Acacia Research (ACTG) Q1 2026 Earnings Transcript

Motley Fool Transcribing, The Motley Fool Fri, May 8, 2026 at 10:14 PM GMT+7 31 min read ACTG Image source: The Motley Fool. Chief Executive Officer — Martin J. McNulty Chief Financial Officer — Michael Zambito MJ McNulty, Acacia s Chief Executive Officer; and Michael Zambito, Acacia s Chief Financial Officer. Before MJ and Mike begin their prepared remarks, please be reminded that certain information provided during this call may contain forward-looking statements relating to current expectations, estimates, forecasts and projections about future events that are forward-looking as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements generally relate to the company s plans, objectives and expectations for future operations and are based on current estimates and projections, future results and trends. Actual results may differ materially from those projected as a result of certain risks and uncertainties. For a discussion of such risks and uncertainties, please see the risk factors described in Acacia s most recent annual report on Form 10-K and quarterly reports on Form 10-Q filed with the SEC. Earlier this morning, Acacia issued a press release disclosing its first quarter 2026 financial results. The press release may be accessed on the company s website under the Press Releases section of the Investor Relations tab at acaciaresearch.com. The company also posted its Q1 2026 earnings presentation to its website, which can be found under the Quarterly Results section of the Investor Relations tab. On today s call, the team will discuss certain non-GAAP financial measures, including adjusted EBITDA for the company and each of its operating segments. Information regarding the comparable GAAP metrics, along with required definitions and reconciliations can be found in the press release disclosing first quarter 2026 financial results available under the Press Releases section of the Investor Relations tab at acaciaresearch.com. I will now turn the call over to Acacia s Chief Executive Officer, MJ McNulty. Martin McNulty: Thank you, Lizzy, and thanks, everyone, for joining us this morning. Coming quickly off the back of our full year 2025 call. We re excited to share some updates with you as our business continues to progress. As we have been, we continue to work diligently on our execution strategies across our businesses. At Benchmark, we drilled our first meaningful well in the Cherokee play, which we brought online late in March. The drilling of that well and a constructive commodity price environment have opened additional attractive return opportunities in the Benchmark business. We re continuing to make progress at Deflecto and Printronix and we ll share some updates there. Further, in our intellectual property business, we re seeing some interesting monetization opportunities, both in our Atlas portfolio of Wi-Fi 6 assets and our R2 portfolio. I believe this quarter is another example of Acacia demonstrating the resilience of our evolving business despite persistent volatility in the market. Our strategy continues to remain the same, acquiring and building businesses where our operational excellence can create stable long-term cash flow generation and scalability. Importantly, we ve done this in a way that allows us to capitalize upon a diverse set of capital allocation and operational opportunities to create value for our shareholders. Through the combined strengths of each of our businesses, we aim to create meaningful enduring value. Our successful execution of this strategy, combined with our disciplined cost control, stable cash yields and targeted operational initiatives enable Acacia to achieve Q1 revenue of $54.2 million and operated segment adjusted EBITDA of $6.8 million. We look at these numbers before the impact -- if we look at these numbers before the impact of our intellectual property operations, operating segment adjusted EBITDA was stable sequentially at $10.3 million. I believe that our consistent execution across operating segments and the significant actions we ve taken since our current team took over has created substantial intrinsic equity value in Acacia that is not yet reflected in our share price. We feel very strongly about our ability to continue to generate value for our shareholders as we move further into the year. We continue to be laser-focused on growing EBITDA and free cash flow in each of our operating businesses while continuing to strategically grow our pipeline of acquisition opportunities. Our strong balance sheet, $330 million in total cash, securities and loans receivable as of March 31 puts us in a strong position to pursue accretive organic and inorganic growth opportunities in each of our core verticals. I d like to take a moment to give you more of an update on our operating segments. Starting with Benchmark, our energy operations performed ahead of our expectations for the first 3 months of the year. We

Acacia Research (ACTG) Q1 2026 Earnings Transcript

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Acacia Research (ACTG) Q1 2026 Earnings Transcript

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