EX-99.1 2 actg-20260331xex991.htm EX-99.1 Document


Exhibit 99.1
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Acacia Research Corporation Reports First Quarter 2026 Financial Results
Total Revenue of $54.2 million, up 8% from the Prior Quarter
GAAP Net Loss of ($15.7) million and GAAP Diluted EPS of ($0.16) for the Quarter
Adjusted Net Loss1 of ($6.6) million and Adjusted Diluted EPS1 of ($0.07) for the Quarter
Total Company Adjusted EBITDA1 of $1.6 million and Operated Segment Adjusted EBITDA1 of $6.8 million for the Quarter
Total Cash, Cash Equivalents, Equity Securities Measured at Fair Value and Loans Receivable of $329.9 million, or $3.41 per share
New York, NY, May 7, 2026 - Acacia Research Corporation (Nasdaq: ACTG) (“Acacia” or the “Company”), which acquires and operates businesses across the industrial, energy and technology sectors, today reported financial results for the three months ended March 31, 2026. The Company also posted its first quarter 2026 earnings presentation on its website at www.acaciaresearch.com under Quarterly Results.
Martin (“MJ”) D. McNulty, Jr., Chief Executive Officer, stated, “Acacia delivered strong financial and operating results for the first quarter, generating total revenue of $54.2 million, Operated Segment Adjusted EBITDA of $6.8 million and Total Company Adjusted EBITDA of $1.6 million. Operationally, our companies continued to execute on our strategic objectives, including targeted pricing strategies, cost savings initiatives and continued tariff countermeasures. We are pleased to announce that our Energy Operations subsidiary, Benchmark Energy, delivered its strongest revenue quarter under Acacia ownership driven by favorable oil prices and continued investments in new well development. Given the constructive commodity price environment and the early success with Benchmark’s recently completed Cherokee well, drilling in both our Cherokee and Cleveland acreage has become more attractive and we are in advanced stages of evaluating additional projects. Our Deflecto subsidiary completed its facility consolidation, which we expect to drive meaningful cost synergies on an annualized basis.
As we look ahead to the remainder of 2026, our strategic focus is centered on leveraging our significant capital base and experienced management team to drive long-term growth across our operating businesses. As of the end of the first quarter, cash, cash equivalents, equity securities and loans receivable was approximately $329.9 million, or $3.41 per share. Our acquisition pipeline remains very active, and our strong cash position and balance sheet provide us with the flexibility to execute on accretive organic and inorganic growth opportunities, driving differentiated value for our shareholders.”
1 Adjusted Net Income (Loss), Adjusted Diluted Earnings Per Share (EPS), Total Company Adjusted EBITDA and Operated Segment Adjusted EBITDA are non-GAAP financial measures. See below for reconciliations of Adjusted Net Income (Loss), Adjusted Diluted EPS, and Total Company Adjusted EBITDA to their most directly comparable GAAP financial measure. For the definition of these measures and a reconciliation of the components of Operated Segment Adjusted EBITDA to their most directly comparable GAAP financial measures, see the accompanying supplemental information section.
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First Quarter 2026 Highlights:
•Total revenue of $54.2 million, compared to $124.4 million for the prior-year quarter, primarily driven by lower paid-up license revenue from our Intellectual Property Operations segment.
•Benchmark Energy recorded revenue of $18.7 million, the strongest revenue quarter for the business under Acacia ownership following the Revolution Acquisition in April 2024.
•GAAP Net Loss of ($15.7) million, or ($0.16) GAAP Diluted EPS.
•Adjusted Net Loss of ($6.6) million, or ($0.07) Adjusted Diluted EPS.
•Operated Segment Adjusted EBITDA of $6.8 million.
•Total Company Adjusted EBITDA of $1.6 million.
•At quarter end, cash, cash equivalents, equity securities measured at fair value and loans receivable totaled approximately $329.9 million, or $3.41 per share.
•Deflecto completed its consolidation of two manufacturing facilities into a single facility, which is expected to drive cost savings in the second half of 2026 and position Deflecto well when volumes return to incrementally add to EBITDA and cash flow.
•Benchmark Energy successfully drilled and completed its first Cherokee well in-line with budget, with anticipated wellhead returns in excess of 60%.
Revenue
The following table provides a breakdown of the Company’s total revenue for the three months ended March 31, 2026 and March 31, 2025. For the purposes of financial reporting, Acacia's operations are broken out as follows: Energy Operations (Benchmark), Industrial Operations (Printronix), Manufacturing Operations (Deflecto) and Intellectual Property Operations (Acacia Research Group).
Three Months Ended March 31,
20262025
(In thousands, unaudited)
Energy Operations$18,669 $18,306 
Industrial Operations7,182 7,676 
Manufacturing Operations27,666 28,535 
Intellectual Property Operations722 69,905 
Total Revenues$54,239 $124,422 
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Adjusted EBITDA
The following table provides a reconciliation of consolidated Net Income (Loss), the most directly comparable GAAP measure, to Total Company Adjusted EBITDA for the three months ended March 31, 2026 and March 31, 2025.
Three Months Ended March 31,
20262025
(In thousands, unaudited)
GAAP Net Income (Loss)$(15,741)$24,287 
Net (Income) Loss Attributable to Noncontrolling Interests(1,860)(759)
Income Tax Expense (Benefit)(2,564)6,081 
Interest Expense1,886 2,451 
Interest Income(2,815)(2,510)
(Gain) Loss on Foreign Currency Exchange59 (155)
Net Realized and Unrealized (Gain) Loss on Derivatives10,699 5,021 
Net Realized and Unrealized (Gain) Loss on Investments2,164 3,172 
Other (Income) Expense, net(185)717 
   GAAP Operating Income (Loss)$(8,357)$38,305 
Depreciation, Depletion & Amortization8,487 10,610 
Stock-Based Compensation1,000 922 
Realized Hedge Gain(973)(43)
Transaction-Related Costs792 554 
Legacy Matter Costs— 8 
Severance Costs153 343 
Restructuring Expense462 — 
   Total Company Adjusted EBITDA$1,564 $50,699 
The following table provides the Adjusted EBITDA for each of the Company’s operating segments for the three months ended March 31, 2026 and March 31, 2025.
Three Months Ended March 31,
20262025
(In thousands, unaudited)
Energy Operations Adjusted EBITDA2$7,710 $7,936 
Industrial Operations Adjusted EBITDA2
1,392 1,021 
Manufacturing Operations Adjusted EBITDA2
1,164 2,439 
   Operated Segment Adjusted EBITDA
   (excluding Intellectual Property Operations)		10,266 11,396 
Intellectual Property Operations Adjusted EBITDA2
(3,509)43,265 
   Operated Segment Adjusted EBITDA6,757 54,661 
Parent Costs2
(5,193)(3,962)
   Total Company Adjusted EBITDA$1,564 $50,699 
2 Energy Operations Adjusted EBITDA, Industrial Operations Adjusted EBITDA, Manufacturing Operations Adjusted EBITDA, Intellectual Property Operations Adjusted EBITDA, and Parent Costs are non-GAAP financial measures. For the definitions of these measures and reconciliations of these measures to the most directly comparable GAAP financial measures, see the accompanying supplemental information section.
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Adjusted Net Income (Loss) and Adjusted Diluted EPS
The following table provides a reconciliation of Net Income (Loss), the most directly comparable GAAP measure, to Adjusted Net Income (Loss) and Adjusted Diluted EPS for the three months ended March 31, 2026 and March 31, 2025.
Three Months Ended March 31,
20262025
(In thousands, except share and per share data, unaudited)
GAAP Net Income (Loss)$(15,741)$24,287 
Legacy Matter Costs3— 258 
Stock-Based Compensation1,000 922 
Severance Costs153 343 
Transaction-Related Costs792 554 
Restructuring Expense462 — 
Amortization of Acquired Intangibles875 907 
Unrealized Loss (Gain) on Securities1,559 4,777 
Unrealized Loss (Gain) on Hedges7,149 3,661 
Tax Effect of Adjustments(2,812)(2,629)
Adjusted Net Income (Loss)$(6,563)$33,080 
GAAP Diluted EPS$(0.16)$0.25 
GAAP diluted weighted average shares96,487,121 96,981,413 
Adjusted Diluted EPS$(0.07)$0.34 
Adjusted diluted weighted average shares96,487,121 96,981,413 
Free Cash Flow4
The following table provides a reconciliation of Free Cash Flow (“FCF”) for the three months ended March 31, 2026.
Three Months Ended March 31, 2026
Energy OperationsIndustrial OperationsManufacturing OperationsIntellectual Property OperationsParent CostsConsolidated Total
(In thousands, unaudited)
Net Cash from (used in) Operating Activities (GAAP)$6,596 $3,146 $439 $(2,920)$(3,856)$3,405 
Less: Capital Expenditures(8,502)(14)(679)(1,750)— (10,945)
Free Cash Flow (Non-GAAP)$(1,906)$3,132 $(240)$(4,670)$(3,856)$(7,540)
Three Months Ended March 31, 2025
Energy OperationsIndustrial OperationsManufacturing OperationsIntellectual Property OperationsParent CostsConsolidated Total
(In thousands, unaudited)
Net Cash from (used in) Operating Activities (GAAP)$5,452 $2,530 $1,016 $(2,266)$(4,307)$2,425 
Less: Capital Expenditures(1,872)(5)(213)— — (2,090)
Free Cash Flow (Non-GAAP)$3,580 $2,525 $803 $(2,266)$(4,307)$335 
Balance Sheet and Capital Structure
•Cash, cash equivalents, equity securities measured at fair value and loans receivable totaled $329.9 million at March 31, 2026 compared to $339.6 million at December 31, 2025, a decrease of $9.7 million. This change in cash was primarily due to an increase in cash generated from operating activities across all Operated Segments of $7.3 million and proceeds from the sale of an unoccupied portion of Deflecto’s manufacturing facility in the U.K. of $1.6 million. Cash was reduced by Parent Costs of $3.9 million and further by $8.5 million and $0.7 million of
3 Legacy Matter Costs for the three months ended March 31, 2025 includes $250,000 related to a one-time legacy tax matter at Printronix that has been settled, which amount is included within Other Expense, Net in Acacia's condensed consolidated statement of operations.
4 Free Cash Flow (FCF) is a non-GAAP financial measure. For a definition of this measure, see the accompanying supplemental information section.
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capital expenditures at Benchmark and Deflecto, respectively, as well as $1.8 million incurred by our Intellectual Property Operations for the purchase of additional interests in the Wi-Fi 7 portfolio. Cash used in financing activities reduced cash by $1.9 million, primarily from $1.6 million of debt repayment on the Deflecto facility and $0.3 million of taxes paid related to net share settlement of share-based awards. Additionally, the change in the fair market value of equity securities reduced cash, cash equivalents, equity securities at fair value and loans receivable by $2.2 million.
•Equity securities without readily determinable fair value totaled $5.8 million at March 31, 2026, unchanged from December 31, 2025.
•Investment securities representing equity method investments totaled $19.9 million at March 31, 2026 (net of noncontrolling interests), unchanged from December 31, 2025. Acacia owns 64% of MalinJ1, which results in a 26% indirect ownership stake in Viamet Pharmaceuticals, Inc. for Acacia.
•Loans receivable totaled $8.1 million at March 31, 2026, which represents the commercial loans collateralized by Bitcoin that Acacia has purchased through its partnership with Unchained Capital.
•The Parent company’s total indebtedness was zero at March 31, 2026. On a consolidated basis, Acacia’s total indebtedness was $90.5 million, consisting of $59.5 million in non-recourse debt at Benchmark and $31.0 million in non-recourse debt at Deflecto, net of debt discount and issuance costs, as of March 31, 2026.
Book Value as of March 31, 2026
At March 31, 2026, Acacia’s book value (which includes noncontrolling interests) was $567.2 million and there were 96.6 million shares of common stock outstanding, for a book value per share of $5.87. This value is impacted by one-time expenses and other adjustments detailed in the above reconciliation from GAAP Net Income (Loss) to Adjusted Net Income (Loss). In the first quarter, book value per share was primarily impacted by an unrealized loss at our Energy Operations subsidiary of ($0.10) per share caused by the mark-to-market of our multi-year hedge book.
Investor Conference Call
The Company will host a conference call today, May 7, 2026 at 8:00 a.m. Eastern Time (5:00 a.m. Pacific Time).
To access the live call, please dial 888-506-0062 (U.S. and Canada) or 973-528-0011 (international) and if requested, reference the access code 130499. The conference call will also be simultaneously webcasted at https://www.webcaster5.com/Webcast/Page/2371/53915 and on the investor relations section of the Company’s website at www.acaciaresearch.com under Events. Following the conclusion of the live call, a replay of the webcast will be available on the Company's website for at least 30 days.
About the Company
Acacia (Nasdaq: ACTG) is a value-oriented acquirer and operator of businesses across public and private markets and industries including the industrial, energy and technology sectors where it believes it can leverage its expertise, significant capital base, and deep industry relationships to drive value. Acacia evaluates opportunities based on the attractiveness of the underlying cash flows, without regard to a specific investment horizon. Acacia operates its businesses based on three key principles of people, process and performance and has built a management team with demonstrated expertise in research, transactions and execution, and operations and management. Additional information about Acacia and its subsidiaries is available at www.acaciaresearch.com.
Safe Harbor Statement
This news release contains forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These statements are based upon the Company’s current expectations and speak only as of the date hereof. All statements other than statements of historical fact are forward-looking statements and include statements related to estimates and projections with respect to, among other things, the Company’s anticipated financial condition, operating performance, the value of the Company’s assets, general economic and market conditions and other future circumstances and events. This news release attempts to identify forward-looking statements by using words such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “forecast,” “focus,” “future,” “guidance,” “intend,” “may,” “outlook,” “plan,” “potential,” “predict,” “project,” “seek,” “should,” “target” and “will,” and similar words and expressions; however, the absence of these words does not mean that the statements are not forward-looking. While the Company believes its assumptions concerning future events are reasonable, a number of factors could cause actual results to differ materially and adversely from those expressed or implied in any forward-looking statements, including, but not limited to: the Company’s ability to successfully identify, diligence, complete, and integrate strategic acquisitions of businesses, divisions, and/or assets, the performance of the Company’s businesses, divisions, and/or assets,
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disruptions or uncertainty caused by an ability to retain or changes to the employees or management teams of the Company’s businesses, changes to the Company’s relationship and arrangements with Starboard Value LP, any inability of the Company’s operating businesses to execute on their business and, risks to the Company’s operating businesses related to acts of war or terrorist acts and the government or military response thereto, price and other fluctuations in the oil and gas market, inflationary pressures, supply chain disruptions or labor shortages, the impact of tariffs and trade policy, non-performance by third parties of contractual or legal obligations, changes in the Company’s credit ratings or the credit ratings of the Company’s businesses, security threats, including cybersecurity threats and disruptions to the Company’s business and operations from breaches of information technology systems, or breaches of information technology systems and, with respect to Benchmark, risks related to its hedging strategy, development plan, facilities and infrastructure of third parties with which the Company transacts business, oil or natural gas production becoming uneconomic, causing write downs or adversely affecting Benchmark’s ability to borrow, Benchmark’s ability to replace reserves and efficiently develop current reserves, risks, operational hazards, unforeseen interruptions and other difficulties involved in the production of oil and natural gas, the impact of any seismic events, environmental liability risk, regulatory changes related to the oil and gas industry, the ability to successfully develop licensing programs and attract new business, changes in demand for current and future intellectual property rights, legislative, regulatory and competitive developments addressing licensing and enforcement of patents and/or intellectual property in general, the decrease in demand for Printronix' products, changes in safety, health, environmental, tax and other regulations, requirements or initiatives, hazards such as weather conditions, pandemics, general economic conditions, and the success of the Company’s investments. For further discussions of risks and uncertainties, you should refer to the Company’s filings with the Securities and Exchange Commission, including the “Risk Factors” section of the Company’s most recent Annual Report on Form 10-K and any subsequent Quarterly Reports on Form 10-Q. In addition, actual results may differ materially as a result of additional risks and uncertainties of which the Company is currently unaware or which the Company does not currently view as material. Except as otherwise required by applicable law, the Company undertakes no obligation to revise or update publicly any forward-looking statements for any reason.
Investor Contact:
Gagnier Communications
ir@acaciares.com
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ACACIA RESEARCH CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per share data)
March 31, 2026December 31, 2025
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents$307,507 $306,719 
Equity securities14,206 17,551 
Equity securities without readily determinable fair value5,816 5,816 
Equity method investments30,934 30,934 
Loans receivable 8,137 15,299 
Accounts receivable, net28,694 26,165 
Inventories23,417 26,559 
Prepaid expenses and other current assets12,394 21,050 
Total current assets431,105 450,093 
Property, plant and equipment, net20,231 21,291 
Oil and natural gas properties, net195,879 190,705 
Goodwill25,735 25,790 
Other intangible assets, net45,294 48,148 
Operating lease, right-of-use assets11,657 11,500 
Deferred income tax assets, net18,290 14,836 
Other non-current assets7,680 8,593 
Total assets$755,871 $770,956 
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable$11,431 $13,358 
Accrued expenses and other current liabilities23,480 19,661 
Accrued compensation5,955 6,727 
Current asset retirement obligation 1,608 1,589 
Royalties and contingent legal fees payable6,630 6,761 
Deferred revenue1,260 945 
Total current liabilities50,364 49,041 
Asset retirement obligation33,027 32,586 
Long-term lease liabilities8,867 8,424 
Deferred income tax liabilities, net2,182 2,152 
Benchmark revolving credit facility59,500 59,500 
Deflecto facility31,021 32,566 
Other long-term liabilities3,685 2,655 
Total liabilities188,646 186,924 
Commitments and contingencies
Stockholders' equity:
Preferred stock, par value $0.001 per share; 10,000,000 shares authorized; no shares issued or outstanding— — 
Common stock, par value $0.001 per share; 300,000,000 shares authorized; 96,589,132 and 96,475,469 shares issued and outstanding as of March 31, 2026 and December 31, 2025, respectively96 96 
Treasury stock, at cost, 20,542,064 shares as of March 31, 2026 and December 31, 2025(118,542)(118,542)
Accumulated other comprehensive income784 670 
Additional paid-in capital916,010 915,330 
Accumulated deficit(269,845)(254,104)
Total Acacia Research Corporation stockholders' equity528,503 543,450 
Noncontrolling interests38,722 40,582 
Total stockholders' equity567,225 584,032 
Total liabilities and stockholders' equity$755,871 $770,956 
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ACACIA RESEARCH CORPORATION
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
AND COMPREHENSIVE INCOME (LOSS)
(In thousands, except share and per share data)
Three Months Ended March 31,
20262025
Revenues:
Intellectual property operations$722 $69,905 
Industrial operations7,182 7,676 
Energy operations18,669 18,306 
Manufacturing operations27,666 28,535 
Total revenues54,239 124,422 
Costs and expenses:
Cost of revenues - intellectual property operations4,833 27,912 
Cost of revenues - industrial operations3,279 4,064 
Cost of production - energy operations11,689 12,698 
Cost of revenues - manufacturing operations22,383 20,811 
Sales and marketing expenses - industrial and manufacturing operations3,119 3,312 
General and administrative expenses17,293 17,320 
Total costs and expenses62,596 86,117 
Operating (loss) income(8,357)38,305 
Other income (expense):
Equity securities investments:
Change in fair value of equity securities(1,559)(4,777)
(Loss) gain on sale of equity securities(605)1,605 
Net realized and unrealized loss(2,164)(3,172)
Loss on derivatives - energy operations(10,699)(5,021)
(Loss) gain on foreign currency exchange(59)155 
Interest expense(1,886)(2,451)
Interest income2,815 2,510 
Other income (expense), net185 (717)
Total other expense(11,808)(8,696)
(Loss) income before income taxes(20,165)29,609 
Income tax benefit (expense)2,564 (6,081)
Net (loss) income including noncontrolling interests in subsidiaries(17,601)23,528 
Net loss (income) attributable to noncontrolling interests in subsidiaries1,860 759 
Net (loss) income attributable to Acacia Research Corporation$(15,741)$24,287 
(Loss) income per share:
Net (loss) income attributable to common stockholders - Basic$(15,741)$24,287 
Weighted average number of shares outstanding - Basic96,487,121 96,018,047 
Basic net (loss) income per common share$(0.16)$0.25 
Net (loss) income attributable to common stockholders - Diluted$(15,741)$24,287 
Weighted average number of shares outstanding - Diluted96,487,121 96,981,413 
Diluted net (loss) income per common share$(0.16)$0.25 
Other comprehensive income (loss):
Foreign currency translation$114 $662 
Total other comprehensive income, net114 662 
Total comprehensive (loss) income(17,487)24,190 
Comprehensive loss (income) attributable to noncontrolling interests1,860 759 
Comprehensive (loss) income attributable to Acacia Research Corporation$(15,627)$24,949 
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ACACIA RESEARCH CORPORATION - SUPPLEMENTAL INFORMATION
NON-GAAP FINANCIAL MEASURE
This earnings release includes Adjusted EBITDA on a consolidated basis and for each of the Company’s segments. Total Company Adjusted EBITDA, Operated Segment Adjusted EBITDA and Adjusted EBITDA and Free Cash Flow (FCF) for each of the Company’s segments are supplemental non-GAAP financial measures used by management and external users of the Company’s consolidated financial statements. This earnings release also includes the Company’s Adjusted Net Income (Loss) and Adjusted Diluted Earnings Per Share (EPS), which are non-GAAP financial measures. GAAP refers to generally accepted accounting principles in the United States. A non-GAAP financial measure is a numerical measure of historical or future performance, financial position or cash flow that includes or excludes amounts that are excluded or included, respectively, in the most directly comparable measure calculated and presented in accordance with GAAP in the Company’s financial statements.
Total Company Adjusted EBITDA is defined as net income / (loss) before net income / (loss) attributable to noncontrolling interests, income tax (benefit) / expense, interest expense, interest income, and other expense, net and loss / (gain) on foreign currency exchange, net realized and unrealized (gain) / loss on derivatives, net realized and unrealized loss / (gain) on investments, non-recurring legacy legal expenses, depreciation, depletion and amortization, stock-based compensation, transaction-related costs, severance costs, restructuring expense, and costs related to the legacy items, and includes realized hedge gain / (loss) and service provider settlement income. Operated Segment Adjusted EBITDA is the aggregate of Energy Operations Adjusted EBITDA, Manufacturing Operations Adjusted EBITDA, Industrial Operations Adjusted EBITDA, and Intellectual Property Operations Adjusted EBITDA. See below for the definition of each of those measures. The Company is providing Total Company Adjusted EBITDA and Operated Segment Adjusted EBITDA, non-GAAP financial measures, because management believes these metrics provide investors with useful supplemental information in comparing the operating results across reporting periods by excluding items that are not considered indicative of core operating performance. These measures are not intended to replace the presentation of financial results in accordance with GAAP and may be different from or otherwise inconsistent with similar non-GAAP financial measures used by other companies. The presentation of these non-GAAP financial measures supplements other metrics the Company uses to internally evaluate its subsidiary businesses and facilitate the comparison of past and present operating performance. These measures should not be considered in isolation or as a substitute for measures calculated and presented in accordance with GAAP.
Energy Operations
Energy Operations Adjusted EBITDA is defined as operating income / (loss) for Acacia’s Energy Operations before depreciation, depletion and amortization expense and transaction-related costs, and including realized hedge gain / (loss). The Company is providing its Energy Operations Adjusted EBITDA, a non-GAAP financial measure, because the metric provides investors with useful supplemental information in comparing the operating results across reporting periods by excluding items that are not considered indicative of core operating performance.
Industrial Operations
Industrial Operations Adjusted EBITDA is defined as operating income / (loss) for Acacia’s Industrial Operations before amortization of acquired intangibles, depreciation and amortization expense, and severance costs. The Company is providing its Industrial Operations Adjusted EBITDA, a non-GAAP financial measure, because the metric provides investors with useful supplemental information in comparing the operating results across reporting periods by excluding items that are not considered indicative of core operating performance.
Intellectual Property Operations
Intellectual Property Operations Adjusted EBITDA is defined as operating income / (loss) for Acacia’s Intellectual Property Operations before patent amortization, depreciation expense and stock-based compensation, and including service provider settlement income. The Company is providing Intellectual Property Operations Adjusted EBITDA, a non-GAAP financial measure, because the metric provides investors with useful supplemental information in comparing the operating results across reporting periods by excluding items that are not considered indicative of core operating performance.
Manufacturing Operations
Manufacturing Operations Adjusted EBITDA is defined as operating income / loss for Acacia’s Manufacturing Operations before amortization of acquired intangibles, depreciation and amortization expense, severance costs, restructuring expense, and transaction-related costs. The Company is providing its Manufacturing Operations Adjusted EBITDA, a non-GAAP
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financial measure, because the metric provides investors with useful supplemental information in comparing the operating results across reporting periods by excluding items that are not considered indicative of core operating performance.
Parent Costs are defined as operating income / (loss) attributable to Parent before depreciation and amortization expense, stock-based compensation, transaction-related costs, and costs related to certain legacy matters attributable to the Parent organization. The Company is providing Parent Costs, a non-GAAP financial measure, because it believes it gives investors a clear picture of normalized Parent-level expenses.
Free Cash Flow is defined as net cash provided by (used in) operating activities, less net purchases of property and equipment, and patent acquisitions (“Capital Expenditures”). The Company is providing Free Cash Flow, a non-GAAP financial measure, because it believes free cash flow gives investors a good sense of how much cash flows are available to be used for de-levering, making acquisitions, repurchasing shares or similar uses of cash.
Adjusted Net Income (Loss)
Adjusted Net Income (Loss) is defined as Acacia’s GAAP Net Income (Loss) excluding costs related to certain legacy matters, stock-based compensation, transaction-related costs, amortization of acquired intangibles, severance costs, restructuring expense, any unrealized (gain) / loss on securities, any unrealized (gain) / loss on hedges, and any (gain) / loss on non-cash derivatives and taking into account the tax effect(s) of those adjustments. The Company is providing Adjusted Net Income (Loss), a non-GAAP financial measure, because the metric provides investors with useful supplemental information in comparing the operating results across reporting periods by excluding items that are not considered indicative of core operating performance.
Adjusted Diluted Earnings Per Share (EPS)
Adjusted Diluted EPS is defined as Adjusted Net Income (Loss) divided by the Company’s weighted average diluted share count as of the relative period end date. The Company is providing its Adjusted Diluted EPS, a non-GAAP financial measure, because the metric provides investors with useful supplemental information in comparing the operating results across reporting periods by excluding items that are not considered indicative of core operating performance.
The following tables reconcile Operating Income (Loss), the most directly comparable GAAP financial measure, to Adjusted EBITDA for each of the Company’s operating segments and for Parent Costs for the three months ended March 31, 2026 and March 31, 2025.
Three Months Ended March 31, 2026
Adjusted EBITDAEnergy OperationsIndustrial OperationsManufacturing OperationsIntellectual Property OperationsParent CostsConsolidated Total
(In thousands, unaudited)
GAAP Operating Income (Loss)$5,317 $876 $(456)$(7,368)$(6,726)$(8,357)
Depreciation, Depletion & Amortization3,366 516 833 3,761 11 8,487 
Stock-Based Compensation— — — 98 902 1,000 
Realized Hedge Gain (Loss)(973)— — — — (973)
Transaction-Related Costs— — 172 — 620 792 
Severance Costs— — 153 — — 153 
Restructuring Expense— — 462 — — 462 
   Adjusted EBITDA$7,710 $1,392 $1,164 $(3,509)$(5,193)$1,564 
Parent Interest Income$2,713 
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Three Months Ended March 31, 2025
Adjusted EBITDAEnergy OperationsIndustrial OperationsManufacturing OperationsIntellectual Property OperationsParent CostsConsolidated Total
(In thousands, unaudited)
GAAP Operating Income (Loss)$4,001 $302 $271 $38,508 $(4,777)$38,305 
Depreciation, Depletion & Amortization3,978 552 1,545 4,520 15 10,610 
Stock-Based Compensation— — — 237 685 922 
Realized Hedge Gain (Loss)(43)— — — — (43)
Transaction-Related Costs— — 447 — 107 554 
Legacy Matter Costs— — — — 8 8 
Severance Costs— 167 176 — — 343 
Restructuring Expense— — — — — — 
   Adjusted EBITDA$7,936 $1,021 $2,439 $43,265 $(3,962)$50,699 
Parent Interest Income$2,422 
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