Filing Flows › Acacia Research (ACTG) › Q1 2025
Acacia Research (ACTG) Q1 2025 earnings results (first quarter 2025)
10-Q filed May 9, 2025
Acacia Research (ACTG) reported revenue of $124M for the first quarter 2025 (Q1 2025), +412% from a year earlier and +155% from the quarter before. Operating margin was 30.8%, net earnings $24.3M (19.5% of revenue).
Acacia Research, Q1 2025: revenue $124M (+412% year over year), operating margin 30.8%, net earnings $24.3M, operating cash flow $2.4M. The chart follows the revenue to costs, profit and cash.
| Q1 2025 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $124M | +155% | +412% |
| Gross profit | $58.9M | +586% | +393% |
| Operating profit | $38.3M | — | — |
| Net earnings | $24.3M | — | — |
| Operating cash flow | $2.4M | — | -96% |
| Free cash flow | $335K | — | -99% |
What changed
Revenue was $124.4M in Q1 2025, up 412% year over year and up 155% from the previous quarter. Paid-up license revenue agreements was the largest line at 56% of revenue. Paid-up license revenue agreements added $57.1M year over year (up 462%), 57% of the total change. Recurring License Revenue Agreements declined 67%.
Gross margin was 47.4%, down 1.8 points from a year earlier. Operating profit was $38.3M, a 30.8% margin (up 39.4 points year over year). Operating expenses grew 47% against revenue growth of 412%. Net earnings were $24.3M ($23.5M including minority interests, which bore $759K of losses). The effective tax rate was 20.5%.
Operating cash flow was $2.4M (down 96% year over year), 10% of net income including minority interests. Non-cash charges added back $10.6M of depreciation and amortization and $922K of share-based compensation. Working capital and other items used $32.6M. Capital expenditures of $2.1M left free cash flow of $335K.
Questions
What was Acacia Research's revenue in the first quarter 2025?
Acacia Research (ACTG) reported revenue of $124M for the first quarter 2025 (Q1 2025), +412% from a year earlier and +155% from the quarter before.
Was Acacia Research profitable in the first quarter 2025?
Operating profit was $38.3M (30.8% of revenue) and net earnings $24.3M.
Source: Acacia Research 10-Q on SEC EDGAR.