Acacia Research Corporation reported significant financial developments in its 10-Q filing for the quarter ending September 30, 2024. The company achieved total revenues of $23.3 million for the third quarter, a substantial increase of 131% compared to $10.1 million in the same period of 2023. For the nine months ended September 30, 2024, revenues reached $73.5 million, up from $32.8 million in the prior year, reflecting a growth of 123%. This growth was primarily driven by the newly established Energy Operations segment, which generated $15.8 million in Q3 2024, while revenues from Intellectual Property Operations and Industrial Operations saw declines.

Despite the revenue growth, Acacia reported a net loss of $14.0 million for Q3 2024, a stark contrast to a net income of $1.6 million in Q3 2023. The nine-month net loss also widened to $22.6 million from $7.7 million in the previous year. The operating loss for Q3 2024 was $10.3 million, an improvement from a loss of $13.2 million in Q3 2023, indicating some operational efficiencies.

The company’s total assets increased to $707.6 million as of September 30, 2024, up from $633.5 million at the end of 2023, largely due to the acquisition of oil and natural gas properties, which rose to $190.1 million from $25.1 million. However, total liabilities also increased significantly to $129.0 million from $43.9 million, reflecting the financial obligations associated with recent acquisitions.

Strategically, Acacia has been active in expanding its portfolio. In November 2023, it acquired a 50.4% equity interest in Benchmark Energy II, LLC, and subsequently increased its stake to approximately 73.5% following Benchmark's acquisition of additional upstream assets in Texas and Oklahoma. Additionally, on October 18, 2024, Acacia completed the acquisition of Deflecto Acquisition, Inc. for $103.7 million, financed through a secured term loan and cash on hand.

The company also reported a significant increase in cash and cash equivalents, totaling $360.1 million as of September 30, 2024, compared to $340.1 million at the end of 2023. This increase was attributed to improved cash flows from operating activities, which provided $70.4 million in the nine months ended September 30, 2024, a notable turnaround from the negative cash flow of $18.0 million in the same period of 2023.

Overall, Acacia Research Corporation's financial performance reflects a mix of strategic growth through acquisitions and challenges in profitability, particularly in its traditional segments.