Acacia Research (NASDAQ:ACTG) Issues Earnings Results, Beats Expectations By $0.02 EPS

Acacia Research (NASDAQ:ACTG) released its quarterly earnings results on Thursday. The business services provider reported ($0.07) earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.09) by $0.02, FiscalAI reports. Acacia Research had a net margin of 7.60% and a return on equity of 4.11%. The firm had revenue of $54.24 million for the quarter, compared to analysts’ expectations of $50.00 million. During the same quarter last year, the company earned $0.25 EPS.

Here are the key takeaways from Acacia Research’s conference call:

• Benchmark drilled its first Cherokee well (online late March) at a development cost of about $11.5M, targeting >2.5x MOIC (>60% IRR) with company-record April production (over 63,000 barrels), which should begin to boost results in Q2–Q3.
• Acacia recorded a large unrealized mark-to-market hedge loss (~$9.7M) because oil hedges are struck near $70 while WTI was $101 at March 31, materially depressing GAAP net income and book value this quarter despite being non-cash.
• Deflecto completed the Portland→Dover consolidation and expects roughly $2M of annualized cost savings with benefits starting in H2 2026, though the company incurred near-term restructuring and CapEx.
• Printronix remained a steady cash generator, producing about $4.8M of cash flow over the past 12 months (~15% yield on acquisition) as it shifts toward a higher-consumables, recurring-revenue model.
• The intellectual property segment was episodic this quarter (only $0.7M revenue and a negative $3.5M adjusted EBITDA) with no Atlas-sized settlement like in Q1 2025, creating near-term volatility despite ongoing enforcement activity in R2/Atlas portfolios.

Acacia Research Trading Down 0.9%

Shares of NASDAQ ACTG traded down $0.04 during trading on Friday, hitting $4.66. 273,455 shares of the company were exchanged, compared to its average volume of 287,078. Acacia Research has a 12-month low of $3.12 and a 12-month high of $5.27. The company has a debt-to-equity ratio of 0.10, a quick ratio of 8.64 and a current ratio of 9.18. The company has a fifty day moving average price of $4.79 and a 200-day moving average price of $4.13. The firm has a market capitalization of $450.11 million, a PE ratio of 20.26 and a beta of 0.49.

Wall Street Analysts Forecast Growth

Several equities research analysts have issued reports on the stock. Wall Street Zen cut shares of Acacia Research from a “buy” rating to a “hold” rating in a research note on Saturday, March 14th. Craig Hallum lifted their target price on shares of Acacia Research from $5.00 to $6.00 and gave the stock a “buy” rating in a research note on Thursday, March 12th. Finally, Weiss Ratings raised shares of Acacia Research from a “sell (d+)” rating to a “hold (c-)” rating in a research note on Friday, March 13th. One analyst has rated the stock with a Buy rating and one has assigned a Hold rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $6.00.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the stock. AQR Capital Management LLC purchased a new position in shares of Acacia Research during the 1st quarter worth $35,000. Zions Bancorporation National Association UT purchased a new position in shares of Acacia Research during the 4th quarter worth $38,000. Occudo Quantitative Strategies LP purchased a new position in shares of Acacia Research during the 4th quarter worth $49,000. Abel Hall LLC purchased a new position in shares of Acacia Research during the 4th quarter worth $51,000. Finally, Verition Fund Management LLC purchased a new position in shares of Acacia Research during the 3rd quarter worth $65,000. Hedge funds and other institutional investors own 86.69% of the company’s stock.

About Acacia Research

Acacia Research Corporation is a publicly traded patent licensing company based in New York City. The firm specializes in acquiring patented technologies through a network of wholly owned subsidiaries and seeking licensing agreements or settlements with companies that utilize those technologies. Since its founding in 1993, Acacia has built a business model centered on identifying innovative inventions and monetizing them through patent enforcement and strategic partnerships.

The company’s activities span a broad range of technology sectors, including life sciences, medical devices, software, telecommunications and consumer electronics.