Acacia Research Corporation

Acacia Research Corporation

ACTGยทNASDAQ

$4.64

-1.9%
IndustrialsSpecialty Business Services

Acacia Research Corporation, together with its subsidiaries, invests in intellectual property and related absolute return assets; and engages in the licensing and enforcement of patented technologies. The company operates through two segments, Intellectual Property Operations and Industrial Operations. The company owns or controls the rights to various patent portfolios, which include U.S. patents and foreign counterparts covering technologies used in a range of industries. It has executed approximately 1,600 license agreements, and approximately 200 patent portfolio licensing and enforcement programs. It also designs manufactures printers and parts, and consumable products through dealers and distributors for various industrial printing applications. In addition, the company offers supply-chain printing solutions for manufacturing, transportation and logistics, retail distribution, food and beverage distribution, and pharmaceutical distribution industries; and line matrix printers for mission critical applications within labeling and inventory management, build sheets, invoicing, manifests and bills of lading, and reporting industries. Acacia Research Corporation was incorporated in 1993 and is based in New York, New York.

At a Glance

Live Snapshot
Market Cap$448.17M
EPS0.2300
P/E Ratio20.17
Earnings Date08/05/2026

Intrinsic Alpha Methodology

Thesis Lenses

Signal ยท Driver ยท Risk

Signal

High confidence

Valuation multiple is mid-range (P/E 20.2).

Valuation inputs: P/E 20.2, earnings yield +5.0%, momentum -1.9%.

If multiples stay elevated while momentum fades, downside repricing risk rises.

Driver

High confidence

Return profile is soft (ROE +4.0%, ROIC +0.7%).

Profitability stack: net margin +7.6%, ROE +4.0%, ROIC +0.7%.

Quality deterioration often appears in margins before it shows up in headline EPS.

Risk

High confidence

Risk profile is balanced but has notable pressure points to monitor.

Risk factors: liabilities/assets +24.2%, momentum -1.9%, net margin +7.6%.

Higher leverage with weak momentum and thin margins can amplify drawdown severity.

actg

Acacia Research Corporation Market vs Earnings Trajectory

ACTG ยท NASDAQ

Loading price and EPS data...

Acacia Research Corporation

Acacia Research Corporation Fair Value Envelope

ACTG ยท NASDAQ

Our analysis suggests that ACTG has a fair value of HIDDEN per share in the Base Case projection. With shares currently trading at $4.64, this represents a potential HIDDEN relative to our calculated worth for Acacia Research Corporation.

Intrinsic Value
Current Price: $4.64
3Y-109.0%
5Y-87.0%
10Y-121.0%
3Y+382.0%
5Y+858.0%
10Y+87.0%
3Y-117.0%
5Y-80.0%
10Y-140.0%
3Y-302.0%
5Y-483.0%
10Y+121.0%
3Y-236.0%
5Y-274.0%
10Y+78.0%
3Y+60.0%
5Y+51.0%
10Y+160.0%
Acacia Research Corporation

Acacia Research Corporation Profit Bridge

ACTG ยท NASDAQ
Revenue285.23M
Cost of Goods Sold (50.01M)
Gross Profit235.22M
Operating Expenses (228.81M)
Operating Income6.41M
Interest Expense (8.99M)
Other Income/Expense24.90M
Pretax Income31.31M
Income Tax (6.84M)
Net Income21.68M
Net Income
21.68M

Profitability Analysis

Gross Margin

82.5%

Exceptional pricing power and cost management. The company retains over half of revenue after direct costs.

Operating Margin

2.2%

Minimal operating profit suggests high operating costs or pricing challenges. Scalability is concerning.

Net Profit Margin

7.6%

Moderate profitability with room for improvement. Monitor interest expenses and tax efficiency.

Effective Tax Rate

21.8%

Moderate tax rate typical for most corporations. Represents standard tax burden on profits.

Profitability Insight

Margin squeeze alert: Healthy gross margins but weak operating margins suggest excessive operating expenses. Cost optimization could unlock significant value.

82.47%
Gross Profit Margin
240%
3Y+124.0%
5Y+395.0%
10Y+204.0%
2.25%
Operating Profit Margin
-108%
3Y-103.0%
5Y-103.0%
10Y-109.0%
7.60%
Net Profit Margin
-126%
3Y-104.0%
5Y-98.0%
10Y-121.0%
3.99%
Return on Equity
-157%
3Y-108.0%
5Y-90.0%
10Y-120.0%
2.81%
Return on Assets
-159%
3Y-111.0%
5Y-87.0%
10Y-115.0%
0.69%
Return on Invested Capital
-117%
3Y-109.0%
5Y-118.0%
10Y-103.0%
ACTG

Acacia Research Corporation Cash Conversion Engine

ACTG ยท NASDAQ
Net Income21.68M
Depreciation & Amortization43.35M
Stock-Based Compensation5.74M
Change in Working Capital143.00K
Others-508.00K
Capital Expenditures-16.69M
Free Cash Flow58.55M

Cash Flow Quality Analysis

FCF Conversion Rate

270.0%

Excellent cash generation. The company converts earnings to cash at or above 100%, indicating high-quality earnings.

CapEx Intensity

22.2%

Moderate capital requirements typical of many stable businesses. Healthy balance between reinvestment and cash generation.

FCF Growth Trend

+159.4%

Strong FCF growth demonstrates improving cash generation and business momentum. Positive signal for sustainability.

Working Capital Impact

+$143.00K

Working capital inflow boosted cash flow. Efficient management of receivables, inventory, and payables contributing positively.

Cash Flow Quality Insight

Exceptional cash generation: High-quality earnings converting to growing free cash flow. The company demonstrates strong pricing power, efficient operations, and disciplined capital allocation.

actg

Acacia Research Corporation Funding & Solvency Profile

ACTG ยท NASDAQ
Cash & Cash Equivalents307.51M
Net Receivables28.69M
Inventory23.42M
Other Current Assets71.49M
Total Current Assets431 M
Property, Plant & Equipment31.89M
Goodwill & Intangible Assets71.03M
Long-Term Investments0.00
Other Non-Current Assets203.56M
Total Non-Current Assets235 M
Total Assets
755.87M

Financial Health Analysis

Current Ratio

8.56x

Excellent liquidity position. The company can easily cover its short-term obligations with substantial cushion.

Debt-to-Equity Ratio

0.33x

Conservative capital structure. The company relies primarily on equity financing, indicating low financial risk.

Working Capital

381 M

Strong working capital position provides significant operational flexibility and financial cushion.

Asset Composition

57% Current

Balanced asset mix between current and non-current assets, typical of many stable businesses.

Financial Health Insight

Strong financial foundation: Excellent liquidity combined with conservative leverage suggests the company is well-positioned to weather economic uncertainties and fund growth opportunities.

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Acacia Research Corporation Street Expectations Map

ACTG ยท NASDAQ

No Target Data

No analyst price targets available for actg.

actg

Acacia Research Corporation Insider Positioning

ACTG ยท NASDAQ

During the last 12 months, insiders have purchased $125K and sold $196K worth of ACTG shares, resulting in $71K of net selling activity.

3 Months

Bought

0

0.00

Sold

0

0.00

Net Activity

+0

+$0

3-6 Months

Bought

0

0.00

Sold

0

0.00

Net Activity

+0

+$0

6-9 Months

Bought

15.4K

50.00K

Sold

0

0.00

Net Activity

+50K

+$50K

9-12 Months

Bought

21.7K

75.15K

Sold

51.1K

195.93K

Net Activity

-121K

-$121K

Top Buyers

1
MG

Molinelli Gavin

Director

17.6K sharesโ€ข2 transactions

$60K

2
SA

Sundar Ajay

Director

11.7K sharesโ€ข2 transactions

$40K

3
ZMS

Zambito Michael Sikoryak

Officer: Chief Financial Officer

7.7K sharesโ€ข1 transactions

$25K

Top Sellers

1
KIT

Kohlberg Isaac T.

Director

16.0K sharesโ€ข1 transactions

$61K

2
SJW

Soncini Jason W.

Officer: General Counsel

11.5K sharesโ€ข1 transactions

$44K

3
MMDJ

Mcnulty Martin D. Jr.

Director, Officer: Chief Executive Officer

10.5K sharesโ€ข1 transactions

$40K

4
RR

Rasamny Robert

Officer: Chief Administrative Officer

6.7K sharesโ€ข1 transactions

$25K

5
HK

Hoover Kirsten

Officer: Interim Cfo

6.5K sharesโ€ข1 transactions

$25K

Insider Activity Analysis

Net Insider Sentiment

Bearish

Slightly bearish with $71K net selling. Selling modestly exceeds buying, which could be routine diversification rather than concern.

Buy/Sell Ratio

0.64:1

Moderately negative ratio. Selling is roughly double the buying, which may be routine or signal caution.

Insider Participation

Moderate Selling

5 insider sellers vs. 3 buyers. More insiders selling than buying suggests cautious or negative sentiment.

0.00%
Dividend Yield
3Y-100.0%
5Y-100.0%
10Y-
ย 

actg Dividend History

ACTG
10Y CAGR +0%
Latest $0.125
Annual $0.5
Stable dividend payments
Last Period: +0%