Acacia Research Corp. (ACTG)
NASDAQ:ACTG
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Acacia Research
(NASDAQ:ACTG)
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Rating:71Outperform
Price Target:
$5.50
▲(10.00% Upside)
Action:UpgradedDate:04/01/26
The score is driven primarily by improving financial performance supported by a conservatively positioned balance sheet, alongside a positive earnings-call outlook with identifiable cost/tariff tailwinds. Technicals add moderate support due to an uptrend versus moving averages. Valuation is the main offset given the higher P/E and no dividend yield.
Positive Factors
Conservative balance sheet
A large cash/securities position (~$340M) and zero parent indebtedness provide durable financial flexibility to fund operations, drill or retrofit assets, and selectively pursue acquisitions without relying on high leverage. This underpins capital allocation optionality and downside protection over coming quarters.
Negative Factors
Multi-year earnings volatility
Historic swings between large profits and deep losses indicate earnings are sensitive to timing of IP monetizations, commodity cycles, and subsidiary performance. This unpredictability weakens forecasting confidence, can strain ROE consistency, and complicates reliable free cash flow expectations over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
A large cash/securities position (~$340M) and zero parent indebtedness provide durable financial flexibility to fund operations, drill or retrofit assets, and selectively pursue acquisitions without relying on high leverage. This underpins capital allocation optionality and downside protection over coming quarters.
Read all positive factors
Acacia Research (ACTG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$482.38M
Dividend YieldN/A
Average Volume (3M)146.16K
Price to Earnings (P/E)16.6
Beta (1Y)0.71
Revenue Growth71.28%
EPS Growth-89.20%
CountryUS
Employees1,036
SectorIndustrials
Sector Strength72
IndustrySpecialty Business Services
Share Statistics
EPS (TTM)0.03
Shares Outstanding96,475,470
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 Cap0.57
Enterprise Value/Revenue0.97
Enterprise Value/Gross Profit1.17
Enterprise Value/Ebitda5.55
Forecast
1Y Price Target
$6.00Price Target Upside20.00% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)-0.53
Revenue Forecast (FY)$170.00M
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, Int...
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:Mar 11, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 07, 2026
Earnings Call Sentiment Positive
The call conveyed a predominantly positive tone: management delivered record consolidated revenue, strong adjusted EBITDA and operating cash flow, materially improved operated-segment economics (LTM adj. EBITDA up from $4.3M to >$40M), preserved a strong cash position and paid down subsidiary debt while executing operational improvements (e.g., plant consolidation, Cherokee well drilling). Challenges remain—tariff impacts, cyclical weakness at Deflecto, manufacturing cash flow timing, hedging that limits upside to higher oil prices, and the episodic nature of IP monetization—but these headwinds were presented as manageable and being actively mitigated. Overall, the highlights and strategic progress outweigh the lowlights.Positive Updates
Record Full-Year Revenue and Strong Profitability
Full-year 2025 revenue of $285.2M (record for Acacia), up 133% year-over-year; total company adjusted EBITDA of $77.9M; operated segment adjusted EBITDA of $96.4M; operating cash flow of $75.2M.
Negative Updates
Tariff-Related Headwinds and Expense
Deflecto paid approximately $2.4M in tariffs in 2025, with ~$2.0M impacting earnings; tariff-driven demand uncertainty and input cost pressure materially affected some product lines (Office Products and Safety).
Read all updates
Q4-2025 Updates
Positive
Negative
Record Full-Year Revenue and Strong Profitability
Full-year 2025 revenue of $285.2M (record for Acacia), up 133% year-over-year; total company adjusted EBITDA of $77.9M; operated segment adjusted EBITDA of $96.4M; operating cash flow of $75.2M.
Read all positive updates
Company Guidance
Management guided toward continued earnings flow‑through as operating businesses improve, pointing to 2026 tailwinds including tariff relief (China tariffs from 20%→10%; Canada 25%→10%), roughly $2.0M of annualized cost savings from Deflecto’s Portland→Dover consolidation (and nearly $5.0M of net proceeds from asset sales), and continued conservative capital deployment into high‑ROI drilling and acquisitions rather than large borrowings. They reiterated Benchmark hedges ~75% of operated production through early 2028 at an average hedge price of about $70/barrel (and will hedge new Cherokee well volumes), expect an imminent production uplift from the new Cherokee well, and highlighted Q4 energy adjusted EBITDA of $8.1M (Q4 energy FCF $1.0M) and that ~54% of LTM commodity revenue (78% of LTM BOE production) is gas/NGLs. Key company metrics tied to the outlook: Q4 revenue $50.1M (total company adjusted EBITDA $17.4M; operated segment adjusted EBITDA $22.4M), FY‑2025 revenue $285.2M, total adjusted EBITDA $77.9M, operated segment adjusted EBITDA $96.4M, IP FY revenue $78.4M with IP FY adjusted EBITDA $56.3M, book value/share $6.05, cash & securities ≈$340M, consolidated nonrecourse debt $92.1M (Benchmark $59.5M; Deflecto $32.6M), and steady parent costs (~$18–19M annualized); share buybacks remain under consideration as encumbrances roll off over the coming quarters.Acacia Research Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
78
Positive
Cash Flow
67
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 285.23M | 122.31M | 125.10M | 59.22M | 88.05M |
| Gross Profit | 235.22M | 29.65M | 72.27M | 21.84M | 51.95M |
| EBITDA | 49.76M | 2.85M | 84.33M | -107.20M | 193.26M |
| Net Income | 21.68M | -36.06M | 67.06M | -125.06M | 149.20M |
Balance Sheet | |||||
| Total Assets | 770.96M | 756.39M | 633.54M | 482.93M | 798.86M |
| Cash, Cash Equivalents and Short-Term Investments | 330.09M | 333.76M | 439.91M | 386.14M | 707.47M |
| Total Debt | 100.49M | 124.33M | 13.51M | 63.88M | 184.21M |
| Total Liabilities | 186.92M | 203.78M | 43.94M | 213.61M | 368.38M |
| Stockholders Equity | 543.45M | 514.83M | 568.27M | 258.28M | 419.43M |
Cash Flow | |||||
| Free Cash Flow | 58.55M | -98.55M | -28.70M | -43.07M | -7.76M |
| Operating Cash Flow | 75.24M | 50.12M | -22.51M | -37.34M | 13.33M |
| Investing Cash Flow | -21.01M | -212.96M | 16.18M | 184.46M | 35.75M |
| Financing Cash Flow | -22.73M | 97.56M | 58.63M | -166.14M | 59.74M |
Acacia Research Technical Analysis
Positive
5.00
Price Trends
4.40
Positive
4.07
Positive
3.77
Positive
Market Momentum
0.18
Positive
68.81
Neutral
75.98
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 5 is above the 20-day moving average (MA) of 4.91, above the 50-day MA of 4.40, and above the 200-day MA of 3.77, indicating a bullish trend. The MACD of 0.18 indicates Positive momentum. The RSI at 68.81 is Neutral, neither overbought nor oversold. The STOCH value of 75.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
71 Outperform | $482.38M | 16.61 | 4.02% | ― | 71.28% | -89.20% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
62 Neutral | $1.11B | -1.76 | -16.48% | ― | -0.67% | -141.58% | |
59 Neutral | $381.00M | 11.05 | 27.02% | 4.69% | -9.23% | ― | |
54 Neutral | $32.14M | -7.23 | -5.95% | 7.58% | -92.03% | -77.99% | |
43 Neutral | $72.78M | >-0.01 | 269.38% | ― | -41.55% | -249.30% | |
43 Neutral | $13.67M | -0.76 | -95.31% | ― | -35.72% | -277.39% |
* Industrials Sector Average
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Acacia Research Corporate Events
Executive/Board Changes
Acacia Research announces director Geoff Ribar to step down
Neutral
Feb 6, 2026
On February 2, 2026, Acacia Research Corporation announced that board member Geoff Ribar, who serves as chairman of the Nominating, Governance and Sustainability Committee and is a member of the Audit Committee, will not stand for reelection at th...
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.