Acacia Research Corp. (ACTG)
NASDAQ:ACTG
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Acacia Research
(NASDAQ:ACTG)
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Rating:63Neutral
Price Target:
$5.00
▼(-0.40% Downside)
Action:Reiterated
Date:05/10/26
ACTG scores as a moderate setup driven primarily by strong solvency and decent current cash generation, partially offset by volatile/weak recent operating performance (sharp TTM revenue decline and net losses). Technicals are soft in the near term, and valuation is challenged by a negative P/E. The latest earnings call was mixed: improving operated businesses and liquidity strength, but continued GAAP/adjusted losses and episodic IP revenue keep risk elevated.
Positive Factors
Balance sheet strength
Extremely low leverage and a sizable equity base provide durable financial flexibility. This limits refinancing risk, supports investment or M&A optionality, and cushions the company through episodic IP cycles, sustaining operations and strategy over the next several months.
Negative Factors
Episodic IP revenue
IP monetization remains highly lumpy and unpredictable; the collapse from a prior large settlement shows revenues can vanish year-over-year. This structural variability undermines forecasting, makes sustained profitability harder, and elevates cash flow volatility over coming quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance sheet strength
Extremely low leverage and a sizable equity base provide durable financial flexibility. This limits refinancing risk, supports investment or M&A optionality, and cushions the company through episodic IP cycles, sustaining operations and strategy over the next several months.
Read all positive factors
Acacia Research (ACTG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$446.24M
Dividend YieldN/A
Average Volume (3M)146.16K
Price to Earnings (P/E)―
Beta (1Y)0.61
Revenue Growth-3.31%
EPS Growth-73.22%
CountryUS
Employees1,036
SectorIndustrials
Sector Strength72
IndustrySpecialty Business Services
Share Statistics
EPS (TTM)-0.18
Shares Outstanding96,589,134
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 Cap0.55
Enterprise Value/Revenue1.14
Enterprise Value/Gross Profit1.16
Enterprise Value/Ebitda5.89
Forecast
1Y Price Target
$6.00Price Target Upside19.52% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)-0.36
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 Research has historically generated revenue primarily by monetizing intellectual property. This model typically works as follows: (1) Asset acquisition: Acacia acquires patent portfolios (or rights to patents) from inventors, companies, or ...
Acacia Research Earnings Call Summary
Earnings Call Date:May 07, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 06, 2026
Earnings Call Sentiment Neutral
The call presented a mixed picture: operational execution and strategic investments showed tangible progress (Benchmark well success with strong returns, record production, Deflecto consolidation and expected cost savings, Printronix cash generation, and a solid liquidity position). However, material near-term negatives—chiefly an episodic collapse in IP revenue compared with the prior year and a large noncash unrealized hedge loss—drove a GAAP loss, lowered book value, and produced an adjusted net loss for the quarter. Management emphasized that many negatives are noncash or episodic (hedge mark-to-market and timing of IP settlements) and highlighted expected contributions from recently completed investments beginning in Q2 and H2 2026.Positive Updates
Total Q1 Revenue
Acacia reported total Q1 2026 revenue of $54.2 million.
Negative Updates
GAAP Net Loss Driven by Hedge Mark-to-Market
GAAP net loss attributable to Acacia was $15.7 million (negative $0.16 per share) versus net income of $24.3 million ($0.25 per share) in the prior-year quarter. A large driver was derivative hedge activity: total loss on hedges was $10.7 million (including $1.0 million realized and $9.7 million unrealized), which significantly impacted GAAP results and book value.
Read all updates
Q1-2026 Updates
Positive
Negative
Total Q1 Revenue
Acacia reported total Q1 2026 revenue of $54.2 million.
Read all positive updates
Company Guidance
Management guided that Q1 results set the stage for near‑term growth, reporting total Q1 revenue of $54.2M (operated revenue ex‑IP $53.5M), operated‑segment adjusted EBITDA of $10.3M (company adjusted EBITDA $1.6M) and GAAP net loss of $15.7M (‑$0.16/sh) while adjusted net loss was ‑$6.6M (‑$0.07/sh); Benchmark delivered record Q1 revenue $18.7M and $7.7M adjusted EBITDA, drilled its first Cherokee well with $11.5M development cost targeting >2.5x MOIC (~60%+ IRR) and expects production benefit in Q2–Q3 (April sales >63,000 barrels), noting ~75–80% of existing production hedged at ~ $70/bbl vs WTI $101/bbl (3/31) which produced a $9.7M unrealized hedge loss (~$0.10/sh noncash); Benchmark FCF was ‑$1.9M in Q1 (includes $8.5M CapEx; ex‑growth FCF >$6M); Deflecto showed sequential revenue +4.6% and adj. EBITDA +1.3%, completed Portland→Dover consolidation expected to save ~ $2M annually starting H2 (term loan balance $31.3M), Printronix generated ~$4.8M cash flow LTM (~15% cash‑flow yield), IP was $0.7M revenue with a ‑$3.5M adj. EBITDA, consolidated cash/securities/loans receivable $329.9M (down $9.7M q/q), total gross debt $90.5M (Benchmark $59.5M nonrecourse; Deflecto $31M nonrecourse), and parent adjusted G&A $5.2M — with management emphasizing growing EBITDA and free cash flow and pursuing accretive M&A.Acacia Research Financial Statement Overview
Summary
Income Statement
54
Neutral
Balance Sheet
83
Very Positive
Cash Flow
72
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 215.05M | 285.23M | 122.31M | 125.10M | 59.22M | 88.05M |
| Gross Profit | 210.26M | 235.22M | 29.65M | 72.27M | 21.84M | 51.95M |
| EBITDA | 41.56M | 49.76M | 2.85M | 84.33M | -107.20M | 193.26M |
| Net Income | -18.35M | 21.68M | -36.06M | 67.06M | -125.06M | 149.20M |
Balance Sheet | ||||||
| Total Assets | 755.87M | 770.96M | 756.39M | 633.54M | 482.93M | 798.86M |
| Cash, Cash Equivalents and Short-Term Investments | 327.53M | 330.09M | 333.76M | 439.91M | 386.14M | 707.47M |
| Total Debt | 103.26M | 100.49M | 124.33M | 13.51M | 63.88M | 184.21M |
| Total Liabilities | 188.65M | 186.92M | 203.78M | 43.94M | 213.61M | 368.38M |
| Stockholders Equity | 528.50M | 543.45M | 514.83M | 568.27M | 258.28M | 419.43M |
Cash Flow | ||||||
| Free Cash Flow | 52.42M | 58.55M | -98.55M | -28.70M | -43.07M | -7.76M |
| Operating Cash Flow | 76.22M | 75.24M | 50.12M | -22.51M | -37.34M | 13.33M |
| Investing Cash Flow | -23.03M | -21.01M | -212.96M | 16.18M | 184.46M | 35.75M |
| Financing Cash Flow | -18.56M | -22.73M | 97.56M | 58.63M | -166.14M | 59.74M |
Acacia Research Technical Analysis
Negative
5.02
Price Trends
4.84
Negative
4.54
Positive
4.02
Positive
Market Momentum
-0.05
Negative
43.60
Neutral
44.33
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 5.02 is above the 20-day moving average (MA) of 4.65, above the 50-day MA of 4.84, and above the 200-day MA of 4.02, indicating a neutral trend. The MACD of -0.05 indicates Negative momentum. The RSI at 43.60 is Neutral, neither overbought nor oversold. The STOCH value of 44.33 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% | |
63 Neutral | $446.24M | -24.30 | -3.42% | ― | -3.31% | -73.22% | |
55 Neutral | $884.26M | -5.93 | -18.29% | ― | 4.42% | -428.47% | |
55 Neutral | $33.50M | -13.01 | -6.40% | 7.58% | -100.00% | -5.04% | |
49 Neutral | $384.12M | 12.97 | 24.97% | 4.69% | -10.40% | ― | |
48 Neutral | $18.57M | -0.70 | -95.31% | ― | -18.24% | -169.43% | |
46 Neutral | $57.47M | -1.22 | 106.69% | ― | -65.57% | -254.11% |
* Industrials Sector Average
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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.