Acacia Research Corporation Reports Fourth Quarter and Year End 2025 Financial Results
Record Full-Year Revenue of $285.2 million, Up 133% Year Over Year
GAAP Net Income of $3.4 million and GAAP Diluted EPS of $0.04 for the Quarter
Adjusted Net Income1 of $3.1 million and Adjusted Diluted EPS1 of $0.03 for the Quarter
Total Company Adjusted EBITDA1 of $17.4 million and Operated Segment Adjusted EBITDA1 of $22.4 million for the Quarter
Total Cash, Cash Equivalents, Equity Securities Measured at Fair Value and Loans Receivable of $339.6 million, or $3.52 per share, at Year End
New York, NY, March 11, 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 and year ended December 31, 2025. The Company also posted its fourth 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 for the fourth quarter, as we recorded total revenue of $50.1 million, Total Company Adjusted EBITDA of $17.4 million and Operated Segment Adjusted EBITDA of $22.4 million, with all metrics increasing year-over-year. This quarter marked the completion of a successful year for our team, with Acacia generating record annual revenue of $285.2 million, driven by our growing portfolio of operating businesses. Despite persistent macroeconomic uncertainty, our teams continued to execute on our strategic objectives underpinned by our disciplined and operationally focused strategy. We implemented several initiatives across our operating businesses, including targeted pricing strategies, cost savings measures, facility consolidation and continued tariff countermeasures, all of which contributed to our strong finish to the year. We are also pleased to announce that our Energy Operations subsidiary, Benchmark Energy, successfully drilled its first Cherokee well, which is expected to begin producing this week.
As we look ahead to 2026, our strategic focus remains unchanged - leveraging our significant capital base and experienced management team to drive long-term growth across our operating businesses. As of the end of the fourth quarter, cash, cash equivalents, equity securities and loans receivable was approximately $339.6 million, or $3.52 per share. Our strong cash position and balance sheet provides us with the flexibility to continue growing our businesses through 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.
1
Fourth Quarter 2025 Highlights:
•Total revenue of $50.1 million, up 3% compared to $48.8 million for the prior-year quarter, primarily driven by $26.4 million in revenue from our fourth full quarter of Manufacturing Operations.
•GAAP Net Income of $3.4 million, or $0.04 GAAP Diluted EPS.
•Adjusted Net Income of $3.1 million, or $0.03 Adjusted Diluted EPS.
•Operated Segment Adjusted EBITDA of $22.4 million.
•Total Company Adjusted EBITDA of $17.4 million.
•At quarter end, cash, cash equivalents, equity securities measured at fair value and loans receivable totaled approximately $339.6 million, or $3.52 per share.
•Benchmark Energy successfully drilled its first Cherokee well, which is expected to be completed and begin producing in the first quarter of 2026.
Full-Year 2025 Highlights:
•Record revenue of $285.2 million, up 133% compared to $122.3 million for the prior year, driven by a full year of revenue in both our Manufacturing Operations and Revolution assets within our Energy Operations, as well as an increase in revenue of approximately $58.8 million year-over-year from our Intellectual Property Operations.
•GAAP Net Income of $21.7 million, or $0.22 GAAP Diluted EPS.
•Adjusted Net Income of $29.2 million, or $0.30 Adjusted Diluted EPS.
•Operated Segment Adjusted EBITDA of $96.4 million.
•Total Company Adjusted EBITDA of $77.9 million.
Revenue
The following table provides a breakdown of the Company’s total revenue for the three months and year ended December 31, 2025 and December 31, 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 December 31,
Years Ended December 31,
2025
2024
2025
2024
(In thousands, unaudited)
Energy Operations
$
16,019
17,340
63,818
49,183
Industrial Operations
7,341
8,238
28,267
30,421
Manufacturing Operations
26,441
23,183
114,792
23,183
Intellectual Property Operations
326
83
78,355
19,525
Total Revenues
$
50,127
$
48,844
$
285,232
$
122,312
1
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 and year ended December 31, 2025 and December 31, 2024.
Three Months Ended December 31,
Years Ended December 31,
2025
2024
2025
2024
(In thousands, unaudited)
GAAP Net Income (Loss)
$
3,418
$
(13,429)
$
21,682
$
(36,057)
Net (Income) Loss Attributable to Noncontrolling Interests
1,355
(594)
2,788
1,359
Income Tax Expense (Benefit)
1,181
(776)
6,841
(3,449)
Interest Expense
1,979
2,379
8,989
6,464
Interest Income
(2,813)
(3,109)
(11,260)
(17,682)
(Gain) Loss on Foreign Currency Exchange
(9)
298
(414)
370
Net Realized and Unrealized (Gain) Loss on Derivatives
(3,963)
3,530
(7,449)
(2,016)
Net Realized and Unrealized (Gain) Loss on Investments
787
(4,107)
(1,067)
2,551
Non-recurring Legacy Legal Expense
—
—
—
14,857
Service Provider Settlement, net
(15,750)
—
(15,750)
—
Other (Income) Expense, net
730
(1)
2,049
677
GAAP Operating Income (Loss)
$
(13,085)
$
(15,809)
$
6,409
$
(32,926)
Depreciation, Depletion & Amortization
10,457
11,839
43,348
33,574
Stock-Based Compensation
1,987
2,265
5,738
4,795
Realized Hedge Gain
1,740
998
3,731
2,626
Service Provider Settlement, net
15,750
—
15,750
—
Transaction-Related Costs
222
5,512
1,510
6,054
Legacy Matter Costs
2
52
14
2,829
Severance Costs
336
—
1,449
—
Total Company Adjusted EBITDA
$
17,409
$
4,857
$
77,949
$
16,952
The following table provides the Adjusted EBITDA for each of the Company’s operating segments for the three months and year ended December 31, 2025 and December 31, 2024.
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
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 and year ended December 31, 2025 and December 31, 2024.
Three Months Ended December 31,
Years Ended December 31,
2025
2024
2025
2024
(In thousands, except share and per share data, unaudited)
GAAP Net Income (Loss)
$
3,418
$
(13,429)
$
21,682
$
(36,057)
Non-recurring Legacy Legal Expense
—
—
—
14,857
Legacy Matter Costs3
2
52
264
2,829
Stock-Based Compensation
1,987
2,265
5,738
4,795
Severance Costs
336
—
1,449
—
Transaction-Related Costs
222
5,509
1,510
5,907
Amortization of Acquired Intangibles
857
1,044
3,479
2,343
Unrealized Loss (Gain) on Securities
(2,750)
(4,107)
(1,092)
31,412
Unrealized Loss (Gain) on Hedges
(1,634)
3,329
(2,733)
302
Tax Effect of Adjustments
635
(1,509)
(1,144)
(12,221)
Adjusted Net Income (Loss)
$
3,073
$
(6,846)
29,153
14,167
GAAP Diluted EPS
$
0.04
$
(0.14)
$
0.22
$
(0.36)
GAAP diluted weighted average shares
97,573,518
97,190,102
97,158,219
99,213,835
Adjusted Diluted EPS
$
0.03
$
(0.07)
$
0.30
$
0.14
Adjusted diluted weighted average shares
97,573,518
97,190,102
97,158,219
100,042,280
Free Cash Flow4
The following table provides a reconciliation of Free Cash Flow (“FCF”) for the three months and year ended December 31, 2025.
Three Months Ended December 31, 2025
Energy Operations
Industrial Operations
Manufacturing Operations
Intellectual Property Operations
Parent Costs
Consolidated Total
(In thousands, unaudited)
Net Cash from (used in) Operating Activities (GAAP)
$
5,595
$
(19)
$
(1,036)
$
11,808
$
(3,198)
$
13,150
Less: Capital Expenditures
(4,592)
(4)
(765)
—
(8)
(5,369)
Free Cash Flow (Non-GAAP)
$
1,003
$
(23)
$
(1,801)
$
11,808
$
(3,206)
$
7,781
Year Ended December 31, 2025
Energy Operations
Industrial Operations
Manufacturing Operations
Intellectual Property Operations
Parent Costs
Consolidated Total
(In thousands, unaudited)
Net Cash from (used in) Operating Activities (GAAP)
$
22,937
$
4,116
$
3,316
$
56,282
$
(11,409)
$
75,242
Less: Capital Expenditures
(9,051)
(43)
(1,430)
(7)
(15)
(10,546)
Free Cash Flow (Non-GAAP)
$
13,886
$
4,073
$
1,886
$
56,275
$
(11,424)
$
64,696
Balance Sheet and Capital Structure
•Cash, cash equivalents, equity securities measured at fair value and loans receivable totaled $339.6 million at December 31, 2025 compared to $297.0 million at December 31, 2024, an increase of $42.6 million. This increase in cash was primarily due to cash generated from operating activities across all Operated Segments of $86.7 million, proceeds from the sale of the floor mat assets of $3.0 million and $1.2 million of working capital benefit
3 Legacy Matter Costs for the year ended December 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.
4
from the Deflecto transaction. Cash was reduced by Parent Costs of $11.4 million and further by $9.1 million and $1.4 million of capital expenditures at Benchmark and Deflecto, respectively, as well as $6.1 million incurred by Benchmark for the purchase of new oil and gas leasehold interests. Additionally, cash used in financing activities reduced cash by $22.7 million, primarily from $12.0 million of debt repayment on the Benchmark revolving credit facility and $15.1 million of debt repayment on the Deflecto facility, offset by a $5.0 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 December 31, 2025, unchanged from December 31, 2024.
•Investment securities representing equity method investments totaled $19.9 million at December 31, 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 $15.3 million at December 31, 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 December 31, 2025. On a consolidated basis, Acacia’s total indebtedness was $92.1 million, consisting of $59.5 million in non-recourse debt at Benchmark and $32.6 million in non-recourse debt at Deflecto, net of debt discount and issuance costs, as of December 31, 2025.
Book Value as of December 31, 2025
At December 31, 2025, Acacia’s book value (which includes noncontrolling interests) was $584.0 million and there were 96.5 million shares of common stock outstanding, for a book value per share of $6.05. 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, March 11, 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 “796337.” The conference call will also be simultaneously webcast at https://www.webcaster5.com/Webcast/Page/2371/53628 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 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, disruptions or uncertainty caused by an ability to retain or changes to the employees or management teams of the
5
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
6
ACACIA RESEARCH CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per share data)
December 31, 2025
December 31, 2024
ASSETS
Current assets:
Cash and cash equivalents
$
306,719
$
273,880
Equity securities
17,551
23,135
Equity securities without readily determinable fair value
5,816
5,816
Equity method investments
30,934
30,934
Loans receivable
15,299
—
Accounts receivable, net
26,165
26,909
Inventories
26,559
27,485
Prepaid expenses and other current assets
21,050
31,987
Total current assets
450,093
420,146
Property, plant and equipment, net
21,291
23,865
Oil and natural gas properties, net
190,705
191,680
Goodwill
25,790
29,339
Other intangible assets, net
48,148
55,429
Operating lease, right-of-use assets
11,500
9,287
Deferred income tax assets, net
14,836
20,233
Other non-current assets
8,593
6,415
Total assets
$
770,956
$
756,394
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable
$
13,358
$
12,074
Accrued expenses and other current liabilities
19,661
20,575
Accrued compensation
6,727
6,277
Current asset retirement obligation
1,589
1,546
Royalties and contingent legal fees payable
6,761
5,448
Deferred revenue
945
1,319
Current portion of long-term debt
—
2,400
Total current liabilities
49,041
49,639
Asset retirement obligation
32,586
31,070
Long-term lease liabilities
8,424
6,778
Deferred income tax liabilities, net
2,152
2,609
Benchmark revolving credit facility
59,500
66,500
Deflecto facility
32,566
45,088
Other long-term liabilities
2,655
2,091
Total liabilities
186,924
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; 96,475,469 and 96,048,999 shares issued and outstanding as of December 31, 2025 and 2024, respectively
96
96
Treasury stock, at cost, 20,542,064 shares as of December 31, 2025 and 2024, respectively
(118,542)
(118,542)
Accumulated other comprehensive income (loss)
670
(1,180)
Additional paid-in capital
915,330
910,237
Accumulated deficit
(254,104)
(275,786)
Total Acacia Research Corporation stockholders' equity
543,450
514,825
Noncontrolling interests
40,582
37,794
Total stockholders' equity
584,032
552,619
Total liabilities and stockholders' equity
$
770,956
$
756,394
7
ACACIA RESEARCH CORPORATION
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
AND COMPREHENSIVE INCOME (LOSS)
(In thousands, except share and per share data)
Three Months Ended December 31,
Years Ended December 31,
2025
2024
2025
2024
Revenues:
Intellectual property operations
$
326
$
83
$
78,355
$
19,525
Industrial operations
7,341
8,238
28,267
30,421
Energy operations
16,019
17,340
63,818
49,183
Manufacturing operations
26,441
23,183
114,792
23,183
Total revenues
50,127
48,844
285,232
122,312
Costs and expenses:
Cost of revenues - intellectual property operations
7,242
6,078
50,013
24,551
Cost of revenues - industrial operations
3,629
4,063
14,475
14,912
Cost of production - energy operations
12,428
13,209
49,315
36,291
Cost of revenues - manufacturing operations
20,431
16,904
86,949
16,904
Sales and marketing expenses - industrial and manufacturing operations
3,181
2,884
12,954
7,217
General and administrative expenses
16,301
21,515
65,117
55,363
Total costs and expenses
63,212
64,653
278,823
155,238
Operating income (loss)
(13,085)
(15,809)
6,409
(32,926)
Other income (expense):
Equity securities investments:
Change in fair value of equity securities
2,750
4,107
1,092
(31,412)
(Loss) gain on sale of equity securities
(3,537)
—
(25)
28,861
Net realized and unrealized gain (loss)
(787)
4,107
1,067
(2,551)
Non-recurring legacy legal expense
—
—
—
(14,857)
Service provider settlement, net
15,750
—
15,750
—
Gain on derivatives - energy operations
3,963
(3,530)
7,449
2,016
Gain (loss) on foreign currency exchange
9
(298)
414
(370)
Interest expense
(1,979)
(2,379)
(8,989)
(6,464)
Interest income
2,813
3,109
11,260
17,682
Other expense, net
(730)
1
(2,049)
(677)
Total other income (expense)
19,039
1,010
24,902
(5,221)
Income (loss) before income taxes
5,954
(14,799)
31,311
(38,147)
Income tax (expense) benefit
(1,181)
776
(6,841)
3,449
Net income (loss) including noncontrolling interests in subsidiaries
4,773
(14,023)
24,470
(34,698)
Net loss (income) attributable to noncontrolling interests in subsidiaries
(1,355)
594
(2,788)
(1,359)
Net income (loss) attributable to Acacia Research Corporation
$
3,418
$
(13,429)
$
21,682
$
(36,057)
Income (loss) per share:
Net income (loss) attributable to common stockholders - Basic
$
3,418
$
(13,429)
$
21,682
$
(36,057)
Weighted average number of shares outstanding - Basic
96,461,366
97,190,102
96,293,764
99,213,835
Basic net income (loss) per common share
$
0.04
$
(0.14)
$
0.23
$
(0.36)
Net income (loss) attributable to common stockholders - Diluted
$
3,418
$
(13,429)
$
21,682
$
(36,057)
Weighted average number of shares outstanding - Diluted
97,573,518
97,190,102
97,158,219
99,213,835
Diluted net income (loss) per common share
$
0.04
$
(0.14)
$
0.22
$
(0.36)
Other comprehensive income (loss):
Foreign currency translation
$
439
$
(1,180)
$
1,850
$
(1,180)
Total other comprehensive income (loss), net
439
(1,180)
1,850
(1,180)
Total comprehensive income (loss)
5,212
(15,203)
26,320
(35,878)
Comprehensive loss (income) attributable to noncontrolling interests
(1,355)
594
(2,788)
(1,359)
Comprehensive income (loss) attributable to Acacia Research Corporation
3,857
(14,609)
23,532
(37,237)
8
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, 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 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, 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 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
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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 months and year ended December 31, 2025 and December 31, 2024.
