Acacia Research (NASDAQ:ACTG) reported second-quarter 2026 revenue of $114.6 million, up from $51.2 million in the prior-year period, as licensing activity in its intellectual property business and contributions from its operating companies supported results.
The company posted operating income of $8.5 million, GAAP net income attributable to Acacia of $47,000, or $0.00 per diluted share, and adjusted net income of $12.8 million, or $0.13 per diluted share. Total company adjusted EBITDA was $17.3 million, while adjusted EBITDA from operated segments was $22.8 million.
Operating businesses contribute to results
Chief Executive Officer MJ McNulty said the company’s results reflected execution across its operating businesses, disciplined capital allocation and its diversified business model. Acacia’s strategy, he said, is focused on compounding long-term intrinsic value per share rather than maximizing short-term earnings.
Benchmark, Acacia’s energy operation, delivered record quarterly revenue of $20.5 million, adjusted EBITDA of $9.8 million and free cash flow of $6.5 million. McNulty said production from the Cherokee development performed in line with expectations and that the business was continuing to assess additional drilling opportunities.
In response to an analyst question, McNulty said the quarter included a full-quarter contribution from a wholly owned operated well that began producing shortly after the start of the second quarter. Benchmark has several units under review for further drilling, he said, and is underwriting future wells to type curves similar to the Cherokee well’s performance.
McNulty said Benchmark’s priority is to maximize long-term value rather than near-term production, while evaluating potential capital partnerships and managing commodity hedges to support free cash flow, reduce volatility and protect against downside risk.
Deflecto, the manufacturing business, generated $27.1 million in revenue and $1.1 million in adjusted EBITDA. Acacia said it has continued manufacturing optimization, organizational streamlining, cost-management and pricing initiatives at Deflecto. McNulty said those improvements are structural and could provide operating leverage if demand improves.
Addressing conditions in the Class 8 trucking market, McNulty said favorable results reported by some companies were an encouraging leading indicator for Deflecto. He added that some sales appeared to involve existing inventory rather than newly manufactured original-equipment inventory, and said Deflecto could benefit as inventory moves through the system.
Printronix generated quarterly revenue of $6 million, adjusted EBITDA of $1 million and free cash flow of $900,000. McNulty said the company continues to use its installed base and global distribution network to increase sales of higher-margin consumables and complementary products while maintaining disciplined costs.
IP licensing settlement lifts revenue
Acacia’s intellectual property business generated approximately $60.9 million in licensing and related revenue during the quarter, driven primarily by a significant settlement involving its Wi-Fi 6 portfolio. The company reported $10.9 million in adjusted EBITDA for the segment.
Management emphasized that licensing revenue does not translate directly into cash flow or adjusted EBITDA because recoveries are shared contractually with contingency-fee counsel, inventors and, in some cases, partners. McNulty said the Wi-Fi 6 portfolio has a partner entitled to a share of recoveries, while litigation is conducted on a contingency-fee basis.
During the question-and-answer session, McNulty identified TP-Link as the counterparty in the settlement and said the matter had progressed nearly through the court system, resulting in a higher contingency-fee rate than Acacia would typically experience. He said cash from the settlement was received in the third quarter but was booked as accounts receivable at the end of the second quarter.
The IP segment also incurred about $3.7 million in non-recurring expense tied to a legacy litigation matter that management said is substantially complete. Acacia has reduced operating costs in the segment and said amortization from certain legacy intangible assets has declined significantly from 2025 levels and is expected to remain at a lower run rate through next year.
McNulty said Acacia sees further licensing opportunities in Wi-Fi 6 and remains encouraged by the longer-term potential of its R2 portfolio as artificial intelligence increases demand for high-performance computing and data infrastructure.
Life sciences investment impaired
Acacia recorded a full write-down of its legacy MalinJ1 investment during the quarter following developments involving Mycovia Pharmaceuticals. Through MalinJ1’s investment in Viamet Pharmaceuticals, Acacia held an indirect economic interest in potential milestones and royalty payments related to VIVJOA, an FDA-approved antifungal drug.
McNulty said VIVJOA’s current label includes a contraindication that limits its addressable patient population. Mycovia has been working to narrow or remove that contraindication, but liquidity issues emerged as the timing of an FDA readout extended, leading Acacia to impair the investment’s carrying value.
Acacia said it is evaluating financing alternatives with Mycovia. One potential transaction could give Acacia a direct ownership stake in Mycovia instead of its indirect economic interest through Viamet’s milestone and royalty rights. Management cautioned that biotechnology investments are inherently risky and that there is no assurance a transaction will be completed or that regulatory objectives will be met.
The company also cited an update from AMO Pharma, in which AMO said it received constructive scientific advice from the FDA, the U.K.’s MHRA and Health Canada regarding a planned registrational study for AMO-02, a treatment candidate for congenital myotonic dystrophy. Acacia is AMO Pharma’s second-largest shareholder.
Capital allocation and deal pipeline
Book value at quarter-end was $557 million, or $5.71 per common share, compared with $567.2 million, or $5.87 per share, at the end of the prior quarter. Chief Financial Officer Michael Zambito said operating income from operating segments and gains in the public equity portfolio were offset by parent expenses and the MalinJ1 write-off.
McNulty said Acacia continues to evaluate acquisition opportunities across industries and remains focused on situations where its operational expertise and investment approach can create value beyond the purchase price. He said deal flow has been strong, including discussions involving private-credit lenders and private-equity-owned businesses, but Acacia is seeking more targeted situations rather than broad auction processes.
The company also said a public-equity investment announced an agreement to be acquired during the quarter, increasing the value of Acacia’s position. Acacia subsequently exited the investment and realized what management described as an attractive return, without identifying the company involved.
About Acacia Research (NASDAQ:ACTG)
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.
