Acacia Research (ACTG) AI Stock Analysis

• Market Cap: $367.38M
• Dividend Yield: N/A
• Average Volume (3M): 230.93K
• Price to Earnings (P/E): 7.7
• Beta (1Y): 0.88
• Revenue Growth: 65.22%
• EPS Growth: -133.47%
• Country: US
• Employees: 1,036
• Sector: Industrials
• Sector Strength: 87
• Industry: Specialty Business Services
• EPS (TTM): 0.34
• Shares Outstanding: 96,171,700
• 10 Day Avg. Volume: 174,107
• 30 Day Avg. Volume: 230,927
• PEG Ratio: <0.01
• Price to Book (P/B): 0.69
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -4.15
• Enterprise Value/Market Cap: -0.13
• Enterprise Value/Revenue: -0.07
• Enterprise Value/Gross Profit: -0.61
• Enterprise Value/Ebitda: -0.27
• 1Y Price Target: $6.00
• Price Target Upside: 63.04% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 55 Neutral
• Price Target: $4.00 ▲(8.70%Upside)

The overall stock score reflects a balanced view of Acacia Research's strong growth prospects and strategic asset management against its current challenges in profitability and cash flow. Positive earnings call sentiment and corporate events provide optimism, while technical indicators suggest cautious optimism in the short term.

Acacia Research Business Overview & Revenue Model

Company Description

Acacia Research Corporation, together with its subsidiaries, invests in intellectual property and related absolute return assets; and engages in the licensing and enforcement of patented technologies. The company operates through two segments, Intellectual Property Operations and Industrial Operations. The company owns or controls the rights to various patent portfolios, which include U.S. patents and foreign counterparts covering technologies used in a range of industries. It has executed approximately 1,600 license agreements, and approximately 200 patent portfolio licensing and enforcement programs. It also designs manufactures printers and parts, and consumable products through dealers and distributors for various industrial printing applications. In addition, the company offers supply-chain printing solutions for manufacturing, transportation and logistics, retail distribution, food and beverage distribution, and pharmaceutical distribution industries; and line matrix printers for mission critical applications within labeling and inventory management, build sheets, invoicing, manifests and bills of lading, and reporting industries. Acacia Research Corporation was incorporated in 1993 and is based in New York, New York.

How the Company Makes Money

Acacia 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 shows promising revenue growth but faces challenges with profitability and cash flow management. The balance sheet is robust, with low leverage and high equity proportion, providing some stability. However, consistent negative cash flows and profitability issues pose significant risks, warranting careful monitoring of operational efficiencies and cash management strategies.

Income Statement

Acacia Research has demonstrated volatility in its revenue growth, with a TTM revenue of $222.4M compared to $122.3M in the previous year, indicating a significant growth. However, the company is struggling with profitability, as shown by a negative net income in recent periods and a net profit margin of -5.2%. The gross profit margin improved to 34.5% in TTM, but negative EBIT and EBITDA margins in prior periods highlight operational inefficiencies.

Balance Sheet

The balance sheet is relatively strong, with a solid equity base and a debt-to-equity ratio of 0.22, suggesting low leverage. However, the return on equity is negative due to recent net losses. The equity ratio stands at 67.4%, indicating a healthy proportion of assets financed by equity.

Cash Flow

Cash flow from operations has been inconsistent, with a negative operating cash flow of -$2.3M in TTM. Free cash flow is significantly negative, indicating potential liquidity issues. The operating cash flow to net income ratio is unfavorable, and the free cash flow to net income ratio is also negative, reflecting challenges in cash conversion.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
222.41M	122.31M	125.10M	59.22M	88.05M	29.78M
	Gross Profit
76.64M	29.65M	72.27M	21.84M	51.95M	4.96M
	EBIT
7.47M	-32.93M	20.94M	-5.63M	7.89M	-19.52M
	EBITDA
36.90M	1.87M	84.33M	-107.20M	25.23M	-14.72M
	Net Income Common Stockholders
-11.58M	-36.06M	67.06M	-110.94M	149.20M	109.23M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
326.78M	333.76M	439.91M	386.14M	707.47M	451.33M
	Total Assets
801.61M	756.39M	633.54M	482.93M	798.86M	515.52M
	Total Debt
117.48M	124.33M	13.51M	62.32M	183.28M	116.61M
	Net Debt
-154.49M	-149.55M	-326.58M	-225.46M	-125.67M	-48.93M
	Total Liabilities
224.35M	203.78M	43.94M	213.61M	368.38M	222.99M
	Stockholders Equity
540.23M	514.83M	568.27M	258.28M	419.43M	281.49M
Cash Flow		Free Cash Flow
-152.78M	-98.55M	-28.70M	-43.07M	-7.76M	-33.60M
	Operating Cash Flow
-2.29M	50.12M	-22.51M	-37.34M	13.33M	-19.62M
	Investing Cash Flow
-253.96M	-212.96M	16.18M	184.46M	35.75M	18.60M
	Financing Cash Flow
89.66M	97.56M	58.63M	-166.14M	59.74M	109.21M

Acacia Research Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.68
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 3.68 is below the 20-day moving average (MA) of 3.78, above the 50-day MA of 3.40, and below the 200-day MA of 4.13, indicating a neutral trend. The MACD of 0.09 indicates Positive momentum. The RSI at 59.35 is Neutral, neither overbought nor oversold. The STOCH value of 59.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ACTG.

Acacia Research Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	66 Neutral	$4.51B	12.22	5.40%	3.63%	4.14%	-12.01%
ACTG	55 Neutral	$367.38M	7.73	-2.09%	―	65.22%	-133.47%
OMEX	53 Neutral	$33.53M	―		―	-2.44%	―
SST	45 Neutral	$111.01M	―	-80.45%	―	-19.84%	49.40%
NTIP	45 Neutral	$28.33M	―	-5.44%	8.06%	-87.89%	-44.93%

Acacia Research Corporate Events

Acacia Research Updates Corporate Presentation for Investors

On June 10, 2025, Acacia Research Corporation updated its Corporate Presentation on its website to be used in meetings with investors and analysts. The presentation outlines Acacia’s strategic focus on acquiring and operating businesses that provide essential products and services, leveraging its relationship with Starboard Value to expand sourcing capabilities and resources. The company reported significant growth in book value per share since the new management team was constituted in late 2022, highlighting its strong financial position and attractive valuation for investors.

The most recent analyst rating on (ACTG) stock is a Buy with a $7.00 price target. To see the full list of analyst forecasts on Acacia Research stock, see the ACTG Stock Forecast page.

Acacia Research Stockholders Approve Key Governance Proposals

On May 15, 2025, Acacia Research Corporation held its Annual Meeting of Stockholders virtually, where a quorum was present with 85,560,383 shares represented. During the meeting, stockholders voted on several proposals, including the election of seven directors, the ratification of Grant Thornton, LLP as the independent registered public accounting firm, approval of executive compensation, and the adoption of the Fourth Amended and Restated Certificate of Incorporation to extend stock transfer restrictions. All proposals were approved, impacting the company’s governance and strategic financial planning.

The most recent analyst rating on (ACTG) stock is a Buy with a $7.00 price target. To see the full list of analyst forecasts on Acacia Research stock, see the ACTG Stock Forecast page.