Acacia(ACTG) - 2025 Q1 - Quarterly Results

Financial Performance - Total revenue for Q1 2025 was $124.4 million, up 412$24.3 million in Q1 2024, driven by $69.9 million from Intellectual Property operations and$18.3 million from Energy Operations[5]. - GAAP net income for the quarter was $24.3 million, resulting in a GAAP diluted EPS of$0.25[5]. - Adjusted net income for Q1 2025 was $33.1 million, with an adjusted diluted EPS of$0.34[5]. - Total Company Adjusted EBITDA was $50.7 million, while Operated Segment Adjusted EBITDA reached$54.7 million for the quarter[5]. - Operating income for Q1 2025 was $38.3 million, compared to an operating loss of$2.1 million in Q1 2024[26]. - Net income attributable to Acacia Research Corporation was $24.3 million for Q1 2025, a turnaround from a net loss of$0.2 million in Q1 2024[26]. - Basic net income per common share for Q1 2025 was $0.25, compared to a loss per share in the previous year[26]. - For the three months ended March 31, 2025, the consolidated Adjusted EBITDA was$50,699,000, compared to $6,332,000 for the same period in 2024, indicating a significant increase[40]. - The GAAP Operating Income for the three months ended March 31, 2025, was$38,305,000, while for the same period in 2024, it was a loss of $2,087,000, showing a turnaround in performance[40]. Revenue Breakdown - Energy Operations generated$18.3 million in revenue, marking the highest quarterly revenue under Acacia ownership[5]. - Intellectual Property Operations contributed $69.9 million in revenue, significantly up from$13.6 million in the prior-year quarter[7]. - Intellectual property operations generated $69.9 million in revenue, up from$13.6 million in the same quarter last year, marking a growth of 414%[26]. Assets and Liabilities - The book value as of March 31, 2025, was $577.3 million, translating to a book value per share of$6.00[16]. - Total assets increased to $801.6 million as of March 31, 2025, up from$756.4 million at the end of 2024[25]. - Current liabilities rose to $75.5 million in Q1 2025, compared to$49.6 million in Q4 2024[25]. - The company reported a total stockholders' equity of $577.3 million as of March 31, 2025, an increase from$552.6 million at the end of 2024[25]. - Total indebtedness on a consolidated basis was $108.4 million, with no debt at the Parent company level[20]. Cash Flow and Expenses - Free cash flow for the quarter was$335,000, reflecting net cash from operating activities of $2.4 million after capital expenditures[14]. - Free Cash Flow is defined as net cash from operating activities minus capital expenditures, which is crucial for assessing cash available for acquisitions and share repurchases[35]. - The company incurred$554,000 in transaction-related costs during the three months ended March 31, 2025[40]. - Depreciation, Depletion & Amortization for the three months ended March 31, 2025, totaled $10,610,000, compared to$4,568,000 for the same period in 2024[40]. - Parent Interest Income for the three months ended March 31, 2025, was $2,422,000, compared to$5,079,000 for the same period in 2024[40]. Strategic Focus - The company is focused on strategic acquisitions and market expansion to enhance its operational capabilities and financial performance[24]. - Adjusted EBITDA for the total company is provided as a non-GAAP financial measure to give investors insight into core operating performance[27]. - The Adjusted Net Income (Loss) metric is provided to give investors a clearer picture of core operating performance by excluding non-core items[36]. - The company reported Parent Costs, a non-GAAP measure, to normalize Parent-level expenses, which helps investors understand the underlying financial health[34]. - Adjusted Diluted EPS is calculated as Adjusted Net Income (Loss) divided by the weighted average diluted share count, providing a clearer view of earnings performance[37].