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Acacia Research
(NASDAQ:ACTG)
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Rating:59Neutral
Price Target:
$5.00
▲(7.30% Upside)
Action:Reiterated
Date:08/07/26
The score is driven primarily by decent financial strength (conservative balance sheet) but tempered by inconsistent profitability and weakened free cash flow. Technical indicators are mixed/neutral, valuation is constrained by negative earnings and no dividend support, while the latest earnings call adds a modest positive tilt due to strong liquidity and operating execution but highlights meaningful volatility and impairment-related risks.
Positive Factors
Strong liquidity and low parent leverage
A large liquidity cushion and absence of parent-level debt provide durable financial flexibility for acquisitions, litigation funding, and operational support. This conservative capital structure reduces refinancing risk and enables opportunistic capital allocation over the next 2–6 months.
Negative Factors
Episodic, timing-sensitive IP cash flows
IP monetization often produces large but irregular receipts that depend on settlements, litigation outcomes, and partner splits. This structural variability limits predictability of recurring earnings and complicates cash flow planning and capital allocation across reporting periods.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong liquidity and low parent leverage
A large liquidity cushion and absence of parent-level debt provide durable financial flexibility for acquisitions, litigation funding, and operational support. This conservative capital structure reduces refinancing risk and enables opportunistic capital allocation over the next 2–6 months.
Read all positive factors
Acacia Research (ACTG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$447.92M
Dividend YieldN/A
Average Volume (3M)146.16K
Price to Earnings (P/E)―
Beta (1Y)0.59
Revenue Growth12.33%
EPS Growth-160.91%
CountryUS
Employees986
SectorIndustrials
Sector Strength72
IndustrySpecialty Business Services
Share Statistics
EPS (TTM)-0.26
Shares Outstanding97,586,810
10 Day Avg. Volume149,947
30 Day Avg. Volume146,158
Financial Highlights & Ratios
PEG Ratio-0.10
Price to Book (P/B)0.66
Price to Sales (P/S)1.26
P/FCF Ratio6.15
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$6.00Price Target Upside28.76% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)-0.44
Revenue Forecast (FY)$194.24M
Acacia Research Business Overview & Revenue Model
Company Description
Acacia Research Corporation, together with its associated entities, primarily concentrates on acquiring intellectual property and related high-yield assets. A core aspect of its business strategy involves the commercialization and defense of paten...
How the Company Makes Money
Acacia primarily makes money by monetizing patent rights. Its key revenue streams typically include (1) patent license fees and royalties paid by companies that agree to use the patented technology under a license, and (2) settlements and court-aw...
Acacia Research Earnings Call Summary
Earnings Call Date:Aug 05, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 16, 2026
Earnings Call Sentiment Positive
The call communicated strong topline growth and robust operating performance driven largely by a sizable Intellectual Property licensing settlement and solid execution at operating businesses (notably Benchmark). The company also emphasized a healthy balance sheet ($334.6M liquidity) and opportunistic deal pipeline. However, there are notable challenges: a full write‑down of the MalinJ1/Viamet investment, nonrecurring legal expenses in the IP segment, Deflecto's pressured margins during restructuring, and the timing/contingent nature of IP cash flows. On balance, the positive items (material revenue growth, record Benchmark results, liquidity and realized public gains) materially outweigh the lowlights, though investors should be mindful of episodic IP volatility and the recent biotech impairment.Positive Updates
Sharp Revenue Growth Driven by Licensing
Total company revenue of $114.6M in Q2 2026 versus $51.2M in prior year period — an increase of approximately 124% — driven primarily by strong licensing activity in the Intellectual Property (Wi‑Fi 6) portfolio (license/relation revenue ~$60.6–60.9M).
Negative Updates
Minimal GAAP Net Income
GAAP net income attributable to Acacia was only $47,000 (approximately $0.00 per diluted share) despite strong adjusted results, reflecting significant items and non‑cash impacts.
Read all updates
Q2-2026 Updates
Positive
Negative
Sharp Revenue Growth Driven by Licensing
Total company revenue of $114.6M in Q2 2026 versus $51.2M in prior year period — an increase of approximately 124% — driven primarily by strong licensing activity in the Intellectual Property (Wi‑Fi 6) portfolio (license/relation revenue ~$60.6–60.9M).
Read all positive updates
Company Guidance
Management's forward-looking guidance emphasized maintaining financial flexibility and disciplined, long‑term capital allocation while pursuing selective acquisitions and organic investments (e.g., additional Benchmark wells under type‑curve underwriting), with several concrete metrics cited as context: Q2 total revenue $114.6M (operating segment revenue ex‑IP $53.6M), total company adjusted EBITDA $17.3M (operated segment adjusted EBITDA $22.8M), cash/securities/loans receivable $334.6M and no parent company debt; segment results included Benchmark revenue $20.5M, adj. EBITDA $9.8M and free cash flow $6.5M; Deflecto revenue $27.1M, adj. EBITDA $1.1M; Printronix revenue $6.0M, adj. EBITDA $1.0M and free cash flow $0.9M; Intellectual Property licensing revenue ~$60.6–60.9M with IP adj. EBITDA $10.9M (noting $3.7M of nonrecurring legacy legal expense and that the TP‑Link settlement was booked as AR in Q2 and collected in Q3), consolidated G&A $19.6M, operating income $8.5M, adjusted net income $12.8M ($0.13/sh), GAAP net income $0.05M, book value $557M ($5.71/sh), and total gross indebtedness $90.4M (nonrecourse: Benchmark $59.5M, Deflecto $30.9M); management also said IP amortization has declined vs. 2025 and will remain at a lower run‑rate through next year, Deflecto should see structural operating leverage as demand improves, and AMO Pharma's regulatory feedback increases clarity for AM02 development.Acacia Research Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
74
Positive
Cash Flow
52
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 278.37M | 285.23M | 122.31M | 125.10M | 59.22M | 88.05M |
| Gross Profit | 170.34M | 235.22M | 29.65M | 72.27M | 21.84M | 51.95M |
| EBITDA | 52.94M | 83.65M | 2.85M | 84.33M | -107.20M | 193.26M |
| Net Income | -15.01M | 21.68M | -36.06M | 67.06M | -125.06M | 149.20M |
Balance Sheet | ||||||
| Total Assets | 791.53M | 770.96M | 756.39M | 633.54M | 482.93M | 798.86M |
| Cash, Cash Equivalents and Short-Term Investments | 332.57M | 330.09M | 333.76M | 439.91M | 386.14M | 707.47M |
| Total Debt | 102.04M | 104.67M | 124.33M | 13.51M | 63.88M | 184.21M |
| Total Liabilities | 234.51M | 186.92M | 203.78M | 43.94M | 213.61M | 368.38M |
| Stockholders Equity | 526.79M | 543.45M | 514.83M | 568.27M | 258.28M | 419.43M |
Cash Flow | ||||||
| Free Cash Flow | 15.93M | 58.55M | -112.55M | -28.70M | -43.07M | -7.76M |
| Operating Cash Flow | 30.00M | 75.24M | 50.12M | -22.51M | -37.34M | 13.33M |
| Investing Cash Flow | -22.55M | -21.01M | -212.96M | 16.18M | 184.46M | 35.75M |
| Financing Cash Flow | -17.25M | -22.73M | 97.56M | 58.63M | -166.14M | 59.74M |
Acacia Research Technical Analysis
Negative
4.66
Price Trends
4.61
Negative
4.73
Negative
4.33
Positive
Market Momentum
0.02
Negative
49.07
Neutral
31.55
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ACTG, the sentiment is Negative. The current price of 4.66 is above the 20-day moving average (MA) of 4.61, above the 50-day MA of 4.61, and above the 200-day MA of 4.33, indicating a neutral trend. The MACD of 0.02 indicates Negative momentum. The RSI at 49.07 is Neutral, neither overbought nor oversold. The STOCH value of 31.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ACTG.
Acacia Research Risk Analysis
Acacia Research disclosed 65 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
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
60 Neutral | $511.90M | 15.36 | 26.19% | 4.12% | -8.02% | ― | |
60 Neutral | $979.00M | -7.59 | -13.11% | ― | 9.45% | -1658.03% | |
59 Neutral | $447.92M | -17.46 | -2.81% | ― | 12.33% | -160.91% | |
57 Neutral | $35.44M | -12.67 | -6.40% | 6.25% | -100.00% | -22.00% | |
43 Neutral | $19.02M | -0.27 | -243.26% | ― | -8.81% | -92.12% | |
41 Neutral | $52.87M | -1.06 | 100.12% | ― | -70.31% | -348.06% |
* Industrials Sector Average
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Acacia Research
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Acacia Research Corporate Events
Executive/Board ChangesShareholder Meetings
Acacia Research Shareholders Back Directors and Governance Matters
Positive
Jun 25, 2026
At its June 23, 2026 virtual annual meeting, Acacia Research Corporation reported that 86,674,540 shares were represented, establishing a quorum, and stockholders elected five directors, including Gavin Molinelli, Michelle Felman, Isaac T. Kohlber...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.