XVARY Composite Score
52
/ 100
Below Average
Combines growth, value, risk, and momentum factors into a single institutional-grade score.
Start here if you're new
What it is
Acacia buys assets, manages patent rights, and tries to turn legal paperwork and acquired businesses into cash.
How it gets paid
Last year Acacia Research made ~$285.2M in revenue. Manufacturing Operations was the main engine at ~$114.8M, or 40% of sales.
Why it's growing
Revenue grew 133% last year. Whether ~$285M revenue converts into durable GAAP earnings + cash conversion while subsidiaries integrate—not one noisy quarter.
What just happened
Q4’25 revenue ~$50.1M; GAAP diluted EPS $0.04. FY2025 revenue ~$285.2M; GAAP net income ~$21.7M.
At a Glance
B balance sheet — gets the job done, barely
15/100 earnings predictability — expect surprises
~18× trailing GAAP p/e on FY2025 $0.22 EPS @ ~$4
11.8% return on capital — nothing to write home about
FY2025 GAAP diluted EPS ~$0.22
XVARY composite: 52/100 — below average
What They Do
Acacia buys assets, manages patent rights, and tries to turn legal paperwork and acquired businesses into cash.
Its edge is repetition. Acacia has signed more than 1,600 license agreements across nearly 200 patent portfolio programs as of December 31, 2024. If you are on the other side of the table, you are not facing a first-timer.
How They Make Money
~$285.2M
FY2025 total revenue · +133% vs. ~$122.3M FY2024 (segment mix per earnings release)
Manufacturing Operations (Deflecto)
~$114.8M
FY2025
Intellectual Property Operations
~$78.4M
FY2025
Energy Operations (Benchmark)
~$63.8M
FY2025
Industrial Operations (Printronix)
~$28.3M
FY2025
The Products That Matter
Operates acquired industrial businesses
Industrial & Energy Portfolio
~$285.2M FY2025 revenue
Consolidated FY2025 GAAP operating income was modest (~low single-digit % of sales on ~$285M revenue)—scale arrived faster than some margin lines, so efficiency and integration still matter.
record top line
Monetizes patents and technology rights
Technology & IP Licensing
legacy platform · now a smaller piece of the story
this is the business that made acacia recognizable, but the snapshot now points you somewhere else. licensing revenue and operating-company revenue behave differently, so you should not read the old acacia playbook straight onto the new one.
legacy engine
Balance-sheet firepower for deals
Capital Allocation
~$339.6M liquid assets · ~$92.1M consolidated debt
Year-end cash, equity securities, and loans receivable ~$339.6M (~$3.52/share). Consolidated indebtedness ~$92.1M—non-recourse at subsidiaries per FY2025 release—so “debt” is not a single clean parent-company line item.
deal optionality
Key Numbers
~18×
trailing GAAP P/E
~$4.07 ÷ ~$0.22 FY2025 GAAP diluted EPS (order-of-magnitude; moving price changes the multiple).
~$285.2M
FY2025 revenue
+133% vs. ~$122.3M FY2024—driven by full-year manufacturing/energy contribution plus higher IP revenue.
~2.2%
GAAP op margin
~$6.4M FY2025 GAAP operating income ÷ ~$285.2M revenue (consolidated income statement in release)—thin cushion vs. integration risk.
~$92M
consolidated debt
FY2025 release: ~$92.1M total indebtedness (non-recourse subsidiary debt); parent-level term debt was zero.
Financial Health
B
Strength
- balance sheet grade B — adequate — nothing special
- risk rank 3 — safer than 50% of stocks
- price stability 35 / 100
- consolidated debt ~$92M non-recourse subsidiary debt; $0 parent term debt (YE 2025)
B — functional but not a standout on the balance sheet.
Total Return vs. Market
source: institutional data · return history unavailable
What Just Happened
Q4 / FY2025
Q4’25 revenue ~$50.1M (+3% YoY); GAAP diluted EPS $0.04. FY2025 revenue ~$285.2M; GAAP net income ~$21.7M (~$0.22 diluted EPS).
FY2025 also shows adjusted EBITDA and non-GAAP EPS—this page leads with GAAP lines to avoid mixing apples. Total Company Adjusted EBITDA ~$77.9M FY2025 per release.
~$50.1M
Q4 revenue
$0.04
Q4 GAAP EPS
~$0.22
FY GAAP EPS
the number that mattered
Whether ~$285M revenue converts into durable GAAP earnings + cash conversion while subsidiaries integrate—not one noisy quarter.
source: Business Wire Mar 11, 2026
Get this snapshot in your inbox
This page, delivered free — plus weekly updates when the numbers change. Plain English, no spam.
Weekly updates
Earnings alerts
Plain English
No spam
What Could Go Wrong
ACTG’s central tension: record ~$285M revenue with still-thin consolidated GAAP operating margin (~low single digits). If that spread does not widen, scale is just more moving parts.
Med
Acquisition growth stays louder than profit growth
Revenue reached ~$285.2M, but FY2025 GAAP operating margin is only a few percent of sales. Classic roll-up risk: bigger revenue, still fragile operating leverage.
If margin does not improve, the equity reprices—even if headline P/E looked “cheap” on one year of GAAP earnings.
Med
The valuation is asking for cleaner results than the history supports
Trailing GAAP P/E ~18× on FY2025 $0.22 EPS is not extreme—but earnings quality and predictability still matter with this corporate structure.
If quarterly results stay uneven, multiple compression can do damage even if the revenue base holds up.
Med
Small cost items are unusually powerful here
Management cited tariff and consolidation puts/takes in 2025—at a low GAAP operating margin, small absolute dollars still move the story.
If cost relief slips or savings fail to appear, the progress story gets thinner fast because there is so little operating cushion.
Thin GAAP operating margins do not forgive many bad quarters—especially when the company is still proving post-deal integration and IP volatility.
Source: institutional data · regulatory filings · risk analysis
Pay Attention To
Calendar
Q1 2026 earnings
Estimated for Thursday, May 7, 2026. You want to see whether the bigger revenue base stays intact and whether more of it reaches the bottom line.
Metric
Operating margin trajectory
GAAP operating margin is still the number that matters. If management cannot lift consolidated margins after record revenue, the roll-up story starts looking cosmetic.
Risk
Tariff relief actually arriving in 2026
The company said 2025 absorbed about $2.4M in tariffs, with relief expected next. If that relief slips, a thin-margin operator feels it immediately.
Trend
Cash deployment discipline
$340M in cash is real firepower. It is also temptation. The next deal needs to improve economics, not just make the revenue line bigger.
Analyst Rankings
earnings predictability
15 / 100
Low predictability means the earnings line has not earned your trust yet. in human-speak, this has not looked like a steady operator.
balance sheet strength
B
B means adequate balance sheet grade. You have enough balance-sheet support for strategy, but not enough to shrug off execution mistakes.
price stability
35 / 100
This stock has not behaved like a calm compounder. The market is still deciding whether Acacia is becoming an operator or just collecting parts.
Source: institutional data
Institutional Activity
institutional ownership data for ACTG is being compiled.
Source: institutional data
Price Targets
3-5 year target range
$4
Current price
Target midpoint · from current
Want the deeper analysis?
The full deep dive: DCF model, scenario analysis, competitive moat breakdown, and quarterly tracking — everything on this page, taken further.
See plans from $5/moThe Deep Dive