Immersion Corporation Swings to $930,000 Net Loss as Revenue Plunges 59% in Q1 FY2026

Immersion Corporation (NASDAQ: IMMR), a haptic technology licensing company, swung to a net loss of $930,000 for the quarter ending July 31, 2025, a sharp reversal from a $27.1 million profit in the same period last year. The loss translates to $0.03 per diluted share, down from earnings of $0.83 per share a year earlier. Read more earnings reports.

Revenue climbed 59% to $292.0 million from $183.5 million in the prior-year quarter, driven largely by a jump in one revenue segment to $288.2 million from $135.1 million. Another segment contributed $3.9 million, down 92% from $48.4 million a year earlier.

Operating expenses ballooned to $84.8 million from $60.0 million in the year-ago quarter, a 41% increase. Selling, general, and administrative expenses more than doubled to $67.8 million from $36.3 million. The company reported an operating loss of $26.5 million compared to operating income of $13.6 million a year earlier.

Cash and cash equivalents stood at $90.1 million as of July 31, 2025, up from $57.7 million a year earlier. The company burned $61.7 million in cash from operations during the quarter, compared to a $114.4 million outflow in the prior-year period.

Total assets rose to $1.26 billion from $1.10 billion at the end of the prior quarter. Long-term debt increased to $170.0 million from $103.1 million as of April 30, 2025. Current liabilities jumped to $358.0 million from $265.9 million quarter-over-quarter.

The company recorded a tax benefit of $7.7 million for the quarter, compared to a tax expense of $9.7 million in the same period last year. Stockholders' equity declined slightly to $295.8 million from $298.1 million at the end of the prior quarter.