Revenue is extremely volatile, with quarterly swings from $50.1M to $124.4M, and operating margins remain predominantly negative, indicating the business model struggles to achieve profitability without episodic, large-scale settlements.
Acacia Research Corporation (ACTG) annual income statement — 30-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Sales/Revenue | 273.37M | 285.23M | 122.31M | 125.1M | 59.22M | 88.05M | 29.78M | 11.25M | 131.51M | 65.4M | 152.7M | 125.04M | 130.88M | 130.56M | 250.73M | 172.26M | 131.83M | 67.34M | 48.23M | 52.6M | 34.83M | 19.57M | 4.28M | 692K | 43K | 24.64M | 57K | 122K | 382K | 431.78K | 3.24M |
| Revenue Growth % | -3.72% | 133.2% | -2.23% | 111.24% | -32.74% | 195.64% | 164.82% | -91.45% | 101.07% | -57.17% | 22.12% | -4.46% | 0.25% | -47.93% | 45.55% | 30.67% | 95.77% | 39.63% | -8.31% | 51.03% | 77.91% | 356.91% | 519.08% | 1509.3% | -99.83% | 43121.05% | -53.28% | -68.06% | -11.53% | -86.68% | 1.45% |
| Cost of Goods Sold | 139.78M | 50.01M | 92.66M | 52.83M | 37.39M | 36.1M | 24.82M | 18.29M | 106.66M | 63.21M | 111.27M | 127.07M | 139.09M | 147.5M | 111.29M | 97.01M | 66.02M | 50.31M | 0 | 0 | 17.16M | 3.68M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| COGS % of Revenue | - | 17.53% | 75.76% | 42.23% | 63.13% | 41% | 83.35% | 162.62% | 81.1% | 96.64% | 72.87% | 101.63% | 106.28% | 112.98% | 44.39% | 56.32% | 50.08% | 74.71% | - | - | 49.27% | 18.82% | - | - | - | - | - | - | - | - | - |
| Gross Profit | 133.59M | 235.22M | 29.65M | 72.27M | 21.84M | 51.95M | 4.96M | -7.04M | 24.85M | 2.19M | 41.43M | -2.03M | -8.21M | -16.95M | 139.44M | 75.24M | 65.81M | 17.03M | 48.23M | 52.6M | 17.67M | 15.89M | 4.28M | 692K | 43K | 24.64M | 57K | 122K | 382K | 431.78K | 3.24M |
| Gross Margin % | 48.87% | 82.47% | 24.24% | 57.77% | 36.87% | 59% | 16.65% | -62.62% | 18.9% | 3.36% | 27.13% | -1.63% | -6.28% | -12.98% | 55.61% | 43.68% | 49.92% | 25.29% | 100% | 100% | 50.73% | 81.18% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% |
| Gross Profit Growth % | - | 693.21% | -58.97% | 231% | -57.97% | 947.78% | 170.41% | -128.34% | 1032.16% | -94.7% | 2136.82% | 75.23% | 51.53% | -112.15% | 85.32% | 14.34% | 286.36% | -64.68% | -8.31% | 197.73% | 11.17% | 270.94% | 519.08% | 1509.3% | -99.83% | 43121.05% | -53.28% | -68.06% | -11.53% | -86.68% | 1.45% |
| Operating Expenses | 150.1M | 228.81M | 62.58M | 51.34M | 61.93M | 37.4M | 24.48M | 16.38M | 21.45M | 27.22M | 36.5M | 45.71M | 53.94M | 65.99M | 59.03M | 44.99M | 27.19M | 22.76M | 62.43M | 62.11M | 24.65M | 26.82M | 10.34M | 6.71M | 9.91M | 67.83M | 37.22M | 9.69M | 6.22M | 3.95M | 2.22M |
| OpEx % of Revenue | - | 80.22% | 51.16% | 41.04% | 104.57% | 42.48% | 82.18% | 145.62% | 16.31% | 41.62% | 23.9% | 36.56% | 41.22% | 50.54% | 23.54% | 26.12% | 20.62% | 33.8% | 129.45% | 118.08% | 70.77% | 137.02% | 241.34% | 968.93% | 23041.86% | 275.34% | 65298.25% | 7939.34% | 1629.32% | 915.33% | 68.49% |
| Selling, General & Admin | 101.06M | 78.07M | 62.58M | 50.6M | 61.3M | 37.2M | 24.48M | 16.38M | 18.85M | 27.22M | 36M | 41.57M | 52.39M | 62.48M | 59.03M | 43.35M | 25.07M | 21.07M | 56.39M | 56.29M | 19.04M | 10.21M | 8.18M | 1.89M | 1.43M | 46.3M | 22.09M | 6.26M | 2.78M | 2.15M | 2.22M |
| SG&A % of Revenue | - | 27.37% | 51.16% | 40.45% | 103.51% | 42.25% | 82.18% | 145.62% | 14.33% | 41.62% | 23.57% | 33.24% | 40.03% | 47.86% | 23.54% | 25.17% | 19.01% | 31.29% | 116.92% | 107.02% | 54.66% | 52.17% | 190.99% | 272.54% | 3334.88% | 187.94% | 38752.63% | 5129.51% | 726.7% | 496.82% | 68.49% |
| Research & Development | 0 | 0 | 0 | 735K | 626K | 200K | 0 | 0 | 0 | 1.19M | 3.08M | 3.39M | 3.84M | 3.25M | 4.94M | 4.34M | 2.12M | 1.69M | 0 | 0 | 9.48M | 5.78M | 0 | 4.32M | 6.88M | 18.84M | 11.86M | 1.81M | 1.88M | 887.89K | 0 |
| R&D % of Revenue | - | - | - | 0.59% | 1.06% | 0.23% | - | - | - | 1.82% | 2.02% | 2.71% | 2.93% | 2.49% | 1.97% | 2.52% | 1.61% | 2.51% | - | - | 27.24% | 29.54% | - | 623.84% | 16006.98% | 76.47% | 20814.04% | 1480.33% | 492.15% | 205.64% | - |
| Other Operating Expenses | 2M | 150.74M | 0 | 0 | 0 | 0 | 0 | 0 | -1.63M | 1M | 798K | -56K | -595K | 0 | 937K | -12.45M | 0 | 0 | 6.04M | 5.82M | 5.61M | 16.61M | 2.16M | 502K | 1.59M | 2.69M | 3.27M | 1.62M | 1.57M | 919.15K | 0 |
| Operating Income | -16.51M | 6.41M | -32.93M | 20.94M | -40.09M | 14.54M | -19.52M | -23.42M | -24.81M | -27.27M | -37.41M | -152.62M | -62.16M | -82.93M | 80.41M | 30.26M | 38.62M | -5.73M | -14.2M | -9.51M | -6.98M | -7.25M | -6.05M | -6.01M | -9.87M | -43.2M | -37.16M | -9.56M | -5.84M | -3.52M | 1.02M |
| Operating Margin % | -6.04% | 2.25% | -26.92% | 16.74% | -67.7% | 16.52% | -65.54% | -208.23% | -18.87% | -41.7% | -24.5% | -122.06% | -47.49% | -63.52% | 32.07% | 17.57% | 29.3% | -8.5% | -29.45% | -18.08% | -20.04% | -37.02% | -141.34% | -868.93% | -22941.86% | -175.34% | -65198.25% | -7839.34% | -1529.32% | -815.33% | 31.51% |
| Operating Income Growth % | - | 119.46% | -257.27% | 152.22% | -375.64% | 174.52% | 16.65% | 5.61% | 9.02% | 27.1% | 75.49% | -145.55% | 25.05% | -203.13% | 165.76% | -21.66% | 774.48% | 59.68% | -49.33% | -36.26% | 3.67% | -19.67% | -0.7% | 39.05% | 77.16% | -16.24% | -288.57% | -63.71% | -65.95% | -444.81% | -43.13% |
| EBITDA | 7.38M | 49.76M | 648K | 35.66M | -26.58M | 25.23M | -14.72M | -20.19M | 2.33M | -5.03M | -3.05M | -99.33M | -4.61M | -29.04M | 119.58M | 40.11M | 45.64M | -967K | -8.03M | -3.81M | -1.59M | -2.27M | -5.5M | -3.6M | -8.07M | -39.33M | -34.51M | -7.74M | -4.13M | -2.99M | 1.04M |
| EBITDA Margin % | 2.7% | 17.44% | 0.53% | 28.51% | -44.88% | 28.66% | -49.42% | -179.54% | 1.77% | -7.69% | -2% | -79.44% | -3.52% | -22.24% | 47.69% | 23.28% | 34.62% | -1.44% | -16.65% | -7.24% | -4.56% | -11.57% | -128.48% | -520.81% | -18762.79% | -159.64% | -60536.84% | -6345.08% | -1081.94% | -692.75% | 32.2% |
| EBITDA Growth % | -84.9% | 7578.55% | -98.18% | 234.19% | -205.33% | 271.44% | 27.11% | -965.08% | 146.41% | -64.67% | 96.93% | -2055.2% | 84.13% | -124.28% | 198.15% | -12.12% | 4819.55% | 87.96% | -110.79% | -139.86% | 29.89% | 58.85% | -52.72% | 55.33% | 79.49% | -13.98% | -345.76% | -87.3% | -38.17% | -386.68% | -42.19% |
| D&A (Non-Cash Add-back) | 25.51M | 43.35M | 33.57M | 14.73M | 13.51M | 10.69M | 4.8M | 3.23M | 27.14M | 22.24M | 34.35M | 53.29M | 57.55M | 53.89M | 39.17M | 9.85M | 7.02M | 4.76M | 6.17M | 5.7M | 5.39M | 4.98M | 551K | 2.41M | 1.8M | 3.87M | 2.66M | 1.82M | 1.71M | 529.26K | 22.41K |
| EBIT | 12.07M | 40.3M | -31.71M | 69.36M | -120.72M | 182.57M | 118.21M | -18.95M | 3.52M | -25.02M | -36.61M | -152.62M | -58.66M | -78.31M | 81.35M | 30.26M | 38.62M | -5.73M | -14.2M | -9.51M | -6.85M | -7.24M | -6.05M | -6.01M | -9.87M | -43.2M | -37.16M | -7.58M | -5.84M | -3.1M | -1.1M |
| Net Interest Income | 3.62M | 2.27M | 10.54M | 13.54M | -990K | -7.42M | -9.3M | 3.43M | 218K | 4.28M | 798K | -56K | -595K | 1.94M | 482K | 81K | 103K | 148K | 1.06M | 2.36M | 1.52M | 1.07M | 471K | 521K | 614K | 3.7M | 3.09M | 0 | 172K | 0 | 0 |
| Interest Income | 11.24M | 11.26M | 16.98M | 15.47M | 5.44M | 501K | 838K | 3.43M | 218K | 4.28M | 798K | 0 | 0 | 1.94M | 825K | 96K | 103K | 148K | 1.06M | 2.36M | 1.52M | 1.07M | 471K | 521K | 620K | 3.76M | 3.09M | 0 | 302K | 0 | 0 |
| Interest Expense | 7.61M | 8.99M | 6.44M | 1.93M | 6.43M | 7.92M | 10.14M | 0 | 0 | 0 | 0 | 56K | 595K | 0 | 825K | 96K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 6K | 65K | 0 | 0 | 130K | 0 | 0 |
| Other Income/Expense | -14.59M | 24.9M | -5.22M | 46.49M | -87.06M | 160.11M | 127.59M | 4.46M | -78.98M | 51.91M | 798K | -56K | -595K | 2.13M | 937K | 96K | 135K | 302K | 570K | 207K | 1.23M | 1.07M | 471K | 408K | -3.5M | 4.17M | -1.24M | -1.04M | -545K | 320.42K | 1.03M |
| Pretax Income | -31.1M | 31.31M | -38.15M | 67.43M | -127.15M | 174.65M | 108.07M | -18.95M | -103.67M | 24.64M | -36.61M | -152.68M | -62.75M | -80.8M | 81.35M | 30.35M | 38.76M | -5.42M | -13.63M | -7.15M | -5.46M | -6.17M | -5.58M | -5.61M | -13.37M | -39.03M | -38.4M | -10.41M | -6.39M | -3.52M | 2.05M |
| Pretax Margin % | -11.37% | 10.98% | -31.19% | 53.9% | -214.7% | 198.36% | 362.88% | -168.53% | -78.83% | 37.67% | -23.98% | -122.11% | -47.95% | -61.89% | 32.45% | 17.62% | 29.4% | -8.05% | -28.27% | -13.6% | -15.67% | -31.55% | -130.35% | -809.97% | -31088.37% | -158.43% | -67364.91% | -8529.51% | -1671.99% | -815.33% | 63.34% |
| Income Tax | -3.91M | 6.84M | -3.45M | -1.5M | -16.21M | 24.29M | -1.16M | -1.82M | 1.18M | 2.96M | 18.19M | 4.8M | 3.91M | -21.96M | 22.06M | 10.07M | 1.74M | 209K | 124K | 207K | 40K | -135K | -139K | -137K | -710K | -780K | -73K | 20K | 0 | -250.13K | 605.34K |
| Effective Tax Rate % | 12.59% | 21.85% | 9.04% | -2.23% | 12.75% | 13.91% | -1.07% | 9.62% | -1.14% | 11.99% | -49.68% | -3.14% | -6.23% | 27.18% | 27.12% | 33.19% | 4.49% | -3.85% | -0.91% | -2.89% | -0.73% | 2.19% | 2.49% | 2.44% | 5.31% | 2% | 0.19% | -0.19% | 0% | 7.11% | 29.49% |
| Net Income | -17.84M | 21.68M | -36.06M | 67.06M | -125.06M | 149.2M | 109.23M | -17.11M | -105.03M | 22.18M | -54.07M | -160.04M | -66.03M | -56.43M | 59.45M | 19.98M | 34.05M | -11.29M | -13.76M | -15.45M | -5.5M | -6.28M | -5.54M | -5.45M | -12.75M | -22.27M | -38.96M | -8.2M | -6.19M | -2.86M | 426.42K |
| Net Margin % | -6.52% | 7.6% | -29.48% | 53.6% | -211.18% | 169.45% | 366.77% | -152.19% | -79.87% | 33.91% | -35.41% | -127.99% | -50.45% | -43.23% | 23.71% | 11.6% | 25.83% | -16.77% | -28.53% | -29.36% | -15.78% | -32.06% | -129.39% | -787.72% | -29660.47% | -90.4% | -68349.12% | -6718.85% | -1620.16% | -662.23% | 13.16% |
| Net Income Growth % | -468.91% | 160.13% | -153.77% | 153.62% | -183.83% | 36.59% | 738.22% | 83.7% | -573.53% | 141.02% | 66.22% | -142.37% | -17% | -194.92% | 197.62% | -41.34% | 401.6% | 17.93% | 10.93% | -181.02% | 12.41% | -13.21% | -1.69% | 57.26% | 42.74% | 42.83% | -375.28% | -32.44% | -116.45% | -770.55% | -79.33% |
| Net Income (Continuing) | -27.18M | 24.47M | -34.7M | 68.93M | -110.94M | 150.37M | 109.23M | -17.13M | -104.85M | 21.68M | -54.8M | -157.48M | -66.66M | -58.84M | 59.29M | 21.64M | 37.02M | -5.63M | -13.76M | -7.36M | -5.36M | -6.04M | -5.44M | -5.45M | -12.55M | -22.27M | -29.16M | -7.42M | -6.39M | -2.9M | 437.22K |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 29.88M | 40.58M | 37.79M | 21.34M | 11.04M | 11.04M | 11.04M | 1.83M | 1.85M | 1.36M | 1.85M | 3.94M | 5.49M | 6.49M | 6.98M | 2.16M | 2.98M | 2.51M | 0 | 0 | 0 | 443K | 778K | 1.13M | 1.49M | 0 | 0 | 0 | 0 | 227.36K | 0 |
| EPS (Diluted) | -0.18 | 0.22 | -0.36 | 0.58 | -1.21 | 1.91 | 1.48 | -0.34 | -2.10 | 0.44 | -1.08 | -3.23 | -1.32 | -1.17 | 1.21 | 0.50 | 0.97 | -0.38 | -0.47 | -0.54 | -0.20 | -0.24 | -0.28 | -0.28 | -0.65 | -1.16 | -2.38 | -0.75 | -0.32 | -0.15 | 0.02 |
| EPS Growth % | -721.05% | 161.11% | -162.07% | 147.93% | -163.35% | 29.05% | 535.29% | 83.81% | -577.27% | 140.74% | 66.56% | -144.7% | -12.82% | -196.69% | 142% | -48.45% | 355.26% | 19.15% | 12.96% | -170% | 16.67% | 14.29% | 0% | 56.92% | 43.97% | 51.26% | -217.33% | -134.38% | -113.33% | -791.24% | -76.34% |
| EPS (Basic) | - | 0.23 | -0.36 | 0.71 | -2.61 | 2.43 | 1.78 | -0.34 | -2.10 | 0.44 | -1.08 | -3.23 | -1.36 | -1.17 | 1.22 | 0.51 | 1.05 | -0.38 | -0.47 | -0.54 | -0.20 | -0.24 | -0.28 | -0.28 | -0.65 | -1.16 | -2.38 | -0.75 | -0.32 | -0.15 | 0.02 |
| Diluted Shares Outstanding | 97.59M | 97.16M | 99.21M | 92.41M | 91.52M | 98.47M | 57.44M | 50.9M | 49.97M | 50.69M | 50.08M | 49.51M | 50.07M | 48.16M | 47.58M | 40.15M | 35.08M | 29.91M | 29.42M | 28.5M | 27.55M | 26.63M | 19.78M | 19.66M | 19.64M | 19.26M | 16.35M | 10.87M | 19.64M | 19.62M | 19.64M |
| Basic Shares Outstanding | 97.59M | 96.29M | 99.21M | 75.3M | 42.46M | 48.8M | 48.84M | 49.76M | 49.97M | 50.5M | 50.06M | 49.51M | 48.66M | 48.16M | 47.25M | 39.74M | 32.31M | 29.91M | 29.42M | 28.5M | 27.55M | 26.63M | 19.78M | 19.66M | 19.64M | 19.26M | 16.35M | 10.87M | 19.64M | 19.62M | 19.64M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Quick answers to the most common questions about buying ACTG stock.
For fiscal year 2025, Acacia Research Corporation (ACTG) reported total revenue of $285.2M. This represents a 8701.9% increase compared to $3.2M in 1996.
Acacia Research Corporation (ACTG) is profitable, generating $21.7M in net income for the fiscal year ending 2025 with a net profit margin of 7.6%.
Acacia Research Corporation (ACTG) reported an operating income of $6.4M, resulting in an operating profit margin of 2.2%. This margin reflects the operational efficiency of the business before interest and taxes.
Acacia Research Corporation (ACTG) generated $235.2M in gross profit for the year, representing a gross profit margin of 82.5%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Highly volatile, unprofitable operations
Metrics are mathematically derived from official filings.
Lumpy, License-Driven Revenue Swings
Revenue exhibits extreme volatility, swinging from $124.4M in 2025Q1 to just $50.1M in 2025Q4, with recent 123.6% YoY growth in 2026Q2 masking a fundamentally erratic top-line pattern that is characteristic of non-recurring patent licensing settlements.
The revenue trajectory is defined by episodic, large-scale settlements rather than predictable organic growth. This lumpy pattern makes year-over-year comparisons largely uninformative; for example, the massive 155.0% growth in 2025Q3 appears exceptional but is immediately followed by a -56.4% decline in 2026Q1. This volatility suggests the business lacks a stable, recurring revenue base and is heavily dependent on legal outcomes, which are inherently unpredictable and non-durable.
Margin Volatility Driven by Settlement Costs
Gross margins are wildly unstable, ranging from 10.1% in 2024Q3 to an unsustainable 160.5% in 2025Q2, indicating that the cost of revenue, likely including contingent legal fees and settlements, fluctuates dramatically with each licensing cycle and distorts underlying profitability.
The extreme gross margin variance, including quarters with costs exceeding revenue (negative COGS in 2025Q2), points to a business model where significant, variable costs are recognized in direct conjunction with revenue from settlements. This volatility makes it impossible to assess true pricing power or operational efficiency on a quarter-to-quarter basis. The underlying structural margin power is obscured, and the reported figures may not reflect the economics of a typical operational quarter.
Fixed Overhead Strains Operational Leverage
Despite revenue surges, operating income remains persistently negative in seven of the last ten quarters, with SG&A expenses often consuming 40-80% of gross profit, indicating a rigid cost structure that fails to scale down during periods of lower settlement activity.
The company demonstrates poor operational leverage. For instance, in 2025Q1, a strong $58.9M gross profit was largely eroded by $20.6M in SG&A, leaving only $38.3M in operating income. In contrast, during low-revenue quarters like 2024Q3, $2.4M in gross profit was overwhelmed by $12.5M in SG&A. This suggests a fixed overhead base, likely comprising legal, administrative, and personnel costs, that is insensitive to the lumpy revenue stream, resulting in operational losses during quieter periods.
SG&A as the Dominant, Inflexible Expense
Selling, General & Administrative expenses are the primary operating cost, consistently ranging between $12M and $40M per quarter, and appear to be the key driver of operating losses when revenue and gross profit are insufficient to cover this substantial fixed overhead.
SG&A is the dominant line item, dwarfing R&D which is negligible or zero in most periods. The significant variability in SG&A, from $11.3M in 2024Q2 to $40.5M in 2025Q4, suggests potential lumpiness in legal or professional fees tied to case activity. This cost structure reinforces the company's operational challenge: it must generate substantial gross profit from settlements simply to reach breakeven at the operating level.
Low-Quality Earnings Masked by One-Shots
Reported net income is unreliable due to heavy reliance on non-operating items; for example, a $47.0K net income in 2026Q2 on $114.6M revenue yields a 0.0% net margin, while stock-based compensation, a non-cash expense, reached $2.2M in the same period.
The quality of reported earnings is very low. Net income frequently diverges significantly from operating income, as seen in 2025Q4 where a -$13.1M operating loss translated to a $3.4M net profit, implying a large positive non-operating item (likely a tax benefit or investment gain). Furthermore, the significant SBC in quarters with high revenue (e.g., $2.3M in 2024Q4) dilutes shareholders and is a real economic cost that further pressures actual profitability.
Unsustainable Model and Margin Compression
The core analytical challenge is that ACTG's business model appears structurally unprofitable, with SG&A costs consistently exceeding gross profit in most quarters, suggesting that without a continuous stream of large, unpredictable settlements, the company cannot cover its fixed operating costs.
A critical view would focus on the pattern where gross profit fails to support the overhead. In 7 of the 10 quarters, operating income is negative. The occasional profitable quarters (like 2025Q1) seem to be the exception driven by large, lumpy settlements rather than the rule. This raises questions about the long-term viability of the model if litigation outcomes become less favorable or if the cost of pursuing and litigating cases (reflected in volatile COGS and SG&A) increases further, potentially compressing margins to permanently unprofitable levels.