Imagine a company that acts like a **music publishing company (e.g., Sony Music Publishing)**, but for technology patents instead of songs.

In addition, it operates an industrial business similar to **Zebra Technologies**, manufacturing specialized printers for supply chain and industrial applications.

• Patent Licensing and Enforcement: The company acquires and manages patent portfolios, subsequently licensing and enforcing these patented technologies across various industries.
• Industrial Printers and Consumables: Acacia Research designs, manufactures, and distributes printers, parts, and consumable products for a range of industrial printing applications, including specialized line matrix printers.
• Supply-Chain Printing Solutions: It provides tailored printing solutions for critical supply-chain needs in sectors such as manufacturing, logistics, retail, and pharmaceuticals.

Acacia Research Corporation (ACTG) primarily serves other businesses (B2B) across its two operational segments. The provided description does not name specific major customer companies. However, it details the types of customers and industries it serves:

Intellectual Property Operations Segment:

In this segment, Acacia Research's customers are other companies that engage in licensing its patented technologies or become involved in its patent enforcement programs. These are generally companies across various industries that either utilize technologies covered by Acacia's patent portfolios or are targeted for potential infringement. Specific names of these companies are not disclosed in the general company description.

Industrial Operations Segment:

For its industrial products (printers, parts, and consumables), Acacia Research sells indirectly through a network of:

• Direct Customers: Dealers and distributors

These direct customers then supply the products to end-user companies in a diverse range of industries, including:

• Manufacturing
• Transportation and Logistics
• Retail Distribution
• Food and Beverage Distribution
• Pharmaceutical Distribution
• Businesses requiring mission-critical printing applications such as labeling, inventory management, build sheets, invoicing, manifests, bills of lading, and reporting.

MJ McNulty, CEO + Director

Martin D. McNulty, Jr. has served as the Chief Executive Officer of Acacia Research since February 2024, following a period as Interim CEO from November 2022 to February 2024. He also held the role of Chief Operating Officer and Head of Mergers & Acquisitions for the company since March 2022. Prior to joining Acacia, Mr. McNulty was a Managing Director at Starboard Value. He was also the Chief Executive Officer and a member of the Board of Directors of Starboard Value Acquisition Corp (NASDAQ: SVACU) from June 2020 until its merger with Cyxtera Technologies Inc. in February 2021. His extensive experience includes serving as a Managing Director at Starr Investment Holdings LLC from September 2013 to May 2020, where he focused on identifying, evaluating, executing, and managing control-oriented private investments. He also held positions at Metalmark Capital Holdings, LLC, and Citigroup Venture Capital Ltd., demonstrating a strong background in private equity and investment management.

Michael Zambito, Chief Financial Officer

Michael Zambito was appointed Chief Financial Officer of Acacia Research, effective June 24, 2025. Before joining Acacia, he spent 30 years at Ernst & Young, a multinational professional services firm. Most recently, he dedicated over 23 years, including 17 as a Partner, to Ernst & Young's EY-Parthenon (formerly Strategy and Transactions) practice, a market-leading strategy, transactions, and corporate finance provider. Earlier in his career, he spent seven years in Ernst & Young's NY audit practice. Mr. Zambito holds an MBA from Columbia Business School.

Robert Rasamny, Chief Administrative Officer

Robert Rasamny joined Acacia as Chief Administrative Officer in May 2023. Prior to his tenure at Acacia, he served as Head of Legal and Chief Compliance Officer at Melvin Capital Management LP. His experience also includes roles as General Counsel and Chief Compliance Officer at Blue Harbour Group LP, Assistant General Counsel at BlueMountain Capital Management LLC, and Associate General Counsel at the private equity firm, Portfolio Advisors LLC. Mr. Rasamny began his legal career as an Associate in the corporate department of Davis Polk & Wardwell LLP.

Jason Soncini, General Counsel

Jason Soncini joined Acacia as General Counsel in March 2021. From April 2017 until he joined Acacia, Mr. Soncini was employed at Shanda Group, a privately-owned multinational investment firm, initially as Deputy General Counsel and then as General Counsel. His prior legal experience also includes working as an attorney at Kleinberg, Kaplan, Wolff & Cohen, P.C. from October 2013 to April 2017, and he began his legal career at Olshan Frome Wolosky LLP in 2006.

Acacia Research (ACTG) faces several key risks to its business, primarily stemming from its core intellectual property (IP) monetization activities and its strategy of acquiring and operating diversified businesses.

1. Challenges in Intellectual Property Monetization and Revenue Volatility: A significant risk for Acacia Research lies in its intellectual property operations, which involve licensing and enforcing patented technologies. The success and profitability of this segment are subject to fluctuating patent-related legal expenses and the risk of adverse findings by patent offices regarding the invalidity or unenforceability of its patents, which could reduce revenue from licensing and litigation. Furthermore, changes in patent and tax law, as well as legislative, regulatory, and competitive developments concerning patent licensing and enforcement, pose ongoing threats. The revenue generated from IP monetization is often described as "lumpy" and sensitive to legal timing, claim construction, and settlement strategies, contributing to inherent revenue instability and potential earnings volatility for the company.
2. Acquisition and Integration Risks: Acacia Research's strategy involves actively acquiring and integrating businesses across various sectors, including industrial and energy operations. This diversification strategy carries substantial risks, such as the inability to successfully identify, acquire, and integrate new businesses, which can disrupt execution and impact financial results. There are also risks associated with management turnover and the inability to retain key talent in acquired entities, as well as potential losses or impairments resulting from material inaccuracies in reserve estimates or failures in due diligence during the acquisition process.
3. Market and Macroeconomic Risks to Operating Segments: The company's diversified operating segments are exposed to various market and macroeconomic headwinds. For its energy operations, significant risks include volatility in oil and natural gas prices, challenges in executing hedging strategies, and issues related to reserve replacement and production economics. Its industrial and manufacturing operations, including brands like Printronix and Deflecto, face risks from macroeconomic and geopolitical uncertainties, tariff-related cost pressures, inflation, supply chain disruptions, and demand volatility in their end markets. These factors can lead to decreased demand for manufactured products and materially affect revenue and profitability.

The clear emerging threats for Acacia Research (ACTG) are:

• Evolving Legal and Judicial Landscape for Patent Enforcement: For its Intellectual Property Operations segment, ongoing changes in patent law, judicial interpretations (e.g., patent eligibility, validity standards), and procedural rules (e.g., Inter Partes Review, venue for litigation) directly threaten the ability to successfully license and enforce patented technologies. Shifts that weaken patent holder rights or make enforcement more costly could fundamentally undermine its core revenue generation model from patent portfolios.
• Digital Transformation and Automation in Industrial Supply Chains: For its Industrial Operations segment (printers and consumables), the accelerating trend of digital transformation, adoption of advanced IoT sensors, sophisticated RFID technologies, and increasing reliance on purely digital data exchange across manufacturing, logistics, retail, and pharmaceutical distribution industries could reduce the long-term demand for traditional industrial printers used for labels, manifests, invoices, and other physical documentation.

Acacia Research Corporation's Industrial Operations segment participates in significant addressable markets related to industrial printing products and services.

The global industrial printer market was estimated at approximately USD 91.7 billion in 2024 and is projected to grow with a compound annual growth rate (CAGR) of 6.2% from 2025 to 2034, reaching around USD 164.3 billion by 2034. In the United States, the industrial printer market was valued at over USD 25.15 billion in 2024. This market encompasses printing solutions for various industrial applications, including packaging, textiles, electronics, and manufacturing, which aligns with Acacia Research's offerings in printers, parts, consumables, and supply-chain printing solutions.

For line matrix printers, which Acacia Research also offers, the global line printer market was valued at USD 1.27 billion in 2024 and is estimated to grow at a CAGR of over 5% from 2025 to 2034, reaching approximately USD 2.07 billion by 2034. Another estimate places the global line printer market at USD 1.3 billion in 2025, projected to reach USD 2.2 billion by 2035, with a CAGR of 5.0%.

Acacia Research Corporation (NASDAQ: ACTG) anticipates several key drivers for its future revenue growth over the next two to three years, stemming from its strategic focus on acquisitions, optimization of existing assets, and continued monetization of its intellectual property.

Here are the expected drivers of future revenue growth:

1. Strategic Acquisitions and Integrations: Acacia Research plans to continue leveraging its substantial capital base and experienced management team to drive long-term growth through strategic acquisitions. The company's opportunistic approach to value-accretive opportunities, similar to the successful acquisition and integration of Deflecto, is expected to support sustained profitability and cash flow.

2. Expansion and Optimization of Energy Operations: The energy segment, Benchmark Energy, is a significant contributor to the company's performance. The successful drilling of its first Cherokee well, which is expected to begin production, provides potential for increased oil and gas revenue in future quarters. Additionally, Acacia Research has an option to acquire further assets within the energy sector at attractive valuations, which could further boost this segment's revenue.

3. Monetization of Intellectual Property (IP) Portfolio: Despite the episodic nature of its intellectual property operations, the company continues to enhance and monetize its IP portfolio. This segment has shown significant growth, with a notable increase in revenue in 2025, and is expected to continue generating substantial EBITDA and potentially further upside through successful monetization efforts.

4. Operational Efficiencies and Targeted Pricing in Existing Businesses: Acacia Research is implementing initiatives across its operating businesses, including manufacturing (Deflecto) and industrial operations (Printronix), to drive growth. These initiatives encompass targeted pricing strategies, cost-saving measures, and facility consolidation. Anticipated improvements in industrial sectors, such as the Class 8 trucking market, are also expected to boost segments like safety within Deflecto.

Share Repurchases

• On November 9, 2023, Acacia Research's Board approved a stock repurchase program authorizing up to $20.0 million for common stock repurchases, with a cap of 5,800,000 shares and no time limit.
• The company completed this $20.0 million repurchase program in December 2024, buying back 4,358,361 shares at an average price of $4.61 per share.
• No stock repurchases were made during the year ended December 31, 2025.

Share Issuance

• As of March 9, 2026, Acacia Research had 96,475,469 shares of common stock issued and outstanding. This is a decrease from 99,895,473 shares outstanding as of March 11, 2024.
• In July 2023, the Series A Redeemable Convertible Preferred Stock and Series B Warrants converted or were exercised as part of recapitalization transactions, impacting the overall share count. By 2024, no such preferred stock or warrants remained outstanding.
• In the third quarter of 2025, a director received 9,231 shares of common stock as payment for director fees, valued at $3.25 per share.

Inbound Investments

• In July 2023, Senior Secured Notes that were previously issued to Starboard Value converted, which resulted in the parent company having zero total indebtedness as of December 31, 2023.

Outbound Investments

• In November 2023, Acacia acquired a 50.4% equity interest in Benchmark, an independent oil and gas company. Acacia's total interest in Benchmark is approximately 73.5%, and Benchmark acquired Anadarko Basin assets for $145 million.
• On October 18, 2024, Acacia, through its wholly-owned subsidiary, acquired Deflecto, a specialty manufacturer, for $103.7 million.
• The company completed the sale of its Arix shares on January 19, 2024, for $57.1 million, liquidating its ownership in Arix.

Capital Expenditures

• Acacia Research reported capital expenditures of $5.369 million for the full year ended December 31, 2025.
• Capital expenditures for the full year ended December 31, 2024, were $0.765 million, and for December 31, 2023, they were $0.004 million.
• A primary focus for capital expenditures in the Energy Operations segment includes the successful drilling of Benchmark Energy's first Cherokee well, which is anticipated to begin producing in the first quarter of 2026.