Acacia Research Q3 revenue falls on lower IP segment sales

Overview

• US diversified acquirer reported Q3 revenue down 8% yr/yr, led by lower IP segment sales

• Company posted Q3 GAAP net loss, but adjusted net income was positive

• Q3 adjusted EBITDA fell to $3.9 mln from $8.0 mln a year ago

Outlook

• Company did not provide specific financial guidance for the current or future periods in its press release

Result Drivers

• IP REVENUE DECLINE - Co said lower paid-up license revenue from Intellectual Property Operations drove overall revenue decrease

• BENCHMARK ENERGY GROWTH - Benchmark Energy posted $19.5 mln in revenue, its second strongest quarter since acquisition

• MANUFACTURING WEAKNESS - Manufacturing Operations revenue fell to $27.2 mln from $30.8 mln in prior-year quarter

Company press release:

Key Details

Analyst Coverage

• The one available analyst rating on the shares is "buy"

• The average consensus recommendation for the business support services peer group is "buy"

• Wall Street's median 12-month price target for Acacia Research Corporation is $6.00, about 37.6% above its November 4 closing price of $4.36

Reuters Recommended Reads

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)