Immersion (IMMR) AI Stock Analysis

• Market Cap: $225.80M
• Dividend Yield: 5.4%
• Average Volume (3M): 522.69K
• Price to Earnings (P/E): 2.7
• Beta (1Y): 1.18
• Revenue Growth: 3828.94%
• EPS Growth: 129.01%
• Country: US
• Employees: 14
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): N/A
• Shares Outstanding: 32,396,430
• 10 Day Avg. Volume: 487,035
• 30 Day Avg. Volume: 522,689
• PEG Ratio: 0.01
• Price to Book (P/B): 0.85
• Price to Sales (P/S): 0.22
• P/FCF Ratio: -3.15
• Enterprise Value/Market Cap: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: $13.50
• Price Target Upside: 91.76% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 65 Neutral
• Price Target: $7.50 ▲(6.53% Upside)

Immersion's stock score is driven by its attractive valuation and technical indicators suggesting potential short-term gains. However, financial performance is hindered by high leverage and cash flow issues. Corporate events present mixed signals, with positive dividend news overshadowed by compliance concerns.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust demand for Immersion's haptic technology, enhancing its market position and potential for future expansion.

Dividend Increase

The dividend increase reflects strong financial health and commitment to shareholder returns, indicating confidence in sustained cash flow.

Partnerships

Strategic partnerships enhance Immersion's market reach and innovation potential, supporting long-term growth and competitive advantage.

Negative Factors

High Leverage

Increased leverage poses financial risks, potentially limiting operational flexibility and increasing vulnerability to economic downturns.

Negative Free Cash Flow

Negative free cash flow indicates potential cash management issues, which could impact the company's ability to invest in growth opportunities.

Regulatory Compliance Issues

Compliance issues with Nasdaq highlight potential governance challenges, which could affect investor confidence and market perception.

Immersion Business Overview & Revenue Model

Company Description

Immersion Corporation (IMMR) is a technology company that specializes in haptics, the science of touch. The company develops and licenses haptic technology that enhances user experiences in various sectors, including gaming, virtual reality, automotive, and consumer electronics. Immersion's core products include software and hardware solutions that enable tactile feedback, allowing users to feel sensations in digital environments through their devices.

How the Company Makes Money

Immersion generates revenue primarily through licensing its haptic technology to manufacturers and developers across multiple industries. The company's revenue model includes upfront licensing fees, ongoing royalties based on product sales, and service agreements for integration support. Key revenue streams come from partnerships with leading companies in gaming and consumer electronics, where Immersion's technology is embedded in devices such as smartphones, gaming controllers, and VR headsets. Additionally, Immersion may engage in custom development projects for clients, creating tailored haptic solutions that further diversify its income sources.

Immersion Financial Statement Overview

Summary

Immersion shows strong revenue generation and profitability, but faces challenges with high leverage and negative cash flow. The company needs to address rising debt levels and improve cash flow conversion for long-term stability.

Income Statement

Immersion has demonstrated a strong revenue base with a significant increase in total revenue from its annual report to TTM (Trailing-Twelve-Months) period. The company achieved a robust gross profit margin and net profit margin, indicating efficient cost management and profitability. However, the revenue growth rate shows volatility, with a decrease in the most recent annual period before a substantial increase in the TTM period. The EBIT and EBITDA margins reflect consistent profitability, although there have been fluctuations in margins over the years.

Balance Sheet

The balance sheet of Immersion indicates a moderate risk with a high debt-to-equity ratio due to a significant increase in total debt in the TTM period. The equity ratio has declined, reflecting a decrease in relative equity compared to total assets. Return on equity remains healthy, showing the company’s ability to generate profits from shareholder equity. However, the increased leverage in the recent period poses potential financial risk if not managed carefully.

Cash Flow

Immersion’s cash flow statement reveals challenges in maintaining positive free cash flow, as the company experienced negative free cash flow in the TTM period. The operating cash flow to net income ratio indicates inefficiencies in converting net income to cash flow. The historical trend shows variability in cash flow metrics, suggesting fluctuations in cash generation and operational efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.23B	1.23B	33.92M	38.46M	35.09M	30.46M
Gross Profit	358.97M	358.97M	33.64M	38.46M	35.00M	25.27M
EBITDA	177.17M	185.28M	17.99M	24.56M	17.87M	4.15M
Net Income	90.23M	90.23M	33.98M	30.66M	12.48M	5.40M
Balance Sheet
Total Assets	1.37B	1.37B	215.73M	190.11M	175.52M	96.13M
Cash, Cash Equivalents and Short-Term Investments	153.91M	153.91M	160.36M	149.74M	137.92M	59.52M
Total Debt	322.14M	322.14M	39.00K	486.00K	1.10M	1.38M
Total Liabilities	804.25M	804.25M	32.63M	32.41M	34.23M	32.15M
Stockholders Equity	319.17M	319.17M	183.10M	157.70M	141.29M	63.98M
Cash Flow
Free Cash Flow	-85.91M	-85.91M	20.60M	40.12M	17.11M	-25.00K
Operating Cash Flow	-77.78M	-77.78M	20.60M	40.15M	17.45M	22.00K
Investing Cash Flow	11.28M	11.28M	3.40M	-29.41M	-87.68M	2.95M
Financing Cash Flow	144.46M	101.23M	-16.75M	-13.41M	62.20M	-29.93M

Immersion Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7.04
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 7.04 is above the 20-day moving average (MA) of 6.60, above the 50-day MA of 6.79, and below the 200-day MA of 7.18, indicating a neutral trend. The MACD of 0.08 indicates Negative momentum. The RSI at 57.73 is Neutral, neither overbought nor oversold. The STOCH value of 62.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IMMR.

Immersion Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EGAN	74 Outperform	$268.62M	8.08	49.42%	―	-0.32%	557.28%
IMMR	65 Neutral	$225.80M	2.67	―	5.40%	3828.94%	129.01%
ASUR	62 Neutral	$232.11M	―	-8.71%	―	14.54%	-33.11%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
ONTF	59 Neutral	$256.23M	―	-20.20%	―	-6.23%	28.57%
NRDY	48 Neutral	$266.01M	―	-120.79%	―	-9.86%	0.87%
FRGE	48 Neutral	$615.35M	―	-28.65%	―	16.40%	22.80%

Immersion Corporate Events

Immersion Increases Quarterly Dividend Amid Strong Financials

On December 5, 2025, Immersion Corporation entered into a cooperation agreement with Scott A. Larson and his associated investment group, which includes voting and standstill provisions, effective until December 31, 2027. Additionally, on December 8, 2025, Immersion announced a significant increase in its quarterly dividend from $0.045 to $0.075 per share, reflecting its strong financial position and commitment to shareholder value.

Immersion Sets Deadline for Shareholder Proposals

Immersion Corporation has announced that its Annual Meeting of Stockholders for the fiscal year ended April 30, 2025, will be held on March 3, 2026. Due to a change in the meeting date from the previous year, the company has set a deadline of December 5, 2025, for stockholders to submit proposals or nominations for director elections. This adjustment in scheduling and submission deadlines is significant for stakeholders who wish to participate in the meeting and influence the company’s governance.

Immersion Declares Dividend to Prevent Hostile Takeovers

On November 7, 2025, Immersion Corporation’s Board of Directors declared a dividend of preferred share purchase rights to its common stockholders, effective November 17, 2025. This move is part of a temporary shareholder rights plan designed to prevent hostile takeovers by imposing penalties on any entity acquiring more than 9.99% of the company’s stock without board approval. The plan, effective until October 31, 2026, aims to protect shareholder interests and ensure fair compensation in potential control changes. The announcement follows a letter from shareholder Scott A. Larson, which the Board deemed inaccurate, and highlights Immersion’s commitment to shareholder value amid ongoing financial reporting challenges related to Barnes & Noble Education.

Immersion Announces Quarterly Cash Dividend Declaration

On October 8, 2025, Immersion Corporation announced a quarterly cash dividend of $0.045 per share on its outstanding common stock, payable on October 31, 2025, to stockholders of record on October 20, 2025. The Board of Directors will review future dividends, retaining the right to adjust or withdraw them as part of the company’s capital allocation strategy.

Immersion Receives Nasdaq Delinquency Compliance Alert

On September 29, 2025, Immersion Corporation received a delinquency compliance alert notice from Nasdaq for not timely filing its Quarterly Report for the fiscal quarter ended July 31, 2025. Previously, on August 20, 2025, the company was notified for not filing its Annual Report for the fiscal year ended April 30, 2025. Both filings are necessary for continued Nasdaq listing. Immersion and its subsidiary, Barnes & Noble Education, are conducting audit investigations that will lead to the restatement of financial information, delaying the completion of financial reports. The company is working to resolve these issues to regain compliance, while its stock remains listed on Nasdaq during a 60-day grace period.