Acacia Research (ACTG) AI Stock Analysis

• Market Cap: $316.34M
• Dividend Yield: N/A
• Average Volume (3M): 146.16K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.87
• Revenue Growth: 71.28%
• EPS Growth: -89.20%
• Country: US
• Employees: 1,036
• Sector: Industrials
• Sector Strength: 72
• Industry: Specialty Business Services
• EPS (TTM): -0.01
• Shares Outstanding: 96,444,990
• 10 Day Avg. Volume: 149,947
• 30 Day Avg. Volume: 146,158
• PEG Ratio: 0.08
• Price to Book (P/B): 0.84
• Price to Sales (P/S): 3.52
• P/FCF Ratio: -4.37
• Enterprise Value/Market Cap: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 63 Neutral
• Price Target: $4.00 ▲(12.68% Upside)

Acacia Research's overall stock score reflects strong revenue growth and a stable balance sheet, as highlighted in the earnings call. However, high valuation metrics and challenges in cash flow generation and specific market segments temper the outlook. Technical indicators suggest a neutral market sentiment, aligning with the stock's current valuation concerns.

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 demonstrates strong revenue growth and efficient cost management, as evidenced by its high gross profit margin. The balance sheet is stable with low leverage, but profitability metrics such as net profit margin and return on equity are areas for improvement. Cash flow generation shows some weaknesses, particularly in free cash flow growth, which could impact future financial flexibility.

Income Statement

Acacia Research shows a strong revenue growth rate of 14.58% in the TTM period, indicating a positive trajectory. The gross profit margin is robust at 70.76%, reflecting efficient cost management. However, the net profit margin is relatively low at 1.70%, suggesting limited profitability after expenses. The EBIT and EBITDA margins are moderate, indicating operational efficiency but room for improvement in profitability.

Balance Sheet

The company maintains a low debt-to-equity ratio of 0.016, indicating minimal leverage and financial stability. The return on equity is modest at 0.91%, suggesting limited returns to shareholders. The equity ratio is strong, highlighting a solid capital structure with a high proportion of equity financing.

Cash Flow

The cash flow statement reveals a decline in free cash flow growth by -8.77%, which could pose a risk to liquidity. The operating cash flow to net income ratio is 0.82, indicating adequate cash generation relative to net income. However, the free cash flow to net income ratio is 0.67, suggesting some challenges in converting earnings into free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	283.95M	122.31M	125.10M	59.22M	88.05M	29.78M
Gross Profit	200.92M	29.65M	72.27M	21.84M	51.95M	4.96M
EBITDA	69.17M	2.85M	84.33M	-107.20M	193.26M	123.01M
Net Income	4.83M	-36.06M	67.06M	-125.06M	149.20M	109.23M
Balance Sheet
Total Assets	768.87M	756.39M	633.54M	482.93M	798.86M	511.31M
Cash, Cash Equivalents and Short-Term Investments	334.79M	333.76M	439.91M	386.14M	707.47M	451.33M
Total Debt	102.73M	124.33M	13.51M	63.88M	184.21M	117.20M
Total Liabilities	192.03M	203.78M	43.94M	213.61M	368.38M	222.99M
Stockholders Equity	537.61M	514.83M	568.27M	258.28M	419.43M	277.27M
Cash Flow
Free Cash Flow	28.18M	-98.55M	-28.70M	-43.07M	-7.76M	-33.60M
Operating Cash Flow	41.83M	50.12M	-22.51M	-37.34M	13.33M	-19.62M
Investing Cash Flow	-110.59M	-212.96M	16.18M	184.46M	35.75M	18.60M
Financing Cash Flow	10.24M	97.56M	58.63M	-166.14M	59.74M	109.21M

Acacia Research Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.55
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 3.55 is above the 20-day moving average (MA) of 3.48, above the 50-day MA of 3.38, and below the 200-day MA of 3.57, indicating a bullish trend. The MACD of 0.04 indicates Negative momentum. The RSI at 59.31 is Neutral, neither overbought nor oversold. The STOCH value of 74.31 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 *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
ACTG	63 Neutral	$316.34M	―	0.90%	―	71.28%	-89.20%
NTIP	56 Neutral	$34.19M	-15.14	-5.87%	6.88%	-92.03%	-77.99%
QUAD	51 Neutral	$280.57M	13.46	27.91%	4.72%	-9.23%	―
KODK	49 Neutral	$750.96M	―	0.58%	―	-0.67%	-141.58%
SGRP	47 Neutral	$26.40M	-2.02	-47.70%	―	-44.47%	-203.41%
OMEX	40 Underperform	$80.89M	-3.50	―	―	-18.53%	―

Acacia Research Corporate Events

Acacia Research Reports Strong Q3 2025 Revenue Growth

Acacia Research Corporation is a publicly traded company that focuses on acquiring and operating businesses across the industrial, energy, and technology sectors, leveraging its expertise and capital to drive value. In its third-quarter 2025 financial results, Acacia reported a significant increase in total revenue to $59.4 million, a 155% rise year-over-year, although it recorded a GAAP net loss of $2.7 million. The company’s adjusted EBITDA reached $8.0 million, highlighting strong operational performance despite macroeconomic challenges.

Acacia Research Corp. Reports Strong Revenue Growth

Acacia Research Corp. recently held its earnings call, revealing a generally positive sentiment despite some challenges. The company reported substantial revenue growth and improved cash flow, largely attributed to strategic acquisitions and effective cost management. However, it faces hurdles in the Class 8 truck market, office products demand, and a softer oil price environment. Nonetheless, Acacia’s strong balance sheet and positive developments in the intellectual property segment underscore a solid overall performance.

Acacia Research Corp. Advances in Neurodegenerative Disease Treatment Study

Study Overview: The clinical study titled Effects of Transcranial Ultrasound Stimulation (TUS) on Neurological and Cognitive Outcomes in Neurodegenerative Diseases aims to evaluate the safety and efficacy of transcranial focused ultrasound neuromodulation. The study focuses on improving neural function, cognitive and behavioral performance, and quality of life for patients with neurodegenerative diseases such as Parkinson’s and Alzheimer’s.

Acacia Research Corp. Earnings Call Insights

Acacia Research Corp.’s recent earnings call painted a picture of both optimism and challenges. The company highlighted strategic partnerships and strong performance in its Energy operations, alongside a successful turnaround of Printronix. However, it also acknowledged significant hurdles, including a decline in IP revenue and challenges in Deflecto’s market due to tariffs, all amidst a complex macroeconomic environment.

Acacia Research Corp. Reports Q2 2025 Financial Results

Acacia Research Corporation is a publicly traded company that acquires and operates businesses in the industrial, energy, and technology sectors, focusing on leveraging its expertise and capital to drive value.