Immersion (NASDAQ:IMMR), the Aventura, Florida-based developer of touch-feedback technology, reported a fiscal first-quarter net loss of $930,000, or $0.03 per diluted share.
The results represent a significant shift from the prior year’s net income of $27.1 million, or $0.83 per share, as the company navigates the complex integration of Barnes & Noble Education (BNED).
Total revenues for the period ending July 31, 2025, surged to $292 million, up from $183.5 million in the prior year.
This sharp increase was driven almost entirely by the consolidation of BNED, which contributed $288.2 million in textbook, merchandise, and rental revenue.
In contrast, Immersion’s high-margin legacy business—royalty and license revenue—saw a steep decline to $3.9 million from $48.4 million a year earlier, primarily due to the absence of large one-time perpetual license deals that bolstered the 2024 figures.
The shift in revenue mix toward the lower-margin, seasonal retail business of BNED weighed heavily on the bottom line.
The combined entity reported an operating loss of $26.4 million for the quarter, compared to an operating income of $13.6 million in the previous year.
Despite the operating loss, the net loss was partially offset by a $7.7 million tax benefit.
The company's balance sheet has been fundamentally reshaped by the acquisition, with total assets now reaching $1.26 billion, largely composed of BNED’s inventories and right-of-use assets.
Total liabilities stood at $715.6 million at quarter-end, including $170 million in long-term borrowings under BNED’s asset-based credit facility.
Immersion and its consolidated subsidiaries held a combined cash and restricted cash position of $105.2 million.