MeritValue

ACACIA RESEARCH CORP

ACTGdata completeness 88%17 fiscal years on file
The thesis, from the filings

ACACIA RESEARCH CORP earns about 43% on invested capital, with a roughly flat share count. The applicable estimate puts fair value near $2.31 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$88M1$59.2M2$125.1M3$122.3M4$285.2M4
Net income$149.2M5−$125.1M6$67.1M7−$36.1M8$21.7M8
Operating cash flow$13.3M9−$37.3M10−$22.5M11$50.1M12$75.2M12
Capital expenditure$91,00013$732,00014$189,00015$148.7M15—
Free cash flow (derived)$13.2M9−$38.1M10−$22.7M11−$98.5M12—
Total debt———$2.4M16$91.9M16
Cash & equivalents$308.9M17$287.8M18$340.1M19$273.9M20$306.7M20
Diluted shares98.5M42.5M92.4M99.2M97.2M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$55.93
your share of equity
Profit it earned you last year
$2.23
Free cash flow it threw off
—
Debt you’d be carrying
$9.46

10 shares is a claim on $55.93 of net worth that earned you $2.23 last year, against $9.46 of debt.

iii. Is this a good business?
Moat signal · return on invested capital
43% avg · 5y
FY21 142%FY22 —FY23 30%FY24 -10%FY25 10%

It earned an average 43% on invested capital over 5 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
−1% shares · 5y

Share count is roughly flat over 5 years — little dilution, little buyback. Total debt has risen 3729% over the same window.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0
DCF · Growth Exit 10Y
not applicable
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
DCF · Growth Exit 5Y
not applicable
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
Earnings Power Value
$2.31
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$21.7M
  • growthAssumed0.0%
Graham Number
$5.26
assumptions (1)
  • grahamMultiplier2250.0%

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 10-K · period ending 2021-12-31 · accession 0000934549-23-000031 (RevenueFromContractWithCustomerExcludingAssessedTax)
  2. 10-K · period ending 2022-12-31 · accession 0000934549-24-000023 (RevenueFromContractWithCustomerExcludingAssessedTax)
  3. 10-K · period ending 2023-12-31 · accession 0000934549-25-000004 (RevenueFromContractWithCustomerExcludingAssessedTax)
  4. 10-K · period ending 2024-12-31 · accession 0000934549-26-000010 (RevenueFromContractWithCustomerExcludingAssessedTax)
  5. 10-K · period ending 2021-12-31 · accession 0000934549-23-000031 (NetIncomeLoss)
  6. 10-K · period ending 2022-12-31 · accession 0000934549-24-000023 (NetIncomeLoss)
  7. 10-K · period ending 2023-12-31 · accession 0000934549-25-000004 (NetIncomeLoss)
  8. 10-K · period ending 2024-12-31 · accession 0000934549-26-000010 (NetIncomeLoss)
  9. 10-K · period ending 2021-12-31 · accession 0000934549-23-000031 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2022-12-31 · accession 0000934549-24-000023 (NetCashProvidedByUsedInOperatingActivities)
  11. 10-K · period ending 2023-12-31 · accession 0000934549-25-000004 (NetCashProvidedByUsedInOperatingActivities)
  12. 10-K · period ending 2024-12-31 · accession 0000934549-26-000010 (NetCashProvidedByUsedInOperatingActivities)
  13. 10-K · period ending 2021-12-31 · accession 0000934549-23-000031 (PaymentsToAcquirePropertyPlantAndEquipment)
  14. 10-K · period ending 2022-12-31 · accession 0000934549-24-000023 (PaymentsToAcquirePropertyPlantAndEquipment)
  15. 10-K · period ending 2023-12-31 · accession 0000934549-25-000004 (PaymentsToAcquirePropertyPlantAndEquipment)
  16. 10-K · period ending 2024-12-31 · accession 0000934549-26-000010 (LongTermDebtCurrent)
  17. 10-K · period ending 2021-12-31 · accession 0000934549-23-000031 (CashAndCashEquivalentsAtCarryingValue)
  18. 10-K · period ending 2022-12-31 · accession 0000934549-24-000023 (CashAndCashEquivalentsAtCarryingValue)
  19. 10-K · period ending 2023-12-31 · accession 0000934549-25-000004 (CashAndCashEquivalentsAtCarryingValue)
  20. 10-K · period ending 2024-12-31 · accession 0000934549-26-000010 (CashAndCashEquivalentsAtCarryingValue)