Immersion Stock Price, News & Analysis

Immersion Corporation (NASDAQ: IMMR) is a technology company focused on the creation, design, development, and licensing of haptic, or touch feedback, technologies. Its work centers on enabling users to engage their sense of touch more fully when interacting with digital products and experiences. According to company disclosures, Immersion accelerates and scales haptic experiences by providing technology for mobile, automotive, gaming, and consumer electronics applications.

Immersion was incorporated in California in 1993 and reincorporated in Delaware in 1999. Its common stock trades on The Nasdaq Stock Market under the symbol IMMR. The company’s business model is primarily based on intellectual property licensing. It generates revenue from royalty and license fees, as well as development contract and service fees, associated with its haptic technology portfolio. Company information also notes that it has generated revenues from intellectual property settlements and from expanding global licensing relationships with counterparties across multiple jurisdictions.

Immersion’s software and technology are applied in markets such as mobile devices, wearables, consumer devices, and gaming devices. Its haptic technology is described as creating immersive and realistic experiences that enhance digital interactions by engaging users’ sense of touch. Through licensing arrangements, counterparties incorporate Immersion’s technology into their own products and platforms, with Immersion earning royalties and related fees based on those arrangements.

Business Model and Revenue Sources

Based on company filings and public statements, Immersion’s core business model is centered on licensing its haptic technology and intellectual property. The company reports revenue from:

• Royalty and license revenue related to its haptic technology portfolio.
• Development contract and service fees associated with its technology and licensing activities.
• Intellectual property settlements, which the company has cited as a contributor to revenues in recent periods.

In addition, Immersion has disclosed that it is primarily engaged in the business of intellectual property licensing and has described itself as well capitalized with significant cash and investments and no debt as of a stated historical date. While specific financial figures change over time, these disclosures underscore the company’s focus on monetizing its intellectual property and maintaining a balance sheet structure that supports this model.

Haptics Technology Focus

Immersion describes itself as a leading provider of touch feedback technology, also known as haptics. Its technology is intended to create more immersive and realistic digital experiences by adding tactile feedback to interactions. The company states that it accelerates and scales haptic experiences by providing technology for mobile, automotive, gaming, and consumer electronics. This positioning reflects a focus on embedding haptics into a range of device categories and digital interfaces.

According to company communications, Immersion’s business involves a global licensing framework and licensing customers operating across multiple jurisdictions. The company has highlighted the complexity of the tax and jurisdictional structures through which it operates, reflecting the cross-border nature of its licensing activities.

Relationship with Barnes & Noble Education

On June 10, 2024, Immersion reported that it acquired a controlling interest in Barnes & Noble Education, Inc. (BNED). Company disclosures state that, as part of certain transactions, Immersion acquired a significant percentage of Barnes & Noble Education’s outstanding common shares and control through board representation. Subsequent filings and earnings releases indicate that Barnes & Noble Education’s financial information has been consolidated into Immersion’s financial statements from the acquisition date.

Barnes & Noble Education is described as a contract operator of physical and virtual bookstores for college and university campuses and K–12 institutions across the United States. It is also characterized as a textbook wholesaler and inventory management hardware and software provider. Company materials state that Barnes & Noble Education operates physical, virtual, and custom bookstores and delivers educational content, tools, and general merchandise within an omnichannel retail environment. Immersion’s acquisition of a controlling interest in Barnes & Noble Education therefore adds a consolidated business focused on education-related retail and services alongside Immersion’s core haptics licensing activities.

Regulatory and Reporting Context

Immersion files periodic reports with the U.S. Securities and Exchange Commission (SEC), including Forms 10-K, 10-Q, and 8-K. In multiple filings and press releases, the company has discussed:

• Its use of non-GAAP financial measures such as non-GAAP net income and non-GAAP operating expenses, which exclude items like stock-based compensation, depreciation and amortization, restructuring charges, business acquisition costs, and other nonrecurring charges.
• The consolidation of Barnes & Noble Education’s financial results into Immersion’s financial statements following the June 10, 2024 transaction.
• A change in fiscal year to a period beginning on May 1 and ending on April 30, with fiscal quarters ending on July 31, October 31, January 31, and April 30, to more closely align with Barnes & Noble Education’s fiscal year end.

In 2025, Immersion disclosed that its Board of Directors concluded certain previously issued unaudited interim condensed consolidated financial statements for specified quarters should no longer be relied upon, and that the company expects to restate financial statements for certain periods. Related SEC filings describe internal investigations at Barnes & Noble Education regarding the recording of cost of sales and digital sales, potential adjustments to cost of sales and revenue recognition, and anticipated material weaknesses in internal control over financial reporting. Immersion has stated that it intends to correct these matters through a restatement within its Annual Report on Form 10-K for the fiscal year ended April 30, 2025.

Nasdaq Listing and Compliance Notices

Immersion’s common stock is listed on The Nasdaq Stock Market. In 2025, the company reported receiving delinquency compliance alert notices from Nasdaq for not timely filing its Annual Report on Form 10-K for the fiscal year ended April 30, 2025 and subsequent Quarterly Reports on Form 10-Q. These notices cited Nasdaq Listing Rule 5250(c)(1), which requires timely filing of periodic reports. Immersion has disclosed that it is working to complete the necessary work to file the delayed reports and to regain compliance, with timing dependent on the completion of the Barnes & Noble Education investigation and related consolidation work.

Capital Allocation and Shareholder Actions

Company announcements describe a history of returning capital to shareholders through dividends and share repurchases. Immersion has reported multiple quarterly dividends and special dividends, and in late 2025 it announced an increase in its quarterly dividend per share. The Board has also noted that it may adjust or withdraw dividends in future periods as it reviews the company’s capital allocation strategy.

In November 2025, Immersion reported that its Board adopted a temporary shareholder rights plan, sometimes referred to as a rights plan, designed to reduce the likelihood that any person or group could gain control of the company without appropriately compensating shareholders. A related Form 8-K and subsequent amendment describe a Rights Agreement under which a dividend of preferred share purchase rights was declared for each outstanding share of common stock, with the rights becoming exercisable if a shareholder’s beneficial ownership exceeds a specified threshold. The company has stated that the plan is intended to protect the interests of all shareholders and to discourage coercive or unfair takeover tactics.

Segment Characteristics

From the perspective of investors evaluating IMMR stock, Immersion combines:

• A technology and intellectual property licensing business focused on haptics and touch feedback.
• A consolidated education-sector business through its controlling interest in Barnes & Noble Education, which operates campus bookstores and related services and is a textbook wholesaler and inventory management hardware and software provider.

Company disclosures emphasize that Barnes & Noble Education’s results are included in Immersion’s consolidated financial statements from the date of the controlling interest acquisition. This structure means that Immersion’s reported revenues and operating metrics reflect both its haptics licensing activities and the performance of Barnes & Noble Education.

Use of Non-GAAP Metrics

Immersion frequently presents non-GAAP financial measures alongside GAAP results in its earnings releases. The company states that these measures—such as non-GAAP net income attributable to Immersion stockholders, non-GAAP net income per diluted share, non-GAAP operating expenses, and Immersion standalone non-GAAP stockholders’ equity—are intended to help investors understand performance by excluding certain non-cash items and nonrecurring charges. Management has indicated that it uses these non-GAAP measures internally to manage and assess the profitability of the business. The company also notes that non-GAAP measures should be viewed in addition to, and not as an alternative for, GAAP results, and provides reconciliations in its releases.

Risk and Control Considerations

Immersion’s filings and those of Barnes & Noble Education include discussions of risk factors and uncertainties, including those related to internal controls, financial reporting, liquidity, competitive conditions, and regulatory changes. In connection with the Barnes & Noble Education investigation, Immersion has indicated that it expects to report material weaknesses in internal control over financial reporting and that its disclosure controls and procedures were not effective for certain periods. The company has also noted that Barnes & Noble Education voluntarily contacted the SEC staff regarding the ongoing internal investigation and that Immersion intends to cooperate with the staff on these matters.

For investors researching IMMR stock, these disclosures provide context on the company’s operational focus on haptics and intellectual property licensing, the impact of its controlling interest in Barnes & Noble Education, its capital allocation practices, and the regulatory and internal control environment reflected in its SEC filings and Nasdaq communications.