The massive beat is entirely driven by lumpy IP licensing revenue; traders should watch for sustainability of the IP segment and the company's acquisition pipeline for reinvestment of the large cash balance. The GAAP EPS of $0.00 and $30.9M impairment highlight the volatility beneath the headline adjusted numbers. No forward guidance was provided, so near-term catalyst is limited to the reported quarter.
Price Chart
Executive Summary
Acacia Research reported Q2 2026 revenue of $114.6 million, up 124% YoY and 131% above the $49.5M consensus, driven by a $60.9M surge in Intellectual Property licensing revenue. Adjusted Diluted EPS of $0.13 beat the -$0.09 estimate by 244%, while GAAP EPS was break-even due to a $30.9M impairment of an equity method investment. The strong headline beats are largely attributable to lumpy IP licensing and not underlying operating momentum.
Key Financial Metrics
Key Facts
- Revenue $114.6M vs consensus $49.5M (beat 131%)
- Adjusted Diluted EPS $0.13 vs consensus -$0.09 (beat 244%)
- GAAP net income $0.00 per share; GAAP net income $47K
- Intellectual Property Operations revenue surged to $60.9M from $0.3M in Q2 2025
- Adjusted EBITDA $17.3M vs $1.9M in Q2 2025
- Total cash & equivalents $334.6M with no parent-company debt
- Book value per share fell to $5.71 from $5.87 at Q1 end due to impairment
- Impairment of $30.9M equity method investment (MalinJ1) recorded
- Free cash flow negative (-$0.8M) for the quarter
Financial Impact
Revenue beat of $65.1M vs consensus; EPS beat of $0.22 per share
Risk Factors
- IP licensing revenue is non-recurring and highly variable; Q2's strength may not continue
- Underlying operating segments (Energy, Industrial, Manufacturing) showed limited growth or decline
- Book value declined due to impairment, signaling potential further write-downs
- Negative free cash flow raises questions about capital allocation efficiency
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0000934549-26-000031 |
| Document: actg-20260805.htm | 0000934549-26-000031 |
| Document: 0000934549-26-000031-index-headers.html | 0000934549-26-000031 |
| Document: 0000934549-26-000031-index.html | 0000934549-26-000031 |
| Document: 0000934549-26-000031.txt | 0000934549-26-000031 |
| 8-K Data (Synthetic) | 0000934549-26-000031 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Aug 20, 2026 6w ago | Insider Cluster | $4.51 $4.36 | ▼ −3.33% | ▼ −2.80% | $4.34 (−3.77%) |
Aug 5, 2026 8w ago | 8-K | $4.54 $4.63 | ▲ +1.98% | ▲ +2.58% | $4.34 (−4.41%) |
May 7, 2026 21w ago | 8-K | $4.71 $4.64 | ▲ +1.49% | ▲ +4.62% | $4.34 (+7.86%) |
US Market Status
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