Acacia Research (ACTG) investor relations material

Executive summary

• Q2 2026 total revenue reached $114.6 million, a 124% year-over-year increase, driven by robust operating performance and significant licensing revenue from the intellectual property segment.

• Book value per share was $5.71 as of June 30, 2026, with 97.6 million shares outstanding, reflecting growth since new management.

• Ended the quarter with $334.6 million in cash, securities, and loans receivable, and no parent company debt, providing substantial financial flexibility.

• Value-oriented acquirer focused on industrials, energy, and technology sectors, emphasizing free cash flow generation and scalable businesses.

• Recent acquisitions include Benchmark (energy) and Deflecto (manufacturing), expanding operational footprint.

Financial highlights

• Q2 2026 total revenue was $114.6 million, up from $51.2 million in the prior year period.

• Adjusted EBITDA was $17.3 million; operated segment adjusted EBITDA was $22.8 million.

• GAAP net income attributable was $47,000 ($0.00 per diluted share); adjusted net income was $12.8 million ($0.13 per diluted share).

• Book value at quarter end was $557 million ($5.71 per share).

• Free cash flow for Q2 2026 was negative $0.8 million, reflecting capital expenditures and parent costs.

Outlook and guidance

• Acquisition pipeline remains active with attractive opportunities across industries; management remains focused on disciplined capital allocation and long-term value creation.

• Expect continued benefit from operational improvements and cost reductions, especially in IP and manufacturing segments.

• Management expects continued volatility in IP licensing revenues and ongoing inflationary and tariff pressures in manufacturing and energy segments.

• Cash and cash equivalents of $307.6 million at June 30, 2026, expected to be sufficient for at least 12 months.