Acacia Research | 10-Q: FY2026 Q1 Revenue Beats Estimate at USD 54.24 M

Revenue: As of FY2026 Q1, the actual value is USD 54.24 M, beating the estimate of USD 50 M.

EPS: As of FY2026 Q1, the actual value is USD -0.16.

EBIT: As of FY2026 Q1, the actual value is USD -9.286 M.

Segmented Financial Metrics

Intellectual Property Operations

• Revenue: Total revenues were $722,000 in 2026, a -99% decrease from $69.9 million in 2025. Paid-up license revenue agreements decreased by -100% to $100,000 in 2026 from $69.5 million in 2025. Recurring license revenue agreements increased by 50% to $622,000 in 2026 from $415,000 in 2025.
• Cost of Revenues: Decreased by -83% to $4.8 million in 2026 from $27.9 million in 2025. This included a -99% decrease in inventor royalties to $188,000, a -99% decrease in contingent legal fees to $32,000, and a -58% decrease in litigation and licensing expenses to $853,000. Amortization of patents decreased by -17% to $3.8 million.
• Segment Gross (Loss) Profit: - $4.1 million in 2026 compared to $42.0 million in 2025.
• General and Administrative Expenses: $3.3 million in 2026, a -7% decrease from $3.5 million in 2025.
• Segment Operating (Loss) Income: - $7.4 million in 2026 compared to $38.5 million in 2025.
• Operational Metrics: New license agreements executed were 1 in 2026, down from 2 in 2025. Licensing and enforcement programs generating revenues were 5 in 2026, down from 6 in 2025. No new patent portfolios were acquired in 2026, compared to 1 in 2025.

Industrial Operations

• Revenue: Total revenues were $7.2 million in 2026, a -6% decrease from $7.7 million in 2025. Revenue from printers and parts decreased by -18% to $2.4 million in 2026 from $2.9 million in 2025. Consumable products revenue increased by 1% to $4.0 million in 2026 from $4.0 million in 2025. Services revenue remained stable at $776,000 in 2026 compared to $773,000 in 2025.
• Cost of Revenues: Decreased by -19% to $3.3 million in 2026 from $4.1 million in 2025.
• Segment Gross Profit: $3.9 million in 2026 compared to $3.6 million in 2025.
• Sales and Marketing Expenses: $1.4 million in 2026, a -10% decrease from $1.6 million in 2025.
• General and Administrative Expenses: $1.6 million in 2026, an -8% decrease from $1.7 million in 2025.
• Segment Operating Income: $876,000 in 2026 compared to $302,000 in 2025.

Energy Operations

• Revenue: Total revenues increased by 2% to $18.7 million in 2026 from $18.3 million in 2025. Oil sales increased by 9% to $8.7 million from $7.9 million. Natural gas sales increased by 15% to $6.1 million from $5.3 million. Natural gas liquids sales decreased by -29% to $3.3 million from $4.7 million. Other service sales increased by 72% to $608,000 from $353,000.
• Production Volumes: Oil production increased by 6% to 121,703 Bbl. Natural gas production decreased by -5% to 1,389,056 Mcf. Natural gas liquids production decreased by -10% to 150,612 Bbl. Total production (boe) decreased by -4% to 503,824.
• Average Prices: Average oil price per Bbl increased by 2% to $71.09. Average natural gas price per Mcf increased by 21% to $4.41. Average natural gas liquids price per Bbl decreased by -21% to $21.84.
• Cost of Production: Decreased by -8% to $11.7 million in 2026 from $12.7 million in 2025.
• Segment Gross Profit: $7.0 million in 2026 compared to $5.6 million in 2025.
• General and Administrative Expenses: $1.7 million in 2026, a 3% increase from $1.6 million in 2025.
• Segment Operating Income: $5.3 million in 2026 compared to $4.0 million in 2025.

Manufacturing Operations

• Revenue: Total revenues were $27.7 million in 2026, a -3% decrease from $28.5 million in 2025. Air distribution revenue decreased by -13% to $8.6 million from $9.9 million. Transportation safety revenue increased by 4% to $10.5 million from $10.1 million. Office products revenue remained stable at $8.6 million.
• Cost of Revenues: Increased by 8% to $22.4 million in 2026 from $20.8 million in 2025.
• Segment Gross Profit: $5.3 million in 2026 compared to $7.7 million in 2025.
• Sales and Marketing Expenses: $1.7 million in 2026, a -2% decrease from $1.7 million in 2025.
• General and Administrative Expenses: $4.0 million in 2026, a -29% decrease from $5.7 million in 2025, primarily due to non-recurring severance and professional fees in 2025.
• Segment Operating (Loss) Income: - $456,000 in 2026 compared to $271,000 in 2025.

Other Key Financial Metrics

Cash Flow Summary

• Net Cash Provided by Operating Activities: $3.4 million in 2026, up from $2.4 million in 2025.
• Net Cash (Used in) Provided by Investing Activities: - $982,000 in 2026, compared to $1.0 million provided in 2025.
  • Patent acquisition: - $1.8 million in 2026.
  • Sales of equity securities: $1.2 million in 2026, down from $6.7 million in 2025.
  • Proceeds from loans receivable: $7.2 million in 2026.
  • Net additions to oil and gas properties: - $8.5 million in 2026, compared to - $2.1 million in 2025.
• Net Cash Used in Financing Activities: - $1.9 million in 2026, compared to - $6.1 million in 2025.
  • Paydown of Deflecto Facility: - $1.6 million in 2026, compared to - $600,000 in 2025.
• Cash and Cash Equivalents, End of Period: $307.5 million in 2026, compared to $272.0 million in 2025.

Other Operational Information

• Equity Securities: Fair value of equity securities (other common stock) was $14.2 million as of March 31, 2026, down from $17.6 million as of December 31, 2025.
• Loans Receivable: Outstanding balance was $8.1 million as of March 31, 2026, down from $15.3 million as of December 31, 2025.
• Inventories: Total inventories were $23.4 million as of March 31, 2026, down from $26.6 million as of December 31, 2025.
• Oil and Natural Gas Properties, Net: $195.9 million as of March 31, 2026, up from $190.7 million as of December 31, 2025.
• Goodwill: $25.7 million as of March 31, 2026, down from $25.8 million as of December 31, 2025, primarily due to foreign currency translation effects.
• Other Intangible Assets, Net: $45.3 million as of March 31, 2026, down from $48.1 million as of December 31, 2025.
• Benchmark Revolving Credit Facility: Outstanding balance was $59.5 million as of March 31, 2026 and December 31, 2025.
• Deflecto Facility: Outstanding balance was $31.0 million as of March 31, 2026, down from $32.6 million as of December 31, 2025.

Future Outlook and Strategy

Acacia Research Corporation intends to grow by acquiring additional operating businesses, energy assets, and intellectual property assets, utilizing cash on hand or through equity or debt financing. The company anticipates that its Manufacturing and Industrial Operations will adjust selling prices in response to higher costs from inflationary pressures. The Intellectual Property Operations segment expects patent-related legal expenses to fluctuate based on trial dates, international enforcement, and patent portfolio activities.