Acacia Research Stock Earnings Reports

Acacia reported Q1 2026 revenue of $54.2M and operated segment adjusted EBITDA of $6.8M (or $10.3M excluding the intellectual property (IP) segment). Key drivers: Benchmark (energy) achieved record quarterly revenue ($18.7M), completed its first Cherokee well on budget (development cost $11.5M) and expects the well to drive results in Q2–Q3; management forecasts >2.5x MOIC (~60%+ IRR) and ~2-year payback on that well. Benchmark sold a company-record 63k barrels in April and is ~75–80% hedged on existing production. The hedging mark-to-market produced a $9.7M unrealized loss in the quarter, a noncash item that materially impacted GAAP net income and EPS. Manufacturing (Deflecto) revenue improved modestly (consolidation of Portland into Dover completed; estimated ~$2M annualized cost savings starting H2 2026) as the company pursues reshoring, pricing and SG&A reductions. Industrial (Printronix) remains a reliable cash generator (~$4.8M cash flow LTM, ~15% yield on purchase price) while transitioning more toward consumables. IP revenue was episodic ($0.7M this quarter vs. a much larger prior-year quarter) and produced a negative adjusted EBITDA due to ongoing costs. Balance sheet strength: ~$330M in cash, securities and loans receivable; consolidated gross debt ~$90.5M (nonrecourse debt at Benchmark and Deflecto). Management reiterates a disciplined, value-oriented M&A approach, focused on deploying capital into high-ROI organic projects (e.g., drilling) and selective acquisitions. On an adjusted basis (excluding unrealized hedge and other items) adjusted net loss was $(6.6)M, or $(0.07) per share; GAAP EPS was hurt by the unrealized hedge loss of $0.10 per share.