Immersion (IMMR) investor relations material

Executive summary

• Fiscal 2026 marked the first full year consolidating Barnes & Noble Education, expanding into two segments: Immersion (haptics licensing) and Barnes & Noble Education (campus bookstores, course materials, and general merchandise).

• Total revenues reached $1.73 billion, up from $1.56 billion in the prior year, driven by Barnes & Noble Education's strong performance and the full-year consolidation.

• Net income attributable to stockholders was $4.5 million, down from $64.3 million in the prior year, reflecting lower Immersion segment revenues and higher costs.

• The company maintained a strong liquidity position, with $180.5 million in cash, cash equivalents, and current investments at year-end.

Financial highlights

• Immersion segment revenue fell 79% to $15.9 million, mainly due to a $59.6 million drop in fixed fee license revenue from one-time agreements in the prior year.

• Barnes & Noble Education contributed $1.71 billion in revenue, with $1.56 billion from product sales and $150 million from rentals.

• Operating income was $25.9 million, down from $118 million, reflecting lower Immersion revenue and higher operating expenses.

• Net cash provided by operating activities increased to $59.1 million, up $116.6 million year-over-year, due to favorable working capital changes.

• Total dividends paid were $8.1 million, and $10 thousand was used for share repurchases.

Outlook and guidance

• Barnes & Noble Education plans to expand its First Day Complete program and enhance e-commerce and merchandising through partnerships with Fanatics and Lids.

• The company expects continued growth in affordable access course material programs and aims to improve profitability through operational efficiencies.

• Management believes current liquidity and access to credit facilities are sufficient for the next twelve months and beyond.