Acacia(US:ACTG)2025-11-06 21:20Revenue Performance - Total revenues for Q3 2025 reached $59.446 million, a significant increase from $23.310 million in Q3 2024, representing a growth of 155.5%[18] - Total revenues for Q3 2025 were $30,815,000, compared to $23,310,000 in Q3 2024, marking an increase of 32%[206] - Total revenues for the nine months ended September 30, 2025, were $235.105 million, compared to $73.468 million for the same period in 2024, representing a significant increase[207] - Revenues from the United States for the nine months ended September 30, 2025, were $186,665,000, up from $78,027,000 in 2024, indicating a 139% growth[209] - Total revenues for Benchmark for the nine months ended September 30, 2025, were $47,799,000, up 50.0% from $31,843,000 in the same period of 2024[70] Segment Performance - Intellectual property operations generated $7.795 million in revenue for Q3 2025, compared to $486 thousand in Q3 2024, marking a substantial increase of 1,505%[18] - Energy operations reported revenues of $14.176 million in Q3 2025, slightly down from $15.817 million in Q3 2024, a decrease of 10.4%[18] - Manufacturing operations contributed $30.815 million in revenue for Q3 2025, with no revenue reported in Q3 2024[18] - The energy operations segment generated $47.799 million in revenue for the nine months ended September 30, 2025, compared to $31.843 million in 2024, reflecting a growth of approximately 50%[207] - Printronix's net revenues for the three months ended September 30, 2025, were $6,660,000, a decrease from $7,007,000 in 2024[60] Financial Position - The net loss attributable to Acacia Research Corporation for Q3 2025 was $2.730 million, an improvement from a net loss of $13.996 million in Q3 2024[18] - Total assets increased to $768.871 million as of September 30, 2025, up from $756.394 million as of December 31, 2024, reflecting a growth of 1.9%[15] - Total liabilities decreased to $192.033 million as of September 30, 2025, down from $203.775 million as of December 31, 2024, a reduction of 5.8%[15] - Stockholders' equity rose to $576.838 million as of September 30, 2025, compared to $552.619 million as of December 31, 2024, an increase of 4.4%[15] - The company reported a net income before income taxes of $25.357 million for the nine months ended September 30, 2025, compared to a loss of $23.348 million in 2024[207] Cash Flow and Investments - Cash flows from operating activities for the nine months ended September 30, 2025, were $62.1 million, compared to $70.4 million in 2024, indicating a decrease of approximately 11.0%[23] - The company reported a net cash used in investing activities of $14.7 million for the nine months ended September 30, 2025, compared to $117.1 million in 2024, reflecting a significant reduction in investment outflows[23] - The company invested $10.0 million to acquire a 50.4% equity interest in Benchmark Energy II, LLC, which is engaged in oil and gas asset acquisition and development[35] - The company completed the acquisition of Deflecto Acquisition, Inc. for an aggregate consideration of $103.7 million, funded by a $48.0 million secured term loan and cash on hand[38] Shareholder Equity and Stock Activity - The company issued 15,385 shares of common stock for unvested restricted stock awards during the three months ended September 30, 2025[19] - The company repurchased 1,537,122 shares of common stock, resulting in a treasury stock balance of $(118,542,000) as of September 30, 2025[21] - The net loss attributable to common stockholders for Q3 2025 was $(2,730,000), compared to a net loss of $(13,996,000) in Q3 2024, showing an improvement of 80%[195] - As of September 30, 2025, there were 12,179,045 shares of common stock available for grant under the 2024 Acacia Research Corporation Stock Incentive Plan[188] Legal and Compliance Matters - The Company is subject to various legal claims, but management believes that any potential liability will not materially affect its financial position[170] - Acacia settled the AIP Matter for a payment of $14.5 million during the year ended December 31, 2024, with an additional non-recurring legal expense of $12.9 million[174] - The Company agreed to appoint at least two independent directors to the Board until May 12, 2026, with current members satisfying this requirement[152] Strategic Partnerships and Future Outlook - Acacia's investment strategy focuses on acquiring businesses with a total enterprise value of $1 billion or less, targeting those with stable cash flow generation and scalability[27] - The company anticipates continued growth in revenues driven by market expansion and new product developments in the upcoming quarters[213] - Acacia's relationship with Starboard Value, LP provides access to industry expertise and operational partners to evaluate acquisition opportunities and enhance value creation[28]