Exhibit 99.1
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Acacia Research Corporation Reports Second Quarter 2025 Financial Results
Total Revenue of $51.2 million for the Quarter
GAAP Net Loss of ($3.3) million and GAAP Diluted EPS of ($0.03) for the Quarter
Adjusted Net Loss1 of ($5.9) million and Adjusted Diluted EPS1 of ($0.06) for the Quarter
Total Company Adjusted EBITDA1 of $1.9 million and Operated Segment Adjusted EBITDA1 of $6.8 million for the Quarter
Total Cash, Cash Equivalents, and Equity Securities of $338.2 million, or $3.51 per share
Announces Partnership with Unchained and Build Asset Management for a Bitcoin-Backed Commercial Loan Strategy
New York, NY, August 6, 2025 - Acacia Research Corporation (Nasdaq: ACTG) (“Acacia” or the “Company”), which acquires and operates businesses across the industrial, energy and technology sectors, today reported financial results for the three and six months ended June 30, 2025. The Company also posted its second quarter 2025 earnings presentation on its website at www.acaciaresearch.com under Events & Presentations.

Martin (“MJ”) D. McNulty, Jr., Chief Executive Officer, stated, “While we have been presented with a unique operating environment in both the U.S. and global economies, our diversified set of businesses and risk management approach has enabled us to manage and protect against some of these challenges. Our strategy remains focused on acquiring fundamentally strong businesses where our management processes can drive incremental value. In this economic environment, our teams have been highly focused on improving efficiencies, strengthening market positioning, and upgrading operational capabilities so that we are best positioned when markets normalize. In the second quarter, we continued to execute our strategy of building businesses with stable cash flow generation and scalability. We believe the opportunities we are identifying within our existing businesses and our strong balance sheet will ensure Acacia continues to deliver long-term shareholder value. As of the end of the second quarter, cash, cash equivalents, and equity securities was approximately $338.2 million, or $3.51 per share. Our strong cash position and balance sheet provides us with substantial dry powder to grow our businesses and positions us to pursue accretive acquisition opportunities that become available. Finally, we are excited to announce a partnership with Unchained Capital and Build Asset Management for a Bitcoin-backed commercial loan strategy. More information about this partnership can be found in a press release issued earlier today and posted to our website.”
Second Quarter 2025 Highlights
•Total revenue of $51.2 million for the quarter, up 98% compared to $25.8 million for the prior-year quarter, primarily driven by $29.0 million in revenue from our second full quarter of Manufacturing Operations.
•GAAP Net Loss of ($3.3) million, or ($0.03) GAAP Diluted EPS, for the three months ended June 30, 2025.
•Adjusted Net Loss of ($5.9) million, or ($0.06) Adjusted Diluted EPS, for the three months ended June 30, 2025.
•Operated Segment Adjusted EBITDA of $6.8 million for the three months ended June 30, 2025.
•Total Company Adjusted EBITDA of $1.9 million for the three months ended June 30, 2025.
•At quarter end, cash, cash equivalents, and equity securities was approximately $338.2 million, or $3.51 per share.
1 Adjusted Net Income (Loss), Adjusted Diluted Earnings Per Share (EPS), Total Company Adjusted EBITDA and Operated Segment Adjusted EBITDA are non-GAAP financial measures. See below for reconciliations of Adjusted Net Income (Loss), Adjusted Diluted EPS, and Total Company Adjusted EBITDA to their most directly comparable GAAP financial measure. For the definition of these measures and a reconciliation of the components of Operated Segment Adjusted EBITDA to their most directly comparable GAAP financial measures, see the accompanying supplemental information section.
1


Revenue
The following table provides a breakdown of the Company’s total revenue for the three and six months ended June 30, 2025 and June 30, 2024. For the purposes of financial reporting, Acacia's operations are broken out as follows: Energy Operations (Benchmark), Industrial Operations (Printronix), Manufacturing Operations (Deflecto), and Intellectual Property Operations (Acacia Research Group).
Three Months Ended June 30,Six Months Ended June 30,
2025202420252024
(In thousands, unaudited)
Energy Operations$15,317 14,170 33,623 16,026 
Industrial Operations6,590 6,335 14,266 15,176 
Manufacturing Operations29,001 — 57,536 — 
Intellectual Property Operations329 5,333 70,234 18,956 
Total Revenues$51,237 $25,838 $175,659 $50,158 
Adjusted EBITDA
The following table provides a reconciliation of consolidated Net Income (Loss), the most directly comparable GAAP measure, to Total Company Adjusted EBITDA for the three and six months ended June 30, 2025 and June 30,2024.
Three Months Ended June 30,Six Months Ended June 30,
2025202420252024
(In thousands, unaudited)
GAAP Net Income (Loss)$(3,293)$(8,446)$20,994 $(8,632)
Net (Income) Loss Attributable to Noncontrolling Interests1,856 (383)1,097 (386)
Income Tax Expense (Benefit)547 (7,061)6,628 (8,170)
Interest Expense2,329 1,814 4,780 2,140 
Interest (Income)(2,936)(4,991)(5,446)(10,033)
(Gain) Loss on Foreign Currency Exchange(280)134 (435)202 
Net Realized and Unrealized (Gain) Loss on Derivatives(6,635)2,659 (1,614)2,488 
Net Realized and Unrealized (Gain) Loss on Investments(4,126)4,744 (954)2,584 
Non-recurring Legacy Legal Expense— 6,614 — 12,857 
Other (Income) Expense, net153 158 870 105 
   GAAP Operating Income (Loss)$(12,385)$(4,758)$25,920 $(6,845)
Depreciation, Depletion & Amortization11,445 7,405 22,055 11,973 
Stock-Based Compensation954 891 1,876 1,749 
Realized Hedge Gain (Loss)869 113 826 913 
Transaction-Related Costs237 222 791 222 
Legacy Matter Costs1 216 9 2,409 
Severance Costs752 — 1,095 — 
   Total Company Adjusted EBITDA$1,873 $4,089 $52,572 $10,421 
2


The following table provides the Adjusted EBITDA for each of the Company’s operating segments for the three and six months ended June 30, 2025 and June 30, 2024.
Three Months Ended June 30,Six Months Ended June 30,
2025202420252024
(In thousands, unaudited)
Energy Operations Adjusted EBITDA2$6,951 $7,039 $14,887 $8,417 
Industrial Operations Adjusted EBITDA2
620 449 1,641 2,346 
Manufacturing Operations Adjusted EBITDA2
1,274 — 3,713 — 
   Operated Segment Adjusted EBITDA
   (excluding Intellectual Property Operations)		$8,845 $7,488 20,241 10,763 
Intellectual Property Operations Adjusted EBITDA2
(2,061)1,309 41,204 8,469 
   Operated Segment Adjusted EBITDA$6,784 $8,797 61,445 19,232 
Parent Costs2
(4,911)(4,708)(8,873)(8,811)
   Total Company Adjusted EBITDA$1,873 $4,089 $52,572 $10,421 

Adjusted Net Income (Loss) and Adjusted Diluted EPS
The following table provides a reconciliation of Net Income (Loss), the most directly comparable GAAP measure, to Adjusted Net Income (Loss) and Adjusted Diluted EPS for the three months ended June 30, 2025 and June 30,2024.
Three Months Ended June 30,Six Months Ended June 30,
2025202420252024
(In thousands, except share and per share data, unaudited)
GAAP Net Income (Loss)$(3,293)$(8,446)$20,994 $(8,632)
Non-recurring Legacy Legal Expense— 6,614 — 12,857 
Legacy Matter Costs31 216 259 2,409 
Stock-Based Compensation954 891 1,876 1,749 
Transaction-Related Costs237 163 791 163 
Severance Costs752 — 1,095 — 
Amortization of Acquired Intangibles860 433 1,767 866 
Unrealized Loss (Gain) on Securities(2,219)4,744 2,558 31,445 
Unrealized Loss (Gain) on Hedges(4,241)2,038 (580)2,355 
Tax Effect of Adjustments1,004 (8,024)(1,625)(16,124)
Adjusted Net Income (Loss)$(5,945)$(1,371)27,135 27,088 
GAAP Diluted EPS$(0.03)$(0.08)$0.22 $(0.09)
GAAP weighted average diluted shares96,244,590 100,079,803 96,964,308 99,912,854 
Adjusted Diluted EPS$(0.06)$(0.01)$0.28 $0.27 
Adjusted diluted weighted average shares96,244,590 100,079,803 96,964,308 100,745,538 

2 Energy Operations Adjusted EBITDA, Industrial Operations Adjusted EBITDA, Manufacturing Operations Adjusted EBITDA, Intellectual Property Operations Adjusted EBITDA, and Parent Costs are non-GAAP financial measures. For the definitions of these measures and reconciliations of these measures to the most directly comparable GAAP financial measures, see the accompanying supplemental information section.
3 Legacy Matter Costs for the six months ended June 30, 2025 includes $250,000 related to a one-time legacy tax matter at Printronix that has been settled, which amount is included within Other Expense, Net in Acacia's condensed consolidated statement of operations.
3


Free Cash Flow4

The following table provides a reconciliation of Free Cash Flow (FCF) for the three and six months ended June 30, 2025.

Three Months Ended June 30, 2025
Energy OperationsIndustrial OperationsManufacturing OperationsIntellectual Property OperationsParent CostsConsolidated Total
(In thousands, unaudited)
Net Cash from Operating Activities (GAAP)$6,032 $895 $1,109 $44,047 $(1,963)$50,120 
Less: Capital Expenditures(1,981)(23)(200)— (9)(2,213)
Free Cash Flow (Non-GAAP)$4,051 $872 $909 $44,047 $(1,972)$47,907 


Six Months Ended June 30, 2025
Energy OperationsIndustrial OperationsManufacturing OperationsIntellectual Property OperationsParent CostsConsolidated Total
(In thousands, unaudited)
Net Cash from Operating Activities (GAAP)$11,484 $3,425 $2,125 $41,781 $(6,270)$52,545 
Less: Capital Expenditures(3,853)(28)(413)— (9)(4,303)
Free Cash Flow (Non-GAAP)$7,631 $3,397 $1,712 $41,781 $(6,279)$48,242 

Balance Sheet and Capital Structure
•Cash, cash equivalents, and equity securities measured at fair value totaled $338.2 million at June 30, 2025 compared to $297.0 million at December 31, 2024, an increase of $41.2 million. The increase in cash was primarily due to cash generated from operating activities across all Operated Segments of $58.8 million, plus $2.6 million in net proceeds from the purchase and sale of equity securities. Cash was reduced by Parent Costs of $6.3 million and further by $3.9 million and $0.4 million of capital expenditures at Benchmark and Deflecto, respectively. Additionally, cash used in financing activities reduced cash by $10.3 million, primarily from $8.5 million of debt repayment on the Benchmark revolving credit facility and $1.2 million of principal repayment on the Deflecto Term Loan.
•Equity securities without readily determinable fair value totaled $5.8 million at June 30, 2025, unchanged from December 31, 2024.
•Investment securities representing equity method investments totaled $19.9 million at June 30, 2025 (net of noncontrolling interests), unchanged from December 31, 2024. Acacia owns 64% of MalinJ1, which results in a 26% indirect ownership stake in Viamet Pharmaceuticals, Inc. for Acacia.
•The Parent company’s total indebtedness was zero at June 30, 2025. On a consolidated basis, Acacia’s total indebtedness was $104.4 million, consisting of $58.0 million in non-recourse debt at Benchmark and $46.4 million in non-recourse debt at Deflecto as of June 30, 2025.
Book Value as of June 30, 2025
At June 30, 2025, Acacia’s book value (which includes noncontrolling interests) was $577.5 million and there were 96.4 million shares of common stock outstanding, for a book value per share of $5.99. This value is impacted by one-time expenses and other adjustments detailed in the above reconciliation from GAAP Net Income (Loss) to Adjusted Net Income (Loss).

4 Free Cash Flow (FCF) is a non-GAAP financial measure. For a definition of this measure, see the accompanying supplemental information section.
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Investor Conference Call
The Company will host a conference call today, August 6, 2025 at 8:00 a.m. Eastern Time (5:00 a.m. Pacific Time).
To access the live call, please dial 877-545-0523 (U.S. and Canada) or 973-528-0016 (international) and if requested, reference the access code “395103.” The conference call will also be simultaneously webcast at https://www.webcaster4.com/Webcast/Page/2371/52757 and on the investor relations section of the Company’s website at http://www.acaciaresearch.com under Events & Presentations. Following the conclusion of the live call, a replay of the webcast will be available on the Company's website for at least 30 days.
About the Company
Acacia (Nasdaq: ACTG) is a publicly traded company that is focused on acquiring and operating attractive businesses across the mature technology, energy and industrial/manufacturing sectors where it believes it can leverage its expertise, significant capital base, and deep industry relationships to drive value. Acacia evaluates opportunities based on the attractiveness of the underlying cash flows, without regard to a specific investment horizon. Acacia operates its businesses based on three key principles of people, process and performance and has built a management team with demonstrated expertise in research, transactions and execution, and operations and management. Additional information about Acacia and its subsidiaries is available at www.acaciaresearch.com.
Safe Harbor Statement
This news release contains forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These statements are based upon the Company’s current expectations and speak only as of the date hereof. All statements other than statements of historical fact are forward-looking statements and include statements related to estimates and projections with respect to, among other things, the Company’s anticipated financial condition, operating performance, the value of the Company’s assets, general economic and market conditions and other future circumstances and events. This news release attempts to identify forward-looking statements by using words such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “forecast,” “future,” “guidance,” “intend,” “may,” “outlook,” “plan,” “potential,” “predict,” “project,” “seek,” “should,” “target” and “will,” and similar words and expressions; however, the absence of these words does not mean that the statements are not forward-looking. While the Company believes its assumptions concerning future events are reasonable, a number of factors could cause actual results to differ materially and adversely from those expressed or implied in any forward-looking statements, including, but not limited to: the Company’s ability to successfully identify, diligence, complete, and integrate strategic acquisitions of businesses, divisions, and/or assets, the performance of the Company’s businesses, divisions, and/or assets, disruptions or uncertainty caused by an ability to retain or changes to the employees or management teams of the Company’s businesses, changes to the Company’s relationship and arrangements with Starboard Value LP, any inability of the Company’s operating businesses to execute on their business and, with respect to Benchmark, hedging strategy, risks related to price and other fluctuations in the oil and gas market, inflationary pressures, supply chain disruptions or labor shortages, the impact of tariffs and trade policy, non-performance by third parties of contractual or legal obligations, changes in the Company’s credit ratings or the credit ratings of the Company’s businesses, security threats, including cybersecurity threats and disruptions to the Company’s business and operations from breaches of information technology systems, or breaches of information technology systems, facilities and infrastructure of third parties with which the Company transacts business, oil or natural gas production becoming uneconomic, causing write downs or adversely affecting Benchmark’s ability to borrow, Benchmark’s ability to replace reserves and efficiently develop current reserves, risks, operational hazards, unforeseen interruptions and other difficulties involved in the production of oil and natural gas, the impact of any seismic events, environmental liability risk, regulatory changes related to the oil and gas industry, the ability to successfully develop licensing programs and attract new business, changes in demand for current and future intellectual property rights, legislative, regulatory and competitive developments addressing licensing and enforcement of patents and/or intellectual property in general, the decrease in demand for Printronix' products, changes in safety, health, environmental, tax and other regulations, requirements or initiatives, hazards such as weather conditions, a health pandemic (similar to COVID-19), acts of war or terrorist acts and the government or military response thereto, general economic conditions, and the success of the Company’s investments. For further discussions of risks and uncertainties, you should refer to the Company’s filings with the Securities and Exchange Commission, including the “Risk Factors” section of the Company’s most recent Annual Report on Form 10-K and any subsequent Quarterly Reports on Form 10-Q. In addition, actual results may differ materially as a result of additional risks and uncertainties of which the Company is currently unaware or which the Company does not currently view as material. Except as otherwise required by applicable law, the Company undertakes no obligation to revise or update publicly any forward-looking statements for any reason.
Investor Contact:
Gagnier Communications
ir@acaciares.com
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ACACIA RESEARCH CORPORATION
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per share data)
June 30, 2025December 31, 2024
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents$316,721 $273,880 
Equity securities21,467 23,135 
Equity securities without readily determinable fair value5,816 5,816 
Equity method investments30,934 30,934 
Accounts receivable, net23,370 26,909 
Inventories25,724 27,485 
Prepaid expenses and other current assets19,958 31,987 
Total current assets443,990 420,146 
Property, plant and equipment, net22,751 23,865 
Oil and natural gas properties, net187,095 191,680 
Goodwill25,782 29,339 
Other intangible assets, net61,643 55,429 
Operating lease, right-of-use assets10,397 9,287 
Deferred income tax assets, net16,998 20,233 
Other non-current assets6,890 6,415 
Total assets$775,546 $756,394 
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable$10,972 $12,074 
Accrued expenses and other current liabilities22,677 20,575 
Accrued compensation6,394 6,277 
Current asset retirement obligation 1,585 1,546 
Royalties and contingent legal fees payable5,681 5,448 
Deferred revenue731 1,319 
Current portion of long-term debt2,400 2,400 
Total current liabilities50,440 49,639 
Asset retirement obligation31,814 31,070 
Long-term lease liabilities7,551 6,778 
Deferred income tax liabilities, net2,697 2,609 
Benchmark revolving credit facility58,000 66,500 
Deflecto facility43,983 45,088 
Other long-term liabilities3,590 2,091 
Total liabilities198,075 203,775 
Commitments and contingencies
Stockholders' equity:
Preferred stock, par value $0.001 per share; 10,000,000 shares authorized; no shares issued or outstanding— — 
Common stock, par value $0.001 per share; 300,000,000 shares authorized; 96,444,993 and 96,048,999 shares issued and outstanding as of June 30, 2025 and December 31, 2024, respectively96 96 
Treasury stock, at cost, 20,542,064 as of June 30, 2025 and December 31, 2024, respectively(118,542)(118,542)
Accumulated other comprehensive income (loss)345 (1,180)
Additional paid-in capital911,473 910,237 
Accumulated deficit(254,792)(275,786)
Total Acacia Research Corporation stockholders' equity538,580 514,825 
Noncontrolling interests38,891 37,794 
Total stockholders' equity577,471 552,619 
Total liabilities and stockholders' equity$775,546 $756,394 
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ACACIA RESEARCH CORPORATION
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
AND COMPREHENSIVE INCOME (LOSS)
(In thousands, except share and per share data)
Three Months Ended June 30,Six Months Ended June 30,
2025202420252024
Revenues:
Intellectual property operations$329 $5,333 $70,234 $18,956 
Industrial operations6,590 6,335 14,266 15,176 
Energy operations15,317 14,170 33,623 16,026 
Manufacturing operations29,001 — 57,536 — 
Total revenues51,237 25,838 175,659 50,158 
Costs and expenses:
Cost of revenues - intellectual property operations6,558 5,765 34,470 12,766 
Cost of revenues - industrial operations3,406 3,277 7,470 7,326 
Cost of production - energy operations12,309 10,038 25,007 11,353 
Cost of revenues - manufacturing operations22,422 — 43,233 — 
Sales and marketing expenses - industrial and manufacturing operations3,381 1,387 6,693 2,942 
General and administrative expenses15,546 10,129 32,866 22,616 
Total costs and expenses63,622 30,596 149,739 57,003 
Operating (loss) income(12,385)(4,758)25,920 (6,845)
Other income (expense):
Equity securities investments:
Change in fair value of equity securities2,219 (4,744)(2,558)(31,445)
Gain on sale of equity securities1,907 — 3,512 28,861 
Net realized and unrealized gain (loss)4,126 (4,744)954 (2,584)
Non-recurring legacy legal expense— (6,613)— (12,856)
Gain (loss) on derivatives - energy operations6,635 (2,659)1,614 (2,488)
Gain (loss) on foreign currency exchange280 (134)435 (202)
Interest expense(2,329)(1,814)(4,780)(2,140)
Interest income2,936 4,991 5,446 10,033 
Other expense, net(153)(159)(870)(106)
Total other income (expense)11,495 (11,132)2,799 (10,343)
Income (loss) before income taxes(890)(15,890)28,719 (17,188)
Income tax (expense) benefit(547)7,061 (6,628)8,170 
Net income (loss) including noncontrolling interests in subsidiaries(1,437)(8,829)22,091 (9,018)
Net loss (income) attributable to noncontrolling interests in subsidiaries(1,856)383 (1,097)386 
Net income (loss) attributable to Acacia Research Corporation$(3,293)$(8,446)$20,994 $(8,632)
Income (loss) per share:
Net income (loss) attributable to common stockholders - Basic$(3,293)$(8,446)$20,994 $(8,632)
Weighted average number of shares outstanding - Basic96,244,590 100,079,803 96,131,624 99,912,854 
Basic net income (loss) per common share$(0.03)$(0.08)$0.22 $(0.09)
Net income (loss) attributable to common stockholders - Diluted$(3,293)$(8,446)$20,994 $(8,632)
Weighted average number of shares outstanding - Diluted96,244,590 100,079,803 96,964,308 99,912,854 
Diluted net income (loss) per common share$(0.03)$(0.08)$0.22 $(0.09)
Other comprehensive income (loss):
Foreign currency translation$863 $— $1,525 $— 
Total other comprehensive income, net863 — 1,525 — 
Total comprehensive income (loss)(574)(8,829)23,616 (9,018)
Comprehensive loss (income) attributable to noncontrolling interests(1,856)383 (1,097)386 
Comprehensive income (loss) attributable to Acacia Research Corporation(2,430)(8,446)22,519 (8,632)
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ACACIA RESEARCH CORPORATION - SUPPLEMENTAL INFORMATION
NON-GAAP FINANCIAL MEASURE

This earnings release includes Adjusted EBITDA on a consolidated basis and for each of the Company’s segments. Total Company Adjusted EBITDA, Operated Segment Adjusted EBITDA and Adjusted EBITDA and Free Cash Flow (FCF) for each of the Company’s segments are supplemental non-GAAP financial measures used by management and external users of the Company’s consolidated financial statements. This earnings release also includes the Company’s Adjusted Net Income (Loss) and Adjusted Diluted Earnings Per Share (EPS), which are non-GAAP financial measures. GAAP refers to generally accepted accounting principles in the United States. A non-GAAP financial measure is a numerical measure of historical or future performance, financial position or cash flow that includes or excludes amounts that are excluded or included, respectively, in the most directly comparable measure calculated and presented in accordance with GAAP in the Company’s financial statements.

Total Company Adjusted EBITDA is defined as net income / (loss) before net income / (loss) attributable to noncontrolling interests, income tax (benefit) / expense, interest expense, interest income, and other expense, net and loss / (gain) on foreign currency exchange, net realized and unrealized (gain) / loss on derivatives, net realized and unrealized loss / (gain) on investments, non-recurring legacy legal expenses, depreciation, depletion and amortization, stock-based compensation, realized hedge gain / (loss), transaction-related costs, and costs related to the legacy items. Operated Segment Adjusted EBITDA is the aggregate of Energy Operations Adjusted EBITDA, Manufacturing Operations Adjusted EBITDA, Industrial Operations Adjusted EBITDA, and Intellectual Property Operations Adjusted EBITDA. See below for the definition of each of those measures. The Company is providing Total Company Adjusted EBITDA and Operated Segment Adjusted EBITDA, non-GAAP financial measures, because management believes these metrics provide investors with useful supplemental information in comparing the operating results across reporting periods by excluding items that are not considered indicative of core operating performance. These measures are not intended to replace the presentation of financial results in accordance with GAAP and may be different from or otherwise inconsistent with similar non-GAAP financial measures used by other companies. The presentation of these non-GAAP financial measures supplements other metrics the Company uses to internally evaluate its subsidiary businesses and facilitate the comparison of past and present operating performance. These measures should not be considered in isolation or as a substitute for measures calculated and presented in accordance with GAAP.
Energy Operations
Energy Operations Adjusted EBITDA is defined as operating income / (loss) for Acacia’s Energy Operations before depreciation, depletion and amortization expense and transaction-related costs, and including realized hedge gain / (loss). The Company is providing its Energy Operations Adjusted EBITDA, a non-GAAP financial measure, because the metric provides investors with useful supplemental information in comparing the operating results across reporting periods by excluding items that are not considered indicative of core operating performance.
Industrial Operations
Industrial Operations Adjusted EBITDA is defined as operating income / (loss) for Acacia’s Industrial Operations before amortization of acquired intangibles and depreciation and amortization expense. The Company is providing its Industrial Operations Adjusted EBITDA, a non-GAAP financial measure, because the metric provides investors with useful supplemental information in comparing the operating results across reporting periods by excluding items that are not considered indicative of core operating performance.
Intellectual Property Operations
Intellectual Property Operations Adjusted EBITDA is defined as operating income / (loss) for Acacia’s Intellectual Property Operations before patent amortization, depreciation expense and stock-based compensation. The Company is providing Intellectual Property Operations Adjusted EBITDA, a non-GAAP financial measure, because the metric provides investors with useful supplemental information in comparing the operating results across reporting periods by excluding items that are not considered indicative of core operating performance.

Manufacturing Operations
Manufacturing Operations Adjusted EBITDA is defined as operating income / loss for Acacia’s Manufacturing Operations before depreciation and amortization expense, severance, and transaction-related costs. The Company is providing its Manufacturing Operations Adjusted EBITDA, a non-GAAP financial measure, because the metric provides investors with
8

useful supplemental information in comparing the operating results across reporting periods by excluding items that are not considered indicative of core operating performance.
Parent Costs are defined as operating income / (loss) attributable to Parent before depreciation and amortization expense, stock-based compensation, transaction-related costs, and costs related to certain legacy matters attributable to the Parent organization. The Company is providing Parent Costs, a non-GAAP financial measure, because it believes it gives investors a clear picture of normalized Parent-level expenses.

Free Cash Flow is defined as net cash provided by (used in) operating activities, less net purchases of property and equipment, oil and gas properties, and patent acquisitions (“Capital Expenditures”). The Company is providing Free Cash Flow, a non-GAAP financial measure, because it believes free cash flow gives investors a good sense of how much cash flows are available to be used for de-levering, making acquisitions, repurchasing shares or similar uses of cash.

Adjusted Net Income (Loss)
Adjusted Net Income (Loss) is defined as Acacia’s GAAP Net Income (Loss) excluding costs related to certain legacy matters, stock-based compensation, transaction-related costs, amortization of acquired intangibles, any unrealized (gain) / loss on securities, any unrealized (gain) / loss on hedges, and any (gain) / loss on non-cash derivatives and taking into account the tax effect(s) of those adjustments. The Company is providing Adjusted Net Income (Loss), a non-GAAP financial measure, because the metric provides investors with useful supplemental information in comparing the operating results across reporting periods by excluding items that are not considered indicative of core operating performance.

Adjusted Diluted Earnings Per Share (EPS)
Adjusted Diluted EPS is defined as Adjusted Net Income (Loss) divided by the Company’s weighted average diluted share count as of the relative period end date. The Company is providing its Adjusted Diluted EPS, a non-GAAP financial measure, because the metric provides investors with useful supplemental information in comparing the operating results across reporting periods by excluding items that are not considered indicative of core operating performance.
The following tables reconcile Operating Income (Loss), the most directly comparable GAAP financial measure, to Adjusted EBITDA for each of the Company’s operating segments and for Parent Costs for the three and six months ended June 30, 2025 and June 30, 2024.
Three Months Ended June 30, 2025
Adjusted EBITDAEnergy OperationsIndustrial OperationsManufacturing OperationsIntellectual Property OperationsParent CostsConsolidated Total
(In thousands, unaudited)
GAAP Operating Income (Loss)$2,093 $74 $(626)$(7,613)$(6,313)$(12,385)
Depreciation, Depletion & Amortization3,989 546 1,481 5,415 14 11,445 
Stock-Based Compensation— — — 137 817 954 
Realized Hedge Gain (Loss)869 — — — — 869 
Transaction-Related Costs— — (333)— — 570 237 
Legacy Matter Costs— — — — 1 1 
Severance Costs— — 752 — — 752 
   Adjusted EBITDA$6,951 $620 $1,274 $(2,061)$(4,911)$1,873 
Parent Interest Income$2,787 

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Three Months Ended June 30, 2024
Adjusted EBITDAEnergy OperationsIndustrial OperationsManufacturing OperationsIntellectual Property OperationsParent CostsConsolidated Total
(In thousands, unaudited)
GAAP Operating Income (Loss)$3,249 $(234)$— $(2,253)$(5,520)$(4,758)
Depreciation, Depletion & Amortization3,455 683 — 3,241 26 7,405 
Stock-Based Compensation— — — 321 570 891 
Realized Hedge Gain (Loss)
113 — — — — 113 
Transaction-Related Costs222 — — — — 222 
Legacy Matter Costs— — — — 216 216 
Severance Costs— — — — — — 
   Adjusted EBITDA$7,039 $449 $— $1,309 $(4,708)$4,089 
Parent Interest Income$5,028 

Six Months Ended June 30, 2025
Adjusted EBITDAEnergy OperationsIndustrial OperationsManufacturing OperationsIntellectual Property OperationsParent CostsConsolidated Total
(In thousands, unaudited)
GAAP Operating Income (Loss)$6,094 $376 $(355)$30,895 $(11,090)$25,920 
Depreciation, Depletion & Amortization7,967 1,098 3,026 9,935 29 22,055 
Stock-Based Compensation— — — 374 1,502 1,876 
Realized Hedge Gain (Loss)826 — — — — 826 
Transaction-Related Costs— — 114 — 677 791 
Legacy Matter Costs— — — — 9 9 
Severance Costs— 167 928 — — 1,095 
   Adjusted EBITDA$14,887 $1,641 $3,713 $41,204 $(8,873)$52,572 
Parent Interest Income$5,209 

Six Months Ended June 30, 2024
Adjusted EBITDAEnergy OperationsIndustrial OperationsManufacturing OperationsIntellectual Property OperationsParent CostsConsolidated Total
(In thousands, unaudited)
GAAP Operating Income (Loss)$3,405 $978 $— $1,029 $(12,257)$(6,845)
Depreciation, Depletion & Amortization3,877 1,368 — 6,676 52 11,973 
Stock-Based Compensation— — — 764 985 1,749 
Realized Hedge Gain (Loss)913 — — — — 913 
Transaction-Related Costs222 — — — — 222 
Legacy Matter Costs— — — — 2,409 2,409 
Severance Costs— — — — — — 
   Adjusted EBITDA$8,417 $2,346 $— $8,469 $(8,811)$10,421 
Parent Interest Income$10,107 


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