Immersion Corporation Reports Fourth Quarter and Fiscal 2026 Results

About this update from Immersion Corporation

Immersion Corporation (“Immersion”, the “Company”, “we”, “us” or “our”) (Nasdaq: IMMR), a premier licensing company of technologies for haptics, reported financial results for the three months and fiscal year ended April 30, 2026 (“fiscal 2026”). Fourth Quarter of Fiscal 2026 Consolidated Financial Summary (1) : Total revenues of $270.0 million for the three months ended April 30, 2026, compared to $284.9 million for the three months ended April 30, 2025. GAAP Operating expenses were $77.6 million for the three months ended April 30, 2026, compared to $85.8 million for the three months ended April 30, 2025. Non-GAAP Operating expenses were $83.8 million for the three months ended April 30, 2026, compared to $100.7 million for the three months ended April 30, 2025. GAAP Net income attributable to Immersion stockholders was $3.7 million, or $0.12 per diluted share for the three months ended April 30, 2026, compared to $(17.7) million, or $(0.62) per diluted share, for the three months ended April 30, 2025. Non-GAAP Net income (loss) attributable to Immersion stockholders was $9.9 million, or $0.30 per diluted share, for the three months ended April 30, 2026, compared to $(2.7) million, or $(0.08) per diluted share, for the three months ended April 30, 2025. Full-Year Fiscal 2026 Consolidated Financial Summary (1) : Total revenues of $1.7 billion for the fiscal year ended April 30, 2026, compared to $1.6 billion for the fiscal year ended April 30, 2025. GAAP Operating expenses were $345.4 million for the fiscal year ended April 30, 2026, compared to $313.7 million for the fiscal year ended April 30, 2025. Non-GAAP Operating expenses were $401.6 million for the fiscal year ended April 30, 2026, compared to $365.7 million for the fiscal year ended April 30, 2025. GAAP Net income attributable to Immersion stockholders was $4.5 million, or $0.14 per diluted share for the fiscal year ended April 30, 2026, compared to $64.3 million, or $1.90 per diluted share, for the fiscal year ended April 30, 2025. Non-GAAP Net income attributable to Immersion stockholders was $60.8 million, or $1.84 per diluted share, for the fiscal year ended April 30, 2026, compared to $116.3 million, or $3.52 per diluted share, for the fiscal year ended April 30, 2025. (1) On June 10, 2024, the Company closed certain transactions with Barnes & Noble Education, Inc. (“Barnes & Noble Education”). As part of the transactions, the Company acquired 42% of all outstanding common shares of Barnes & Noble Education, as well as control over Barnes & Noble Education through the five Immersion-appointed board seats. As of April 30, 2026, Immersion’s stock ownership had reduced to 32.6% as a result of additional issuances of Barnes & Noble Education’s common stock to noncontrolling stockholders. The financial information presented in this press release includes the consolidated financial information of Barnes & Noble Education for the fiscal year ended April 30, 2026 and the period from June 10, 2024 to April 30, 2025. The Company owns approximately 11.2 million shares of Barnes & Noble Education’s common stock. Eric Singer, Chairman and Chief Executive Officer, stated, “We are pleased to report our latest financial results. Over the past year, our ability to communicate with shareholders has been constrained, making this an unusual period for the Company. Throughout that time, however, our priorities have remained unchanged: protecting and monetizing our intellectual property portfolio, allocating capital thoughtfully, and creating long-term shareholder value." “We are pleased with the value created to date through our investment in Barnes & Noble Education. Barnes & Noble Education recently initiated a quarterly dividend of $0.08 per share, reflecting its confidence in its business prospects. In addition to our other cash and investments, Immersion owns more than 11 million shares of Barnes & Noble Education,” Singer continued. “We will remain focused on managing our business and assets while allocating capital thoughtfully,” Singer added. “Since initiating our dividend program in January 2023, Immersion has paid or declared approximately $1.01 per share in dividends to shareholders. At recent trading levels for Immersion shares, we expect to continue emphasizing regular quarterly dividends and periodic special dividends rather than aggressive share repurchases. Currently, the Company has $39.3 million available for repurchase under the stock repurchase program.” “Immersion’s insiders continue to own a significant equity stake in the Company, and our interests remain closely aligned with those of our fellow shareholders as we seek to grow the Company’s shareholder equity over the long term,” Singer concluded. In December 2025, Immersion increased the quarterly dividend from $0.045 per share to $0.075 per share. The third quarterly dividend since such increase, in the amount of $0.075 per share, will be paid on July 31, 2026, to stockholders of record on July 20, 2026. Immersion has distributed 15 consecutive quarterly dividends to its shareholders. Future quarterly dividends will be subject to further review and approval by the Board in accordance with applicable law. The Board reserves the right to adjust or withdraw the quarterly dividend in future periods as it reviews the Company’s capital allocation strategy from time-to-time. The financial information presented in this press release includes the consolidated financial information of Barnes & Noble Education for the fiscal year ended May 2, 2026 and for the period from June 10, 2024 to May 3, 2025. About Immersion Corporation Immersion Corporation (Nasdaq: IMMR) was incorporated in 1993 in California and reincorporated in Delaware in 1999. The Company is a leading provider of touch feedback technology, also known as haptics. The Company accelerates and scales haptic experiences by providing haptic technology for mobile, automotive, gaming, and consumer electronics. Haptic technology creates immersive and realistic experiences that enhance digital interactions by engaging users’ sense of touch. Learn more at www.immersion.com . On June 10, 2024, we acquired a controlling interest in Barnes & Noble Education. Barnes & Noble Education is a contract operator of physical and virtual bookstores for college and university campuses and K-12 institutions across the United States. Barnes & Noble Education is also a textbook wholesaler and inventory management hardware and software provider. Barnes & Noble Education operates physical, virtual, and custom bookstores, delivering essential educational content, tools, and general merchandise within a dynamic omnichannel retail environment. Use of Non-GAAP Financial Measures The Company reports all required financial information in accordance with generally accepted accounting principles (“GAAP”), but it believes that evaluating its ongoing operating results may be difficult to understand if limited to reviewing only GAAP financial measures. The Company discloses certain non-GAAP information, such as Non-GAAP Net income (loss) attributable to Immersion stockholders, Non-GAAP Net income (loss) per diluted common share attributable to Immersion stockholders, and Non-GAAP Operating expenses because it is useful in understanding the Company’s performance as it excludes certain non-cash expenses like stock-based compensation, depreciation and amortization expense, impairment loss, other (income) expense, and other nonrecurring charges that many investors feel may obscure the Company’s true operating performance. Likewise, management uses these non-GAAP financial measures to manage and assess the profitability of its business. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, the Company’s reported results under GAAP. The non-GAAP financial measures are not intended to be considered in isolation or as a substitute for results prepared in accordance with GAAP. Such non-GAAP financial measures are reconciled to their closest GAAP financial measures in tables contained in this press release. Forward-looking Statements This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). The forward-looking statements involve risks and uncertainties. Forward-looking statements are identified by words such as “anticipates,” “believes,” “expects,” “intends,” “may,” “can,” “will,” “places,” “estimates,” and other similar expressions. However, these words are not the only way we identify forward-looking statements. Examples of forward-looking statements include any expectations, projections, or other characterizations of future events, or circumstances, including but not limited to statements about the Company’s focus on protecting its intellectual property, either through the execution of new or renewal of license agreements or by proactive enforcement, continuing to pursue thoughtful capital allocation to increase long-term stockholder value, and the timing of any dividend payments. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Actual results could differ materially from those projected in the forward-looking statements, therefore we caution you not to place undue reliance on these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following: the inability to predict the outcome of any litigation, the costs associated with any litigation and the risks related to our business, both direct and indirect, of initiating litigation, unanticipated changes in the markets in which the Company operates; the effects of the current macroeconomic climate; delay in or failure to achieve adoption of or commercial demand for the Company’s products or third party products incorporating the Company’s technologies; the inability of Immersion to renew existing licensing arrangements or enter into new licensing arrangements on favorable terms; the loss of a major customer; the ability of Immersion to protect and enforce its intellectual property rights and other factors. For a more detailed discussion of these factors, and other factors that could cause actual results to vary materially, interested parties should review the risk factors listed in Immersion’s Annual Report on Form 10-K for fiscal 2026 as filed with the U.S. Securities and Exchange Commission (the “SEC”), and Barnes & Noble Education’s Annual Report on Form 10-K for its fiscal year ended May 2, 2026 as filed with the SEC. Any forward-looking statements made by us in this press release speak only as of the date of this press release, and the Company does not intend to update these forward-looking statements after the date of this press release, except as required by law. Immersion, and the Immersion logo are trademarks of Immersion Corporation in the United States and other countries. All the other trademarks are the property of their respective owners. The use of the word “partner” or “partnership” in this press release does not mean a legal partner or legal partnership. (IMMR – C)   IMMERSION CORPORATION CONSOLIDATED BALANCE SHEETS   (In thousands) April 30, 2026 April 30, 2025 ASSETS     Immersion     Cash and cash equivalents $ 129,868   $ 63,550   Investments – current   42,168     88,789   Accounts receivable, net   2,112     2,767   Prepaid expenses and other current assets   16,540     11,331       190,688     166,437   Barnes & Noble Education     Cash and cash equivalents   8,418     9,058   Accounts receivable, net   116,526     98,075   Merchandise inventories, net   298,347     299,564   Textbook rental inventories, net   27,035     26,439   Prepaid expenses and other current assets   34,138     32,250       484,464     465,386   Total Current Assets   675,152     631,823   Immersion     Property and equipment, net   57     113   Investments – noncurrent   —     13,880   Long-term deposits   188     6,188   Other assets – noncurrent   19,917     27,362       20,162     47,543   Barnes & Noble Education     Property and equipment, net   68,160     95,702   Intangible assets, net   87,733     91,581   Goodwill   69,162     69,162   Operating lease right-of-use assets   122,238     155,281   Other assets - noncurrent   9,735     11,181       357,028     422,907   Total Assets $ 1,052,342   $ 1,102,273     IMMERSION CORPORATION CONSOLIDATED BALANCE SHEETS   (In thousands except share and per share data) April 30, 2026 April 30, 2025 LIABILITIES AND STOCKHOLDERS’ EQUITY     Immersion     Accounts payable $ 16   $ 13   Accrued compensation   41     343   Deferred revenue – current   2,926     2,938   Other current liabilities   12,379     10,240       15,362     13,534   Barnes & Noble Education     Accounts payable   135,564     148,848   Accrued liabilities   64,522     44,295   Deferred revenue – current   10,419     10,411   Operating lease liabilities – current   67,484     48,796       277,989     252,350   Total Current Liabilities   293,351     265,884   Immersion     Deferred revenue – noncurrent   2,864     5,790   Deferred income taxes – noncurrent   14,177     11,034   Other long-term liabilities   11,726     13,344       28,767     30,168   Barnes & Noble Education     Deferred income taxes – noncurrent   2,225     4,193   Operating lease liabilities – noncurrent   84,197     121,093   Deferred revenue – noncurrent   2,774     3,155   Other long-term liabilities   2,623     15,987   Long-term borrowings   71,000     103,098       162,819     247,526   Total Liabilities   484,937     543,578   Stockholders’ Equity     Common stock – $0.001 per share par value; 100,000,000 shares authorized; 50,374,852 and 33,125,749 shares issued and outstanding, respectively, at April 30, 2026; 49,433,320 and 32,502,969 shares issued and outstanding, respectively, at April 30, 2025   50     49   Additional paid-in capital   379,644     374,327   Accumulated other comprehensive income (loss)   122     535   Accumulated earnings (deficit)   31,165     34,691   Treasury stock – 17,249,103 and 16,930,351 shares, respectively, at cost   (113,816 )   (111,477 ) Total Stockholders’ Equity Attributable to Immersion Corporation Stockholders   297,165     298,125   Noncontrolling interest in consolidated subsidiaries   270,240     260,570   Total Stockholders’ Equity   567,405     558,695   Total Liabilities and Stockholders’ Equity $ 1,052,342   $ 1,102,273     IMMERSION CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS         Three Months Ended April 30, Fiscal Years Ended April 30, (In thousands, except per share data) 2026 2025 2026 2025 REVENUES         Immersion         Royalty and license $ 2,896   $ 3,084   $ 15,924   $ 74,073   Barnes & Noble Education         Product and other   220,150     232,982     1,564,365     1,342,437   Rental income   46,954     48,810     150,405     139,366       267,104     281,792     1,714,770     1,481,803   Total revenues   270,000     284,876     1,730,694     1,555,876   COST OF SALES (excludes depreciation and amortization expense)         Barnes & Noble Education         Product and other cost of sales   162,808     176,125     1,279,860     1,048,829   Rental cost of sales   22,328     24,166     79,551     75,346   Total cost of sales   185,136     200,291     1,359,411     1,124,175   OPERATING EXPENSES         Immersion         Selling and administrative expenses   2,924     3,171     12,153     25,757   Barnes & Noble Education         Selling and administrative expenses   70,854     72,210     288,487     252,754   Depreciation and amortization expense   10,939     10,647     42,499     35,274   Impairment loss   4,071     —     5,089     1,247   Other (income) expense   (11,150 )   (237 )   (2,859 )   (1,351 )     74,714     82,620     333,216     287,924   Total operating expenses   77,638     85,791     345,369     313,681   Operating Income (Loss)   7,226     (1,206 )   25,914     118,020   Interest income and other income (expense), net   4,468     (13,506 )   12,317     15,533   Interest expense   2,436     3,180     12,202     14,261   Income (Loss) Before Income Taxes   9,258     (17,892 )   26,029     119,292   Income tax benefit (expense)   (3,078 )   (8,341 )   (16,816 )   (25,710 ) Net Income (Loss)   6,180     (26,235 )   9,213     93,582   Less: Net income (loss) attributable to noncontrolling interest   2,451     (8,577 )   4,689     29,298   Net Income (Loss) Attributable to Immersion Stockholders $ 3,729   $ (17,658 ) $ 4,524   $ 64,284             Earnings Per Common Share Attributable to Immersion stockholders         Basic $ 0.12   $ (0.62 ) $ 0.14   $ 1.94   Diluted $ 0.12   $ (0.62 ) $ 0.14   $ 1.90   Weighted Average Common Shares Outstanding         Basic   33,070     32,408     32,864     32,219   Diluted   33,134     32,408     33,127     33,003     Immersion Corporation Reconciliation of GAAP Net Income (Loss) Attributable to Immersion Stockholders to Non-GAAP Net Income (Loss) Attributable to Immersion Stockholders (In thousands, except per share amounts) (Unaudited)     Three Months Ended April 30,   Fiscal Years Ended April 30,   2026   2025   2026   2025 GAAP Net income (loss) attributable to Immersion stockholders (1) $ 3,729     $ (17,658 )   $ 4,524     $ 64,284   Adjustments to GAAP Net income (loss) attributable to Immersion stockholders:               Stock-based compensation   1,813       4,309       10,768       13,689   Depreciation and amortization expense   10,965       10,672       42,602       35,373   Impairment loss   4,071       —       5,089       1,247   Other (income) expense (2)   (11,150 )     (237 )     (2,859 )     (1,351 ) Incremental operating costs incurred due to BNED acquisition   470       133       659       2,960   Other nonrecurring charges   —       34       20       73   Non-GAAP Net Income (Loss) Attributable to Immersion Stockholders $ 9,898     $ (2,747 )   $ 60,803     $ 116,275   Non-GAAP Net Income (Loss) Per Diluted Common Share Attributable to Immersion Stockholders $ 0.30     $ (0.08 )   $ 1.84     $ 3.52   Weighted-Average Common Shares Outstanding - Diluted   33,134       33,045       33,127       33,003   (1) The financial information presented includes the consolidated financial information of Barnes & Noble Education for the fiscal year ended May 2, 2026 and for the period from June 10, 2024 to May 3, 2025. For purposes of these consolidated financial statements, the results of Barnes & Noble Education herein have been aligned to the Company’s reporting periods. (2) During the three months ended April 30, 2026, the Company recognized income of approximately $12.6 million related to the resolution of its participation interest purchase agreement associated with the Visa/Mastercard interchange litigation. The income represents the recognition of previously deferred amounts upon settlement of the underlying litigation.   Immersion Corporation Reconciliation of GAAP Operating Expenses to Non-GAAP Operating Expenses (In thousands) (Unaudited)         Three Months Ended April 30, Fiscal Years Ended April 30,   2026 2025 2026 2025 GAAP Operating expenses (1) $ 77,638   $ 85,791   $ 345,369   $ 313,681   Adjustments to GAAP Operating expenses:         Stock-based compensation   1,813     4,309     10,768     13,689   Depreciation and amortization expense   10,965     10,672     42,602     35,373   Impairment loss   4,071     —     5,089     1,247   Other (income) expense (2)   (11,150 )   (237 )   (2,859 )   (1,351 ) Incremental operating costs incurred due to BNED acquisition   470     133     659     2,960   Other nonrecurring charges   —     34     20     73   Non-GAAP Operating expense $ 83,807   $ 100,702   $ 401,648   $ 365,672   (1) The financial information presented includes the consolidated financial information of Barnes & Noble Education for the fiscal year ended May 2, 2026 and for the period from June 10, 2024 to May 3, 2025. For purposes of these consolidated financial statements, the results of Barnes & Noble Education herein have been aligned to the Company’s reporting periods. (2) During the three months ended April 30, 2026, the Company recognized income of approximately $12.6 million related to the resolution of its participation interest purchase agreement associated with the Visa/Mastercard interchange litigation. The income represents the recognition of previously deferred amounts upon settlement of the underlying litigation.   View source version on businesswire.com: https://www.businesswire.com/news/home/20260727429189/en/

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