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Acacia Research Corp. (ACTG)
NASDAQ:ACTG
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Acacia Research
(NASDAQ:ACTG)
59Neutral
Acacia Research (ACTG) vs. S&P 500 (SPY)
Market Cap
$357.76M
Dividend YieldN/A
Average Volume (3M)337.74K
Price to Earnings (P/E)7.7
Beta (1Y)0.93
Revenue Growth65.22%
EPS Growth-133.47%
CountryUS
Employees1,036
SectorIndustrials
Sector Strength91
IndustrySpecialty Business Services
Share Statistics
EPS (TTM)0.34
Shares Outstanding96,171,700
10 Day Avg. Volume347,587
30 Day Avg. Volume337,741
Financial Highlights & Ratios
PEG Ratio0.06
Price to Book (P/B)0.73
Price to Sales (P/S)0.00
P/FCF Ratio-3.68
Enterprise Value/Market Cap0.59
Enterprise Value/Revenue0.37
Enterprise Value/Gross Profit7.17
Enterprise Value/Ebitda1.10
Forecast
1Y Price Target
$6.00Price Target Upside61.29% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Acacia Research Business Overview & Revenue Model
Company DescriptionAcacia Research Corporation (ACTG) is a publicly traded company that specializes in intellectual property (IP) investment, development, and monetization. The company operates in sectors including technology, healthcare, and energy, leveraging its expertise in managing and licensing patent portfolios to generate value. Acacia Research invests in these sectors by acquiring patent rights and partnering with inventors and patent owners to unlock the potential of their innovations.
How the Company Makes MoneyAcacia Research makes money primarily through the acquisition, licensing, and enforcement of intellectual property rights. The company acquires patent portfolios and then seeks to monetize these assets by licensing them to third parties or through litigation and settlements when necessary. Revenue is generated when license agreements are reached or through successful legal actions that result in settlements or court-awarded damages. Additionally, Acacia often partners with inventors or patent holders, sharing revenues generated from licensing and enforcement activities. The company may also engage in strategic partnerships or joint ventures that enhance its ability to monetize its IP assets.
Acacia Research Financial Statement Overview
Summary
Acacia Research demonstrates strong cost management and cash flow improvement but faces significant challenges in profitability, with negative net margins and declining equity ratio. The balance sheet is robust with low leverage, yet operational margins are under pressure. The company must address profitability issues to leverage its strong cash flow position and equity base.Income Statement
The company's income statement reveals fluctuating revenue with a recent decline from $125M to $122M. Gross profit margin improved significantly from 57.8% to 79.9% in the latest year, indicating better cost management. However, the net profit margin has turned negative, moving from 53.6% to -29.5%, due to a significant decline in net income. EBIT and EBITDA margins also turned negative, highlighting operational challenges.45
Neutral
Balance Sheet
The balance sheet shows a strong equity position with an increase in stockholders' equity from $568M to $515M. The debt-to-equity ratio is low at 0.013, indicating limited leverage, which is positive. However, the equity ratio decreased from 89.7% to 68.1%, reflecting an increase in liabilities. The return on equity has turned negative, reflecting recent income challenges.60
Neutral
Cash Flow
Operating cash flow improved from negative to $50M, showing better cash generation. However, free cash flow remains negative at -$98M due to high capital expenditures. The free cash flow to net income ratio is unfavorable, indicating cash generation issues relative to earnings. The operating cash flow to net income ratio is strong, suggesting better operational cash efficiency despite negative net income.40
Negative
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 122.31M | 125.10M | 59.22M | 88.05M | 29.78M | Gross Profit |
| 97.76M | 72.27M | 21.84M | 51.95M | 4.96M | EBIT |
| -32.93M | 20.94M | -5.63M | 7.89M | -19.52M | EBITDA |
| 1.87M | 84.33M | -107.20M | 25.23M | -14.72M | Net Income Common Stockholders |
| -36.06M | 67.06M | -110.94M | 149.20M | 109.23M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 333.76M | 439.91M | 386.14M | 707.47M | 451.33M | Total Assets |
| 756.39M | 633.54M | 482.93M | 798.86M | 515.52M | Total Debt |
| 124.33M | 13.51M | 62.32M | 183.28M | 116.61M | Net Debt |
| -149.55M | -326.58M | -225.46M | -125.67M | -48.93M | Total Liabilities |
| 203.78M | 43.94M | 213.61M | 368.38M | 222.99M | Stockholders Equity |
| 514.83M | 568.27M | 258.28M | 419.43M | 281.49M |
| Cash Flow | Free Cash Flow | |||
| -98.55M | -28.70M | -43.07M | -7.76M | -33.60M | Operating Cash Flow |
| 50.12M | -22.51M | -37.34M | 13.33M | -19.62M | Investing Cash Flow |
| -212.96M | 16.18M | 184.46M | 35.75M | 18.60M | Financing Cash Flow |
| 97.56M | 58.63M | -166.14M | 59.74M | 109.21M |
Acacia Research Technical Analysis
Positive
3.72
Price Trends
3.32
Positive
3.81
Negative
4.21
Negative
Market Momentum
0.15
Negative
66.57
Neutral
74.41
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ACTG, the sentiment is Positive. The current price of 3.72 is above the 20-day moving average (MA) of 3.35, above the 50-day MA of 3.32, and below the 200-day MA of 4.21, indicating a neutral trend. The MACD of 0.15 indicates Negative momentum. The RSI at 66.57 is Neutral, neither overbought nor oversold. The STOCH value of 74.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ACTG.
Acacia Research Risk Analysis
Acacia Research disclosed 63 risk factors in its most recent earnings report. Acacia Research reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Acacia Research Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
64 Neutral | $4.44B | 11.99 | 5.16% | 249.23% | 4.01% | -11.87% | |
59 Neutral | $357.76M | 7.73 | -2.09% | ― | 65.22% | -133.47% | |
49 Neutral | $28.33M | ― | -5.44% | 8.13% | -87.89% | -44.93% | |
47 Neutral | $41.39M | ― | -80.45% | ― | -19.84% | 49.40% | |
38 Underperform | $32.59M | ― | ― | -2.44% | ― |
* Industrials Sector Average
Performance Comparison
ACTG
Acacia Research
3.77
-1.74
-31.58%
OMEX
Odyssey Marine Exploration
1.04
-2.94
-73.87%
NTIP
Network-1 Technologies
1.24
-0.39
-23.93%
SST
System1
0.44
-1.06
-70.67%
Acacia Research Earnings Call Summary
Earnings Call Date:May 08, 2025
(Q1-2025)
| % Change Since: 21.17%|
Next Earnings Date:Aug 18, 2025
Earnings Call Sentiment Positive
The earnings call conveyed a generally positive sentiment, highlighting strong financial results, successful asset integration, and effective cash and debt management. However, some challenges were noted with increased operating expenses and tariff-related demand headwinds.Q1-2025 Updates
Positive Updates
Strong Financial Performance
Acacia reported first quarter revenue of $124.4 million and total company adjusted EBITDA of $50.7 million, driven by gains in their Intellectual Property business and integration of acquired assets.
Intellectual Property Settlement
A significant IP settlement related to the WiFi portfolio delivered approximately $69 million in revenue, contributing $48 million in net proceeds.
Successful Integration of Acquisitions
Continued integration of Revolution assets within the Energy segment and first full quarter contributions from Deflecto improved revenue and operational efficiencies.
Energy Segment Resilience
Benchmark Energy generated significant free cash flow, repaying over 25% of $82 million debt drawn at close, and maintained production despite challenging weather.
Cash and Debt Management
Cash, cash equivalents, and equity securities totaled approximately $338.2 million pro forma, with zero parent company indebtedness.
Negative Updates
Increased Operating Expenses
Total consolidated G&A expense increased to $17.3 million from $12.5 million in the same quarter last year, largely due to the addition of Deflecto.
Tariff-Related Demand Headwinds
Tariff-specific demand headwinds affected Deflecto's transportation unit, impacting the trucking industry due to purchasing delays.
Industrial Segment Revenue Decline
Industrial Operations revenue slightly decreased to $7.7 million from $8.8 million in the same quarter last year.
Company Guidance
During the Acacia Research First Quarter 2025 Earnings Conference Call, the company reported a strong start to the year with total revenue of $124.4 million and an adjusted EBITDA of $50.7 million. Key metrics highlighted included a significant increase in their Intellectual Property operations, generating $69.9 million in licensing and other revenue, driven by a large settlement related to their WiFi portfolio. The company also reported a book value per share of $6, with a 4.3% increase quarter-over-quarter, and book value to Acacia excluding noncontrolling interests at $5.62, up 4.8% quarter-over-quarter. Additionally, Acacia's Energy Operations contributed $18.3 million in revenue, and their Manufacturing Operations generated $28.5 million, reflecting the company's robust performance across its diverse business segments. The management emphasized their strategy of targeted capital allocation and consistent execution amid macroeconomic uncertainties, focusing on acquiring and building businesses with stable long-term cash flow generation and scalability.Acacia Research Corporate Events
M&A Transactions
Acacia Research Expands Portfolio with Deflecto Acquisition
Positive
Oct 21, 2024
Acacia Research Corporation has acquired Deflecto Acquisition, Inc. for $103.7 million, expanding its portfolio with a leading manufacturer of essential products in commercial transportation, HVAC, and office markets. The transaction is expected to significantly boost revenue and be accretive to free cash flow. Deflecto, headquartered in Indianapolis, is projected to generate $128-$136 million in revenue for 2024, and will continue to be led by its current management team. The acquisition is funded through cash and a new secured credit facility.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.