IMMERSION CORP (IMMR) FY2026 10-K Annual Report
IMMERSION CORP (IMMR) 10-K annual report for fiscal year 2026, filed with SEC EDGAR on Jul 24, 2026. This page provides AI-powered analysis including business overview, management discussion & analysis (MD&A), risk factors, and key financial data such as revenue, net income, gross margin, operating margin, and return on equity (ROE) extracted from XBRL.
IMMERSION CORP FY2026 10-K Analysis
Business Overview
- • Core business: licensing haptic technology patents for mobility, gaming, automotive markets plus operation of Barnes & Noble Education bookstores
- • New segment: acquisition of controlling 42% interest in Barnes & Noble Education (June 2024), adding 1,116 physical/virtual bookstores and educational wholesale operations
- • Strategic shift: diversification into education sector to expand product offerings, customer reach, and revenue streams beyond haptics licensing
- • Quantitative highlight: Barnes & Noble Education operates 1,116 bookstores with ~3,613 employees, while Immersion segment remains lean at 8 employees
- • Noteworthy fact: Barnes & Noble Education's BNC First Day® affordable access program grew sales 28% in FY 2026, reversing long-term course material revenue declines
Management Discussion & Analysis
- • Revenue $1.73B, up $174.8M (11%) YoY; Immersion down 79% to $15.9M, Barnes & Noble Education up 16% to $1.71B
- • Operating income $25.9M down 78%; Immersion operating income $3.8M down 92%, Barnes & Noble Education $22.1M down 68%
- • Barnes & Noble Education best performing segment: revenues $1.71B, operating income $22.1M; Immersion worst: revenues $15.9M, operating income $3.8M
- • Net cash from operations $59.1M vs $(57.6)M prior year; $8.1M dividends paid, $10K stock repurchases; $16.2M capex spend; $812.9M borrowings, $845.0M debt repayments
- • Management anticipates sufficient liquidity next 12 months; key risks include Korean withholding tax litigation impacts and macroeconomic conditions affecting financing availability
Risk Factors
- • Regulatory risk: Potential adverse impact from changes to U.S. patent laws and USPTO rules affecting patent enforcement and licensing rights
- • Geopolitical risk: International revenues 75% of total, exposed to political instability and tariffs, including U.S. tariffs on Chinese imports affecting Barnes & Noble Education
- • Operational risk: Significant supply chain dependence on limited suppliers; top 4 suppliers comprise 56% of Barnes & Noble Education’s merchandise purchases
- • Competitive risk: Fixed payment license with Microsoft limits royalty revenue growth as Microsoft expands touch-enabled product sales, potentially depressing revenue from other licensees
- • Financial risk: Material weaknesses in internal controls caused restatement and delayed SEC filings, risking Nasdaq noncompliance and reduced access to capital markets
IMMERSION CORP FY2026 Key Financial MetricsXBRL
Revenue
$1.7B
▲ +11.2% YoY
Net Income
$5M
▼ -93.0% YoY
Operating Margin
1.5%
▼ -609bp YoY
Net Margin
0.3%
▼ -387bp YoY
ROE
1.5%
▼ -2004bp YoY
Total Assets
$1.1B
▼ -4.5% YoY
EPS (Diluted)
$0.14
▼ -92.6% YoY
Operating Cash Flow
$59M
▲ +202.6% YoY
Source: XBRL data from IMMERSION CORP FY2026 10-K filing on SEC EDGAR. All figures in USD.
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