Acacia Research (ACTG) AI Stock Analysis

• Market Cap: $318.27M
• Dividend Yield: N/A
• Average Volume (3M): 209.64K
• Price to Earnings (P/E): 7.7
• Beta (1Y): 0.87
• Revenue Growth: 62.44%
• EPS Growth: -109.84%
• Country: US
• Employees: 1,036
• Sector: Industrials
• Sector Strength: 73
• Industry: Specialty Business Services
• EPS (TTM): -0.06
• Shares Outstanding: 96,444,990
• 10 Day Avg. Volume: 159,025
• 30 Day Avg. Volume: 209,639
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.49
• Enterprise Value/Revenue: 0.63
• Enterprise Value/Gross Profit: 1.02
• Enterprise Value/Ebitda: 2.62
• 1Y Price Target: $3.50
• Price Target Upside: 6.06% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 56 Neutral
• Price Target: $3.50 ▲(6.06% Upside)

Acacia Research's overall stock score is primarily influenced by its mixed financial performance, with strong revenue growth but profitability and cash flow challenges. Technical analysis indicates bearish momentum, while valuation metrics are weak. The earnings call and corporate events provide some positive strategic insights, but are not enough to offset the broader financial and market challenges.

Acacia Research Business Overview & Revenue Model

Company Description

Acacia Research Corporation (ACTG) is a publicly traded company that focuses on the commercialization of patented technologies across various sectors, including telecommunications, digital media, and other technology-driven industries. The company primarily engages in acquiring, developing, and monetizing intellectual property assets, leveraging its expertise to enforce patents and generate licensing revenues. Acacia Research operates within the broader intellectual property ecosystem, providing services that bridge the gap between inventors and market applications.

How the Company Makes Money

Acacia Research generates revenue primarily through the licensing of its patented technologies to third parties. The company acquires patents, often through strategic partnerships or direct purchases, and then licenses these patents to businesses that require the technology for their products or services. This licensing revenue can be structured as one-time payments, ongoing royalties, or a combination of both. Additionally, Acacia may pursue litigation against companies that infringe on its patents, seeking settlements or damages, which can also contribute to its revenue stream. Significant partnerships with technology firms and ongoing litigation efforts are key factors in driving its earnings, as they expand its portfolio and enhance its negotiation power in licensing agreements.

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	247.81M	122.31M	125.10M	59.22M	88.05M	29.78M
Gross Profit	152.13M	29.65M	72.27M	21.84M	51.95M	4.96M
EBITDA	59.35M	2.85M	84.33M	-107.20M	25.23M	-14.72M
Net Income	-6.43M	-36.06M	67.06M	-110.94M	149.20M	109.23M
Balance Sheet
Total Assets	775.55M	756.39M	633.54M	482.93M	798.86M	515.52M
Cash, Cash Equivalents and Short-Term Investments	344.00M	333.76M	439.91M	386.14M	707.47M	451.33M
Total Debt	116.02M	124.33M	13.51M	62.32M	183.28M	116.61M
Total Liabilities	198.07M	203.78M	43.94M	213.61M	368.38M	222.99M
Stockholders Equity	538.58M	514.83M	568.27M	258.28M	419.43M	281.49M
Cash Flow
Free Cash Flow	30.89M	-98.55M	-28.70M	-43.07M	-7.76M	-33.60M
Operating Cash Flow	31.71M	50.12M	-22.51M	-37.34M	13.33M	-19.62M
Investing Cash Flow	-103.58M	-212.96M	16.18M	184.46M	35.75M	18.60M
Financing Cash Flow	1.34M	97.56M	58.63M	-166.14M	59.74M	109.21M

Acacia Research Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.30
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 3.3 is below the 20-day moving average (MA) of 3.31, below the 50-day MA of 3.53, and below the 200-day MA of 3.81, indicating a bearish trend. The MACD of -0.06 indicates Negative momentum. The RSI at 45.46 is Neutral, neither overbought nor oversold. The STOCH value of 32.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ACTG.

Acacia Research Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	64 Neutral	$10.75B	15.69	7.62%	2.01%	2.75%	-15.14%
ACTG	56 Neutral	$318.27M	7.73	-1.17%	―	62.44%	-109.84%
NTIP	56 Neutral	$36.24M	―	-5.10%	6.27%	-92.03%	-20.56%
OMEX	54 Neutral	$78.63M	―		―	-18.53%	―
SST	47 Neutral	$77.04M	―	-84.85%	―	-12.76%	56.53%

Acacia Research Corporate Events

Acacia Research Appoints Michael Zambito as CFO

On June 24, 2025, Acacia Research Corporation appointed Michael Zambito as Chief Financial Officer, succeeding Kirsten Hoover, who will continue as the company’s Controller. Zambito, with over 30 years of experience at Ernst & Young, brings significant expertise in finance, accounting, and mergers and acquisitions, aligning with Acacia’s strategy of leveraging its capital and industry relationships to enhance business performance and create shareholder value.

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.