--- title: "Immersion | 10-Q: FY2026 Q3 Revenue: USD 518.49 M" type: "News" locale: "en" url: "https://longbridge.com/en/news/285146678.md" datetime: "2026-05-05T02:58:19.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/285146678.md) - [en](https://longbridge.com/en/news/285146678.md) - [zh-HK](https://longbridge.com/zh-HK/news/285146678.md) --- # Immersion | 10-Q: FY2026 Q3 Revenue: USD 518.49 M Revenue: As of FY2026 Q3, the actual value is USD 518.49 M. EPS: As of FY2026 Q3, the actual value is USD -0.31. EBIT: As of FY2026 Q3, the actual value is USD 550 K. ### Immersion Segment #### Revenue - **Three Months Ended January 31, 2026 vs. 2025:** - Fixed-fee license revenue decreased by $5.0 million (-87%) to $734 thousand, primarily due to a non-recurring perpetual license agreement in the prior year quarter. - Per-unit royalty revenue was relatively flat, decreasing by $21 thousand (-1%) to $2,662 thousand. - Total Immersion revenue decreased by $5.0 million (-60%) to $3,396 thousand. - **Nine Months Ended January 31, 2026 vs. 2025:** - Fixed-fee license revenue decreased by $59.6 million (-96%) to $2,206 thousand, mainly due to the absence of four one-time perpetual license agreements from the prior year period. - Per-unit royalty revenue increased by $1.6 million (17%) to $10,822 thousand, driven by higher business levels from multiple customers in gaming, mobility, and other applications, and contributions from three new customers. - Total Immersion revenue decreased by $58.0 million (-82%) to $13,028 thousand. #### Operating Expenses - **Selling and Administrative Expenses:** - For the three months ended January 31, 2026, selling and administrative expenses decreased by $2.4 million (-48%) to $2,585 thousand, mainly due to lower stock-based and variable compensation. - For the nine months ended January 31, 2026, these expenses decreased by $13.4 million (-59%) to $9,229 thousand, attributed to a $6.5 million decrease in stock-based and variable compensation and a $5.9 million decrease in legal costs from prior-year patent litigation settlement. #### Operating Income (Loss) - **Three Months Ended January 31, 2026:** Operating income was $811 thousand, a decrease of $2.6 million (-76%) compared to $3,427 thousand in the prior year. - **Nine Months Ended January 31, 2026:** Operating income was $3,799 thousand, a decrease of $44.6 million (-92%) compared to $48,403 thousand in the prior year. ### Barnes & Noble Education Segment #### Revenue - **Three Months Ended January 31, 2026 vs. 2025:** - Product and other sales increased by $52.2 million (12%) to $471,825 thousand. - Rental income slightly increased by $105 thousand (0%) to $43,267 thousand. - Total revenue increased by $52.3 million (11%) to $515,092 thousand, driven by higher comparable store sales ($41.2 million) and new store sales ($35.2 million), largely from BNC First Day programs ($71.3 million increase), partially offset by lower sales from closed stores and lower textbook rental deferral. - **Nine Months Ended January 31, 2026 vs. 2025:** - Product and other sales increased by $234.8 million (21%) to $1,344,215 thousand. - Rental income increased by $12.9 million (14%) to $103,451 thousand. - Total revenue increased by $247.7 million (21%) to $1,447,666 thousand, partially due to the prior year period being 40 days shorter, which reduced revenue by approximately $118.0 million on a linear basis in the first quarter of the prior year. - The remaining increase was primarily due to higher comparable store sales ($92.3 million) and new store sales ($82.0 million), largely driven by a $163.0 million increase from BNC First Day programs. #### Cost of Sales - **Three Months Ended January 31, 2026 vs. 2025:** - Product and other cost of sales increased by $72.4 million (22%) to $401,367 thousand. - Rental cost of sales decreased by $1.3 million (-5%) to $24,212 thousand. - Total cost of sales increased by $71.1 million (20%) to $425,579 thousand. - Cost of sales as a percentage of total revenue increased to 82.6% from 76.6%, mainly due to reduced higher-margin logo and non-logo general merchandise sales and higher markdowns from closed stores, partially offset by lower contract costs related to university contracts. - **Nine Months Ended January 31, 2026 vs. 2025:** - Product and other cost of sales increased by $244.3 million (28%) to $1,117,052 thousand. - Rental cost of sales increased by $6.0 million (12%) to $57,223 thousand. - Total cost of sales increased by $250.4 million (27%) to $1,174,275 thousand. - Cost of sales as a percentage of total revenue was 81.1% compared to 77.0% in the prior year, primarily due to a decrease in higher-margin sales, offset by lower contract costs. #### Operating Expenses - **Selling and Administrative Expenses:** - For the three months ended January 31, 2026, these expenses increased by $1.0 million (1%) to $72,546 thousand, mainly due to higher payroll, incentive plan costs, and related operating expenses. - For the nine months ended January 31, 2026, these expenses increased by $37.1 million (21%) to $217,633 thousand, partly due to the prior year period being 40 days shorter, which resulted in approximately $30.0 million lower expenses on a linear basis. - The remaining increase was primarily due to a $3.1 million increase in payroll and related operating costs and a $3.1 million increase in incentive plan expense. - **Depreciation and Amortization Expense:** - For the three months ended January 31, 2026, this expense increased by $0.7 million (7%) to $10,676 thousand, driven by capital additions and accelerated intangible amortization from closed stores. - For the nine months ended January 31, 2026, this expense increased by $7.0 million (28%) to $31,560 thousand. - The prior year period being 40 days shorter contributed approximately $5.9 million lower expense on a linear basis, with the remaining net increase primarily due to capital additions and accelerated intangible amortization from closed stores. - **Impairment Loss:** - For the three months ended January 31, 2026, an impairment loss of $1.0 million was recognized, comprising $0.4 million in property and equipment, $0.2 million in operating lease right-of-use assets, and $0.4 million in amortizable intangibles. - For the nine months ended January 31, 2026, an impairment loss of $1.0 million was recognized. - **Other (Income) Expense:** - For the three months ended January 31, 2026, other expense was $1.1 million, primarily due to investigation costs. - For the nine months ended January 31, 2026, other expense was $8.3 million, primarily due to investigation costs. - For the nine months ended January 31, 2025, other income was $1.1 million, primarily from a $9.0 million termination of liabilities related to a frozen retirement benefit plan, partially offset by severance costs and legal fees. #### Operating Income (Loss) - **Three Months Ended January 31, 2026:** Operating income was $4,174 thousand, a decrease of $27.6 million (-87%) compared to $31,811 thousand in the prior year. - **Nine Months Ended January 31, 2026:** Operating income was $14,889 thousand, a decrease of $55.9 million (-79%) compared to $70,823 thousand in the prior year. ### Consolidated Financial Metrics #### Net Income (Loss) Attributable to Immersion Stockholders - **Three Months Ended January 31, 2026:** Net loss attributable to Immersion Corporation stockholders was -$10,266 thousand, compared to net income of $24,061 thousand in the prior year. - **Nine Months Ended January 31, 2026:** Net income attributable to Immersion Corporation stockholders was $795 thousand, compared to $81,942 thousand in the prior year. #### Cash Flow - **Nine Months Ended January 31, 2026 vs. 2025:** - Net cash used in operating activities was -$24,780 thousand, an increase of $82.9 million in cash usage compared to -$107,674 thousand in the prior year. - Net cash provided by investing activities was $46,094 thousand, an increase of $41.7 million compared to $4,405 thousand in the prior year, primarily due to the absence of business acquisitions and lower purchases of marketable investments in the current period. - Net cash provided by financing activities was $24,525 thousand, a decrease of $78.5 million compared to $102,980 thousand in the prior year, mainly due to no proceeds from the sale of Barnes & Noble Education common stock in the current period. #### Other Key Metrics - **Deferred Revenue (Immersion):** As of January 31, 2026, Immersion Corporation expects to recognize $6.5 million in revenue from fixed-fee license agreements, with $6.2 million over one to three years and $0.3 million over more than three years. - **Stock Repurchase Program:** As of January 31, 2026, Immersion Corporation had $39.3 million available for repurchase under the December 2022 Stock Repurchase Program, which has been extended to December 29, 2026. - **Dividends:** Immersion Corporation declared a quarterly dividend of $0.075 per share on March 27, 2026, payable on May 1, 2026. - **Barnes & Noble Education Debt:** As of January 31, 2026, Barnes & Noble Education had $138,400 thousand in outstanding borrowings under its Restated ABL Facility. - **Noncontrolling Interest:** As of January 31, 2026, the noncontrolling interest in consolidated subsidiaries was $266,619 thousand. ### Outlook and Strategy Immersion Corporation believes it has sufficient capital resources to meet its working capital needs for the next twelve months and beyond. The Barnes & Noble Education segment plans to continue introducing scalable solutions focused on student and customer experience, expanding e-commerce capabilities, and accelerating growth through service providers like Fanatics and Lids. Additionally, Barnes & Noble Education is accelerating its BNC First Day® programs strategy, with institutions continuing to adopt these programs, which are expected to improve the predictability of future results. ### Related Stocks - [IMMR.US](https://longbridge.com/en/quote/IMMR.US.md) ## Related News & Research - [Aramark Q3 FY2026 earnings: Revenue rises 9% as margins expand](https://longbridge.com/en/news/295523376.md) - [GEE Group releases transcript of fiscal 2026 Q3 earnings call](https://longbridge.com/en/news/295739151.md) - [REG - Bravura Solutions - FY26 Results and Dividend](https://longbridge.com/en/news/295621261.md) - [Citi revises Q3 2026 Brent forecast to $80/bbl](https://longbridge.com/en/news/295258653.md) - [Gabelli Equity Trust declares $0.15 per share cash distribution for Q3 2026](https://longbridge.com/en/news/295684402.md)