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Acacia Research Corp. (ACTG)
NASDAQ:ACTG

Acacia Research (ACTG) AI Stock Analysis

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ACTG

Acacia Research

(NASDAQ:ACTG)

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Neutral 63 (OpenAI - 4o)
Rating:63Neutral
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 (ACTG) vs. SPDR S&P 500 ETF (SPY)

Acacia Research Business Overview & Revenue Model

Company DescriptionAcacia Research Corporation (ACTG) is a technology commercialization company that focuses on acquiring and licensing patents in various sectors, including telecommunications, internet technologies, and consumer electronics. The company operates primarily through its subsidiaries, which develop and monetize intellectual property assets. Acacia aims to create value by leveraging its patent portfolio to negotiate licensing agreements and settlements with companies that utilize its technologies without proper authorization.
How the Company Makes MoneyAcacia Research generates revenue primarily through licensing its patents to third parties, which often includes negotiating licensing agreements with companies that infringe on its intellectual property. The company also earns money through litigation, as it pursues legal action against entities that violate its patents, aiming for settlements or judgments in its favor. Key revenue streams include licensing fees, royalties from licensed technologies, and potential litigation settlements. Additionally, Acacia may form partnerships or joint ventures with other firms to further enhance its patent monetization efforts, contributing to its overall earnings.

Acacia Research Earnings Call Summary

Earnings Call Date:Nov 05, 2025
(Q3-2025)
|
% Change Since: |
Next Earnings Date:Mar 12, 2026
Earnings Call Sentiment Positive
Acacia Research achieved substantial revenue growth and improved cash flow, driven by strategic acquisitions and effective cost management. However, challenges remain, particularly in the Class 8 truck market, office products demand, and the softer oil price environment. Despite these challenges, the company's strong balance sheet and positive developments in the intellectual property segment highlight a solid performance overall.
Q3-2025 Updates
Positive Updates
Significant Revenue Growth
Total revenue increased to $59.4 million, up 16% sequentially and 155% year-over-year, driven by the acquisition of Deflecto.
Strong Free Cash Flow Generation
Free cash flow for the quarter was $7.7 million with significant contributions from energy, manufacturing, and industrial operations.
Improved EBITDA Margins
Total company adjusted EBITDA was $8 million, and operated segment adjusted EBITDA was $12.6 million.
Successful Cost Management
Reduction in G&A expenses at Deflecto from $5.1 million to $4.6 million, showcasing effective cost management strategies.
Positive Developments in Intellectual Property
The IP segment generated $7.8 million in revenue, a significant increase from the prior year, with notable settlements and licenses.
Strong Balance Sheet
Acacia maintains a strong balance sheet with approximately $332 million in total cash, equity securities, and loans receivable.
Negative Updates
GAAP Operating Loss
Recorded a GAAP operating loss of $6.4 million, though an improvement from the $10.3 million loss in the prior year.
Challenges in the Class 8 Truck Market
Deflecto faced demand headwinds in the Class 8 truck market, with net orders for September at their weakest since 2019.
Office Products Demand Uncertainty
Tariff and global trade uncertainties have caused delays in purchasing decisions in the office products business.
Softer Oil Price Environment
Energy operations revenue decreased to $14.2 million from $15.8 million year-over-year due to lower oil prices.
Company Guidance
During Acacia Research's third-quarter 2025 earnings call, CEO MJ McNulty highlighted significant year-over-year and sequential revenue growth, driven by strategic initiatives across their business portfolio. Acacia reported total revenue of $59.4 million, marking a 16% sequential increase and a 155% increase from the same quarter last year. The company achieved a total adjusted EBITDA of $8 million and a free cash flow of $7.7 million, despite a GAAP net loss of $0.03 per share. The energy operations contributed $1.1 million in GAAP operating income, with Benchmark's hedging strategy securing over 70% of its production against price risks. Manufacturing operations saw revenue growth to $30.8 million, with adjusted EBITDA reaching $2.6 million, while industrial operations contributed $6.7 million in revenue. The Intellectual Property segment recorded $7.8 million in revenue, showcasing a substantial year-over-year increase. Acacia's strong balance sheet, with $332 million in total cash and securities, positions the company for future growth opportunities amid ongoing macroeconomic and geopolitical challenges.

Acacia Research Financial Statement Overview

Summary
Income Statement
72
Positive
Balance Sheet
65
Positive
Cash Flow
58
Neutral
Breakdown
Income Statement
Total Revenue
Gross Profit
EBITDA
Net Income
Balance Sheet
Total Assets
Cash, Cash Equivalents and Short-Term Investments
Total Debt
Total Liabilities
Stockholders Equity
Cash Flow
Free Cash Flow
Operating Cash Flow
Investing Cash Flow
Financing Cash Flow

Acacia Research Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price3.55
Price Trends
50DMA
3.60
Positive
100DMA
3.46
Positive
200DMA
3.50
Positive
Market Momentum
MACD
0.04
Positive
RSI
49.64
Neutral
STOCH
19.57
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ACTG, the sentiment is Neutral. The current price of 3.55 is below the 20-day moving average (MA) of 3.76, below the 50-day MA of 3.60, and above the 200-day MA of 3.50, indicating a neutral trend. The MACD of 0.04 indicates Positive momentum. The RSI at 49.64 is Neutral, neither overbought nor oversold. The STOCH value of 19.57 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ACTG.

Acacia Research Peers Comparison

Overall Rating
UnderperformOutperform
Sector (―)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
63
Neutral
$356.90M74.450.90%71.28%-89.20%
56
Neutral
$803.01M-24.910.58%-0.67%-141.58%
52
Neutral
$329.45M15.8127.91%4.64%-9.23%
49
Neutral
$30.12M-12.00-5.87%7.58%-92.03%-77.99%
46
Neutral
$120.95M-2.26-41.55%-249.30%
40
Neutral
$18.68M-0.85-93.99%-35.72%-277.39%
* Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ACTG
Acacia Research
3.70
-0.75
-16.85%
OMEX
Odyssey Marine Exploration
2.17
1.82
520.00%
QUAD
Quad/Graphics
6.47
-0.69
-9.64%
SGRP
Spar Group
0.78
-1.15
-59.59%
KODK
Kodak
8.33
1.52
22.32%
NTIP
Network-1 Technologies
1.32
0.10
8.20%

Acacia Research Corporate Events

Acacia Research Reports Strong Q3 2025 Revenue Growth
Nov 6, 2025

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
Nov 6, 2025

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
Oct 27, 2025

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
Aug 8, 2025

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
Aug 7, 2025

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.

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.Date of analysis: Nov 07, 2025