Acacia Research Corporation Reports $122.3 Million Revenue for Fiscal Year 2024, Operating Loss of $32.9 Million

Acacia Research Corporation reported a total revenue of $122.3 million for the fiscal year ending December 31, 2024, a decrease of 2% from $125.1 million in the previous year. The decline was primarily attributed to a significant drop in revenues from its Intellectual Property Operations, which fell by $69.6 million due to fewer license agreements and lower average license fees. In contrast, the company saw contributions from its Energy Operations and Manufacturing Operations, with Benchmark generating $49.2 million in revenue following its acquisition, and Deflecto contributing $23.2 million from October 18, 2024, to year-end.

The company's operating loss for 2024 was $32.9 million, compared to an operating income of $20.9 million in 2023, reflecting a substantial increase in total costs and expenses, which rose by 49% to $155.2 million. This increase was driven by higher costs associated with the Energy Operations and Manufacturing Operations, including $35.6 million in production costs from Benchmark and $18.6 million from Deflecto. Additionally, general and administrative expenses increased by 25% to $55.4 million, influenced by costs related to the acquisitions and performance-based compensation.

Acacia's strategic developments included the acquisition of a 50.4% equity interest in Benchmark in November 2023, followed by the Revolution Transaction in April 2024, which added significant oil and gas assets. The company also acquired Deflecto for $103.7 million in October 2024, enhancing its manufacturing capabilities. As of December 31, 2024, Acacia's employee headcount stood at 1,036, with the majority employed in its Manufacturing Operations.

The company reported a significant increase in estimated proved reserves from Benchmark, which rose from 4,591 MBoe in 2023 to 25,279 MBoe in 2024, largely due to the Revolution acquisition. This increase reflects a strategic focus on enhancing cash flow generation through disciplined asset management and optimization strategies. However, Acacia also noted challenges, including a material weakness in internal controls over financial reporting related to Benchmark, which management is actively working to remediate.

Looking ahead, Acacia Research Corporation aims to continue its growth trajectory through strategic acquisitions and operational improvements. The company remains focused on generating free cash flow and enhancing shareholder value, although it acknowledges the inherent risks and uncertainties associated with its business model and market conditions.