Latest news with #ACTG
Globe and Mail
6 days ago
- Business
- Globe and Mail
Acacia Research (ACTG) Q2 Revenue Up 98%
Key Points GAAP revenue nearly doubled year over year to $51.2 million in Q2 2025, driven by newly acquired manufacturing operations, but missed the $55.0 million GAAP revenue estimate. Non-GAAP earnings per share came in at $(0.06), short of the $(0.05) non-GAAP consensus estimate; Adjusted EBITDA (non-GAAP) declined to $1.9 million from $4.1 million. Intellectual Property segment GAAP revenue dropped sharply to $0.3 million, highlighting continued volatility and reliance on one-time settlements. These 10 stocks could mint the next wave of millionaires › Acacia Research (NASDAQ:ACTG), an investment firm known for acquiring undervalued businesses across multiple sectors, released its second quarter results on August 6, 2025. The headline news from the period: GAAP revenue soared 98% from the prior-year quarter, reaching $51.2 million, primarily on the back of the Deflecto acquisition in its manufacturing business. However, The company missed analyst expectations, which had forecasted $55.0 million in GAAP revenue. Non-GAAP earnings per share (EPS) landed at $(0.06), compared with the anticipated $(0.05). Overall, the quarter reflected robust top-line growth from acquisitions. Metric Q2 2025 Q2 2025 Estimate Q2 2024 Y/Y Change EPS (Non-GAAP) $(0.06) $(0.05) $(0.01) (500.0%) EPS (GAAP) $(0.03) $(0.08) N/A Revenue (GAAP) $51.2 million $55.0 million $25.8 million 98.4% Total Company Adjusted EBITDA $1.9 million $4.1 million (53.7%) Free Cash Flow (Non-GAAP) $47.9 million N/A Source: Analyst estimates for the quarter provided by FactSet. Business Overview and Strategic Focus Acacia Research operates as an investment platform that acquires, manages, and seeks to unlock value in businesses across manufacturing, industrial, energy, and intellectual property. It searches for underappreciated and complex assets, with a specific emphasis on free cash flow potential and operational improvement. In recent quarters, the company has concentrated on expanding by acquisition, particularly with the addition of Deflecto to create a new manufacturing segment. Key success factors for Acacia Research include selecting the right acquisition targets, integrating them efficiently, and achieving steady cash flow. The company also leverages its partnership with Starboard Value to enhance sourcing and execution of strategic transactions. Quarter Highlights: Financial and Operational Performance The most prominent story this period was headline revenue growth, which nearly doubled year over year, with GAAP revenue increasing 98% to $51.2 million from $25.8 million in Q2 2024. This jump was primarily driven by the Manufacturing Operations segment, thanks to the second full quarter of Deflecto's contribution, generating $29.0 million in segment revenue. Energy Operations (Benchmark) delivered $15.3 million in GAAP revenue, up modestly from $14.2 million in Q2 2024, and Industrial Operations (Printronix) posted $6.6 million in GAAP revenue, up slightly from $6.3 million for Q2 2024. However, the IP segment, focused on licensing technology and patent portfolios, was a weak spot. IP revenue (GAAP) fell sharply to $0.3 million from $5.3 million in Q2 2024, reflecting a lack of new settlements or licensing income in the quarter. This high volatility is typical in IP licensing businesses, which often depend on unpredictable legal settlements. The first half of the year had been boosted by a large one-time intellectual property (IP) settlement, but the second quarter saw minimal activity. In contrast, Energy and industrial divisions showed modest revenue growth, with Energy Operations Adjusted EBITDA slightly declining and Industrial Operations Adjusted EBITDA increasing. The new manufacturing segment is now the largest by revenue, but its margin profile is slim, as shown by $1.3 million in adjusted EBITDA on $29.0 million in revenue, around a 4.4% margin. Despite strong revenue growth, profitability metrics deteriorated. Total company adjusted EBITDA (non-GAAP) was $1.9 million, a drop from $4.1 million in the prior-year period. Operated segment adjusted EBITDA (non-GAAP, excluding parent-level costs) was $6.8 million, down from $8.8 million for Q2 2024. Notably, Sales and marketing expenses for industrial and manufacturing operations increased to $3.4 million. Cash, cash equivalents, and equity securities totaled $338.2 million at period-end, up from $297.0 million at December 31, 2024, providing flexibility for future acquisitions or shareholder programs. Free cash flow (non-GAAP) was $47.9 million, aided mostly by IP settlement receipts booked earlier in the year. Total consolidated debt was $104.4 million as of June 30, 2025, with all borrowings at the operating subsidiary level and none at the parent company. Book value per share stood at $5.99, with 96.4 million shares outstanding. Segment and Product Updates, One-Time Items, and Dividend The company's diverse portfolio includes manufacturing products (Deflecto makes plastic-based goods for air distribution, transportation, and office use), industrial equipment (Printronix specializes in printing solutions), energy assets (Benchmark manages oil, gas, and natural gas liquids), and intellectual property (Acacia Research Group pursues patent-related revenue). Energy operations had an Adjusted EBITDA of $6.95 million on $15.32 million in revenue. -- while IP's contribution has proven highly variable and manufacturing's headline revenue has not yet delivered expected profit scales. Looking deeper at trends, the energy business posted stable results, reporting flat adjusted EBITDA (non-GAAP) on a modest increase in revenue. Industrial operations maintained small but positive margins. The manufacturing unit is in its initial integration phase, with management focusing on cost controls, footprint optimization, and streamlined product offerings. Despite capturing the most revenue, Deflecto's margins were slim due to ramp-up costs and higher G&A. though investors should note that first quarter results included a sizeable legal settlement in the Intellectual Property segment, distorting free cash flow and headline earnings for the current year. The company also announced a new partnership with Unchained Capital and Build Asset Management to pursue a Bitcoin-backed commercial lending product. This represents a move outside its traditional domains, and the company did not specify the scale or risk profile of the initiative in its filing. Acacia Research does not currently pay a dividend. Outlook and What to Watch Ahead Management did not provide explicit financial guidance for the remainder of fiscal 2025 or for its key segments. The leadership team reaffirmed its acquisition-driven growth strategy and noted that its strong cash position enables continued pursuit of new investments, but stopped short of giving concrete forecasts. For observers, several issues warrant attention in coming quarters. Key areas include the sustainability of revenue mix, integration of newly acquired businesses (especially Deflecto), margin recovery efforts, and the ability to generate recurring cash flow beyond large, infrequent IP settlements. Volatility in the IP segment and the still-maturing manufacturing business will likely be central drivers of earnings variability for the foreseeable future. Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted. 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Washington Post
08-05-2025
- Business
- Washington Post
Acacia Research: Q1 Earnings Snapshot
NEW YORK — NEW YORK — Acacia Research Corp. (ACTG) on Thursday reported first-quarter net income of $24.3 million, after reporting a loss in the same period a year earlier. On a per-share basis, the New York-based company said it had net income of 25 cents. Earnings, adjusted for one-time gains and costs, came to 34 cents per share.
Associated Press
12-03-2025
- Health
- Associated Press
ACTG Presents Data from Mpox Study STOMP at CROI
LOS ANGELES, March 12, 2025 (GLOBE NEWSWIRE) -- ACTG, a global clinical trials network focused on HIV and other infectious diseases, recently presented data demonstrating that tecovirimat did not improve mpox resolution. The results from STOMP (Study of Tecovirimat for Mpox, also known as A5418) were shared as the oral abstracts, 'Tecovirimat is Safe but not Efficacious in People with Clade II Mpox' and 'Host and Disease Factors Were Not Associated with the Resolution of Mpox in Participants Receiving Tecovirimat' at the 2025 Conference on Retroviruses and Opportunistic Infections (CROI) in San Francisco, California. STOMP stopped enrolling participants in December 2024 after an interim analysis showed that the treatment did not reduce the time to lesion resolution or have an effect on pain among adults with mild to moderate clade II mpox and a low risk of developing severe disease. 'The results from STOMP reinforce the value of randomized clinical trials during outbreaks of infectious diseases, like mpox,' said Past ACTG Chair Judith Currier M.D., 'There was considerable hope that tecovirimat would be an effective mpox treatment and it was only through this rigorously designed trial that we were able to conclusively demonstrate that tecovirimat alone did not speed time to resolution of mpox.' STOMP was a phase 3, randomized, placebo-controlled, double-blind trial evaluating the safety and efficacy of tecovirimat for the treatment of mpox. Tecovirimat (SIGA Technologies, Inc.) is approved by the U.S. Food and Drug Administration (FDA) to treat smallpox, but prior to STOMP it was not yet known if it could effectively or safely treat mpox. STOMP was initiated in September 2022 in response to a global outbreak of mpox that was characterized by increased person-to-person transmission. Mpox continues to circulate in the United States and around the world and there are no therapies that have been shown to be effective. STOMP enrolled participants who had had symptoms of mpox for less than 14 days and randomized them to receive either tecovirimat (600 mg) or a placebo twice daily for 14 days. Participants with or at risk for severe disease, pregnant women, and children were enrolled in an open-label arm in which everyone received tecovirimat. Tecovirimat is Safe but Not Efficacious in People with Clade II Mpox Today's presentation, which was highlighted in a CROI press conference, found that tecovirimat did not reduce the time to clinical resolution of mpox lesions or improve pain control among adults with clade II mpox. There were no safety concerns and no deaths in either arm. STOMP randomized 412 eligible participants to tecovirimat (275) and placebo (137) at 50 sites in seven countries. Among those participants, 24 percent were enrolled remotely, 98 percent were male, 53 percent were White, 11 percent were Black, and 45 percent were Hispanic. 33 percent were living with HIV and 22 percent had received at least one dose of an mpox vaccine. 'Importantly, STOMP showed that we can quickly design and execute international clinical trials in the face of an ongoing pandemic,' said Protocol Chair Timothy Wilkin, M.D., M.P.H., University of California San Diego. 'It will be necessary, based on today's results, to pursue alternative treatments for mpox and other orthopoxviruses.' Host and Disease Factors Were Not Associated with the Resolution of Mpox in Participants Receiving Tecovirimat This presentation analyzed a number of host and disease-related factors, including age, HIV status, vaccination status, and duration of symptoms, that might be associated with clinical mpox resolution and when mpox DNA was no longer detectable in skin lesions among the study participants who were enrolled in the open-label arm of STOMP. This analysis did not identify predictors of clinical mpox resolution and researchers suggested further investigation of this topic. While there were trends between younger age and lower levels of mpox DNA with faster clinical resolution, researchers found no significant associations in multivariate modeling (a statistical technique that determines the contributions of a number of factors to a singular outcome) with either clinical resolution or clearance of mpox DNA. 'In the setting of public health emergencies, clinical trials like STOMP play an important role in not only evaluating treatments for safety and efficacy, but also potentially identifying key risk factors associated with worse outcomes,' said STOMP Vice Chair and Lead Author William Fischer, M.D., University of North Carolina. 'The data presented here represent an important step forward in the evaluation of tecovirimat and in our understanding of mpox.' STOMP was led by Dr. Wilkin, Dr. Fischer, Jason Zucker, M.D., Columbia University (Vice Chair), and Dr. Currier. ACTG is led by Joseph J. Eron, M.D., UNC (ACTG Chair) and Rajesh T. Gandhi, M.D., Massachusetts General Hospital and Harvard Medical School (ACTG Vice Chair). It is sponsored by the National Institutes of Health's (NIH) National Institute of Allergy and Infectious Diseases (NIAID, which also funds ACTG) under award numbers UM1 AI068636, UM1 AI107716, and UM1 AI068634. ACTG is the world's largest and longest running clinical trials network focused on HIV and other infectious diseases and the people living with them. It is funded by NIAID and collaborating NIH Institutes. Founded in 1987, ACTG conducts research to improve the management of HIV and its comorbidities; develop a cure for HIV; and innovate treatments for tuberculosis, hepatitis B, and emerging infectious diseases. It comprises thousands of dedicated researchers, staff, and community members who are pursuing research into novel treatments and cures for infectious diseases at 65 locations across four continents, with the ultimate goal of advancing science that meaningfully impacts the lives of the people we serve.
