Fourth Quarter GAAP Net Income Attributable to Immersion Stockholders of $3.7 million or $0.12 per diluted share

Fourth Quarter Non-GAAP Net Income Attributable to Immersion Stockholders of $9.9 million or $0.30 per diluted share

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.

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Investor Contact:

J. Michael Dodson

Immersion Corporation

mdodson@immersion.com