Acacia Research | 10-Q: FY2025 Q3 Revenue Beats Estimate at USD 59.45 M

Revenue: As of FY2025 Q3, the actual value is USD 59.45 M, beating the estimate of USD 38 M.

EPS: As of FY2025 Q3, the actual value is USD -0.03.

EBIT: As of FY2025 Q3, the actual value is USD -7.197 M.

Intellectual Property Operations

• Revenue: $7.8 million for the three months ended September 30, 2025, compared to $0.5 million for the same period in 2024.
• Cost of Revenues: $8.3 million for the three months ended September 30, 2025, compared to $5.7 million for the same period in 2024.
• Operating Loss: - $2.4 million for the three months ended September 30, 2025, compared to - $7.1 million for the same period in 2024.

Industrial Operations

• Revenue: $6.7 million for the three months ended September 30, 2025, compared to $7.0 million for the same period in 2024.
• Cost of Revenues: $3.4 million for the three months ended September 30, 2025, compared to $3.5 million for the same period in 2024.
• Operating Income: $0.3 million for the three months ended September 30, 2025, compared to - $0.1 million for the same period in 2024.

Energy Operations

• Revenue: $14.2 million for the three months ended September 30, 2025, compared to $15.8 million for the same period in 2024.
• Cost of Production: $11.9 million for the three months ended September 30, 2025, compared to $11.7 million for the same period in 2024.
• Operating Income: $1.1 million for the three months ended September 30, 2025, compared to $3.1 million for the same period in 2024.

Manufacturing Operations

• Revenue: $30.8 million for the three months ended September 30, 2025.
• Cost of Revenues: $23.3 million for the three months ended September 30, 2025.
• Operating Income: $1.1 million for the three months ended September 30, 2025.

Cash Flow

• Operating Cash Flow: $62.1 million for the nine months ended September 30, 2025, compared to $70.4 million for the same period in 2024.
• Free Cash Flow: Not explicitly stated, but net cash used in investing activities was - $14.7 million for the nine months ended September 30, 2025.

Future Outlook and Strategy

• Core Business Focus: The company aims to continue acquiring businesses with strong free cash flow generation and scalability, focusing on opportunities where they can leverage their industry relationships and capital base to improve performance.
• Non-Core Business: The company remains open to opportunistically deploying additional capital into the IP business and other sectors as attractive opportunities arise.