Acacia Research Corporation Reports First Quarter 2025 Financial Results
Martin ('MJ') D. McNulty, Jr., Chief Executive Officer, stated, 'Acacia had a very strong start to the year, generating first quarter revenue of $124.4 million and Total Company Adjusted EBITDA of $50.7 million. These results were driven by $69.9 million in revenue from our Intellectual Property operations primarily relating to our WiFi-6 portfolio, the first full quarter of performance from Deflecto, and continued execution at Benchmark and Printronix. Against the backdrop of macro-economic uncertainty, we continued to execute our strategy of building businesses with stable cash flow generation and scalability and believe the combination of our existing businesses and strong balance sheet will ensure Acacia continues to deliver long-term shareholder value. Including the net proceeds from the Intellectual Property settlement recorded in the first quarter, and received after quarter end, current cash, cash equivalents and equity securities is approximately $338.2 million, or $3.52 per share. Our strong cash position provides us with substantial dry powder to grow our business and positions us well to opportunistically pursue accretive investment opportunities that may become available.'
First Quarter 2025 Highlights
Total revenue of $124.4 million for the quarter, up 412% compared to $24.3 million for the prior-year quarter, primarily driven by $69.9 million in license fee revenue from our Intellectual Property Operations, $18.3 million in revenue from Energy Operations, which is the largest Energy Operations quarterly revenue under Acacia ownership, and $28.5 million in revenue from our first full quarter of Manufacturing Operations.
GAAP Net Income of $24.3 million, or $0.25 GAAP Diluted EPS, for the three months ended March 31, 2025.
Adjusted Net Income of $33.1 million, or $0.34 Adjusted Diluted EPS, for the three months ended March 31, 2025.
Operated Segment Adjusted EBITDA of $54.7 million for the three months ended March 31, 2025.
Total Company Adjusted EBITDA of $50.7 million for the three months ended March 31, 2025.
Including the net proceeds received from our Intellectual Property Operations after quarter end, cash, cash equivalents, and equity securities is approximately $338.2 million, or $3.52 per share.
Revenue
The following table provides a breakdown of the Company's total revenue for the three months ended March 31, 2025 and March 31, 2024. For the purposes of financial reporting, Acacia's operations are broken out as follows: Energy Operations (Benchmark), Industrial Operations (Printronix), Manufacturing Operations (Deflecto), and Intellectual Property Operations (Acacia Research Group).
Adjusted EBITDA
The following table provides a reconciliation of consolidated Net Income (Loss), the most directly comparable GAAP measure, to Total Company Adjusted EBITDA for the three months ended March 31, 2025 and March 31,2024.
Three Months Ended March 31,
2025
2024
(In thousands, unaudited)
GAAP Net Income (Loss)
$
24,287
$
(186
)
Net (Income) Loss Attributable to Noncontrolling Interests
(759
)
(3
)
Income Tax Expense (Benefit)
6,081
(1,109
)
Interest Expense
2,451
326
Interest (Income) and Other, Net
(1,793
)
(5,095
)
(Gain) Loss on Foreign Currency Exchange
(155
)
68
Net Realized and Unrealized (Gain) Loss on Derivatives
5,021
(171
)
Net Realized and Unrealized (Gain) Loss on Investments
3,172
(2,160
)
Non-recurring Legacy Legal Expense
—
6,243
GAAP Operating Income (Loss)
$
38,305
$
(2,087
)
Depreciation, Depletion & Amortization
10,610
4,568
Stock-Based Compensation
922
858
Realized Hedge Gain (Loss)
(43
)
800
Transaction-Related Costs
554
—
Legacy Matter Costs
8
2,193
Severance Costs
343
—
Total Company Adjusted EBITDA
$
50,699
$
6,332
Expand
The following table provides the Adjusted EBITDA for each of the Company's operating segments for the three months ended March 31, 2025 and March 31, 2024.
Adjusted Net Income and Adjusted Diluted EPS
The following table provides a reconciliation of Net Income (Loss), the most directly comparable GAAP measure, to Adjusted Net Income (Loss) and Adjusted Diluted EPS for the three months ended March 31, 2025 and March 31, 2024.
Three Months Ended March 31,
2025
2024
GAAP Net Income (Loss)
$
24,287
$
(186
)
Non-recurring Legacy Legal Expense
—
6,243
Legacy Matter Costs 3
258
2,193
Stock-Based Compensation
922
858
Transaction-Related Costs
554
—
Severance Costs
343
—
Amortization of Acquired Intangibles
907
433
Unrealized Loss (Gain) on Securities
4,777
26,701
Unrealized Loss (Gain) on Hedges
3,661
317
Tax Effect of Adjustments
(2,629
)
(8,100
)
Adjusted Net Income (Loss)
$
33,080
$
28,459
GAAP Diluted EPS
$
0.25
$
—
GAAP weighted average diluted shares
96,981,413
99,745,905
Adjusted Diluted EPS
$
0.34
$
0.28
Adjusted diluted weighted average shares
96,981,413
100,390,881
Expand
____________________
2 Energy Operations Adjusted EBITDA, Industrial Operations Adjusted EBITDA, Manufacturing Operations Adjusted EBITDA, Intellectual Property Operations Adjusted EBITDA, and Parent Costs are non-GAAP financial measures. For the definitions of these measures and reconciliations of these measures to the most directly comparable GAAP financial measures, see the accompanying supplemental information section.
3 Legacy Matter Costs for the three months ended March 31, 2025 includes $250,000 related to a one-time legacy tax matter at Printronix that has been settled, which amount is included within Interest Income and Other, Net in Acacia's condensed consolidated statement of operations
Expand
Free Cash Flow 4
The following table provides a reconciliation of Free Cash Flow (FCF) for the three months ended March 31, 2025.
____________________
4 Free Cash Flow (FCF) is a non-GAAP financial measure. For a definition of this measure, see the accompanying supplemental information section.
Expand
Balance Sheet and Capital Structure
Cash, cash equivalents, and equity investments measured at fair value totaled $290.0 million at March 31, 2025 compared to $297.0 million at December 31, 2024. The decrease in cash was primarily due to $1.9 million of capital expenditures at Benchmark, $0.2 million of capital expenditures at Deflecto, $5.0 million of debt repayment on the Benchmark revolving credit facility, and $0.6 million of principal repayment on the Deflecto Term Loan, offset by $1.2 million of working capital benefit from the Deflecto transaction, $1.9 million of net proceeds from the purchase and sale of equity securities and cash provided by operating activities from our business segments.
Equity securities without readily determinable fair value totaled $5.8 million at March 31, 2025, unchanged from December 31, 2024.
Investment securities representing equity method investments totaled $19.9 million at March 31, 2025 (net of noncontrolling interests), unchanged from December 31, 2024. Acacia owns 64% of MalinJ1, which results in a 26% indirect ownership stake in Viamet Pharmaceuticals, Inc. for Acacia.
The Parent company's total indebtedness was zero at March 31, 2025. On a consolidated basis, Acacia's total indebtedness was $108.4 million, consisting of $61.5 million in non-recourse debt at Benchmark and $46.9 million in non-recourse debt at Deflecto as of March 31, 2025.
Book Value as of March 31, 2025
At March 31, 2025, Acacia's book value (which includes noncontrolling interests) was $577.3 million and there were 96.2 million shares of common stock outstanding, for a book value per share of $6.00. This value is impacted by one-time expenses and other adjustments detailed in the above reconciliation from GAAP Net Income (Loss) to Adjusted Net Income (Loss).
Investor Conference Call
The Company will host a conference call today, May 8, 2025 at 8:00 a.m. Eastern Time (5:00 a.m. Pacific Time). To access the live call, please dial 877-545-0523 (U.S. and Canada) or 973-528-0016 (international) and if requested, reference the access code '476097.' The conference call will also be simultaneously webcast at https://www.webcaster4.com/Webcast/Page/2371/52358 and on the investor relations section of the Company's website at http://www.acaciaresearch.com under Events & Presentations. Following the conclusion of the live call, a replay of the webcast will be available on the Company's website for at least 30 days.
About the Company
Acacia (Nasdaq: ACTG) is a publicly traded company that is focused on acquiring and operating attractive businesses across the mature technology, energy and industrial/manufacturing sectors where it believes it can leverage its expertise, significant capital base, and deep industry relationships to drive value. Acacia evaluates opportunities based on the attractiveness of the underlying cash flows, without regard to a specific investment horizon. Acacia operates its businesses based on three key principles of people, process and performance and has built a management team with demonstrated expertise in research, transactions and execution, and operations and management. Additional information about Acacia and its subsidiaries is available at www.acaciaresearch.com.
Safe Harbor Statement
This news release contains forward-looking statements within the meaning of the 'safe harbor' provisions of the Private Securities Litigation Reform Act of 1995. These statements are based upon the Company's current expectations and speak only as of the date hereof. All statements other than statements of historical fact are forward-looking statements and include statements related to estimates and projections with respect to, among other things, the Company's anticipated financial condition, operating performance, the value of the Company's assets, general economic and market conditions and other future circumstances and events. This news release attempts to identify forward-looking statements by using words such as 'anticipate,' 'believe,' 'continue,' 'could,' 'estimate,' 'expect,' 'forecast,' 'future,' 'guidance,' 'intend,' 'may,' 'outlook,' 'plan,' 'potential,' 'predict,' 'project,' 'seek,' 'should,' 'target' and 'will,' and similar words and expressions; however, the absence of these words does not mean that the statements are not forward-looking. While the Company believes its assumptions concerning future events are reasonable, a number of factors could cause actual results to differ materially and adversely from those expressed or implied in any forward-looking statements, including, but not limited to: the Company's ability to successfully identify, diligence, complete, and integrate strategic acquisitions of businesses, divisions, and/or assets, the performance of the Company's businesses, divisions, and/or assets, disruptions or uncertainty caused by an ability to retain or changes to the employees or management teams of the Company's businesses, changes to the Company's relationship and arrangements with Starboard Value LP, any inability of the Company's operating businesses to execute on their business and, with respect to Benchmark, hedging strategy, risks related to price and other fluctuations in the oil and gas market, inflationary pressures, supply chain disruptions or labor shortages, the impact of tariffs and trade policy, non-performance by third parties of contractual or legal obligations, changes in the Company's credit ratings or the credit ratings of the Company's businesses, security threats, including cybersecurity threats and disruptions to the Company's business and operations from breaches of information technology systems, or breaches of information technology systems, facilities and infrastructure of third parties with which the Company transacts business, oil or natural gas production becoming uneconomic, causing write downs or adversely affecting Benchmark's ability to borrow, Benchmark's ability to replace reserves and efficiently develop current reserves, risks, operational hazards, unforeseen interruptions and other difficulties involved in the production of oil and natural gas, the impact of any seismic events, environmental liability risk, regulatory changes related to the oil and gas industry, the ability to successfully develop licensing programs and attract new business, changes in demand for current and future intellectual property rights, legislative, regulatory and competitive developments addressing licensing and enforcement of patents and/or intellectual property in general, the decrease in demand for Printronix' products, changes in safety, health, environmental, tax and other regulations, requirements or initiatives, hazards such as weather conditions, a health pandemic (similar to COVID-19), acts of war or terrorist acts and the government or military response thereto, general economic conditions, and the success of the Company's investments. For further discussions of risks and uncertainties, you should refer to the Company's filings with the Securities and Exchange Commission, including the 'Risk Factors' section of the Company's most recent Annual Report on Form 10-K and any subsequent Quarterly Reports on Form 10-Q. In addition, actual results may differ materially as a result of additional risks and uncertainties of which the Company is currently unaware or which the Company does not currently view as material. Except as otherwise required by applicable law, the Company undertakes no obligation to revise or update publicly any forward-looking statements for any reason.
December 31, 2024
ASSETS
Current assets:
Cash and cash equivalents
$
271,964
$
273,880
Equity securities
18,064
23,135
Equity securities without readily determinable fair value
5,816
5,816
Equity method investments
30,934
30,934
Accounts receivable, net
95,725
26,909
Inventories
26,264
27,485
Prepaid expenses and other current assets
15,866
31,987
Total current assets
464,633
420,146
Property, plant and equipment, net
23,354
23,865
Oil and natural gas properties, net
189,104
191,680
Goodwill
25,566
29,339
Other intangible assets, net
67,739
55,429
Operating lease, right-of-use assets
8,001
9,287
Deferred income tax assets, net
17,231
20,233
Other non-current assets
5,978
6,415
Total assets
$
801,606
$
756,394
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable
$
12,457
$
12,074
Accrued expenses and other current liabilities
24,084
20,575
Accrued compensation
6,879
6,277
Current asset retirement obligation
1,565
1,546
Royalties and contingent legal fees payable
26,699
5,448
Deferred revenue
1,403
1,319
Current portion of long-term debt, net
2,400
2,400
Total current liabilities
75,487
49,639
Asset retirement obligation
31,401
31,070
Long-term lease liabilities
5,872
6,778
Deferred income tax liabilities, net
2,697
2,609
Revolving credit facility
61,500
66,500
Term loan and revolving credit facility
44,488
45,088
Other long-term liabilities
2,901
2,091
Total liabilities
224,346
203,775
Commitments and contingencies
Stockholders' equity:
Preferred stock, par value $0.001 per share; 10,000,000 shares authorized; no shares issued or outstanding
—
—
Common stock, par value $0.001 per share; 300,000,000 shares authorized; 96,171,702 and 96,048,999 shares issued and outstanding as of March 31, 2025 and 2024, respectively
96
96
Treasury stock, at cost, 20,542,064 and 20,542,064 shares as of March 31, 2025 and 2024, respectively
(118,542
)
(118,542
)
Accumulated other comprehensive income
(518
)
(1,180
)
Additional paid-in capital
910,688
910,237
Accumulated deficit
(251,499
)
(275,786
)
Total Acacia Research Corporation stockholders' equity
540,225
514,825
Noncontrolling interests
37,035
37,794
Total stockholders' equity
577,260
552,619
Total liabilities and stockholders' equity
$
801,606
$
756,394
Expand
ACACIA RESEARCH CORPORATION
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
AND COMPREHENSIVE INCOME (LOSS)
(In thousands, except share and per share data)
Three Months Ended March 31,
2025
2024
Revenues:
Intellectual property operations
$
69,905
$
13,623
Industrial operations
7,676
8,841
Energy operations
18,306
1,856
Manufacturing operations
28,535
—
Total revenues
124,422
24,320
Costs and expenses:
Cost of revenues - intellectual property operations
27,912
7,001
Cost of revenues - industrial operations
4,064
4,049
Cost of production - energy operations
12,698
1,315
Cost of revenues - manufacturing operations
20,811
—
Sales and marketing expenses - industrial and manufacturing operations
3,312
1,555
General and administrative expenses
17,320
12,487
Total costs and expenses
86,117
26,407
Operating income (loss)
38,305
(2,087
)
Other (expense) income:
Equity securities investments:
Change in fair value of equity securities
(4,777
)
(26,701
)
Gain on sale of equity securities
1,605
28,861
Net realized and unrealized (loss) gain
(3,172
)
2,160
Non-recurring legacy legal expense
—
(6,243
)
Loss on derivatives - energy operations
(5,021
)
171
Gain (loss) on foreign currency exchange
155
(68
)
Interest expense
(2,451
)
(326
)
Interest income and other, net
1,793
5,095
Total other (expense) income
(8,696
)
789
Income (loss) before income taxes
29,609
(1,298
)
Income tax (expense) benefit
(6,081
)
1,109
Net income (loss) including noncontrolling interests in subsidiaries
23,528
(189
)
Net loss (income) attributable to noncontrolling interests in subsidiaries
759
3
Net income (loss) attributable to Acacia Research Corporation
$
24,287
$
(186
)
Income (loss) per share:
Net income (loss) attributable to common stockholders - Basic
$
24,287
$
(186
)
Weighted average number of shares outstanding - Basic
96,018,047
99,745,905
Basic net income per common share
$
0.25
$
—
Net income (loss) attributable to common stockholders - Diluted
$
24,287
$
(186
)
Weighted average number of shares outstanding - Diluted
96,981,413
99,745,905
Diluted net income per common share
$
0.25
$
—
Other comprehensive income (loss):
Foreign currency translation
$
662
$
—
Total other comprehensive income, net
662
—
Total comprehensive income (loss)
24,190
(189
)
Comprehensive loss (income) attributable to noncontrolling interests
759
3
Comprehensive income (loss) attributable to Acacia Research Corporation
24,949
(186
)
Expand
ACACIA RESEARCH CORPORATION - SUPPLEMENTAL INFORMATION
NON-GAAP FINANCIAL MEASURE
This earnings release includes Adjusted EBITDA on a consolidated basis and for each of the Company's segments. Total Company Adjusted EBITDA, Operated Segment Adjusted EBITDA and Adjusted EBITDA and Free Cash Flow (FCF) for each of the Company's segments are supplemental non-GAAP financial measures used by management and external users of the Company's consolidated financial statements. This earnings release also includes the Company's Adjusted Net Income (Loss) and Adjusted Diluted Earnings Per Share (EPS), which are non-GAAP financial measures. GAAP refers to generally accepted accounting principles in the United States. A non-GAAP financial measure is a numerical measure of historical or future performance, financial position or cash flow that includes or excludes amounts that are excluded or included, respectively, in the most directly comparable measure calculated and presented in accordance with GAAP in the Company's financial statements.
Total Company Adjusted EBITDA is defined as net income / (loss) before net income / (loss) attributable to noncontrolling interests, income tax (benefit) / expense, interest expense, interest income and other, net, loss / (gain) on foreign currency exchange, net realized and unrealized (gain) / loss on derivatives, net realized and unrealized loss / (gain) on investments, non-recurring legacy legal expenses, depreciation, depletion and amortization, stock-based compensation, realized hedge gain / (loss), transaction-related costs, and costs related to the legacy items. Operated Segment Adjusted EBITDA is the aggregate of Energy Operations Adjusted EBITDA, Manufacturing Operations Adjusted EBITDA, Industrial Operations Adjusted EBITDA, and Intellectual Property Operations Adjusted EBITDA. See below for the definition of each of those measures. The Company is providing Total Company Adjusted EBITDA and Operated Segment Adjusted EBITDA, non-GAAP financial measures, because management believes these metrics provide investors with useful supplemental information in comparing the operating results across reporting periods by excluding items that are not considered indicative of core operating performance. These measures are not intended to replace the presentation of financial results in accordance with GAAP and may be different from or otherwise inconsistent with similar non-GAAP financial measures used by other companies. The presentation of these non-GAAP financial measures supplements other metrics the Company uses to internally evaluate its subsidiary businesses and facilitate the comparison of past and present operating performance. These measures should not be considered in isolation or as a substitute for measures calculated and presented in accordance with GAAP.
Energy Operations
Energy Operations Adjusted EBITDA is defined as operating income / (loss) for Acacia's Energy Operations before depreciation, depletion and amortization expense and transaction-related costs, and including realized hedge gain / (loss). The Company is providing its Energy Operations Adjusted EBITDA, a non-GAAP financial measure, because the metric provides investors with useful supplemental information in comparing the operating results across reporting periods by excluding items that are not considered indicative of core operating performance.
Industrial Operations
Industrial Operations Adjusted EBITDA is defined as operating income / (loss) for Acacia's Industrial Operations before amortization of acquired intangibles and depreciation and amortization expense. The Company is providing its Industrial Operations Adjusted EBITDA, a non-GAAP financial measure, because the metric provides investors with useful supplemental information in comparing the operating results across reporting periods by excluding items that are not considered indicative of core operating performance.
Intellectual Property Operations
Intellectual Property Operations Adjusted EBITDA is defined as operating income / (loss) for Acacia's Intellectual Property Operations before patent amortization, depreciation and amortization expense and stock-based compensation. The Company is providing Intellectual Property Operations Adjusted EBITDA, a non-GAAP financial measure, because the metric provides investors with useful supplemental information in comparing the operating results across reporting periods by excluding items that are not considered indicative of core operating performance.
Manufacturing Operations
Manufacturing Operations Adjusted EBITDA is defined as operating income / loss for Acacia's Manufacturing Operations before amortization of acquired intangibles, depreciation and amortization expense, and transaction-related costs. The Company is providing its Manufacturing Operations Adjusted EBITDA, a non-GAAP financial measure, because the metric provides investors with useful supplemental information in comparing the operating results across reporting periods by excluding items that are not considered indicative of core operating performance.
Parent Costs are defined as operating income / (loss) attributable to Parent before depreciation and amortization expense, stock-based compensation, transaction-related costs, and costs related to certain legacy matters attributable to the Parent organization. The Company is providing Parent Costs, a non-GAAP financial measure, because it believes it gives investors a clear picture of normalized Parent-level expenses.
Free Cash Flow is defined as net cash provided by (used in) operating activities, less net purchases of property and equipment, oil and gas properties, and patent acquisitions ('Capital Expenditures'). The Company is providing Free Cash Flow, a non-GAAP financial measure, because it believes free cash flow gives investors a good sense of how much cash flows are available to be used for de-levering, making acquisitions, repurchasing shares or similar uses of cash.
Adjusted Net Income (Loss)
Adjusted Net Income (Loss) is defined as Acacia's GAAP Net Income (Loss) excluding costs related to certain legacy matters, stock-based compensation, transaction-related costs, amortization of acquired intangibles, any unrealized (gain) / loss on securities, any unrealized (gain) / loss on hedges, and any (gain) / loss on non-cash derivatives and taking into account the tax effect(s) of those adjustments. The Company is providing Adjusted Net Income (Loss), a non-GAAP financial measure, because the metric provides investors with useful supplemental information in comparing the operating results across reporting periods by excluding items that are not considered indicative of core operating performance.
Adjusted Diluted Earnings Per Share (EPS)
Adjusted Diluted EPS is defined as Adjusted Net Income (Loss) divided by the Company's weighted average diluted share count as of the relative period end date. The Company is providing its Adjusted Diluted EPS, a non-GAAP financial measure, because the metric provides investors with useful supplemental information in comparing the operating results across reporting periods by excluding items that are not considered indicative of core operating performance.
The following tables reconcile Operating Income (Loss), the most directly comparable GAAP financial measure, to Adjusted EBITDA for each of the Company's operating segments and for Parent Costs for the three months ended March 31, 2025 and March 31, 2024.
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Prediction: Nvidia Stock Will Be Worth This Much by the End of 2025
Key Points Nvidia stock experienced an intense sell-off earlier this year, driven by uncertainty around tariffs and competition in China. Rising infrastructure spending by its largest customers suggests that demand remains strong across the artificial intelligence (AI) landscape. Despite a strong rebound over the last few months, valuation trends suggest that emerging AI opportunities may not be fully reflected in the share price yet. 10 stocks we like better than Nvidia › This year has been an emotional roller coaster for shareholders of Nvidia (NASDAQ: NVDA). Following the news of new tariffs, in combination with intensifying competition in China, the company's shares plummeted by as much as 30% earlier this year, wiping out nearly $1 trillion in market value. Such precipitous declines may have suggested that Nvidia's best days were in the rearview mirror, but the stock's more recent performance says otherwise. As of Aug. 7, it had rebounded by 93% from its 2025 lows and now has a market capitalization of $4.4 trillion, making it the most valuable company in the world. With such strong momentum fueling the stock to new highs, is it too late to invest in Nvidia? Read on to find out. Big tech is spending big bucks on Nvidia's chips Nvidia's largest source of revenue is its computing and networking business. This segment comprises the company's data center services and highly coveted graphics processing units (GPUs). A good way to gauge the health of its business is to look at spending on artificial intelligence (AI). The chart below illustrates capital expenditures over the last three years for cloud hyperscalers Amazon, Microsoft, and Alphabet, along with social media company Meta Platforms. These "Magnificent Seven" companies prove that accelerating AI infrastructure spending is a powerful tailwind for Nvidia's chip empire. Beyond the usual tech titan suspects, rising adoption of cloud infrastructure services from Oracle -- as well as neocloud platforms such as Nebius Group and CoreWeave -- offer another source for GPU demand, especially for Nvidia's latest Blackwell architecture. Neoclouds are gaining interest at the moment as they offer flexible software-hardware stacks in the form of high-performance computing (HPC) services and access to GPU clusters via cloud-based infrastructures. New opportunities are emerging Over the last few years, investors have repeatedly heard pundits chirp about the importance of data centers in powering generative AI development. This point is valid, but I think many investors are missing the broader picture when it comes to the evolution of AI infrastructure spending. A new phase of AI adoption involves sophisticated workloads across robotics, autonomous driving, and quantum computing. Companies such as Alphabet and Tesla are beginning to monetize their autonomous vehicles, while Microsoft, Alphabet, and Amazon are all developing their own custom quantum computing chips. Nvidia has just started to scale up its chips and CUDA software platform across these emerging opportunities. Given the company's existing deep integration with big tech, I'm optimistic that its product suite will still be crucial in future, more-advanced AI development. What will Nvidia stock be worth by the end of 2025? The chart below illustrates the company's forward price-to-earnings (P/E) multiple throughout the AI revolution. Given the trends cited above, the forward P/E range between 24 and 30 could be seen as a support zone or valuation floor for Nvidia. Each time its forward P/E dipped into this range, the stock has rebounded strongly. To me, this suggests that investors still see robust long-term growth for the company despite occasional fleeting periods of souring sentiment. I think these valuation trends subtly imply that the market could be underestimating the full breadth of Nvidia's ubiquitous platform. Despite the company's influence across AI infrastructure, many investors still view it purely through the lens of a semiconductor business. As these new opportunities are realized, I think the stock is well positioned for a prolonged breakout -- similar to the initial wave of AI-driven enthusiasm a couple of years ago. Although its forward P/E is fast-approaching prior highs, I think there is a solid case to be made that the company is positioned for further valuation expansion and could reach or exceed historical levels. My logic is that the monetization potential of future opportunities in robotics, autonomous vehicles, and quantum computing is still taking shape and not yet fully priced into the stock by investors. If Nvidia's current forward P/E expands to levels congruent with prior highs by the end of the year, the stock could blow past the $200 price point and reach closer to $220 -- implying an increase between 10% and 20% over current price levels. For this reason, I think Nvidia stock will be trading significantly higher by the end of the year than where it is today. Do the experts think Nvidia is a buy right now? The Motley Fool's expert analyst team, drawing on years of investing experience and deep analysis of thousands of stocks, leverages our proprietary Moneyball AI investing database to uncover top opportunities. They've just revealed their to buy now — did Nvidia make the list? When our Stock Advisor analyst team has a stock recommendation, it can pay to listen. After all, Stock Advisor's total average return is up 1,060% vs. just 182% for the S&P — that is beating the market by 877.59%!* Imagine if you were a Stock Advisor member when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $653,427!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,119,863!* The 10 stocks that made the cut could produce monster returns in the coming years. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of August 11, 2025 Adam Spatacco has positions in Alphabet, Amazon, Meta Platforms, Microsoft, Nvidia, and Tesla. The Motley Fool has positions in and recommends Alphabet, Amazon, Meta Platforms, Microsoft, Nvidia, Oracle, and Tesla. The Motley Fool recommends Nebius Group and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy. Prediction: Nvidia Stock Will Be Worth This Much by the End of 2025 was originally published by The Motley Fool
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Draganfly Inc (DPRO) Q2 2025 Earnings Call Highlights: Strong Revenue Growth Amidst ...
Release Date: August 11, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Draganfly Inc (NASDAQ:DPRO) reported a 37% quarter-over-quarter increase and a 22% year-over-year increase in revenue for Q2 2025. The company achieved a 100% success rate with its Commander 3 XL plus Drops payload system at the US Army Cemex 25 event. Draganfly Inc (NASDAQ:DPRO) closed a $13.75 million public offering, significantly bolstering its balance sheet. The company was selected for a US Southern Border drone pilot program, showcasing its advanced drone capabilities. Draganfly Inc (NASDAQ:DPRO) secured a strategic military order for its Commander 3XL UAV systems, indicating strong demand in the defense sector. Negative Points The company reported a comprehensive loss of $4.7 million for the quarter, compared to a loss of $7.1 million in the same quarter last year. Gross margin decreased to 24.4% from 34.4% year-over-year, indicating pressure on profitability. Higher office and miscellaneous costs, wage costs, and share-based payments contributed to the increased loss. The company is still in the process of obtaining Blue List and Green List certifications, which could impact future sales. There are ongoing challenges in scaling production capacity to meet potential large contract demands. Q & A Highlights Warning! GuruFocus has detected 5 Warning Signs with DPRO. Q: Can you comment on Draganfly's status on the AUVSI green list and the impact of the new drone memo by Secretary Heeth on these classifications? A: Cameron Shell, CEO, acknowledged that initially, the importance of being on the Blue List was underestimated. Draganfly is now in the process of testing for the Blue List and has submitted for the Green List. Despite the delay, it hasn't hindered sales into defense and law enforcement. The focus remains on demonstrating capabilities, performance, and compliance with supply chain criteria. Q: With a healthy cash balance, what are Draganfly's plans for these funds? A: Cameron Shell, CEO, stated that the focus is on organic growth and scaling the ability to iterate quickly, which is crucial for maintaining a competitive advantage. While some M&A activity is being considered, the primary goal is to ensure customer confidence and support growth with a strong balance sheet. Q: How is Draganfly positioned in terms of production capacity to handle potential large contracts? A: Cameron Shell, CEO, explained that Draganfly has built up production capacity over the last couple of years, which was necessary to secure current orders. The company is also pursuing additional contract manufacturing capabilities to scale further, ensuring readiness for detailed customer requirements. Q: Has Draganfly seen increased interest from police departments adopting drones as first responders? A: Cameron Shell, CEO, noted significant interest, particularly from smaller and rural departments. While larger departments have been early adopters, the focus is on providing multi-mission drones to smaller agencies, which are quicker to move and have different budget constraints. Q: Could an end to the Ukraine conflict negatively impact Draganfly or the drone industry? A: Cameron Shell, CEO, believes that the conflict has highlighted the essential role of drones, and their use will likely continue to increase even if the conflict ends. The focus will shift to areas like ISR logistics, demining, and reconstruction, ensuring continued demand for diverse drone applications. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
