ACTG ACACIA RESEARCH CORP

Overview and Growth

ACACIA RESEARCH CORP generated $285.23M of revenue in fiscal 2025, with net income of $21.68M and an operating cash inflow of $75.24M. At $285.23M, the top line establishes the operating scale supporting the company’s profit and cash-flow profile. Revenue was 133.2% above fiscal 2024 revenue of $122.31M, marking a year-over-year increase. Diluted earnings per share were $0.22, translating the period’s attributable earnings into the amount reported for each diluted share. Total assets stood at $770.96M, showing the scale of resources supporting revenue, earnings, liquidity, and financing. Asset turnover was 0.37x, relating the company’s annual revenue directly to the total assets reported at the period end.

Profitability

After reported cost of revenue, the company retained $84.48M as gross profit before recognizing operating expenses and other items. Gross profit represented 29.6% of revenue, showing how much of the top line remained after direct costs. The reported operating result was $6.41M, capturing profitability after direct costs and the operating expenses reflected in the statements. Relative to revenue, operating income represented 2.2%, showing how efficiently sales converted into operating profit. After all reported below-operating-line items, the company recorded net income of $21.68M for the fiscal year. Net margin was 7.6%, meaning that this portion of revenue remained as net income after all recognized expenses. Before income taxes, the company reported $31.31M of earnings, providing a bridge between the operating result and final net income. Pretax income represented 11.0% of revenue, placing earnings before tax in the context of the company’s operating scale. The company recognized $6.84M of income tax for the period, completing the transition from pretax income to net income. The income-tax provision equaled 21.8% of pretax income, showing the tax burden absorbed by the year’s earnings. Net income equaled 3.7% of period-end equity, showing the earnings generated on shareholders’ book capital. The net-income-to-assets relationship measured 2.8%, showing earnings relative to the full balance sheet.

Liquidity and Capital Structure

The company held $770.96M of assets against $186.92M of liabilities and $584.03M of equity, revealing how the asset base was financed. Current assets were $450.09M against $49.04M of current liabilities, framing the resources and obligations classified within the near-term balance-sheet horizon. At 9.18x, the current ratio shows that short-term assets were greater than short-term liabilities at period end. The company held $306.72M in cash and equivalents, a narrower liquidity measure than total current assets. Measured only with cash and equivalents, coverage of current liabilities was 625.4%, excluding receivables and other current assets. Total debt was $91.90M, establishing the amount of borrowing carried within the company’s capital structure. The debt-to-equity relationship was 0.16x, showing how much debt the company carried for each unit of book equity. Debt represented 11.9% of total assets, placing borrowing in the context of the company’s full resource base. Relative to total assets, liabilities measured 24.2%, complementing the separate equity-based view of the company’s capital structure. Measured against total assets, cash and equivalents represented 39.8%, a balance-sheet composition measure rather than a liquidity forecast. Compared with $756.39M in fiscal 2024, the current asset base moved 1.9% and finished higher. Reported equity changed 5.7% from $552.62M in fiscal 2024, placing the current capital base higher year over year. Cash and equivalents were 12.0% higher than fiscal 2024 cash of $273.88M, showing the year-over-year change in liquid resources.

Cash Flow and Earnings Quality

Cash flow from operations was $75.24M, a reported cash inflow that can be compared directly with net income and capital spending. The operating-cash-flow-to-net-income relationship was 3.47x, comparing cash generated by operations with the bottom-line earnings result.

Based on the annual report for the fiscal year ending Dec 31, 2025. Analysis generated Oct 21, 2026.