Immersion | 10-Q: FY2026 Q3 Revenue: USD 518.49 M

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.

IMMR