Fri, May 9, 8:51 PM (45 days ago)
### Acacia Research Corporation (ACTG) Q1 2025 Financial Summary **Revenue and Profit Margins:** - **Revenue:** $124.4 million, up 412% YoY. - **Net Income:** $24.3 million, up from a loss of $186,000 YoY. - **Earnings per Share (EPS):** $0.25, up from a loss of $0.00186 YoY. **Cash Flow:** - **Operating Cash Flow:** $2.4 million, down from $54.8 million YoY. - **Investing Cash Flow:** $1.0 million, down from $42.0 million YoY. - **Financing Cash Flow:** -$6.1 million, down from $1.8 million YoY. **Segment Performance:** - **Intellectual Property Operations:** Revenue $69.9 million, up 413% YoY. - **Industrial Operations:** Revenue $7.7 million, down 13% YoY. - **Energy Operations:** Revenue $18.3 million, up 886% YoY. - **Manufacturing Operations:** Revenue $28.5 million, new segment. **Uncertainties and Future Operations Impact:** - **Inflation and Supply Chain:** Impacting manufacturing and industrial operations. - **Energy Market Volatility:** Affecting oil and gas prices. - **Patent Licensing:** Dependence on new patent acquisitions. - **Acquisitions:** Potential for future acquisitions to drive growth. **Key Metrics:** - **Current Ratio:** 1.75 (improved liquidity). - **Debt-to-Equity Ratio:** 0.29 (stable leverage). - **Return on Assets (ROA):** 3.04% (improved asset efficiency). **Outlook:** - **Growth Strategy:** Focus on acquisitions and operational improvements. - **Risk Management:** Hedging strategies for energy operations. - **Innovation:** Continued investment in patent licensing and enforcement. **Conclusion:** Acacia Research Corporation showed strong revenue growth and profitability in Q1 2025, driven by acquisitions and operational improvements. However, the company faces challenges from inflation, energy market volatility, and dependence on new patent acquisitions. The outlook remains positive with a focus on growth through acquisitions and risk management strategies.