ACTG Nasdaq Earnings call
Acacia Research Corp. (ACTG) · Q2 2026 results and valuation
Share price: $4.14 · 2026-11-11
ACACIA RESEARCH CORP is an acquirer and operator of businesses in the industrial, energy, and technology sectors. The company acquires public and private companies, divisions, or structured assets to improve their operating performance and cash flow. It operates across public and private markets to build and manage business platforms. Source: 10-K annual report (2026-03-12)
Results Q2 2026 vs Q1 2026 · previous quarter · published 5 Aug 2026 and 7 May 2026
Net income turned to a profit from a loss last quarter. Management sounded cautious, in its script and in answers to analysts.
1 · Numbers
Turned profit
Net income vs Q1 2026
Net income 47.0K vs -15.7M
Revenue +111.2%
Why Against the same quarter last year (turned to a profit), net income increased primarily because the second quarter results included approximately $3.7 million of nonrecurring expense associated with a legacy litigation matter that is substantially complete and not representative of the platform's ongoing cost structure.
2 · How management spoke
Cautious
Among the least upbeat of all company calls
Answers to analysts: typical, in line with the script.
Similar to last call.
3 · What stood out
Acacia Research Corp. ended the quarter with $334.6 million of cash, securities, and loans receivable while maintaining no parent company debt.
Valuation
Is Acacia Research Corp. undervalued?
Reverse DCF. Free cash flow from the last full fiscal year (2025-12-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At 20.0% growth a year (3-year revenue growth), the model's fair value is $33.58 a share — the stock trades 88% below it. Today's price assumes −26.4% growth a year.
Current price
$4.14
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
-26.4% for 10 yrs
Fair value / share
$33.58
Buy below
$25.18
Price vs fair value
Undervalued 88%
Price vs buy-below price
Undervalued 84%
Read between the lines
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Figure
Licensing revenue reached approximately $60.6 million, but this figure does not translate directly into adjusted EBITDA or cash flow due to contractually shared fees with counsel.
Source quote
“Licensing revenue totaled approximately $60.6 million, as we've discussed previously, licensing revenue does not translate directly into adjusted EBITDA or cash flow because a portion of successful recoveries is contractually shared with contingency fee counsel in ventures and when we have them in our deals, partners, which is the case for our Wi-Fi 6 portfolio.”
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Figure
ACTG generated total revenue of $114.6 million, operated segment adjusted EBITDA of $22.8 million, and total company adjusted EBITDA of $17.3 million during the quarter.
Source quote
“During the quarter, we generated total revenue of $114.6 million, operated segment adjusted EBITDA of $22.8 million and total company adjusted EBITDA of $17.3 million.”
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Figure
Total revenue increased to $114.6 million from $51.2 million in the prior year period.
Source quote
“Total revenue for the quarter was $114.6 million compared to $51.2 million in the prior year period.”
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Figure
The Intellectual Property segment reported adjusted EBITDA of $10.9 million for the quarter.
Source quote
“Within our Intellectual Property segment, adjusted EBITDA totaled $10.9 million.”
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Key theme
Benchmark delivered a record revenue quarter with operating performance and cash flow exceeding expectations.
Source quote
“Benchmark delivered another record revenue quarter with operating performance and cash flow exceeding our expectations.”
4 more
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Key theme
During the quarter, AMO announced that it had received constructive scientific advice from the FDA, MHRA in the U.K.
Source quote
“During the quarter, AMO announced that it had received constructive scientific advice from the FDA, MHRA in the U.K. and Health Canada, supporting the design of its planned registrational clinical study.”
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Key theme
Deflecto is positioned to benefit from meaningful operating leverage as demand improves for the company.
Source quote
“As demand improves, we believe Deflecto is well positioned to benefit from meaningful operating leverage going forward.”
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Key theme
ACTG recorded a full write-down during the second quarter following developments impacting Mycovia Pharmaceuticals, the underlying biotechnology company.
Source quote
“During the second quarter, we recorded a full write-down following developments impacting Mycovia Pharmaceuticals, the underlying biotechnology company.”
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Key theme
The value of a position in one public company investment increased significantly because the company announced an agreement to be acquired.
Source quote
“One of our public company investments announced an agreement to be acquired, resulting in a significant increase in the value of our position.”
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q2 2026. Ring: Q1 2026.
Script and answers carried a similar tone, so the script's message held up under questioning.
Sentences that drove the tone
“Over the past quarter, we've significantly reduced operating expenses, while amortization associated with certain legacy intangible assets has declined significantly relative to 2025 and will continue at the current lower...”
“Printronix continues to generate consistent cash flow while creating opportunities to improve profitability through disciplined operational execution.”
“We continue to see attractive opportunities across a range of industries, and we believe Acacia's strong balance sheet, disciplined underwriting process and operational capabilities position us well to capitalize on...”
Full figures
USD · SEC EDGAR XBRL (10-Q, period end 2026-06-30)
| Metric | Q2 2026period end 2026-06-30 | Q1 2026period end 2026-03-31 | Change | Q2 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 114.6M | 54.2M | +111.2% | 51.2M | +123.6% |
| Gross profit | 30.6M | 12.1M | +154.3% | 6.5M | +368.5% |
| Operating income | 8.5M | -8.4M | Turned profit | -12.4M | Turned profit |
| Net income | 47.0K | -15.7M | Turned profit | -3.3M | Turned profit |
| EPS | 0.00 | -0.16 | +100.0% | -0.03 | +100.0% |
| P/E | 12-mo loss | 12-mo loss | — | 12-mo loss | — |
Topics
Most discussed now
- Acacia Research's operating companies continue to perform well and its streamlined Intellectual Property platform generated meaningful…
- The objective is straightforward: generate strong free cash flow, reduce earnings volatility and protect downside risk.
- New Acacia Research has been talking to folks that are in the position where they have on to address your point on...
- New The cost of the contingency fee grows as the case goes farther and farther through the court system and TP-Link...
- New It's a higher contingency rate than what Acacia Research typically see.
Faded since Q1 2026
- Dropped Acacia Research bought, it swapped, it sold different acreages to put together units so that those units are then ready to...
- Fading Acacia Research has done this in a way that allows it to capitalize upon a diverse set of capital allocation and...
- Fading Further, in its intellectual property business, Acacia Research is seeing some interesting monetization opportunities, both in its Atlas…
- Fading The drilling of that well and a constructive commodity price environment have opened additional attractive return opportunities in the…
Latest announcements
Official filings, newest first. Summaries are generated from each filing and its attachment; every figure is checked against the source.
- Results of operations · SEC 8-K
- Results of operations · SEC 8-K
Acacia Research Corporation reported total revenue of $114.6 million for the quarter ended June 30, 2026, which is an increase of 124% compared to the prior year quarter.
- Shareholder vote results · SEC 8-K · routine
- Results of operations · SEC 8-K
Acacia Research Corporation reported total revenue of $54.2 million for the quarter ended March 31, 2026, compared to $124.4 million in the same quarter of the prior year.
- Results of operations · SEC 8-K
Acacia Research Corporation reported annual revenue of $285.2 million for the year ended December 31, 2025, which is up 133% compared to $122.3 million in 2024.
- Director or officer change · SEC 8-K
Geoff Ribar notified Acacia Research Corporation on February 2, 2026, that he will not stand for re-election to the Board of Directors due to personal reasons and other commitments.
- Results of operations · SEC 8-K
Acacia Research Corporation reported total revenue of $59.4 million for the quarter ended September 30, 2025, which is up 155% compared to $23.3 million in the same period of the previous year.
- Results of operations · SEC 8-K
Acacia Research Corporation reported total revenue of $51.2 million for the quarter ended June 30, 2025, up 98% from $25.8 million in the same period of the previous year.
Catalyst calendar
management-stated targets — from the latest earnings call; plans, not promises.
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through next year
amortization associated with certain legacy intangible assets will continue at the current lower run rate
Source quote
“Over the past quarter, we've significantly reduced operating expenses, while amortization associated with certain legacy intangible assets has declined significantly relative to 2025 and will continue at the current lower run rate through next year.”