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Immersion
(NASDAQ:IMMR)
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Rating:57Neutral
Price Target:
$8.00
▲(22.70% Upside)
Action:Reiterated
Date:07/28/26
The score is primarily held back by weaker recent financial performance—sharp TTM revenue decline, near break-even profitability, and higher leverage—despite strong gross margins and improved TTM cash generation. Technicals are a supporting positive with the stock above major moving averages, while valuation is mixed (attractive yield but negative P/E). Recent corporate updates are modestly favorable (Nasdaq compliance and dividend continuity).
Positive Factors
High Gross Margins
An ~83% gross margin reflects the low incremental cost of licensing haptics IP and meaningful pricing power. High gross profitability provides durable earnings leverage as revenues recover, supporting margin sustainability and capacity to fund R&D, enforcement, and shareholder returns over time.
Negative Factors
Sharp Revenue Decline
A 65% TTM revenue decline materially weakens revenue visibility and suggests reduced licensing activity or product adoption. Such a large drop undermines operating leverage, pressures margins and cash flows, and raises the risk that current cash generation is not sustainable without a recovery in licensed shipments.
Read all positive and negative factors
Positive Factors
Negative Factors
High Gross Margins
An ~83% gross margin reflects the low incremental cost of licensing haptics IP and meaningful pricing power. High gross profitability provides durable earnings leverage as revenues recover, supporting margin sustainability and capacity to fund R&D, enforcement, and shareholder returns over time.
Read all positive factors
Immersion (IMMR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$250.93M
Dividend Yield3.57%
Average Volume (3M)566.29K
Price to Earnings (P/E)54.0
Beta (1Y)1.37
Revenue Growth11.24%
EPS Growth-92.95%
CountryUS
Employees14
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.14
Shares Outstanding33,191,902
10 Day Avg. Volume448,043
30 Day Avg. Volume566,290
Financial Highlights & Ratios
PEG Ratio-0.50
Price to Book (P/B)0.75
Price to Sales (P/S)0.13
P/FCF Ratio-6.05
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$13.50Price Target Upside107.06% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)0.26
Revenue Forecast (FY)N/A
Immersion Business Overview & Revenue Model
Company Description
Immersion Corporation, through its affiliated entities, specializes in the innovation, development, and licensing of haptic technologies. These advancements enable individuals to engage with and perceive digital products via their sense of touch a...
How the Company Makes Money
Immersion primarily makes money by monetizing its haptics intellectual property through licensing arrangements. The company grants manufacturers and technology providers rights to use its patented haptics technologies and related know-how, typical...
Immersion Financial Statement Overview
Summary
Income Statement
54
Neutral
Balance Sheet
46
Neutral
Cash Flow
58
Neutral
| Breakdown | TTM | Jan 2026 | Jan 2025 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.73B | 1.73B | 1.56B | 33.92M | 38.46M | 35.09M |
| Gross Profit | 360.34M | 325.08M | 1.48B | 33.92M | 38.46M | 35.00M |
| EBITDA | 78.13M | 74.45M | 168.93M | 42.98M | 27.11M | 17.39M |
| Net Income | 4.52M | 4.52M | 64.28M | 33.98M | 30.66M | 12.48M |
Balance Sheet | ||||||
| Total Assets | 1.12B | 1.43B | 1.37B | 215.73M | 190.11M | 175.52M |
| Cash, Cash Equivalents and Short-Term Investments | 197.88M | 177.92M | 153.91M | 160.36M | 149.74M | 137.92M |
| Total Debt | 222.68M | 310.77M | 322.14M | 39.00K | 486.00K | 1.10M |
| Total Liabilities | 552.01M | 870.72M | 804.25M | 32.63M | 32.41M | 34.23M |
| Stockholders Equity | 297.17M | 295.38M | 319.17M | 183.10M | 157.70M | 141.29M |
Cash Flow | ||||||
| Free Cash Flow | 42.87M | -36.56M | -68.81M | 20.60M | 40.12M | 17.11M |
| Operating Cash Flow | 59.07M | -24.78M | -57.58M | 20.60M | 40.15M | 17.45M |
| Investing Cash Flow | 51.50M | 46.09M | 3.38M | 3.40M | -29.41M | -87.68M |
| Financing Cash Flow | -44.75M | 24.52M | 60.95M | -16.75M | -13.41M | 62.20M |
Immersion Risk Analysis
Immersion disclosed 54 risk factors in its most recent earnings report. Immersion reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Immersion Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | $187.21M | 4.86 | 44.62% | ― | 5.20% | 1319.56% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
58 Neutral | $231.90M | -27.88 | -4.27% | ― | 24.27% | 48.44% | |
57 Neutral | $250.93M | 54.00 | 1.51% | 4.14% | 11.24% | -92.95% | |
43 Neutral | $158.61M | -3.04 | -151.55% | ― | -2.16% | 31.21% |
* Technology Sector Average
IMMR
Immersion
7.60
0.84
12.49%
ASUR
Asure
8.67
0.46
5.60%
EGAN
eGain
7.33
1.75
31.36%
NRDY
Nerdy
0.76
-0.51
-40.47%
Immersion Corporate Events
DividendsShareholder Meetings
Immersion Declares Quarterly Cash Dividend to Shareholders
Positive
Jul 2, 2026
On July 1, 2026, Immersion Corporation’s board set October 7, 2026 as the date for its FY 2026 Annual Meeting of Stockholders, significantly shifting it from the prior year’s schedule and triggering revised governance timelines. The co...
Delistings and Listing ChangesRegulatory Filings and Compliance
Immersion Regains Nasdaq Compliance, Stabilizing Listing Status
Positive
May 15, 2026
Immersion Corporation, a haptics technology licensing company, confirmed it has resolved a Nasdaq compliance issue related to its periodic reporting obligations. On May 14, 2026, the company received notice from Nasdaq’s Listing Qualificatio...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.