Immersion (IMMR)
NASDAQ:IMMR
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Immersion
(NASDAQ:IMMR)
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Rating:53Neutral
Price Target:
$7.00
▲(8.36% Upside)
Action:Reiterated
Date:05/15/26
The score is held back primarily by weakened recent profitability, elevated leverage versus prior years, and volatile/uneven cash-flow quality. Technicals are neutral and do not provide a strong offset, while valuation is supported by the dividend but constrained by loss-making earnings. Ongoing (recently improving) Nasdaq compliance and filing-delay events add risk.
Positive Factors
High gross margins & revenue growth
Very high gross margins (~86%) combined with strong revenue growth indicate the licensing business has low incremental costs and scalable economics. Over 2-6 months this supports durable gross-profit generation and the ability to invest in patent defense and commercialization.
Negative Factors
Elevated leverage versus prior years
Debt roughly equal to equity marks a material shift from earlier minimal leverage, constraining financial flexibility. Higher leverage raises interest and covenant risk, limiting the company's ability to fund litigation, R&D, or bridge uneven royalty receipts over the next several months.
Read all positive and negative factors
Positive Factors
Negative Factors
High gross margins & revenue growth
Very high gross margins (~86%) combined with strong revenue growth indicate the licensing business has low incremental costs and scalable economics. Over 2-6 months this supports durable gross-profit generation and the ability to invest in patent defense and commercialization.
Read all positive factors
Immersion (IMMR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$215.81M
Dividend Yield5.4%
Average Volume (3M)553.68K
Price to Earnings (P/E)―
Beta (1Y)1.34
Revenue Growth35.58%
EPS Growth-107.31%
CountryUS
Employees14
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)-0.19
Shares Outstanding33,100,452
10 Day Avg. Volume540,136
30 Day Avg. Volume553,677
Financial Highlights & Ratios
PEG Ratio0.45
Price to Book (P/B)0.75
Price to Sales (P/S)0.13
P/FCF Ratio21.21
Enterprise Value/Market Cap1.84
Enterprise Value/Revenue0.23
Enterprise Value/Gross Profit0.28
Enterprise Value/Ebitda4.96
Forecast
1Y Price Target
$13.50Price Target Upside108.98% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)N/A
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
58
Neutral
Balance Sheet
54
Neutral
Cash Flow
46
Neutral
| Breakdown | Jan 2026 | Jan 2025 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.74B | 1.56B | 33.92M | 38.46M | 35.09M |
| Gross Profit | 1.44B | 1.48B | 33.92M | 38.46M | 35.00M |
| EBITDA | 80.06M | 168.93M | 42.98M | 27.11M | 17.39M |
| Net Income | -4.71M | 64.28M | 33.98M | 30.66M | 12.48M |
Balance Sheet | |||||
| Total Assets | 1.43B | 1.37B | 215.73M | 190.11M | 175.52M |
| Cash, Cash Equivalents and Short-Term Investments | 177.92M | 153.91M | 160.36M | 149.74M | 137.92M |
| Total Debt | 310.77M | 322.14M | 39.00K | 486.00K | 1.10M |
| Total Liabilities | 870.72M | 804.25M | 32.63M | 32.41M | 34.23M |
| Stockholders Equity | 295.38M | 319.17M | 183.10M | 157.70M | 141.29M |
Cash Flow | |||||
| Free Cash Flow | 10.43M | -68.81M | 20.60M | 40.12M | 17.11M |
| Operating Cash Flow | 25.32M | -57.58M | 20.60M | 40.15M | 17.45M |
| Investing Cash Flow | 45.06M | 3.38M | 3.40M | -29.41M | -87.68M |
| Financing Cash Flow | -17.50M | 60.95M | -16.75M | -13.41M | 62.20M |
Immersion Technical Analysis
Positive
6.46
Price Trends
6.26
Positive
6.20
Positive
6.42
Positive
Market Momentum
0.08
Positive
52.90
Neutral
43.54
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IMMR, the sentiment is Positive. The current price of 6.46 is above the 20-day moving average (MA) of 6.46, above the 50-day MA of 6.26, and above the 200-day MA of 6.42, indicating a bullish trend. The MACD of 0.08 indicates Positive momentum. The RSI at 52.90 is Neutral, neither overbought nor oversold. The STOCH value of 43.54 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IMMR.
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 | $202.86M | 5.23 | 44.62% | ― | 5.20% | 1319.56% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
60 Neutral | $243.22M | -23.46 | -5.15% | ― | 20.69% | 29.58% | |
53 Neutral | $215.81M | ― | -1.57% | 5.40% | 35.58% | -107.31% | |
47 Neutral | $177.75M | -3.12 | -141.94% | ― | -2.16% | 31.21% |
* Technology Sector Average
IMMR
Immersion
6.54
-0.87
-11.73%
ASUR
Asure
8.34
-1.26
-13.12%
EGAN
eGain
7.40
1.35
22.31%
NRDY
Nerdy
0.84
-0.76
-47.50%
Immersion Corporate Events
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...
Delistings and Listing ChangesRegulatory Filings and Compliance
Immersion Granted Nasdaq Listing Extension Amid Reporting Delays
Negative
Apr 24, 2026
On April 23, 2026, Immersion Corporation said a Nasdaq Hearings Panel granted its request to maintain its listing on the Nasdaq Stock Market, provided the company regains compliance with Listing Rule 5250(c)(1) by May 22, 2026. The ruling followed...
Executive/Board ChangesShareholder Meetings
Immersion Shareholders Approve Directors, Auditor and Executive Pay
Positive
Apr 8, 2026
Immersion Corporation held its fiscal year 2025 Annual Meeting of Stockholders on April 6, 2026, where shareholders elected five directors — Eric Singer, William Martin, Emily Hoffman, Frederick Wasch and Elias Nader — to serve until t...
Delistings and Listing ChangesDividendsFinancial DisclosuresRegulatory Filings and Compliance
Immersion Faces Nasdaq Compliance Issues Amid Ongoing Reporting Delays
Negative
Mar 27, 2026
Immersion Corporation disclosed that on March 24, 2026 it received an additional Nasdaq delinquency notice because it had not timely filed its Form 10-Q for the quarter ended January 31, 2026, compounding earlier delays for the July 31 and October...
Financial DisclosuresRegulatory Filings and ComplianceShareholder Meetings
Immersion Faces Ongoing Filing Delays and Meeting Postponement
Negative
Mar 12, 2026
Immersion Corporation reported on March 12, 2026, that it has filed its Annual Report on Form 10-K for the fiscal year ended April 30, 2025, after audit committee investigations at both the company and its consolidated variable interest entity Bar...
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.