Acacia's Patent Licensing Restores Revenue After a Weak Quarter

The Tip Desk · August 6, 2026 · 3 min read

Total revenue reached $114.6 million in the three months ended June 30, 2026, as Intellectual Property Operations posted $60.9 million of paid-up licensing.

Acacia Research Corporation (ACTG), a value-oriented acquirer of industrial, energy and technology businesses, reported total revenue of $114.6 million for the three months ended June 30, 2026, up 124% from $51.2 million a year earlier.

The sequential turn was the quarter’s defining move. Revenue had been $54.2 million in the first quarter after an 8% sequential drop from $58.8 million in the fourth quarter of 2025. Chief Executive Officer Martin (“MJ”) D. McNulty, Jr. said the year-over-year increase was driven primarily by higher paid-up licensing revenue from Intellectual Property Operations.

Intellectual Property Operations, the Acacia Research Group licensing franchise, generated $60.9 million of revenue, versus $329 thousand a year earlier. That segment’s Adjusted EBITDA was $10.9 million, compared with a $2.1 million loss a year earlier. The company said the licensing line was the primary driver of the 124% year-over-year revenue increase.

Energy Operations, the Benchmark Energy oil and gas business, recorded $20.5 million of revenue, which the company described as the strongest revenue quarter for the business under Acacia ownership following the April 2024 Revolution Acquisition. Benchmark’s Adjusted EBITDA was $9.8 million. Manufacturing Operations (Deflecto) contributed $27.1 million of revenue. Industrial Operations (Printronix) contributed $6.0 million.

GAAP net income was $47 thousand, or $0.00 diluted EPS, versus a GAAP net loss of $3.3 million, or ($0.03) diluted EPS, a year earlier. Adjusted net income was $12.8 million, or $0.13 adjusted diluted EPS. GAAP operating income was $8.5 million, versus an operating loss of $12.4 million a year earlier.

The GAAP result included a $30.9 million impairment of an equity method investment in MalinJ1. Investment securities representing equity method investments fell to zero from $19.9 million at December 31, 2025. Adjusted net income excludes that impairment, net of noncontrolling interests, along with other items in the company’s reconciliation.

Total Company Adjusted EBITDA was $17.3 million. Operated Segment Adjusted EBITDA was $22.8 million. Parent costs of $5.5 million sat between the two measures. Manufacturing Operations Adjusted EBITDA was $1.1 million. Industrial Operations Adjusted EBITDA was $1.0 million.

Consolidated free cash flow was a use of $835 thousand, versus a source of $47.9 million a year earlier, as Intellectual Property Operations free cash flow swung from a $44.0 million source to a $3.3 million use. Energy Operations free cash flow was $6.5 million.

Cash, cash equivalents, equity securities measured at fair value and loans receivable totaled $334.6 million, or $3.43 a share, at June 30, 2026. The company said the change from year-end was primarily due to $15.1 million of higher operating cash across operated segments and a $1.6 million sale of an unoccupied portion of Deflecto’s U.K. facility, offset by parent costs, capital expenditures at Benchmark and Deflecto, and $1.8 million spent on additional interests in the Wi-Fi 7 portfolio. Parent-company indebtedness remained zero. Consolidated indebtedness was $90.4 million, consisting of $59.5 million of non-recourse debt at Benchmark and $30.9 million at Deflecto.

McNulty said the company remains focused on compounding long-term intrinsic value per share through disciplined capital allocation, active ownership of operating businesses and selective investments, and that the acquisition pipeline remains active.