ACACIA RESEARCH CORP
For the period ended Jun 30, 2026. Filed Aug 6, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2026 · Filed Aug 6, 2026
ACTG$4.25+0.2%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-03-31; filed 2026-05-07.
0000934549-26-000025
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-08-06.
0000934549-26-000034
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 113 previous paragraphs and 134 current paragraphs.
92 unchanged; 18 reworded; 22 added; 3 removed; 0 previous and 2 current paragraphs rearranged.
Tables are not compared: 9 previous and 9 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (22)
Current report
Total revenues increased $63.3 million to $114.6 million for the three months ended June 30, 2026, as compared to $51.2 million for the three months ended June 30, 2025, due to increases in our Intellectual Property Operations revenue of $60.6 million and in our Energy Operations revenue of $5.2 million. Refer to “Energy Operations - Revenues” below for further discussion and “Investments in Patent Portfolios” above for additional information regarding the impact of portfolio acquisition trends on current and future licensing and enforcement related revenues. The increases were offset by a decrease in Manufacturing Operations revenue of $1.9 million and in Industrial Operations revenues of $588,000. Refer to “Manufacturing Operations - Revenues” and “Industrial Operations – Revenues” below for further detailed discussion.
Current report
▪Inventor royalties increased $18.2 million, from $154,000 to $18.4 million in 2026, primarily due to higher license fees being generated in the three months ended June 30, 2026 with inventor royalties. Refer to "Intellectual Property Operations –Cost of Revenues" below for further discussion.
Current report
▪Contingent legal fees increased $25.5 million, from $18,000 to $25.5 million in 2026 due to the change in Intellectual Property Operations revenues described above. Refer to "Intellectual Property Operations –Cost of Revenues" below for further discussion.
Current report
◦Total general and administrative expenses increased $4.1 million, from $15.5 million to $19.6 million in 2026, primarily due to our parent company and our Intellectual Property Operations general and administrative costs, driven by increased corporate legal fees and an increase in personnel related expenses
Current report
•Total other income (expense) increased $29.8 million, from $11.5 million other income to $18.3 million other expense in 2026 primarily due to the following:
Current report
◦Unrealized gain from the change in fair value of our equity securities increased $2.7 million, from $2.2 million to $4.9 million in 2026. The unrealized gain was derived from our trading securities portfolio. Refer to "Equity Securities Investments" below for further discussion.
Current report
◦Realized gain from the sale of equity securities increased $2.6 million, from $1.9 million to $4.5 million in 2026. The realized gains were derived from the sales activity from our trading securities portfolio. Refer to "Equity Securities Investments" below for further discussion.
Current report
◦Impairment of equity method investment was $30.9 million in 2026. The Company recognized an impairment charge of $30.9 million related to its investment in MalinJ1, reducing the carrying amount of the investment to zero. Refer to Note 3 to the consolidated financial statements elsewhere herein for additional information regarding our investment in MalinJ1.
Current report
◦Gain on derivatives decreased $3.3 million, from $6.6 million to $3.3 million in 2026 due to the commodity derivative activities contributed from our Energy Operations. Refer to Note 12 for additional information regarding Benchmark's gain on its commodity derivatives.
Current report
Results of Operations - six months ended June 30, 2026 compared with the six months ended June 30, 2025
Current report
•Total costs and expenses increased $18.9 million, from $149.7 million to $168.6 million in 2026 primarily due to the following:
Current report
▪Inventor royalties increased $1.9 million, from $16.7 million to $18.5 million in 2026, primarily due to the license fees being generated in 2026 with inventor royalties. Refer to "Intellectual Property Operations –Cost of Revenues" below for further discussion.
Current report
▪Contingent legal fees increased $20.7 million, or 430%, as compared to a 12% decrease in Intellectual Property Operations revenues, primarily due to higher average contingent legal fee rates associated with the portfolios generating revenues during 2026. Refer to "Intellectual Property Operations –Cost of Revenues" below for further discussion.
Current report
▪Litigation and licensing expenses decreased $1.3 million, from $3.0 million to $1.8 million in 2026, primarily due to a net decrease in litigation support and third-party technical consulting expenses associated with ongoing litigation. Refer to "Intellectual Property Operations –Cost of Revenues" below for further discussion.
Current report
◦Energy Operations cost of production decreased $1.6 million, from $25.0 million to $23.4 million in 2026. Refer to “Energy Operations –Cost of Production” below for further detail and discussion.
Current report
◦General and administrative expenses increased $4.1 million from $32.9 million to $36.9 million in 2026, due to an increase in our parent company and our Intellectual Property Operations general and administrative costs, driven by increased corporate legal fees and personnel costs. The increases were partially offset by a decrease in our Manufacturing Operations general and administrative costs. Refer to “General and Administrative Expenses” below for further detail and discussion.
Current report
•Total other expense was $30.1 million in 2026, as compared to other income of $2.8 million in the comparable prior year period. The changes in other expense and income are due to the following:
Current report
◦Unrealized gain from the change in fair value of our equity securities was $3.4 million in 2026, as compared to an unrealized loss of $2.6 million in the comparable prior year period. The unrealized gain and loss was derived from our trading securities portfolio.
Current report
◦Impairment of equity method investment was $30.9 million in 2026. The Company recognized an impairment charge of $30.9 million related to its investment in MalinJ1, reducing the carrying amount of the investment to zero. Refer to Note 3 to the consolidated financial statements elsewhere herein for additional information regarding our investment in MalinJ1.
Current report
◦Realized and unrealized loss on derivatives from our Energy Operations was $7.4 million in 2026, as compared to a realized and unrealized gain on derivatives of $1.6 million in the comparable prior year period due to the commodity derivative activities contributed from our Energy Operations. Refer to Note 12 for additional information regarding Benchmark's gain on its commodity derivatives.
Current report
◦Interest expense decreased $1.1 million from $4.8 million to $3.7 million in 2026, primarily due to a lower average balance from the Deflecto Facility and lower interest rates in 2026 versus 2025. Refer to Note 10 to the consolidated financial statements elsewhere herein for additional information regarding the Deflecto Facility.
Current report
Refer to detailed change explanations above for the three and six months ended June 30, 2026 and 2025 regarding cost of revenues for our Intellectual Property Operations.
Removed paragraphs (3)
Previous report
•Total other expense increased $3.1 million, from $8.7 million to $11.8 million in 2026, primarily due to the following:
Previous report
◦Realized and unrealized loss on derivatives from our Energy Operations increased by $5.7 million. This was partially offset by a $1.0 million decrease in the net realized and unrealized loss on equity securities, a $565,000 decrease in interest expense and a $902,000 net change in other income (expense), net, primarily driven by a gain on disposal of assets from our Manufacturing Operations. Refer to “Other Income/Expense” below for further detail and discussion.
Previous report
•Inventor royalties decreased $16.4 million, from $16.5 million to $188,000 in 2026, contingent legal fees decreased $4.8 million, from $4.8 million to $32,000 in 2026 and litigation and licensing expenses decreased $1.2 million, from $2.1 million to $853,000 in 2026, primarily due to lower license fees generated in 2026.
Reworded paragraphs (18)
Previous wording
We have established a proven track record of licensing and enforcement success with over 1,600 license agreements executed as of March 31, 2026, across nearly 200 patent portfolio licensing and enforcement programs. As of March 31, 2026, we have generated gross licensing revenue of approximately $1.9 billion, and have returned $900.1 million to our patent partners. Since January 1, 2022, we generated gross licensing revenue of approximately $207.3 million and returned approximately $63.1 million to our patent partners.
Current wording
We have established a proven track record of licensing and enforcement success with over 1,600 license agreements executed as of June 30, 2026, across nearly 200 patent portfolio licensing and enforcement programs. As of June 30, 2026, we have generated gross licensing revenue of approximately $2.0 billion, and have returned $918.5 million to our patent partners. Since January 1, 2022, we generated gross licensing revenue of approximately $268.2 million and returned approximately $81.5 million to our patent partners.
Previous wording
In June 2020 we acquired a portfolio of investments in 18 public and private life sciences companies (the “Life Sciences Portfolio”). That purchase was funded with a combination of available cash and capital from Starboard, for a total of approximately $282.0 million at the time of acquisition. Through the end of March 31, 2026, we have received proceeds of $564.1 million as we monetized the Life Sciences portfolio. We retained an investment in the Life Sciences Portfolio consisting of private securities valued at $25.7 million at March 31, 2026. Refer to Note 3 to the consolidated financial statements elsewhere herein for more information.
Current wording
In June 2020 we acquired a portfolio of investments in 18 public and private life sciences companies (the “Life Sciences Portfolio”). That purchase was funded with a combination of available cash and capital from Starboard, for a total of approximately $282.0 million at the time of acquisition. Through the end of June 30, 2026, we have received proceeds of $564.1 million as we monetized the Life Sciences portfolio. We retained an investment in the Life Sciences Portfolio consisting of private securities valued at $5.8 million at June 30, 2026. Refer to Note 3 to the consolidated financial statements elsewhere herein for more information.
Previous wording
As of the date of this Quarterly Report, our Patent Licensing, Enforcement and Technologies Business has one pending patent infringement case with scheduled trial dates in the next twelve months. Patent infringement trials are components of ARG’s overall patent licensing process and are one of many factors that contribute to possible future revenue generating opportunities. Scheduled trial dates, as promulgated by the respective court, merely provide an indication of when, in future periods, the trials may occur according to the court’s scheduling calendar at a specific point in time. A court may change previously scheduled trial dates. In fact, courts often reschedule trial dates for various reasons that are unrelated to the underlying patent assets and typically for reasons that are beyond the control of our Patent Licensing, Enforcement and Technologies Business. While scheduled trial dates provide an indication of the timing of possible future revenue generating opportunities, the trials themselves and the immediately preceding periods represent the possible future revenue generating opportunities.
Current wording
As of the date of this Quarterly Report, our Patent Licensing, Enforcement and Technologies Business has no pending patent infringement case with scheduled trial dates in the next twelve months. Patent infringement trials are components of ARG’s overall patent licensing process and are one of many factors that contribute to possible future revenue generating opportunities. Scheduled trial dates, as promulgated by the respective court, merely provide an indication of when, in future periods, the trials may occur according to the court’s scheduling calendar at a specific point in time. A court may change previously scheduled trial dates. In fact, courts often reschedule trial dates for various reasons that are unrelated to the underlying patent assets and typically for reasons that are beyond the control of our Patent Licensing, Enforcement and Technologies Business. While scheduled trial dates provide an indication of the timing of possible future revenue generating opportunities, the trials themselves and the immediately preceding periods represent the possible future revenue generating opportunities.
Previous wording
We didnot acquire any new patent portfolios during thethree months ended March 31, 2026. During the year ended December 31, 2025, we acquired one new patent portfolio consisting of Wi-Fi 7 standard essential patents. During 2021, we acquired one new patent portfolio consisting of Wi-Fi 6 standard essential patents. In 2020, we acquired five new patent portfolios consisting of (i) flash memory technology, (ii) voice activation and control technology, (iii) wireless networks, (iv) internet search, advertising and cloud computing technology and (v) GPS navigation. The patents and patent rights acquired have estimated economic useful lives ranging from two to five years.
Current wording
We didnot acquire any new patent portfolios during thesix months ended June 30, 2026. During the year ended December 31, 2025, we acquired one new patent portfolio consisting of Wi-Fi 7 standard essential patents. During 2021, we acquired one new patent portfolio consisting of Wi-Fi 6 standard essential patents. In 2020, we acquired five new patent portfolios consisting of (i) flash memory technology, (ii) voice activation and control technology, (iii) wireless networks, (iv) internet search, advertising and cloud computing technology and (v) GPS navigation. The patents and patent rights acquired have estimated economic useful lives ranging from two to five years.
Previous wording
Headquartered in Austin, Texas, Benchmark is an independent oil and natural gas company that acquires, produces and develops oil and natural gas assets in Texas and Oklahoma. Benchmark is run by an experienced management team. After the acquisition of Revolution, Benchmark’s existing assets consist of approximately 155,000 net acres and an interest in approximately 600 wells, the majority of which are operated. Acacia owns approximately 73.5% of Benchmark. Benchmark intends to enhance the value of such assets via a disciplined, field optimization strategy, with risk managed through robust commodity hedges and low leverage. Through its investment in Benchmark, the Company, along with the Benchmark management team, will evaluate future growth and acquisitions of oil and natural gas assets at attractive valuations.
Current wording
Headquartered in Austin, Texas, Benchmark is an independent oil and natural gas company that acquires, produces and develops oil and natural gas assets in Texas and Oklahoma. Benchmark is run by an experienced management team. After the acquisition of Revolution, Benchmark’s existing assets consist of approximately 158,000 net acres and an interest in approximately 600 wells, the majority of which are operated. Acacia owns approximately 73.5% of Benchmark. Benchmark intends to enhance the value of such assets via a disciplined, field optimization strategy, with risk managed through robust commodity hedges and low leverage. Through its investment in Benchmark, the Company, along with the Benchmark management team, will evaluate future growth and acquisitions of oil and natural gas assets at attractive valuations.
Previous wording
•Total costs and expenses decreased $23.5 million, from $86.1 million to $62.6 million in 2026 primarily due to the following:
Current wording
•Total costs and expenses increased $42.4 million, from $63.6 million to $106.0 million in 2026 primarily due to the following:
Previous wording
Cost of revenues for Intellectual Property Operations decreased $23.1 million, from $27.9 million to $4.8 million in 2026 primarily due to a decrease in inventor royalties, contingent legal fees and patent amortization expense.
Current wording
◦Cost of revenues for Intellectual Property Operations increased $39.7 million, from $6.6 million to $46.2 million in 2026 primarily due to an increase in inventor royalties and contingent legal fees partially offset by a decrease in patent amortization expense.
Previous wording
•Amortization of patents expense from our Intellectual Property Operations decreased $759,000, from $4.5 million to $3.8 million in 2026, due to certain patents becoming fully amortized during the period.
Current wording
▪Amortization of patents expense from our Intellectual Property Operations decreased $4.0 million, from $5.4 million to $1.5 million in 2026, due to certain patents becoming fully amortized during the period.
Previous wording
Total revenues decreased $70.2 million to $54.2 million for the three months ended March 31, 2026, as compared to $124.4 million for the three months ended March 31, 2025, primarily due to a decrease in our Intellectual Property Operations revenues and to a lesser extent, a decrease in Manufacturing Operations revenues. Intellectual Property Operations revenues decreased due to a decrease in new license agreements and a decrease in average license fees, which contributed to Intellectual Property Operations revenues decreasing by $69.2 million. Refer to “Investments in Patent Portfolios” above for additional information regarding the impact of portfolio acquisition trends on current and future licensing and enforcement related revenues. Manufacturing Operations revenues decreased $869,000 largely due to a decrease in revenues from our air distribution end market.
Current wording
Total revenues decreased $6.9 million to $168.8 million for the six months ended June 30, 2026, as compared to $175.7 million for the six months ended June 30, 2025, primarily due to a decrease in our Intellectual Property Operations revenues, our Manufacturing Operations revenues, and to a lesser extent, a decrease in Industrial Operations revenues. Intellectual Property Operations revenues decreased by $8.6 million due to a lower license fee revenue compared to the comparable prior year period. Refer to “Investments in Patent Portfolios” above for additional information regarding the impact of portfolio acquisition trends on current and future licensing and enforcement related revenues. Manufacturing Operations revenues decreased $2.8 million largely due to a decrease in revenues from our air distribution end market and Industrial Operations decreased $1.1 million due to a decrease in the number of printer units sold. The decreases were offset by an increase in Energy Operations of $5.6 million primarily due to increase in oil production and oil prices as a result of drilling activities.
Previous wording
Loss before income taxes was $20.2 million for the three months ended March 31, 2026, as compared to income of $29.6 million for the three months ended March 31, 2025. The net decrease comprised the change in total revenues described above and other changes in operating expenses and other income or expense for the three months ended March 31, 2026 as compared to the three months ended March 31, 2025 as follows:
Current wording
Loss before income taxes was $29.9 million for the six months ended June 30, 2026, as compared to income of $28.7 million for the six months ended June 30, 2025. The net decrease comprised the change in total revenues described above and other changes in operating expenses and other income or expense for the six months ended June 30, 2026 as compared to the six months ended June 30, 2025 as follows:
Previous wording
◦Cost of revenues for Intellectual Property Operations decreased $23.1 million, from $27.9 million in 2025 to $4.8 million in 2026 primarily due to a decrease in inventor royalties, contingent legal fees, litigation and licensing expenses and patent amortization expense associated with the revenue decrease noted above. Refer to “Intellectual Property Operations –Cost of Revenues” below for further discussion.
Current wording
◦Cost of revenues for Intellectual Property Operations increased $16.6 million, from $34.5 million to $51.1 million in 2026 primarily due to an increase in inventor royalties and contingent legal fees partially offset by a decrease in litigation and licensing expenses and patent amortization expense. Refer to “Intellectual Property Operations –Cost of Revenues” below for further discussion.
Previous wording
For the periods presented above, the majority of the revenue agreements executed during the relevant period provided for the payment of one-time, paid-up license fees in consideration for the grant of certain IP Rights for patented technology owned by our operating subsidiaries. These rights were primarily granted on a perpetual basis, extending until the expiration of the underlying patents. Paid-up revenue decreased $69.4 million for the three months ended March 31, 2026 compared to the three months ended March 31, 2025 due to a decrease in average license fees.
Current wording
For the periods presented above, the majority of the revenue agreements executed during the relevant period provided for the payment of one-time, paid-up license fees in consideration for the grant of certain IP Rights for patented technology owned by our operating subsidiaries. These rights were primarily granted on a perpetual basis, extending until the expiration of the underlying patents. Paid-up revenue increased $60.6 million for the three months ended June 30, 2026 compared to the three months ended June 30, 2025 due to an increase in the number of executed license agreements. Paid-up revenue decreased $8.8 million for the six months ended June 30, 2026 compared to the six months ended June 30, 2025 due to a decrease in average license fees.
Previous wording
For the periods presented above, the majority of the contract agreements executed in the relevant period include various combinations of tangible products (which include printers, consumables and parts) and services. Revenue from printers and parts decreased $519,000 for the three months ended March 31, 2026, compared to the three months ended March 31, 2025, primarily due to a decrease in number of printer units sold. Refer to Note 2 to the consolidated financial statements elsewhere herein for additional information regarding Printronix’s revenue arrangements and related concentrations. Refer to “Industrial Operations Business” above for additional information related to Printronix's operating activities.
Current wording
For the periods presented above, the majority of the contract agreements executed in the relevant period include various combinations of tangible products (which include printers, consumables and parts) and services. Revenue from printers and parts decreased $1.1 million for the six months ended June 30, 2026, compared to the six months ended June 30, 2025, primarily due to a decrease in number of printer units sold. Refer to Note 2 to the consolidated financial statements elsewhere herein for additional information regarding Printronix’s revenue arrangements and related concentrations. Refer to “Industrial Operations Business” above for additional information related to Printronix's operating activities.
Previous wording
Cost of revenues were lower for the three months ended March 31, 2026 primarily due to lower revenues. Refer to Note 2 included in our 2025 Annual Report for additional information regarding Printronix’s cost of revenues.
Current wording
Cost of revenues were lower for the six months ended June 30, 2026 primarily due to lower revenues. Refer to Note 2 included in our 2025 Annual Report for additional information regarding Printronix’s cost of revenues.
Previous wording
For the periods presented above, revenues increased $363,000 for the three months ended March 31, 2026 compared to the three months ended March 31, 2025 due to increase oil production and higher oil prices and an increase in natural gas prices, partially offset by lower natural gas liquid volumes and prices. Refer to Note 2 to the consolidated financial statements elsewhere herein for additional information regarding Benchmark’s revenue arrangements and related concentrations.
Current wording
For the periods presented above, revenues increased $5.2 million for the three months ended June 30, 2026 compared to the three months ended June 30, 2025. Revenues increased $5.6 million for the six months ended June 30, 2026 compared to the six months ended June 30, 2025. Revenues in both periods increased primarily due to increase in oil production and higher oil prices and an increase in natural gas liquid prices in the three months ended June 30, 2026. This was partially offset by lower natural gas liquid volumes and lower natural gas prices in the three months ended June 30, 2026. Refer to Note 2 to the consolidated financial statements elsewhere herein for additional information regarding Benchmark’s revenue arrangements and related concentrations.
Previous wording
Cost of production decreased $1.0 million for the three months ended March 31, 2026 compared to the three months ended March 31, 2025 due to lower depreciation, depletion and amortization and lower lease operating expenses in 2026.
Current wording
Cost of production decreased $1.6 million for the six months ended June 30, 2026 compared to the six months ended June 30, 2025 due to lower depreciation, depletion and amortization and lower lease operating expenses in 2026. Depreciation, depletion and amortization decreased primarily due to an increase in total proved reserves recorded at December 31, 2025, which reduced the depletion rate. Lease operating expenses decreased largely due to lower well repairs and maintenance related costs during the six months ended June 30, 2026, as well as continued realization of operational efficiencies.
Previous wording
For the periods presented above, revenues decreased $869,000 for the three months ended March 31, 2026 compared to the three months ended March 31, 2025 primarily due to lower revenue in our air distribution end market, partially offset by growth in our transportation safety end market. Refer to Note 2 to the consolidated financial statements elsewhere herein for additional information regarding Deflecto’s revenue arrangements and related concentrations.
Current wording
For the periods presented above, revenues decreased $1.9 million for the three months ended June 30, 2026 compared to the three months ended June 30, 2025 due to lower revenue in air distribution, transportation safety and office products. Revenues decreased $2.8 million for the six months ended June 30, 2026 compared to the six months ended June 30, 2025 primarily due to lower revenue in our air distribution end market. Refer to Note 2 to the consolidated financial statements elsewhere herein for additional information regarding Deflecto’s revenue arrangements and related concentrations.
Previous wording
Cost of revenues increased $1.6 million for the three months ended March 31, 2026 compared to the three months ended March 31, 2025 primarily due to higher material costs. Refer to Note 2 included in our 2025 Annual Report for additional information regarding Deflecto’s cost of revenues.
Current wording
Cost of revenues increased $2.1 million for thesix months ended June 30, 2026 compared to the six months ended June 30, 2025 primarily due to higher material costs. Refer to Note 2 included in our 2025 Annual Report for additional information regarding Deflecto’s cost of revenues.
Rearranged current paragraphs (2)
Current report — wording carried from elsewhere
Loss before income taxes was $9.8 million for the three months ended June 30, 2026, as compared to loss of $890,000 in the comparable prior period. The increase in loss comprised the change in total revenues described above and other changes in operating expenses and other income or expense for the three months ended June 30, 2026 as compared to the three months ended June 30, 2025 as follows:
Current report — wording carried from elsewhere
▪Amortization of patents expense from our Intellectual Property Operations decreased $4.7 million, from $9.9 million to $5.2 million in 2026, due to certain patents becoming fully amortized during the period.