ACACIA RESEARCH CORP
For the period ended Sep 30, 2025. Filed Nov 6, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2025 · Filed Nov 6, 2025
ACTG$4.25+0.2%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-06-30; filed 2025-08-07.
0000934549-25-000042
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-09-30; filed 2025-11-06.
0000934549-25-000054
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 125 previous paragraphs and 130 current paragraphs.
83 unchanged; 30 reworded; 16 added; 10 removed; 2 previous and 1 current paragraphs rearranged.
Tables are not compared: 7 previous and 8 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (16)
Current report
Tariffs
Current report
During the first half of 2025, the U.S. government announced additional tariffs on a broad range of imports. In an effort to mitigate any adverse impact of these tariffs and other non-tariff trade practices and policies to our Industrial and Manufacturing Operations. We have taken proactive measures to reduce our exposure to tariffs by moving certain production and working closely with our supplier and vendor base to proactively manage any impacts. These countermeasures may prove to be ineffective and the ability to predict tariff rates in different countries may be difficult as policies may change on short notice. Uncertainty about trade policy, tariff rates, and other changes in practices affecting international trade might have an adverse effect on our business and results of operation and we may face challenges in implementing the optimal responses to changing trade conditions. There can be no assurances that such factors will not impact our business in the future.
Current report
•Cost of revenues for Intellectual Property Operations increased $2.6 million, from $5.7 million to $8.3 million in 2025 primarily due to an increase in contingent legal fees, litigation and licensing expenses and patent amortization expense.
Current report
◦Contingent legal fees increased $1.4 million, from $(22,000) to $1.3 million in 2025, as there was no paid-up license revenue recognized in the comparable prior period. Refer to "Intellectual Property Operations –Cost of Revenues" below for further discussion.
Current report
◦Litigation and licensing expenses increased $499,000, from $797,000 to $1.3 million in 2025, primarily due to a net increase in litigation support and third-party technical consulting expenses associated with ongoing litigation. Refer to "Intellectual Property Operations –Cost of Revenues" below for further discussion.
Current report
◦Amortization of patents expense from our Intellectual Property Operations increased $573,000, from $4.7 million to $5.3 million in 2025, due to an increase in amortization from the patent portfolio acquisition in 2025.
Current report
•General and administrative expenses increased $4.7 million, from $11.2 million to $16.0 million in 2025 primarily due to expenses contributed from Manufacturing Operations of $4.6 million. Refer to "General and Administrative Expenses" below for further detail and discussion.
Current report
◦Litigation and licensing expenses increased $1.2 million, from $3.1 million to $4.3 million in 2025, primarily due to a net increase in litigation support and third-party technical consulting expenses associated with ongoing litigation. Refer to "Intellectual Property Operations –Cost of Revenues" below for further discussion.
Current report
•Manufacturing Operations cost of revenues and sales and marketing expenses for 2025 added a total of $72.2 million to our consolidated operating expenses. Refer to "Manufacturing Operations –Cost of Revenues"below for further discussion.
Current report
•Interest expense increased $2.9 million, from $4.1 million to $7.0 million in 2025, primarily due to the interest expense incurred in relation to the Deflecto Facility associated with the acquisition of Deflecto in the fourth quarter of 2024. Refer to Note 11 to the consolidated financial statements elsewhere herein for additional information regarding the Deflecto Facility.
Current report
•Interest income decreased $6.1 million, from $14.6 million to $8.4 million in 2025 due to lower interest rates and a decrease in average cash balances. Refer to Note 2 included in our 2024 Annual Report for additional information regarding our cash and cash equivalents and investments in equity securities.
Current report
Refer to detailed change explanations above for the three and nine months ended September 30, 2025 and 2024 regarding cost of revenues for our Intellectual Property Operations.
Current report
Cost of revenues for Industrial Operations remained flat compared to lower revenue for the nine months ended September 30, 2025 primarily due to higher input costs. Refer to Note 2 included in our 2024 Annual Report for additional information regarding Printronix’s cost of revenues.
Current report
Deflecto’s net revenues included the following:
Current report
Refer to Note 2 to the consolidated financial statements elsewhere herein for additional information regarding Deflecto’s revenue arrangements and related concentrations.
Current report
Deflecto’s cost of revenues for the three and nine months ended September 30, 2025 was $23.3 million and $66.5 million, respectively. Refer to Note 2 included in our 2024 Annual Report for additional information regarding Deflecto’s cost of sales.
Removed paragraphs (10)
Previous report
•Cost of revenues for the Intellectual Property Operations increased by $792,000 primarily due to a $2.2 million increase in patent amortization expense for the 2025 patent portfolio acquisition offset by a decrease in inventor royalties and contingent legal fees due to a decrease in license agreement activity.
Previous report
•General and administrative expenses increased $5.4 million, to $15.5 million in the three months ended June 30, 2025 from $10.1 million in the comparable prior year period, primarily due to expenses contributed from Manufacturing Operations of $5.1 million for the second quarter of 2025.
Previous report
•Gain on derivatives was $6.6 million in the three months ended June 30, 2025, as compared to a loss of $2.7 million in the comparable prior year period due to the commodity derivative activities contributed from our Energy Operations.
Previous report
•Interest expense increased by $0.5 million for the three months ended June 30, 2025 primarily related to the borrowings on the Deflecto facility in connection with the Deflecto Transaction.
Previous report
•Industrial Operations cost of revenues and sales and marketing expenses remained relatively flat, decreasing from $10.6 million for the six months ended June 30, 2024 to $10.5 million for the six months ended June 30, 2025.
Previous report
•Energy Operations cost of production for the six months ended June 30, 2025 increased by $13.6 million due to a full six months of activity for the assets acquired in the Revolution Transaction in April 2024.
Previous report
•Interest expense increased $2.6 million, from $2.1 million to $4.8 million in 2025, primarily due to the interest expense incurred in relation to the Benchmark Revolving Credit Facility and the Deflecto Facility. Interest expense from the Benchmark Revolving Credit Facility included six months of interest expense in 2025 compared to an approximate two month period in the prior year for the Revolution transaction which was partially funded by borrowings under the Revolving Credit Facility. Interest expense also increased for post-acquisition related interest expense on the Deflecto Facility. Refer to Note 11 to the consolidated financial statements elsewhere herein for additional information regarding the Benchmark Revolving Credit Facility and the Deflecto Facility.
Previous report
Printronix’s cost of revenues remained relatively flat for the periods presented. Refer to Note 2 to the consolidated financial statements elsewhere herein for additional information regarding Printronix’s cost of sales.
Previous report
The following table includes Deflecto’s revenues for the three and six months ended June 30, 2025, with no comparable prior year period information as the Deflecto Transaction closed in October 2024.
Previous report
Manufacturing Operation’s cost of revenues was $22.4 million and $43.2 million, respectively for the three and six months ended June 30, 2025 with no comparable prior year period information as the Deflecto Transaction closed in October 2024. Refer to Note 2 to the consolidated financial statements elsewhere herein for additional information regarding Manufacturing Operation’s cost of revenues.
Reworded paragraphs (30)
Previous wording
We have established a proven track record of licensing and enforcement success with over 1,600 license agreements executed as of June 30, 2025, across nearly 200 patent portfolio licensing and enforcement programs. As of June 30, 2025, we have generated gross licensing revenue of approximately $1.9 billion, and have returned $897.7 million to our patent partners. During the past five calendar years ending on December 31, we generated gross licensing revenue of approximately $274.5 million and returned approximately $86.8 million to our patent partners.
Current wording
We have established a proven track record of licensing and enforcement success with over 1,600 license agreements executed as of September 30, 2025, across nearly 200 patent portfolio licensing and enforcement programs. As of September 30, 2025, we have generated gross licensing revenue of approximately $1.9 billion, and have returned $898.0 million to our patent partners. Since January 1, 2021, we generated gross licensing revenue of approximately $282.3 million and returned approximately $87.2 million to our patent partners.
Previous wording
On October 18, 2024, Deflecto Purchaser, a wholly-owned subsidiary of Acacia, acquired Deflecto Acquisition, Inc. (“Deflecto”) pursuant to the Deflecto Stock Purchase Agreement. Headquartered in Indianapolis, Indiana, Deflecto is a leading specialty manufacturer of essential products serving the commercial transportation, HVAC and office markets. Under Acacia’s ownership, Deflecto is a market leader across each of its segments and end markets, supplying essential, regulatory mandated products to a blue-chip customer base via long-term relationships with more than 1,500 leading retail, wholesale and OEM customers and distribution partners globally. Its products include emergency warning triangles and vehicle mudguards used by the transportation industry, various airducts and air registers used by the HVAC market and literature, sign holders and floormats used by the office market. Deflecto manufactures its products at nine manufacturing facilities across the United States, Canada, the United Kingdom and China. Under the terms and conditions of the Deflecto Stock Purchase Agreement, the aggregate consideration paid to the Deflecto Sellers in the Deflecto Transaction consisted of $103.7 million, subject to certain working capital, debt and other customary adjustments set forth in the Deflecto Stock Purchase Agreement (the “Deflecto Purchase Price”). The Deflecto Purchase Price was funded with a combination of borrowings of a $48.0 million secured term loan (the “Deflecto Term Loan”) and cash on hand. Refer to Notes 3 and 11 for additional information related to the Deflecto acquisition and the Deflecto Term Loan, respectively.
Current wording
On October 18, 2024, Deflecto Purchaser, a wholly-owned subsidiary of Acacia, acquired Deflecto Acquisition, Inc. (“Deflecto”) pursuant to the Deflecto Stock Purchase Agreement. Headquartered in Indianapolis, Indiana, Deflecto is a leading specialty manufacturer of essential products serving the commercial transportation, HVAC and office markets. Under Acacia’s ownership, Deflecto is a market leader across each of its segments and end markets, supplying essential, regulatory mandated products to a blue-chip customer base via long-term relationships with more than 1,500 leading retail, wholesale and OEM customers and distribution partners globally. Its products include emergency warning triangles and vehicle mud flaps used by the transportation industry, various airducts and air registers used by the HVAC market and literature, sign holders and floormats used by the office market. Deflecto manufactures its products at nine manufacturing facilities across the United States, Canada, the United Kingdom and China. Under the terms and conditions of the Deflecto Stock Purchase Agreement, the aggregate consideration paid to the Deflecto Sellers in the Deflecto Transaction consisted of $103.7 million, subject to certain working capital, debt and other customary adjustments set forth in the Deflecto Stock Purchase Agreement (the “Deflecto Purchase Price”). The Deflecto Purchase Price was funded with a combination of borrowings of a $48.0 million secured term loan (the “Deflecto Term Loan”) and cash on hand. Refer to Notes 3 and 11 for additional information related to the Deflecto acquisition and the Deflecto Term Loan, respectively.
Previous wording
For more information, refer to the section entitled“Manufacturing Operations” below.
Current wording
For more information, refer to the section entitled“Manufacturing Operations Business” below.
Previous wording
Historically, inflation has not had a significant impact on us or any of our subsidiaries. We expect that our Manufacturing and Industrial Operations will continue to adjust their selling prices as required in response to higher costs and may also implement cost rationalization measures, as applicable. Additionally, our Energy Operations Business may experience inflation. The oil and natural gas industry and the broader U.S. economy have experienced higher than expected inflationary pressures in recent years related to increases in oil and natural gas prices, continued supply chain disruptions, labor shortages and geopolitical instability, among other pressures.
Current wording
Historically, inflation has not had a significant impact on us or any of our subsidiaries. The oil and natural gas industry and the broader U.S. economy have experienced higher than expected inflationary pressures in recent years related to increases in oil and natural gas prices, continued supply chain disruptions, labor shortages and geopolitical instability, among other pressures. We expect that our Manufacturing and Industrial Operations will continue to adjust their selling prices as required in response to higher costs.
Previous wording
As of the date of this Quarterly Report, our Patent Licensing, Enforcement and Technologies Business has three pending patent infringement cases with scheduled trial dates in the next twelve months. Patent infringement trials are components of its overall patent licensing process and are one of many factors that contribute to possible future revenue generating opportunities. Scheduled trial dates, as promulgated by the respective court, merely provide an indication of when, in future periods, the trials may occur according to the court’s scheduling calendar at a specific point in time. A court may change previously scheduled trial dates. In fact, courts often reschedule trial dates for various reasons that are unrelated to the underlying patent assets and typically for reasons that are beyond the control of our Patent Licensing, Enforcement and Technologies Business. While scheduled trial dates provide an indication of the timing of possible future revenue generating opportunities, the trials themselves and the immediately preceding periods represent the possible future revenue generating opportunities.
Current wording
As of the date of this Quarterly Report, our Patent Licensing, Enforcement and Technologies Business has one pending patent infringement cases with scheduled trial dates in the next twelve months. Patent infringement trials are components of ARG’s overall patent licensing process and are one of many factors that contribute to possible future revenue generating opportunities. Scheduled trial dates, as promulgated by the respective court, merely provide an indication of when, in future periods, the trials may occur according to the court’s scheduling calendar at a specific point in time. A court may change previously scheduled trial dates. In fact, courts often reschedule trial dates for various reasons that are unrelated to the underlying patent assets and typically for reasons that are beyond the control of our Patent Licensing, Enforcement and Technologies Business. While scheduled trial dates provide an indication of the timing of possible future revenue generating opportunities, the trials themselves and the immediately preceding periods represent the possible future revenue generating opportunities.
Previous wording
We acquiredone new patent portfolio during the three months ended March 31, 2025 consisting of Wi-Fi 7 standard essential patents. During 2021, we acquired one new patent portfolio consisting of Wi-Fi 6 standard essential patents. In 2020, we acquired five new patent portfolios consisting of (i) flash memory technology, (ii) voice activation and control technology, (iii) wireless networks, (iv) internet search, advertising and cloud computing technology and (v) GPS navigation. The patents and patent rights acquired have estimated economic useful lives ranging from two to five years.
Current wording
We acquiredone new patent portfolio during thenine months ended September 30, 2025 consisting of Wi-Fi 7 standard essential patents. During 2021, we acquired one new patent portfolio consisting of Wi-Fi 6 standard essential patents. In 2020, we acquired five new patent portfolios consisting of (i) flash memory technology, (ii) voice activation and control technology, (iii) wireless networks, (iv) internet search, advertising and cloud computing technology and (v) GPS navigation. The patents and patent rights acquired have estimated economic useful lives ranging from two to five years.
Previous wording
In October 2024, we acquired Deflecto. Headquartered in Indianapolis, Indiana, Deflecto is a leading specialty manufacturer of essential products serving the commercial transportation, HVAC and office markets. Under Acacia’s ownership, Deflecto is a market leader across each of its segments and end markets, supplying essential, regulatory mandated products to a blue-chip customer base via long-term relationships with more than 1,500 leading retail, wholesale and OEM customers and distribution partners globally. Its products include emergency warning triangles and vehicle mudguards used by the transportation industry, various airducts and air registers used by the HVAC market and literature, sign holders and floormats used by the office market. Deflecto manufactures its products at nine manufacturing facilities across the United States, Canada, the United Kingdom and China. While we believe our Manufacturing Operations Business has been reasonably protected from tariffs from a cost standpoint, we maintain a global production footprint, and have been re-shoring certain manufacturing functions and exploring sourcing alternatives to mitigate duty impacts. However, like many of its peers, our Manufacturing Operations Business has seen tariff-specific demand headwinds, particularly in its transportation unit, which provides safety-related and regulatory required components into the trucking industry. While this end market remains challenged due to purchasing delays, our Manufacturing Operations Business continues to invest to optimize its business in order to maximize cash flow when the cycle returns.
Current wording
In October 2024, we acquired Deflecto. Headquartered in Indianapolis, Indiana, Deflecto is a leading specialty manufacturer of essential products serving the commercial transportation, HVAC and office markets. Under Acacia’s ownership, Deflecto is a market leader across each of its segments and end markets, supplying essential, regulatory mandated products to a blue-chip customer base via long-term relationships with more than 1,500 leading retail, wholesale and OEM customers and distribution partners globally. Its products include emergency warning triangles and vehicle mud flaps used by the transportation industry, various airducts and air registers used by the HVAC market and literature, sign holders and floormats used by the office market. Deflecto manufactures its products at nine manufacturing facilities across the United States, Canada, the United Kingdom and China. While we believe our Manufacturing Operations Business has been reasonably protected from tariffs from a cost standpoint, we maintain a global production footprint, and have been re-shoring certain manufacturing functions and exploring sourcing alternatives to mitigate tariff and duty impacts. However, like many of its peers, our Manufacturing Operations Business has seen tariff-specific demand headwinds. While the business environment remains challenging, our Manufacturing Operations Business continues to invest to optimize its business in order to maximize cash flow when the cycle returns.
Previous wording
Total revenues increased $25.4 million to $51.2 million for the three months ended June 30, 2025, as compared to $25.8 million for the three months ended June 30, 2024, due to increases in our Manufacturing Operations revenue and Energy Operations revenue from the recent acquisitions (refer to Note 3) and an increase in Industrial Operations revenues by $0.3 million. The increases were offset by a decrease in Intellectual Property Operations revenues of $5.0 million.
Current wording
Total revenues increased $36.1 million to $59.4 million for the three months ended September 30, 2025, as compared to $23.3 million for the three months ended September 30, 2024, due to increases in our Manufacturing Operations revenue of $30.8 million from the recent acquisition (refer to Note 3) and in our Intellectual Property Operations revenue of $7.3 million. Refer to “Investments in Patent Portfolios” above for additional information regarding the impact of portfolio acquisition trends on current and future licensing and enforcement related revenues. The increases were offset by a decrease in Energy Operations revenue of $1.6 million and in Industrial Operations revenues of $347,000. Refer to “Energy Operations - Revenues” and “Industrial Operations – Revenues” below for further detailed discussion.
Previous wording
Loss before income taxes was $0.9 million for the three months ended June 30, 2025, as compared to loss of $15.9 million in the comparable prior period. The net increase comprised the change in total revenues described above and other changes in operating expenses and other income or expense for the three months ended June 30, 2025 as compared to the three months ended June 30, 2024 as follows:
Current wording
Loss before income taxes was $3.4 million for the three months ended September 30, 2025, as compared to loss of $6.2 million in the comparable prior period. The decrease comprised the change in total revenues described above and other changes in operating expenses and other income or expense for the three months ended September 30, 2025 as compared to the three months ended September 30, 2024 as follows:
Previous wording
•Manufacturing Operations cost of revenues for the second quarter of 2025 added an additional $22.4 million to our consolidated operating expenses as the Deflecto acquisition closed in the fourth quarter of 2024 and there is no comparable period.
Current wording
•Manufacturing Operations cost of revenues and sales and marketing expenses for the third quarter of 2025 added an additional $25.1 million to our consolidated operating expenses as the Deflecto acquisition closed in the fourth quarter of 2024 and there is no comparable prior period. Refer to "Manufacturing Operations –Cost of Revenues"below for further discussion.
Previous wording
•Unrealized gain from the change in fair value of our equity securities was $2.2 million in the three months ended June 30, 2025, as compared to an unrealized loss of $4.7 million in the comparable prior year period. The unrealized loss and gain were derived from our Life Sciences Portfolio and our trading securities portfolio.
Current wording
•Unrealized gain from the change in fair value of our equity securities was $900,000 in 2025, as compared to an unrealized loss of $4.1 million in the comparable prior period. The unrealized gain and loss were derived from our trading securities portfolio. Refer to "Equity Securities Investments" below for further discussion.
Previous wording
•Non-recurring legacy legal expense in the three months ended June 30, 2024 of $6.6 million is related to a dispute involving former executives (the “AIP Matter”). There were no comparable expenses for the three months ended June 30, 2025.
Current wording
•Non-recurring legacy legal expense of $2.0 million in 2024 is related to the accrual recorded in connection with the settlement agreement with Slingshot. There were no comparable expenses for the three months ended September 30, 2025.
Previous wording
•Interest income decreased $4.6 million for the six months ended June 30, 2025 from $10.0 million to $5.4 million in 2025 due to a decrease in interest rates and a decrease in average cash balances.
Current wording
•Interest income decreased $1.5 million, from $4.5 million to $3.0 million in 2025 due to the decrease in interest rates and a decrease in average cash balances. Refer to Note 2 included in our 2024 Annual Report for additional information regarding our cash and cash equivalents and investments in equity securities.
Previous wording
Results of Operations - six months ended June 30, 2025 compared with the six months ended June 30, 2024
Current wording
Results of Operations - nine months ended September 30, 2025 compared with the nine months ended September 30, 2024
Previous wording
Total revenues increased $125.5 million to $175.7 million for the six months ended June 30, 2025, as compared to $50.2 million for the six months ended June 30, 2024, primarily due to an increase in our Intellectual Property Operations revenues and increases in Energy Operations and Manufacturing Operations revenue from acquisitions in the prior year period. Intellectual Property Operations revenues increased due to a increase in average license fees, which contributed to Intellectual Property Operations revenues increasing by $51.3 million. Refer to “Investments in Patent Portfolios” above for additional information regarding the impact of portfolio acquisition trends on current and future licensing and enforcement related revenues. Revenues contributed from Energy Operations were $33.6 million for the six months ended June 30, 2025, as compared to $16.0 million for the six months ended June 30, 2024 due to the 2025 period reflecting the full impact of the Revolution Transaction which was consummated in April 2024. Revenues contributed from our Manufacturing Operations were $57.5 million for the six months ended June 30, 2025 with no prior period activity as the Deflecto acquisition was completed in the fourth quarter of 2024.
Current wording
Total revenues increased $161.6 million to $235.1 million for the nine months ended September 30, 2025, as compared to $73.5 million for the nine months ended September 30, 2024, primarily due to an increase in our Intellectual Property Operations revenues and increases in Energy Operations and Manufacturing Operations revenues from acquisitions in the comparable prior period. Intellectual Property Operations revenues increased due to an increase in average license fees, which contributed to Intellectual Property Operations revenues increasing by $58.6 million. Refer to “Investments in Patent Portfolios” above for additional information regarding the impact of portfolio acquisition trends on current and future licensing and enforcement related revenues. The increases were offset by a decrease in Industrial Operations of $1.3 million. Refer to “Industrial Operations – Revenues” below for further detailed discussion.
Previous wording
Income before income taxes was $28.7 million for the six months ended June 30, 2025, as compared to a loss before income taxes of $17.2 million for the six months ended June 30, 2024. The net increase comprised the change in total revenues described above and other changes in operating expenses and other income or expense for the six months ended June 30, 2025 as compared to the six months ended June 30, 2024 as follows:
Current wording
Income before income taxes was $25.4 million for the nine months ended September 30, 2025, as compared to a loss of $23.3 million in the comparable prior period. The net increase comprised the change in total revenues described above and other changes in operating expenses and other income or expense for the nine months ended September 30, 2025 as compared to the nine months ended September 30, 2024 as follows:
Previous wording
•Cost of revenues for Intellectual Property Operations increased by $21.7 million primarily due to an increase in inventor royalties, contingent legal fees and patent amortization expense.
Current wording
•Cost of revenues for Intellectual Property Operations increased $24.3 million, from $18.5 million to $42.8 million in 2025 primarily due to an increase in inventor royalties, contingent legal fees, litigation and licensing expenses and patent amortization expense.
Previous wording
◦Inventor royalties increased $15.3 million, from $1.4 million to $16.7 million in 2025, primarily due to higher license fees being generated in 2025 with inventor royalties. Refer to “Intellectual Property Operations –Cost of Revenues” below for further discussion.
Current wording
◦Inventor royalties increased $15.5 million, from $1.6 million to $17.1 million in 2025, primarily due to higher license fees being generated in 2025 with inventor royalties. Refer to “Intellectual Property Operations –Cost of Revenues” below for further discussion.
Previous wording
◦Contingent legal fees increased $2.4 million, from $2.4 million to $4.8 million in 2025, primarily due to the change in Intellectual Property Operations revenues described above. Refer to “Intellectual Property Operations –Cost of Revenues” below for further discussion.
Current wording
◦Contingent legal fees increased $3.8 million, from $2.4 million to $6.2 million in 2025, primarily due to the change in Intellectual Property Operations revenues described above. Refer to “Intellectual Property Operations –Cost of Revenues” below for further discussion.
Previous wording
◦Amortization of patents expense from our Intellectual Property Operations increased $3.3 million, from $6.7 million to $9.9 million in 2025, due to an increase in amortization for the 2025 patent portfolio acquisition.
Current wording
◦Amortization of patents expense from our Intellectual Property Operations increased $3.8 million, from $11.4 million to $15.2 million in 2025, due to an increase in amortization from the 2025 patent portfolio acquisition.
Previous wording
•Energy Operations cost of production for the second quarter of 2025 increased by $2.3 million due to a full quarter of activity for the assets acquired in the Revolution Transaction in April 2024.
Current wording
•Energy Operations cost of production increased $13.8 million from $23.1 million to $36.9 million in 2025 due to a full nine months of activity for the assets acquired in the Revolution Transaction in the second quarter of 2024. Refer to "Energy Operations –Cost of Production"below for further discussion.
Previous wording
•General and administrative expenses increased $10.3 million, from $22.6 million to $32.9 million in 2025, primarily due to our Manufacturing Operations which was acquired in the fourth quarter of 2024 and contributed $10.8 million of general administrative costs for six months ended June 30, 2025. Energy Operations general and administrative expenses increased $1.3 million due to 2025 including a full six months of activity for the assets acquired in the Revolution Transaction in April 2024. The increases were partially offset by a decrease in our Industrial Operations general and administrative costs. Refer to “General and Administrative Expenses” below for further detail and discussion.
Current wording
•General and administrative expenses increased $15.0 million, from $33.8 million to $48.8 million in 2025, primarily due to our Energy Operations which contributed $1.4 million of general and administrative costs in 2025 and our Manufacturing Operations which contributed $15.3 million of general administrative costs due to the acquisition in the fourth quarter of 2024 The increases were partially offset by a decrease in our Industrial Operations general and administrative costs and lower parent company costs. Refer to “General and Administrative Expenses” below for further detail and discussion.
Previous wording
•Unrealized loss from the change in fair value of our equity securities was $2.6 million in 2025, as compared to an unrealized loss of $31.4 million in the comparable prior year period. The unrealized loss was derived from our Life Sciences Portfolio and trading securities portfolio. The 2024 period unrealized loss primarily relates to the reversal of unrealized gains previously recorded for Arix shares sold in January 2024 for realized gains.
Current wording
•Unrealized loss from the change in fair value of our equity securities was $1.7 million in 2025, as compared to a loss of $35.5 million in the comparable prior period. The unrealized loss was derived from our Life Sciences Portfolio and trading securities portfolio. The 2024 period unrealized loss primarily relates to the reversal of unrealized gains previously recorded for Arix shares sold in January 2024 for realized gains. Refer to Note 4 to the consolidated financial statements elsewhere herein for additional information regarding the sale of Arix shares and refer to “Equity Securities Investments” below for further discussion.
Previous wording
•Realized gain from the sale of equity securities was $3.5 million in 2025, as compared to a realized gain of $28.9 million in the prior year. The realized gains were similarly derived from the sales activity from our Life Sciences Portfolio and trading securities portfolio. The 2024 period realized gains primarily relates to the Arix shares sold in January 2024. Refer to Note 4 to the consolidated financial statements elsewhere herein for additional information regarding the sale of Arix shares and refer to “Equity Securities Investments” below for further discussion.
Current wording
•Realized gain from the sale of equity securities was $3.5 million in 2025, as compared to a gain of $28.9 million in the comparable prior period. The realized gains were similarly derived from the sales activity from our Life Sciences Portfolio and trading securities portfolio. The 2024 period realized gains primarily relate to the Arix shares sold in January 2024. Refer to Note 4 to the consolidated financial statements elsewhere herein for additional information regarding the sale of Arix shares and refer to “Equity Securities Investments” below for further discussion.
Previous wording
•Non-recurring legacy legal expense in 2024 is related to the AIP Matter (as defined in Note 15 to the consolidated financial statements elsewhere herein). There were no comparable expenses for the six months ended June 30, 2025.
Current wording
•Non-recurring legacy legal expense of $14.9 million in 2024 is related to the AIP Matter (as defined in Note 15 to the consolidated financial statements elsewhere herein) and the settlement agreement with Slingshot. There were no comparable expenses for the nine months ended September 30, 2025.
Previous wording
•Gain on derivatives was $1.6 million in 2025, as compared to a loss of $2.5 million in the prior year due to the commodity derivative activities contributed from our Energy Operations. Refer to Note 13 for additional information regarding Benchmark’s gain and loss on its commodity derivatives.
Current wording
•Gain on derivatives decreased $2.1 million, from $5.5 million to $3.5 million in 2025, primarily due to the commodity derivative activities contributed from our Energy Operations. Refer to Note 13 for additional information regarding Benchmark’s gain and loss on its commodity derivatives.
Previous wording
For the periods presented above, the majority of the revenue agreements executed during the relevant period provided for the payment of one-time, paid-up license fees in consideration for the grant of certain IP Rights for patented technology owned by our operating subsidiaries. These rights were primarily granted on a perpetual basis, extending until the expiration of the underlying patents. Paid-up revenue decreased $4.9 million for the three months ended June 30, 2025 compared to the three months ended June 30, 2024 due to an decrease in new license agreements executed. Recurring revenue, that provides for quarterly sales-based license fees, decreased $0.1 million for the three months ended June 30, 2025 compared to the three months ended June 30, 2024, due to the expiration of certain on-going license arrangements. Paid-up revenue increased $52.2 million for the six months ended June 30, 2025 compared to the six months ended June 30, 2024 due to an increase in average license fees per agreement. Recurring revenue, that provides for quarterly sales-based license fees, decreased $1.0 million for the six months ended June 30, 2025 compared to the six months ended June 30, 2024, due to the expiration of certain on-going license arrangements.
Current wording
For the periods presented above, the majority of the revenue agreements executed during the relevant period provided for the payment of one-time, paid-up license fees in consideration for the grant of certain IP Rights for patented technology owned by our operating subsidiaries. These rights were primarily granted on a perpetual basis, extending until the expiration of the underlying patents. Paid-up revenue increased $7.4 million for the three months ended September 30, 2025 compared to the three months ended September 30, 2024 due to an increase in new license agreements executed. Paid-up revenue increased $59.6 million for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 due to an increase in average license fees per agreement. Recurring revenue, that provides for quarterly sales-based license fees, decreased $1.0 million for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024, due to the expiration of certain on-going license arrangements.
Previous wording
For the periods presented above, the majority of the contract agreements executed in the relevant period include various combinations of tangible products (which include printers, consumables and parts) and services. Revenue from printers and parts increased for the three and six months ended June 30, 2025, as compared to the respective 2024 periods, due to a increase in the number of printer units sold. Consumable products increased slightly for the three months ended June 30, 2025 and decreased for the six months ended June 30, 2025, when compared to the prior year periods due to fluctuations of sales of consumable products. Refer to Note 2 to the consolidated financial statements elsewhere herein for additional information regarding Printronix’s revenue arrangements and related concentrations.
Current wording
For the periods presented above, the majority of the contract agreements executed in the relevant period include various combinations of tangible products (which include printers, consumables and parts) and services. Revenue from consumable products decreased $1.1 million for the nine months ended September 30, 2025, compared to the comparable prior period, due primarily to a decrease in line matrix consumables sold. Refer to Note 2 to the consolidated financial statements elsewhere herein for additional information regarding Printronix’s revenue arrangements and related concentrations. Refer to “Industrial Operations Business” above for additional information related to Printronix's operating activities.
Previous wording
The following table provides the components of Benchmark’s revenues for the periods indicated, as well as each period’s respective average realized prices and production volumes. This table shows production on a barrel of oil equivalent basis in which natural gas is converted to oil at the ratio of 6 thousand cubic feet (“Mcf”) of natural gas to one barrel of oil. This ratio may not be reflective of the current price ratio between two products.
Current wording
The following table provides the components of Benchmark’s revenues for the periods indicated, as well as each period’s respective average realized prices and production volumes. This table shows production on a barrel of oil (“boe”) equivalent basis in which natural gas is converted to oil at the ratio of 6 thousand cubic feet (“Mcf”) of natural gas to one barrel of oil. This ratio may not be reflective of the current price ratio between two products.
Previous wording
Energy Operations’s cost of production for the three months ended June 30, 2025 and 2024 was $12.3 million and $10.0 million, respectively and for the six months ended June 30, 2025 and 2024 was $25.0 million and $11.4 million, respectively, with the increases due to the full period impact of the assets acquired in the Revolution Transaction in April 2024.
Current wording
Cost of production for the Energy Operations were relatively flat for the three months ended September 30, 2025 compared to the same period in 2024. The nine month increase is due to the full period impact of the assets acquired in the Revolution Transaction in April 2024.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
•Gain on derivatives decreased $6.2 million, from $8.0 million to $1.9 million in 2025 due to the commodity derivative activities contributed from our Energy Operations. Refer to Note 13 for additional information regarding Benchmark's gain on its commodity derivatives.
Rearranged previous paragraphs (2)
Previous report — wording carried elsewhere
•Interest income decreased $2.1 million for the three months ended June 30, 2025 due to the decrease in interest rates and a decrease in average cash balances.
Previous report — wording carried elsewhere
•Manufacturing Operations cost of revenues and sales and marketing expenses added operating expenses of $47.1 million for the six months ended June 30, 2024 as the Deflecto acquisition closed in the fourth quarter of 2024 and there is no comparable period expense.