Immersion Corporation Reports First Quarter of Fiscal 2027 Results

GAAP Net Income Attributable to Immersion Stockholders of $4.9 million or $0.17 per diluted share

Non-GAAP Net Income Attributable to Immersion Stockholders of $16.6 million or $0.50 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 first quarter of its fiscal year ending April 30, 2027 (“Fiscal 2027”).

First Quarter of Fiscal 2027 Consolidated Financial Summary((1)):

* Total revenues of $294.4 million for the three months ended July 31, 2026, compared to $292.0 million for the three months ended July 31, 2025.

* GAAP Operating expenses were $80.4 million for the three months ended July 31, 2026, compared to $84.8 million for the three months ended July 31, 2025. Non-GAAP Operating expenses were $68.7 million for the three months ended July 31, 2026, compared to $66.9 million for the three months ended July 31, 2025.

* GAAP Net income (loss) attributable to Immersion stockholders was $4.9 million, or $0.17 per diluted share for the three months ended July 31, 2026, compared to $(0.9) million, or $(0.03) per diluted share, for the three months ended July 31, 2025.

* Non-GAAP Net income (loss) attributable to Immersion stockholders was $16.6 million, or $0.50 per diluted share, for the three months ended July 31, 2026, compared to $16.9 million, or $0.52 per diluted share, for the three months ended July 31, 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 July 31, 2026, Immersion’s stock ownership had reduced to 32.3% 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 three months ended July 31, 2026 and 2025. The Company owns approximately 11.2 million shares of Barnes & Noble Education’s common stock.

Eric Singer, Chairman and Chief Executive Officer, stated, “Our fiscal year is off to a strong start. While financial performance can be lumpy, we continue to be focused on executing against strategic initiatives that will drive long-term shareholder value.”

Immersion will distribute a quarterly dividend of $0.075 per share on October 30, 2026 to stockholders of record as of October 16, 2026. This will mark our sixteenth consecutive quarterly dividend.

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) July 31, 2026April 30,	2026
ASSETS Immersion Cash and cash equivalents	$167,000	$129,868
Investments	–
current	34,698	42,168
Accounts receivable, net	4,694	2,112
Prepaid expenses and other current assets	10,40716,540	216,799190,688
Barnes & Noble Education Cash and cash equivalents	7,806	8,418
Accounts receivables, net	176,686	116,526
Merchandise inventories, net	366,296	298,347
Textbook rental inventories, net	5,844	27,035
Prepaid expenses and other current assets	37,23734,138	593,869484,464
Total Current Assets	810,668	675,152
Immersion Property and equipment, net	4357
Long-term deposits	185	188
Other assets	–
noncurrent	12,98819,917	13,21620,162
Barnes & Noble Education Property and equipment, net	61,724	68,160
Intangible assets, net	86,771	87,733
Goodwill	69,162	69,162
Operating lease right-of-use assets	125,536	122,238
Other assets	–
noncurrent	9,4379,735	352,630357,028
Total Assets	$1,176,514	$1,052,342

IMMERSION CORPORATION CONSOLIDATED BALANCE SHEETS (In thousands except share and per share data) July 31, 2026April 30,	2026
LIABILITIES AND STOCKHOLDERS’ EQUITY Immersion Accounts payable	$63	$16
Accrued compensation	1,189	41
Deferred revenue	–
current	2,925	2,926
Other current liabilities	23,16912,379	27,34615,362
Barnes & Noble Education Accounts payable	210,999	135,564
Accrued liabilities	62,703	64,522
Deferred revenue	–
current	10,133	10,419
Operating lease liabilities	–
current	67,97167,484	351,806277,989
Total Current Liabilities	379,152	293,351
Immersion Deferred revenue	–
noncurrent	2,133	2,864
Deferred income taxes	–
noncurrent	12,758	14,177
Other long-term liabilities	12,13811,726	27,02928,767
Barnes & Noble Education Deferred income taxes	–
noncurrent	9812,225
Operating lease liabilities	–
noncurrent	81,353	84,197
Deferred revenue	–
noncurrent	2,689	2,774
Other long-term liabilities	2,574	2,623
Long-term borrowings	123,50071,000	211,097162,819
Total Liabilities	617,278	484,937
Commitments and contingencies (Note	16)
Stockholders’ Equity:
Common stock	–	$0.001
par value;	100,000,000
shares authorized;	50,476,1585050
and	3	3,197,541
shares issued and outstanding, respectively, at July 31, 2026;	5	0,374,852
and	3	3,125,749
shares issued and outstanding, respectively, at

April 30, 2026 Additional paid-in capital379,325379,644 Accumulated other comprehensive income (loss)122122 Accumulated earnings (deficit)33,51531,165 Treasury stock: 17,278,617 and 17,249,103 shares as of July 31, 2026 and(114,020)(113,816)

April 30, 2026, respectively, at cost Total Stockholders' Equity Attributable to Immersion Corporation Stockholders298,992297,165 Noncontrolling interest in consolidated subsidiaries260,244270,240 Total Stockholders' Equity559,236567,405 Total Liabilities and Stockholders’ Equity$ 1,176,514$ 1,052,342

IMMERSION CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS Three Months Ended July 31, (In thousands except share and per share data)20262025 REVENUES Immersion Royalty and license$ 3,804$ 3,872 Barnes & Noble Education Product and other276,859274,179 Rental13,73613,981 290,595288,160 Total revenues294,399292,032 COST OF SALES (excludes depreciation and amortization expense)

Barnes & Noble Education Product and other cost of sales227,250226,174 Rental cost of sales6,7657,420 Total cost of sales234,015233,594 OPERATING EXPENSES Immersion Selling and administrative expenses3,4983,695 Barnes & Noble Education Selling and administrative expenses67,31667,805 Depreciation and amortization expense10,20410,397 Other (income) expense(652)2,896 76,86881,098 Total operating expenses80,36684,793 Operating Income (Loss)(19,982)(26,355) Interest and other income (expense), net15,0997,741 Interest expense1,8022,829 Income (Loss) Before Income Taxes(6,685)(21,443) Income tax benefit (expense)2,1307,727 Net Income (Loss)(4,555)(13,716) Less: Net income (loss) attributable to noncontrolling interest(9,431)(12,786) Net Income (Loss) Attributable to Immersion Stockholders$ 4,876$ (930) Earnings (Loss) Per Common Share Attributable to Immersion Stockholders Basic$ 0.17$ (0.03) Diluted$ 0.17$ (0.03) Weighted-Average Common Shares Outstanding Basic33,15332,615 Diluted33,30332,615

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 July 31, 20262025 GAAP Net income (loss) attributable to Immersion stockholders((1))$ 4,876$ (930) Adjustments to GAAP Net income (loss) attributable to Immersion stockholders: Stock-based compensation2,0384,478 Depreciation and amortization expense10,20410,397 Other (income) expense(652)2,896 Incremental operating costs incurred due to BNED acquisition7148 Other nonrecurring charges1433 Non-GAAP Net Income (Loss) Attributable to Immersion Stockholders$ 16,551$ 16,922 Non-GAAP Net Income (Loss) Per Diluted Common Share Attributable to Immersion$ 0.50$ 0.52 Stockholders Weighted-Average Common Shares Outstanding - Diluted33,30332,615

((1)) The financial information presented includes the consolidated financial information of Barnes & Noble Education for the three months ended July 31, 2026 and 2025. For purposes of these consolidated financial statements, the results of Barnes & Noble Education herein have been aligned to the Company’s reporting periods.

Immersion Corporation Reconciliation of GAAP Operating Expenses to Non-GAAP Operating Expenses

(In thousands) (Unaudited) Three Months Ended July 31,	2026	2025
GAAP Operating expenses ((1))	$80,366	$84,793
Adjustments to GAAP Operating expenses:
Stock-based compensation	(2,038)	(4,478)
Depreciation and amortization expense	(10,204)	(10,397)
Other (income) expense	652	(2,896)
Incremental operating costs incurred due to BNED acquisition	(71)	(48)
Other nonrecurring charges	(14)	(33)
Non-GAAP Operating expense	$68,691	$66,941

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Investor Contact:

J. Michael Dodson