ACACIA RESEARCH CORP Q4 FY2025 earnings call

• CEO mentioned three years ago the company had $350 million cash, burning parent company, no operated segment cash flow, large securities portfolio. Since then, zero-based parent budget, right-sized organization, monetized legacy assets, nurtured IP portfolio, returned capital, acquired operating businesses. 2025 total revenue $285.2 million, adjusted EBITDA $77.9 million, operating cash flow $75.2 million. - Deflecto had good quarter in seasonally weakest period, started consolidating Portland facility into Dover, Ohio facility, divested small segment of office products business, sold portion of UK facility, resulting in net proceeds from asset sales. - Benchmark energy business performed well in fourth quarter, posted record production, began drilling first Cherokee well. - Printronics industrial business had higher margin and optimized product mix, generating consistent revenue and free cash flow. - Intellectual property business recorded revenue and adjusted EBITDA, benefited from settlement

Deflecto: Fourth quarter revenue was $26.4 million and adjusted EBITDA was $1.1 million. Benchmark: Fourth quarter energy operations revenue was $16 million, full year energy operations revenue was $63.8 million. Printronics: Fourth quarter industrial operations revenue was $7.3 million, full year industrial operations revenue was $114.8 million. Intellectual property: Fourth quarter revenue was $326,012.1 and full year adjusted EBITDA was $78.4 million

• Continue to balance prudent cost control with value generation across platforms. - Benchmark will continue to be nimble in hedging strategy. - Deflecto expects to benefit from market green shoots and operational improvements

• Macro and geopolitical uncertainties. - Tariff-related pressures. - Energy market volatility. - Private credit and private equity pressures

Q: Anthony Stoss asked about expectations for Cherokee well, potential sale of Cherokee assets, average hedge price for Benchmark.

A: Difficult to compare new well to existing wells, sale of assets is an option, average hedge price about $70 a barrel, will hedge volumes from new well.

Q: Brett Reese asked about Benchmark's production goal if retaining Cherokee, Deflecto's operating margins and EBITDA aspirations, thought process on selling floor mat business.

A: Goal is to use existing cash flows for high ROI projects, well on way to operational improvement, floor mat business was subscale and current owner was better fit.

Q: Adam Eagleston asked about private equity markets and capital allocation.

A: Seeing opportunities with B and C quartile assets, balance capital allocation between acquisitions and buybacks.

Q: Todd Selter asked about IP business EBITDA and revenue difference, buyback consideration, unencumbered period for buybacks.

A: Settlement caused EBITDA difference, monitoring capital allocation for buybacks, starting to become unencumbered towards end of current quarter and beginning of next quarter with a roll-off period