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Acacia Research Corporation Reports Third Quarter 2025 Financial Results
Total Revenue of $59.4 million, Up 155% Year Over Year
GAAP Net Loss of ($2.7) million and GAAP Diluted EPS of ($0.03)
Adjusted Net Loss1 of ($1.1) million and Adjusted Diluted EPS1 of $(0.01)
Total Company Adjusted EBITDA1 of $8.0 million and Operated Segment Adjusted EBITDA1 of $12.6 million
Total Cash, Cash Equivalents, Equity Securities and Loans Receivable of $332.4 million, or $3.45 per share
New York, NY, November 5, 2025 - 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 and nine months ended September 30, 2025. The Company also posted its third quarter 2025 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 in the third quarter as we recorded total revenue of $59.4 million, Total Company Adjusted EBITDA of $8.0 million and Operated Segment Adjusted EBITDA of $12.6 million, with all metrics up significantly year-over-year. Against the backdrop of persistent macroeconomic uncertainty, our teams continued to execute against our disciplined and operationally focused strategy. We implemented several initiatives across our operating businesses, including targeted pricing strategies and cost savings measures to mitigate ongoing tariff pressures and streamline operations, all of which contributed to our strong quarterly performance.
Looking ahead, our focus remains 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 third quarter, cash, cash equivalents, equity securities and loans receivable was approximately $332.4 million, or $3.45 per share. Our strong cash position and balance sheet provides us with the flexibility to pursue accretive organic and inorganic growth opportunities across our businesses to create differentiated value for our shareholders.”
Third Quarter 2025 Highlights
•Total revenue of $59.4 million for the quarter, up 155% compared to $23.3 million for the prior-year quarter, primarily driven by $30.8 million in revenue from our third full quarter of Manufacturing Operations.
•GAAP Net Loss of ($2.7) million, or ($0.03) GAAP Diluted EPS, for the three months ended September 30, 2025.
•Adjusted Net Loss of ($1.1) million, or ($0.01) Adjusted Diluted EPS, for the three months ended September 30, 2025.
•Operated Segment Adjusted EBITDA of $12.6 million for the three months ended September 30, 2025.
•Total Company Adjusted EBITDA of $8.0 million for the three months ended September 30, 2025.
•At quarter end, cash, cash equivalents, equity securities and loans receivable was approximately $332.4 million, or $3.45 per share.
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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Revenue
The following table provides a breakdown of the Company’s total revenue for the three and nine months ended September 30, 2025 and September 30, 2024. 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 September 30,Nine Months Ended September 30,
2025202420252024
(In thousands, unaudited)
Energy Operations$14,176 15,817 47,799 31,843 
Industrial Operations6,660 7,007 20,926 22,183 
Manufacturing Operations30,815 — 88,351 — 
Intellectual Property Operations7,795 486 78,029 19,442 
Total Revenues$59,446 $23,310 $235,105 $73,468 
Adjusted EBITDA
The following table provides a reconciliation of consolidated Net Income (Loss), the most directly comparable GAAP measure, to Total Company Adjusted EBITDA for the three and nine months ended September 30, 2025 and September 30, 2024.
Three Months Ended September 30,Nine Months Ended September 30,
2025202420252024
(In thousands, unaudited)
GAAP Net Income (Loss)$(2,730)$(13,996)$18,264 $(22,628)
Net (Income) Loss Attributable to Noncontrolling Interests336 2,339 1,433 1,953 
Income Tax Expense (Benefit)(968)5,497 5,660 (2,673)
Interest Expense2,230 1,945 7,010 4,085 
Interest (Income)(3,001)(4,540)(8,447)(14,573)
(Gain) Loss on Foreign Currency Exchange30 (130)(405)72 
Net Realized and Unrealized (Gain) Loss on Derivatives(1,872)(8,034)(3,486)(5,546)
Net Realized and Unrealized (Gain) Loss on Investments(900)4,074 (1,854)6,658 
Non-recurring Legacy Legal Expense— 2,000 — 14,857 
Other (Income) Expense, net449 573 1,319 678 
   GAAP Operating Income (Loss)$(6,426)$(10,272)$19,494 $(17,117)
Depreciation, Depletion & Amortization10,836 9,762 32,891 21,735 
Stock-Based Compensation1,875 781 3,751 2,530 
Realized Hedge Gain (Loss)1,165 715 1,991 1,628 
Transaction-Related Costs497 320 1,288 542 
Legacy Matter Costs3 368 12 2,777 
Severance Costs18 — 1,113 — 
   Total Company Adjusted EBITDA$7,968 $1,674 $60,540 $12,095 
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The following table provides the Adjusted EBITDA for each of the Company’s operating segments for the three and nine months ended September 30, 2025 and September 30, 2024.
Three Months Ended September 30,Nine Months Ended September 30,
2025202420252024
(In thousands, unaudited)
Energy Operations Adjusted EBITDA2$6,147 $8,442 $21,034 $16,859 
Industrial Operations Adjusted EBITDA2
828 579 2,469 2,925 
Manufacturing Operations Adjusted EBITDA2
2,598 — 6,311 — 
   Operated Segment Adjusted EBITDA
   (excluding Intellectual Property Operations)		$9,573 $9,021 29,814 19,784 
Intellectual Property Operations Adjusted EBITDA2
3,004 (2,139)44,208 6,330 
   Operated Segment Adjusted EBITDA$12,577 $6,882 74,022 26,114 
Parent Costs2
(4,609)(5,208)(13,482)(14,019)
   Total Company Adjusted EBITDA$7,968 $1,674 $60,540 $12,095 
Adjusted Net Income (Loss) and Adjusted Diluted EPS
The following table provides a reconciliation of Net Income (Loss), the most directly comparable GAAP measure, to Adjusted Net Income (Loss) and Adjusted Diluted EPS for the three and nine months ended September 30, 2025 and September 30, 2024.
Three Months Ended September 30,Nine Months Ended September 30,
2025202420252024
(In thousands, except share and per share data, unaudited)
GAAP Net Income (Loss)$(2,730)$(13,996)$18,264 $(22,628)
Non-recurring Legacy Legal Expense— 2,000 — 14,857 
Legacy Matter Costs33 368 262 2,777 
Stock-Based Compensation1,875 781 3,751 2,530 
Severance Costs18 — 1,113 — 
Transaction-Related Costs497 235 1,288 398 
Amortization of Acquired Intangibles855 433 2,622 1,299 
Unrealized Loss (Gain) on Securities(900)4,074 1,658 35,519 
Unrealized Loss (Gain) on Hedges(519)(5,382)(1,099)(3,027)
Tax Effect of Adjustments(154)5,412 (1,779)(10,712)
Adjusted Net Income (Loss)$(1,055)$(6,075)26,080 21,013 
GAAP Diluted EPS$(0.03)$(0.14)$0.19 $(0.23)
GAAP diluted weighted average shares96,445,160 99,854,723 97,038,414 99,893,336 
Adjusted Diluted EPS$(0.01)$(0.06)$0.27 $0.21 
Adjusted diluted weighted average shares96,445,160 99,854,723 97,038,414 100,714,012 
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.
3 Legacy Matter Costs for the nine months ended September 30, 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.
3


Free Cash Flow4
The following table provides a reconciliation of Free Cash Flow (“FCF”) for the three and nine months ended September 30, 2025.
Three Months Ended September 30, 2025
Energy OperationsIndustrial OperationsManufacturing OperationsIntellectual Property OperationsParent CostsConsolidated Total
(In thousands, unaudited)
Net Cash from Operating Activities (GAAP)$5,858 $710 $2,227 $2,693 $(1,941)$9,547 
Less: Capital Expenditures(1,586)(11)(252)(7)2 (1,854)
Free Cash Flow (Non-GAAP)$4,272 $699 $1,975 $2,686 $(1,939)$7,693 
Nine Months Ended September 30, 2025
Energy OperationsIndustrial OperationsManufacturing OperationsIntellectual Property OperationsParent CostsConsolidated Total
(In thousands, unaudited)
Net Cash from Operating Activities (GAAP)$17,342 $4,135 $4,352 $44,474 $(8,211)$62,092 
Less: Capital Expenditures(5,439)(39)(665)(7)(7)(6,157)
Free Cash Flow (Non-GAAP)$11,903 $4,096 $3,687 $44,467 $(8,218)$55,935 
Balance Sheet and Capital Structure
•Cash, cash equivalents, equity securities measured at fair value and loans receivable totaled $332.4 million at September 30, 2025 compared to $297.0 million at December 31, 2024, an increase of $35.4 million. This increase in cash during the nine months ended September 30, 2025 was primarily due to cash generated from operating activities across all Operated Segments of $70.3 million. Cash was reduced by $2.2 million from net purchases of equity securities, Parent Costs of $8.2 million and further by $5.4 million and $0.7 million of capital expenditures at Benchmark and Deflecto, respectively, as well as $4.2 million in spend at Benchmark for new oil and gas leasehold interests. Additionally, cash used in financing activities reduced cash by $20.7 million, primarily from $12.0 million of debt repayment on the Benchmark revolving credit facility and $12.1 million of debt repayment on the Deflecto facility, offset by a $4.0 million draw on the Benchmark revolving credit facility for the purchase of additional leasehold interests.
•Equity securities without readily determinable fair value totaled $5.8 million at September 30, 2025, unchanged from December 31, 2024.
•Investment securities representing equity method investments totaled $19.9 million at September 30, 2025 (net of noncontrolling interests), unchanged from December 31, 2024. Acacia owns 64% of MalinJ1, which results in a 26% indirect ownership stake in Viamet Pharmaceuticals, Inc. for Acacia.
•Loans receivable totaled $3.4 million at September 30, 2025, 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 September 30, 2025. On a consolidated basis, Acacia’s total indebtedness was $94.0 million, consisting of $58.5 million in non-recourse debt at Benchmark and $35.5 million in non-recourse debt at Deflecto as of September 30, 2025.
Book Value as of September 30, 2025
At September 30, 2025, Acacia’s book value (which includes noncontrolling interests) was $576.8 million and there were 96.5 million shares of common stock outstanding, for a book value per share of $5.98. 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).
Investor Conference Call
The Company will host a conference call today, November 5, 2025 at 8:00 a.m. Eastern Time (5:00 a.m. Pacific Time).
To access the live call, please dial 877-545-0523 (U.S. and Canada) or 973-528-0016 (international) and if requested, reference the access code “796337.” The conference call will also be simultaneously webcast at https://
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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www.webcaster5.com/Webcast/Page/2371/53117 and on the investor relations section of the Company’s website at http://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 publicly traded company that is focused on acquiring and operating attractive businesses across 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, 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, with respect to Benchmark, hedging strategy, risks related to 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, 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, a health pandemic (similar to COVID-19), acts of war or terrorist acts and the government or military response thereto, 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
5


ACACIA RESEARCH CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per share data)
September 30, 2025December 31, 2024
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents$301,780 $273,880 
Equity securities27,193 23,135 
Equity securities without readily determinable fair value5,816 5,816 
Equity method investments30,934 30,934 
Loans receivable 3,392 — 
Accounts receivable, net27,141 26,909 
Inventories26,490 27,485 
Prepaid expenses and other current assets17,891 31,987 
Total current assets440,637 420,146 
Property, plant and equipment, net22,188 23,865 
Oil and natural gas properties, net188,877 191,680 
Goodwill25,695 29,339 
Other intangible assets, net55,458 55,429 
Operating lease, right-of-use assets11,643 9,287 
Deferred income tax assets, net16,939 20,233 
Other non-current assets7,434 6,415 
Total assets$768,871 $756,394 
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable$13,331 $12,074 
Accrued expenses and other current liabilities20,326 20,575 
Accrued compensation7,990 6,277 
Current asset retirement obligation 1,569 1,546 
Royalties and contingent legal fees payable6,978 5,448 
Deferred revenue853 1,319 
Current portion of long-term debt— 2,400 
Total current liabilities51,047 49,639 
Asset retirement obligation32,232 31,070 
Long-term lease liabilities8,713 6,778 
Deferred income tax liabilities, net2,609 2,609 
Benchmark revolving credit facility58,500 66,500 
Deflecto facility35,519 45,088 
Other long-term liabilities3,413 2,091 
Total liabilities192,033 203,775 
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; 96,460,378 and 96,048,999 shares issued and outstanding as of September 30, 2025 and December 31, 2024, respectively96 96 
Treasury stock, at cost, 20,542,064 shares as of September 30, 2025 and December 31, 2024, respectively(118,542)(118,542)
Accumulated other comprehensive income (loss)231 (1,180)
Additional paid-in capital913,348 910,237 
Accumulated deficit(257,522)(275,786)
Total Acacia Research Corporation stockholders' equity537,611 514,825 
Noncontrolling interests39,227 37,794 
Total stockholders' equity576,838 552,619 
Total liabilities and stockholders' equity$768,871 $756,394 
6

ACACIA RESEARCH CORPORATION
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
AND COMPREHENSIVE INCOME (LOSS)
(In thousands, except share and per share data)
Three Months Ended September 30,Nine Months Ended September 30,
2025202420252024
Revenues:
Intellectual property operations$7,795 $486 $78,029 $19,442 
Industrial operations6,660 7,007 20,926 22,183 
Energy operations14,176 15,817 47,799 31,843 
Manufacturing operations30,815 — 88,351 — 
Total revenues59,446 23,310 235,105 73,468 
Costs and expenses:
Cost of revenues - intellectual property operations8,301 5,707 42,771 18,473 
Cost of revenues - industrial operations3,376 3,523 10,846 10,849 
Cost of production - energy operations11,880 11,729 36,887 23,082 
Cost of revenues - manufacturing operations23,285 — 66,518 — 
Sales and marketing expenses - industrial and manufacturing operations3,080 1,391 9,773 4,333 
General and administrative expenses15,950 11,232 48,816 33,848 
Total costs and expenses65,872 33,582 215,611 90,585 
Operating (loss) income(6,426)(10,272)19,494 (17,117)
Other income (expense):
Equity securities investments:
Change in fair value of equity securities900 (4,074)(1,658)(35,519)
Gain on sale of equity securities— — 3,512 28,861 
Net realized and unrealized gain (loss)900 (4,074)1,854 (6,658)
Non-recurring legacy legal expense— (2,000)— (14,857)
Gain on derivatives - energy operations1,872 8,034 3,486 5,546 
(Loss) gain on foreign currency exchange(30)130 405 (72)
Interest expense(2,230)(1,945)(7,010)(4,085)
Interest income3,001 4,540 8,447 14,573 
Other expense, net(449)(573)(1,319)(678)
Total other income (expense)3,064 4,112 5,863 (6,231)
(Loss) income before income taxes(3,362)(6,160)25,357 (23,348)
Income tax benefit (expense)968 (5,497)(5,660)2,673 
Net (loss) income including noncontrolling interests in subsidiaries(2,394)(11,657)19,697 (20,675)
Net loss (income) attributable to noncontrolling interests in subsidiaries(336)(2,339)(1,433)(1,953)
Net (loss) income attributable to Acacia Research Corporation$(2,730)$(13,996)$18,264 $(22,628)
(Loss) income per share:
Net (loss) income attributable to common stockholders - Basic$(2,730)$(13,996)$18,264 $(22,628)
Weighted average number of shares outstanding - Basic96,445,160 99,854,723 96,237,282 99,893,336 
Basic net (loss) income per common share$(0.03)$(0.14)$0.19 $(0.23)
Net (loss) income attributable to common stockholders - Diluted$(2,730)$(13,996)$18,264 $(22,628)
Weighted average number of shares outstanding - Diluted96,445,160 99,854,723 97,038,414 99,893,336 
Diluted net (loss) income per common share$(0.03)$(0.14)$0.19 $(0.23)
Other comprehensive (loss) income:
Foreign currency translation$(114)$— $1,411 $— 
Total other comprehensive (loss) income, net(114)— 1,411 — 
Total comprehensive (loss) income(2,508)(11,657)21,108 (20,675)
Comprehensive loss (income) attributable to noncontrolling interests(336)(2,339)(1,433)(1,953)
Comprehensive (loss) income attributable to Acacia Research Corporation(2,844)(13,996)19,675 (22,628)
7


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, realized hedge gain / (loss), transaction-related costs, and costs related to the legacy items. 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 and depreciation and amortization expense. 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. 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 depreciation and amortization expense, severance, and transaction-related costs. The Company is providing its Manufacturing Operations Adjusted EBITDA, a non-GAAP financial measure, because the metric provides investors with
8

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, 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 and nine months ended September 30, 2025 and September 30, 2024.
Three Months Ended September 30, 2025
Adjusted EBITDAEnergy OperationsIndustrial OperationsManufacturing OperationsIntellectual Property OperationsParent CostsConsolidated Total
(In thousands, unaudited)
GAAP Operating Income (Loss)$1,134 $288 $1,126 $(2,420)$(6,554)$(6,426)
Depreciation, Depletion & Amortization3,848 540 1,148 5,286 14 10,836 
Stock-Based Compensation— — — 138 1,737 1,875 
Realized Hedge Gain (Loss)1,165 — — — — 1,165 
Transaction-Related Costs— — 306 — — 191 497 
Legacy Matter Costs— — — — 3 3 
Severance Costs— — 18 — — 18 
   Adjusted EBITDA$6,147 $828 $2,598 $3,004 $(4,609)$7,968 
Parent Interest Income$2,860 
9

Three Months Ended September 30, 2024
Adjusted EBITDAEnergy OperationsIndustrial OperationsManufacturing OperationsIntellectual Property OperationsParent CostsConsolidated Total
(In thousands, unaudited)
GAAP Operating Income (Loss)$3,064 $(101)$— $(7,138)$(6,097)$(10,272)
Depreciation, Depletion & Amortization4,343 680 — 4,714 25 9,762 
Stock-Based Compensation— — — 285 496 781 
Realized Hedge Gain (Loss)715 — — — — 715 
Transaction-Related Costs320 — — — — 320 
Legacy Matter Costs— — — — 368 368 
Severance Costs— — — — — — 
   Adjusted EBITDA$8,442 $579 $— $(2,139)$(5,208)$1,674 
Parent Interest Income$4,570 
Nine Months Ended September 30, 2025
Adjusted EBITDAEnergy OperationsIndustrial OperationsManufacturing OperationsIntellectual Property OperationsParent CostsConsolidated Total
(In thousands, unaudited)
GAAP Operating Income (Loss)$7,228 $664 $771 $28,475 $(17,644)$19,494 
Depreciation, Depletion & Amortization11,815 1,638 4,174 15,221 43 32,891 
Stock-Based Compensation— — — 512 3,239 3,751 
Realized Hedge Gain (Loss)1,991 — — — — 1,991 
Transaction-Related Costs— — 420 — 868 1,288 
Legacy Matter Costs— — — — 12 12 
Severance Costs— 167 946 — — 1,113 
   Adjusted EBITDA$21,034 $2,469 $6,311 $44,208 $(13,482)$60,540 
Parent Interest Income$8,069 
Nine Months Ended September 30, 2024
Adjusted EBITDAEnergy OperationsIndustrial OperationsManufacturing OperationsIntellectual Property OperationsParent CostsConsolidated Total
(In thousands, unaudited)
GAAP Operating Income (Loss)$6,469 $877 $— $(6,109)$(18,354)$(17,117)
Depreciation, Depletion & Amortization8,220 2,048 — 11,390 77 21,735 
Stock-Based Compensation— — — 1,049 1,481 2,530 
Realized Hedge Gain (Loss)1,628 — — — — 1,628 
Transaction-Related Costs542 — — — — 542 
Legacy Matter Costs— — — — 2,777 2,777 
Severance Costs— — — — — — 
   Adjusted EBITDA$16,859 $2,925 $— $6,330 $(14,019)$12,095 
Parent Interest Income$14,677 
10