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Acacia Research Corporation (ACTG+5.33%) has submitted its annual report on Form 10-K for the fiscal year ended December 31, 2024. The filing is available for review filing.
The report details Acacia's operations as a value-oriented acquirer and operator of businesses across various sectors, including industrial, energy, and technology. The company focuses on acquiring businesses with strong cash flow potential and scaling opportunities.
Acacia's revenues for the year totaled $122.3 million, a decrease from $125.1 million in the previous year. The decline was primarily due to reduced revenues from its Intellectual Property Operations and Industrial Operations.
The company reported a net loss of $36.1 million for 2024, compared to a net income of $67.1 million in 2023. The loss was attributed to decreased revenues and increased costs in several areas.
Acacia's Intellectual Property Operations generated $19.5 million in revenue, down from $89.2 million in 2023, due to fewer license agreements and lower average fees.
The Industrial Operations segment, represented by Printronix, reported revenues of $30.4 million, a decrease from $35.1 million, influenced by lower sales volumes.
The Energy Operations, primarily through Benchmark, contributed $49.2 million in revenue, reflecting a full year of operations compared to a partial year in 2023.
The Manufacturing Operations, through the acquisition of Deflecto, added $23.2 million in revenue for the period from October 18, 2024, to the end of the year.
Acacia's operating expenses increased by $51.1 million to $155.2 million, driven by costs related to Benchmark and Deflecto, as well as increased general and administrative expenses.
The company disclosed a material weakness in its internal control over financial reporting related to Benchmark's IT systems, which it is working to remediate.
Acacia's cash and cash equivalents at year-end were $273.9 million, down from $340.1 million in 2023, with significant cash used in acquisitions and investments.
The report includes details on Acacia's strategic relationship with Starboard Value LP, which provides industry expertise and support in evaluating acquisition opportunities.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Acacia Research Corporation annual 10-K report dated March 17, 2025. To report an error, please email earnings@qz.com.