Revenue performance remains highly erratic, characterized by a 155% surge in 2025Q3 followed by a 56.4% contraction in 2026Q1, while gross margins have fluctuated wildly between 10.1% and 160.5% over the last ten quarters.
| 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 | 215.05M | 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 % | -3.31% | 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 | 4.79M | 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 | 210.26M | 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 % | 97.77% | 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 | 250.51M | 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 | 98.91M | 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 | 3M | 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 | -40.25M | 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 % | -18.72% | 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 | 1.43M | 49.76M | 1.63M | 35.91M | -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 % | 0.66% | 17.44% | 1.34% | 28.7% | -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 % | -97% | 2945.1% | -95.45% | 235.11% | -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) | 41.68M | 43.35M | 34.56M | 14.97M | 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 | -117K | 6.41M | -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 | 3.14M | 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 | 11.56M | 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 | 8.42M | 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 | 21.79M | 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 | -18.46M | 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 % | -8.59% | 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 | -1.8M | 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 % | 9.77% | 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 | -18.35M | 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 % | -8.53% | 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 % | -58.37% | 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) | -16.66M | 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 | 38.72M | 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) | -0.19 | 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 % | -63.9% | 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 | 96.49M | 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 | 96.49M | 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 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Lumpy litigation revenue volatility
As evidenced by the 155% revenue surge in 2025Q3 followed by a 56.4% contraction in 2026Q1, Acacia's top-line performance remains highly erratic, reflecting the event-driven nature of intellectual property settlements rather than consistent organic growth across its dual-track industrial and licensing business model.
The extreme quarterly fluctuations suggest that revenue is heavily dependent on the timing of legal victories rather than predictable industrial demand. Investors should interpret these swings as a structural feature of the business, which complicates the assessment of long-term growth durability.
Based on reported financial statements, gross margins have oscillated wildly from a high of 160.5% in 2025Q2 to a low of 10.1% in 2024Q3, highlighting the inherent difficulty in maintaining consistent profitability when blending high-margin IP licensing with lower-margin industrial manufacturing operations.
The extreme variance in gross margin suggests that the company's shift toward industrial operations has fundamentally altered its cost profile. This volatility warrants further investigation into whether the industrial segment can achieve the scale necessary to stabilize margins against the unpredictable nature of IP enforcement.
According to recent SEC filings, the company frequently reports negative operating income, with SG&A expenses often consuming the entirety of gross profits, which indicates a lack of meaningful operating leverage despite the company's attempts to diversify its revenue base through the acquisition of industrial assets.
The persistent inability to scale operating income relative to gross profit suggests that the overhead required to maintain the IP enforcement engine remains a significant drag on profitability. This structure implies that the company may struggle to achieve consistent bottom-line growth without a major, sustained increase in high-margin licensing revenue.
As reported in financial statements, the company's reliance on non-recurring settlement income creates a precarious earnings profile, where the absence of a major legal win in any given quarter leads to significant net losses, potentially undermining the market's confidence in the company's long-term industrial pivot.
Short-term observers may focus on the recurring losses as evidence that the industrial transition is not yet offsetting the decline in legacy IP enforcement efficacy. Investors should monitor whether the industrial segment can eventually provide a sufficient earnings floor to mitigate the risks associated with the volatile legal portfolio.
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.