash Flow (FCF) is a non-GAAP financial measure. For a definition of this measure, see the accompanying supplemental information section.

------

**Investor Conference Call**

The Company will host a conference call today, August 6, 2025 at 8:00 a.m. Eastern Time (5:00 a.m. Pacific Time).

To access the live call, please dial 877-545-0523 (U.S. and Canada) or 973-528-0016 (international) and if requested, reference the access code "395103." The conference call will also be simultaneously webcast at https://www.webcaster4.com/Webcast/Page/2371/52757 and on the investor relations section of the Company's website at http://www.acaciaresearch.com under Events & Presentations. Following the conclusion of the live call, a replay of the webcast will be available on the Company's website for at least 30 days.

**About the Company** 

Acacia (Nasdaq: ACTG) is a publicly traded company that is focused on acquiring and operating attractive businesses across the mature technology, energy and industrial/manufacturing sectors where it believes it can leverage its expertise, significant capital base, and deep industry relationships to drive value. Acacia evaluates opportunities based on the attractiveness of the underlying cash flows, without regard to a specific investment horizon. Acacia operates its businesses based on three key principles of people, process and performance and has built a management team with demonstrated expertise in research, transactions and execution, and operations and management. Additional information about Acacia and its subsidiaries is available at www.acaciaresearch.com.

**Safe Harbor Statement** 

This news release contains forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These statements are based upon the Company's current expectations and speak only as of the date hereof. All statements other than statements of historical fact are forward-looking statements and include statements related to estimates and projections with respect to, among other things, the Company's anticipated financial condition, operating performance, the value of the Company's assets, general economic and market conditions and other future circumstances and events. This news release attempts to identify forward-looking statements by using words such as "anticipate," "believe," "continue," "could," "estimate," "expect," "forecast," "future," "guidance," "intend," "may," "outlook," "plan," "potential," "predict," "project," "seek," "should," "target" and "will," and similar words and expressions; however, the absence of these words does not mean that the statements are not forward-looking. While the Company believes its assumptions concerning future events are reasonable, a number of factors could cause actual results to differ materially and adversely from those expressed or implied in any forward-looking statements, including, but not limited to: the Company's ability to successfully identify, diligence, complete, and integrate strategic acquisitions of businesses, divisions, and/or assets, the performance of the Company's businesses, divisions, and/or assets, disruptions or uncertainty caused by an ability to retain or changes to the employees or management teams of the Company's businesses, changes to the Company's relationship and arrangements with Starboard Value LP, any inability of the Company's operating businesses to execute on their business and, with respect to Benchmark, hedging strategy, risks related to price and other fluctuations in the oil and gas market, inflationary pressures, supply chain disruptions or labor shortages, the impact of tariffs and trade policy, non-performance by third parties of contractual or legal obligations, changes in the Company's credit ratings or the credit ratings of the Company's businesses, security threats, including cybersecurity threats and disruptions to the Company's business and operations from breaches of information technology systems, or breaches of information technology systems, facilities and infrastructure of third parties with which the Company transacts business, oil or natural gas production becoming uneconomic, causing write downs or adversely affecting Benchmark's ability to borrow, Benchmark's ability to replace reserves and efficiently develop current reserves, risks, operational hazards, unforeseen interruptions and other difficulties involved in the production of oil and natural gas, the impact of any seismic events, environmental liability risk, regulatory changes related to the oil and gas industry, the ability to successfully develop licensing programs and attract new business, changes in demand for current and future intellectual property rights, legislative, regulatory and competitive developments addressing licensing and enforcement of patents and/or intellectual property in general, the decrease in demand for Printronix' products, changes in safety, health, environmental, tax and other regulations, requirements or initiatives, hazards such as weather conditions, a health pandemic (similar to COVID-19), acts of war or terrorist acts and the government or military response thereto, general economic conditions, and the success of the Company's investments. For further discussions of risks and uncertainties, you should refer to the Company's filings with the Securities and Exchange Commission, including the "Risk Factors" section of the Company's most recent Annual Report on Form 10-K and any subsequent Quarterly Reports on Form 10-Q. In addition, actual results may differ materially as a result of additional risks and uncertainties of which the Company is currently unaware or which the Company does not currently view as material. Except as otherwise required by applicable law, the Company undertakes no obligation to revise or update publicly any forward-looking statements for any reason.

**Investor Contact:**

Gagnier Communications

ir@acaciares.com

------

**ACACIA RESEARCH CORPORATION**

**UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS**

**(In thousands, except share and per share data)**

---

| | | |
|:---|:---|:---|
| | **June 30, 2025** | **December 31, 2024** |
| | (Unaudited) | |
| **ASSETS** |  |  |
| Current assets: |  |  |
| &nbsp;&nbsp;&nbsp;Cash and cash equivalents | $316721 | $273880 |
| &nbsp;&nbsp;&nbsp;Equity securities | 21467 | 23135 |
| &nbsp;&nbsp;&nbsp;Equity securities without readily determinable fair value | 5816 | 5816 |
| &nbsp;&nbsp;&nbsp;Equity method investments | 30934 | 30934 |
| &nbsp;&nbsp;&nbsp;Accounts receivable, net | 23370 | 26909 |
| &nbsp;&nbsp;&nbsp;Inventories | 25724 | 27485 |
| &nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets | 19958 | 31987 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current assets | 443990 | 420146 |
| Property, plant and equipment, net | 22751 | 23865 |
| Oil and natural gas properties, net | 187095 | 191680 |
| Goodwill | 25782 | 29339 |
| Other intangible assets, net | 61643 | 55429 |
| Operating lease, right-of-use assets | 10397 | 9287 |
| Deferred income tax assets, net | 16998 | 20233 |
| Other non-current assets | 6890 | 6415 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets | $775546 | $756394 |
| **LIABILITIES AND STOCKHOLDERS' EQUITY** |  |  |
| Current liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;Accounts payable | $10972 | $12074 |
| &nbsp;&nbsp;&nbsp;Accrued expenses and other current liabilities | 22677 | 20575 |
| &nbsp;&nbsp;&nbsp;Accrued compensation | 6394 | 6277 |
| &nbsp;&nbsp;&nbsp;Current asset retirement obligation | 1585 | 1546 |
| &nbsp;&nbsp;&nbsp;Royalties and contingent legal fees payable | 5681 | 5448 |
| &nbsp;&nbsp;&nbsp;Deferred revenue | 731 | 1319 |
| &nbsp;&nbsp;&nbsp;Current portion of long-term debt | 2400 | 2400 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities | 50440 | 49639 |
| Asset retirement obligation | 31814 | 31070 |
| Long-term lease liabilities | 7551 | 6778 |
| Deferred income tax liabilities, net | 2697 | 2609 |
| Benchmark revolving credit facility | 58000 | 66500 |
| Deflecto facility | 43983 | 45088 |
| Other long-term liabilities | 3590 | 2091 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | 198075 | 203775 |
| Commitments and contingencies |  |  |
| Stockholders' equity: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Preferred stock, par value $0.001 per share; 10,000,000 shares authorized; no shares issued or outstanding |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Common stock, par value $0.001 per share; 300,000,000 shares authorized; 96,444,993 and 96,048,999 shares issued and outstanding as of June 30, 2025 and December 31, 2024, respectively | 96 | 96 |
| &nbsp;&nbsp;&nbsp;&nbsp;Treasury stock, at cost, 20,542,064 as of June 30, 2025 and December 31, 2024, respectively | (118542) | (118542) |
| &nbsp;&nbsp;&nbsp;&nbsp;Accumulated other comprehensive income (loss) | 345 | (1180) |
| &nbsp;&nbsp;&nbsp;&nbsp;Additional paid-in capital | 911473 | 910237 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accumulated deficit | (254792) | (275786) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Acacia Research Corporation stockholders' equity | 538580 | 514825 |
| Noncontrolling interests | 38891 | 37794 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total stockholders' equity | 577471 | 552619 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities and stockholders' equity | $775546 | $756394 |

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**ACACIA RESEARCH CORPORATION**

**UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS** 

**AND COMPREHENSIVE INCOME (LOSS)**

**(In thousands, except share and per share data)**

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| **Revenues:** |  |  |  |  |
| Intellectual property operations | $329 | $5333 | $70234 | $18956 |
| Industrial operations | 6590 | 6335 | 14266 | 15176 |
| Energy operations | 15317 | 14170 | 33623 | 16026 |
| Manufacturing operations | 29001 |  | 57536 |  |
| &nbsp;&nbsp;&nbsp;Total revenues | 51237 | 25838 | 175659 | 50158 |
| **Costs and expenses:** |  |  |  |  |
| Cost of revenues - intellectual property operations | 6558 | 5765 | 34470 | 12766 |
| Cost of revenues - industrial operations | 3406 | 3277 | 7470 | 7326 |
| Cost of production - energy operations | 12309 | 10038 | 25007 | 11353 |
| Cost of revenues - manufacturing operations | 22422 |  | 43233 |  |
| Sales and marketing expenses - industrial and manufacturing operations | 3381 | 1387 | 6693 | 2942 |
| General and administrative expenses | 15546 | 10129 | 32866 | 22616 |
| &nbsp;&nbsp;&nbsp;Total costs and expenses | 63622 | 30596 | 149739 | 57003 |
| Operating (loss) income | (12385) | (4758) | 25920 | (6845) |
| **Other income (expense):** |  |  |  |  |
| Equity securities investments: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Change in fair value of equity securities | 2219 | (4744) | (2558) | (31445) |
| &nbsp;&nbsp;&nbsp;Gain on sale of equity securities | 1907 |  | 3512 | 28861 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net realized and unrealized gain (loss) | 4126 | (4744) | 954 | (2584) |
| Non-recurring legacy legal expense |  | (6613) |  | (12856) |
| Gain (loss) on derivatives - energy operations | 6635 | (2659) | 1614 | (2488) |
| Gain (loss) on foreign currency exchange | 280 | (134) | 435 | (202) |
| Interest expense | (2329) | (1814) | (4780) | (2140) |
| Interest income | 2936 | 4991 | 5446 | 10033 |
| &nbsp;&nbsp;&nbsp;Other expense, net | (153) | (159) | (870) | (106) |
| &nbsp;&nbsp;&nbsp;Total other income (expense) | 11495 | (11132) | 2799 | (10343) |
| Income (loss) before income taxes | (890) | (15890) | 28719 | (17188) |
| Income tax (expense) benefit | (547) | 7061 | (6628) | 8170 |
| Net income (loss) including noncontrolling interests in subsidiaries | (1437) | (8829) | 22091 | (9018) |
| Net loss (income) attributable to noncontrolling interests in subsidiaries | (1856) | 383 | (1097) | 386 |
| Net income (loss) attributable to Acacia Research Corporation | $(3293) | $(8446) | $20994 | $(8632) |
| **Income (loss) per share:** |  |  |  |  |
| Net income (loss) attributable to common stockholders - Basic | $(3293) | $(8446) | $20994 | $(8632) |
| Weighted average number of shares outstanding - Basic | 96244590 | 100079803 | 96131624 | 99912854 |
| &nbsp;&nbsp;&nbsp;Basic net income (loss) per common share | $(0.03) | $(0.08) | $0.22 | $(0.09) |
| Net income (loss) attributable to common stockholders - Diluted | $(3293) | $(8446) | $20994 | $(8632) |
| Weighted average number of shares outstanding - Diluted | 96244590 | 100079803 | 96964308 | 99912854 |
| &nbsp;&nbsp;&nbsp;Diluted net income (loss) per common share | $(0.03) | $(0.08) | $0.22 | $(0.09) |
| **Other comprehensive income (loss):** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Foreign currency translation | $863 | $— | $1525 | $— |
| Total other comprehensive income, net | 863 |  | 1525 |  |
| Total comprehensive income (loss) | (574) | (8829) | 23616 | (9018) |
| Comprehensive loss (income) attributable to noncontrolling interests | (1856) | 383 | (1097) | 386 |
| Comprehensive income (loss) attributable to Acacia Research Corporation | (2430) | (8446) | 22519 | (8632) |

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**ACACIA RESEARCH CORPORATION - SUPPLEMENTAL INFORMATION**

**NON-GAAP FINANCIAL MEASURE**

This earnings release includes Adjusted EBITDA on a consolidated basis and for each of the Company's segments. Total Company Adjusted EBITDA, Operated Segment Adjusted EBITDA and Adjusted EBITDA and Free Cash Flow (FCF) for each of the Company's segments are supplemental non-GAAP financial measures used by management and external users of the Company's consolidated financial statements. This earnings release also includes the Company's Adjusted Net Income (Loss) and Adjusted Diluted Earnings Per Share (EPS), which are non-GAAP financial measures. GAAP refers to generally accepted accounting principles in the United States. A non-GAAP financial measure is a numerical measure of historical or future performance, financial position or cash flow that includes or excludes amounts that are excluded or included, respectively, in the most directly comparable measure calculated and presented in accordance with GAAP in the Company's financial statements.

Total Company Adjusted EBITDA is defined as net income / (loss) before net income / (loss) attributable to noncontrolling interests, income tax (benefit) / expense, interest expense, interest income, and other expense, net and loss / (gain) on foreign currency exchange, net realized and unrealized (gain) / loss on derivatives, net realized and unrealized loss / (gain) on investments, non-recurring legacy legal expenses, depreciation, depletion and amortization, stock-based compensation, realized hedge gain / (loss), transaction-related costs, and costs related to the legacy items. Operated Segment Adjusted EBITDA is the aggregate of Energy Operations Adjusted EBITDA, Manufacturing Operations Adjusted EBITDA, Industrial Operations Adjusted EBITDA, and Intellectual Property Operations Adjusted EBITDA. See below for the definition of each of those measures. The Company is providing Total Company Adjusted EBITDA and Operated Segment Adjusted EBITDA, non-GAAP financial measures, because management believes these metrics provide investors with useful supplemental information in comparing the operating results across reporting periods by excluding items that are not considered indicative of core operating performance. These measures are not intended to replace the presentation of financial results in accordance with GAAP and may be different from or otherwise inconsistent with similar non-GAAP financial measures used by other companies. The presentation of these non-GAAP financial measures supplements other metrics the Company uses to internally evaluate its subsidiary businesses and facilitate the comparison of past and present operating performance. These measures should not be considered in isolation or as a substitute for measures calculated and presented in accordance with GAAP.

*Energy Operations*

Energy Operations Adjusted EBITDA is defined as operating income / (loss) for Acacia's Energy Operations before depreciation, depletion and amortization expense and transaction-related costs, and including realized hedge gain / (loss). The Company is providing its Energy Operations Adjusted EBITDA, a non-GAAP financial measure, because the metric provides investors with useful supplemental information in comparing the operating results across reporting periods by excluding items that are not considered indicative of core operating performance.

*Industrial Operations*

Industrial Operations Adjusted EBITDA is defined as operating income / (loss) for Acacia's Industrial Operations before amortization of acquired intangibles and depreciation and amortization expense. The Company is providing its Industrial Operations Adjusted EBITDA, a non-GAAP financial measure, because the metric provides investors with useful supplemental information in comparing the operating results across reporting periods by excluding items that are not considered indicative of core operating performance.

*Intellectual Property Operations*

Intellectual Property Operations Adjusted EBITDA is defined as operating income / (loss) for Acacia's Intellectual Property Operations before patent amortization, depreciation expense and stock-based compensation. The Company is providing Intellectual Property Operations Adjusted EBITDA, a non-GAAP financial measure, because the metric provides investors with useful supplemental information in comparing the operating results across reporting periods by excluding items that are not considered indicative of core operating performance.

*Manufacturing Operations*

Manufacturing Operations Adjusted EBITDA is defined as operating income / loss for Acacia's Manufacturing Operations before depreciation and amortization expense, severance, and transaction-related costs. The Company is providing its Manufacturing Operations Adjusted EBITDA, a non-GAAP financial measure, because the metric provides investors with

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useful supplemental information in comparing the operating results across reporting periods by excluding items that are not considered indicative of core operating performance.

*Parent Costs* are defined as operating income / (loss) attributable to Parent before depreciation and amortization expense, stock-based compensation, transaction-related costs, and costs related to certain legacy matters attributable to the Parent organization. The Company is providing Parent Costs, a non-GAAP financial measure, because it believes it gives investors a clear picture of normalized Parent-level expenses.

*Free Cash Flow* is defined as net cash provided by (used in) operating activities, less net purchases of property and equipment, oil and gas properties, and patent acquisitions ("Capital Expenditures"). The Company is providing Free Cash Flow, a non-GAAP financial measure, because it believes free cash flow gives investors a good sense of how much cash flows are available to be used for de-levering, making acquisitions, repurchasing shares or similar uses of cash.

*Adjusted Net Income (Loss)*

Adjusted Net Income (Loss) is defined as Acacia's GAAP Net Income (Loss) excluding costs related to certain legacy matters, stock-based compensation, transaction-related costs, amortization of acquired intangibles, any unrealized (gain) / loss on securities, any unrealized (gain) / loss on hedges, and any (gain) / loss on non-cash derivatives and taking into account the tax effect(s) of those adjustments. The Company is providing Adjusted Net Income (Loss), a non-GAAP financial measure, because the metric provides investors with useful supplemental information in comparing the operating results across reporting periods by excluding items that are not considered indicative of core operating performance.

*Adjusted Diluted Earnings Per Share (EPS)*

Adjusted Diluted EPS is defined as Adjusted Net Income (Loss) divided by the Company's weighted average diluted share count as of the relative period end date. The Company is providing its Adjusted Diluted EPS, a non-GAAP financial measure, because the metric provides investors with useful supplemental information in comparing the operating results across reporting periods by excluding items that are not considered indicative of core operating performance.

The following tables reconcile Operating Income (Loss), the most directly comparable GAAP financial measure, to Adjusted EBITDA for each of the Company's operating segments and for Parent Costs for the three and six months ended June 30, 2025 and June 30, 2024.

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** |
| **<u>Adjusted EBITDA</u>** | **Energy Operations** | **Industrial Operations** | **Manufacturing Operations** | **Intellectual Property Operations** | **Parent Costs** | **Consolidated Total** |
|  | (In thousands, unaudited) | (In thousands, unaudited) | (In thousands, unaudited) | (In thousands, unaudited) | (In thousands, unaudited) | (In thousands, unaudited) |
| GAAP Operating Income (Loss) | $2093 | $74 | $(626) | $(7613) | $(6313) | $(12385) |
| Depreciation, Depletion & Amortization | 3989 | 546 | 1481 | 5415 | 14 | 11445 |
| Stock-Based Compensation |  |  |  | 137 | 817 | 954 |
| Realized Hedge Gain (Loss) | 869 |  |  |  |  | 869 |
| Transaction-Related Costs |  |  | (333) |  | 570 | 237 |
| Legacy Matter Costs |  |  |  |  | 1 | 1 |
| Severance Costs |  |  | 752 |  |  | 752 |
| &nbsp;&nbsp;&nbsp;&nbsp;Adjusted EBITDA | $6951 | $620 | $1274 | $(2061) | $(4911) | $1873 |
| Parent Interest Income |  |  |  |  | $2787 |  |

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** |
| **<u>Adjusted EBITDA</u>** | **Energy Operations** | **Industrial Operations** | **Manufacturing Operations** | **Intellectual Property Operations** | **Parent Costs** | **Consolidated Total** |
|  | (In thousands, unaudited) | (In thousands, unaudited) | (In thousands, unaudited) | (In thousands, unaudited) | (In thousands, unaudited) | (In thousands, unaudited) |
| GAAP Operating Income (Loss) | $3249 | $(234) | $— | $(2253) | $(5520) | $(4758) |
| Depreciation, Depletion & Amortization | 3455 | 683 |  | 3241 | 26 | 7405 |
| Stock-Based Compensation |  |  |  | 321 | 570 | 891 |
| Realized Hedge Gain (Loss) | 113 |  |  |  |  | 113 |
| Transaction-Related Costs | 222 |  |  |  |  | 222 |
| Legacy Matter Costs |  |  |  |  | 216 | 216 |
| Severance Costs |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Adjusted EBITDA | $7039 | $449 | $— | $1309 | $(4708) | $4089 |
| Parent Interest Income |  |  |  |  | $5028 |  |

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** |
| **<u>Adjusted EBITDA</u>** | **Energy Operations** | **Industrial Operations** | **Manufacturing Operations** | **Intellectual Property Operations** | **Parent Costs** | **Consolidated Total** |
|  | (In thousands, unaudited) | (In thousands, unaudited) | (In thousands, unaudited) | (In thousands, unaudited) | (In thousands, unaudited) | (In thousands, unaudited) |
| GAAP Operating Income (Loss) | $6094 | $376 | $(355) | $30895 | $(11090) | $25920 |
| Depreciation, Depletion & Amortization | 7967 | 1098 | 3026 | 9935 | 29 | 22055 |
| Stock-Based Compensation |  |  |  | 374 | 1502 | 1876 |
| Realized Hedge Gain (Loss) | 826 |  |  |  |  | 826 |
| Transaction-Related Costs |  |  | 114 |  | 677 | 791 |
| Legacy Matter Costs |  |  |  |  | 9 | 9 |
| Severance Costs |  | 167 | 928 |  |  | 1095 |
| &nbsp;&nbsp;&nbsp;&nbsp;Adjusted EBITDA | $14887 | $1641 | $3713 | $41204 | $(8873) | $52572 |
| Parent Interest Income |  |  |  |  | $5209 |  |

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** |
| **<u>Adjusted EBITDA</u>** | **Energy Operations** | **Industrial Operations** | **Manufacturing Operations** | **Intellectual Property Operations** | **Parent Costs** | **Consolidated Total** |
|  | (In thousands, unaudited) | (In thousands, unaudited) | (In thousands, unaudited) | (In thousands, unaudited) | (In thousands, unaudited) | (In thousands, unaudited) |
| GAAP Operating Income (Loss) | $3405 | $978 | $— | $1029 | $(12257) | $(6845) |
| Depreciation, Depletion & Amortization | 3877 | 1368 |  | 6676 | 52 | 11973 |
| Stock-Based Compensation |  |  |  | 764 | 985 | 1749 |
| Realized Hedge Gain (Loss) | 913 |  |  |  |  | 913 |
| Transaction-Related Costs | 222 |  |  |  |  | 222 |
| Legacy Matter Costs |  |  |  |  | 2409 | 2409 |
| Severance Costs |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Adjusted EBITDA | $8417 | $2346 | $— | $8469 | $(8811) | $10421 |
| Parent Interest Income |  |  |  |  | $10107 |  |

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