Immersion Corporation (IMMR) AI Stock Analysis

Founded in 1993 and headquartered in Aventura, Florida, Immersion Corporation pioneers and licenses haptic technologies across North America, Europe, and Asia. The company provides patent, technology, and combined licenses, enabling touch feedback integration across mobile communications, wearables, consumer electronics, gaming, virtual reality, and automotive markets. Immersion supplies software development kits containing tools, integration software, and effect libraries that allow developers to design tactile effects. Additionally, it offers engineering and integration services, software and firmware services, and reference designs that serve as benchmarks for incorporating haptic capabilities into digital devices.

Immersion expanded annual revenue from $35.1M in FY2021 to $1.56B in FY2024 and $1.73B in FY2025, reflecting a 5-year revenue CAGR of 124.3%. Gross margin stood at 99.7% in FY2021 and 100.0% in FY2022 and FY2023, before settling at 18.8% in FY2025. Operating margin shifted from 50.7% in FY2021 to 1.6% in FY2025. Annual net income decreased to $4.5M in FY2025 with an EPS of $0.85, down from $64.3M and an EPS of $2.39 in FY2024. For the trailing twelve months ending June 30, 2026, revenue was $1.73B with an operating margin of -6.8%, as latest quarterly revenue grew 0.8% year-over-year while quarterly earnings declined 61.5%.

As of June 30, 2026, Immersion held $220.9M in cash and short-term investments against total debt of $272.8M, resulting in net debt of $51.9M. The company reported a current ratio of 2.14, total assets of $1.18B, and shareholders' equity of $299.0M, corresponding to a debt-to-equity ratio of 0.91. During FY2025, operating cash flow was -$24.8M and free cash flow was -$36.6M. Capital allocation in FY2025 included $11.8M in capital expenditures, $5.5M in dividends paid, and $2.2M dedicated to share buybacks.

Immersion has a market cap of $231.1M and trades at a trailing P/E of 20.5x, below the 28.1x median of its US-listed Technology peers. However, its forward P/E of 29.0x sits above the peer median of 18.8x. The stock trades at a price-to-sales multiple of 0.1x and an EV/EBITDA of 3.3x, compared to peer medians of 2.8x and 16.6x, respectively. Over the trailing 1-year period, the stock gained 3.8%, underperforming the S&P 500 return of 16.8%. Over 5 years, the stock returned 18.4% versus 83.0% for the S&P 500.

Immersion pays an annual forward dividend of $0.30 per share, yielding 4.31% as of October 16, 2026. The company distributes dividends quarterly and has paid dividends for 4 consecutive years, carrying a payout ratio of 63.6%. Total dividends paid during FY2025 amounted to $5.5M, with the most recent ex-dividend date occurring on October 16, 2026.

Wall Street coverage consists of 1 Buy rating, with 0 Strong Buy, Hold, Sell, or Strong Sell ratings. The mean price target is $13.50, representing an upside of 94.0% relative to the last close of $6.96 on October 16, 2026. Immersion beat EPS estimates in 3 of the last 4 quarters. For the current fiscal year ending April 30, 2027, the consensus estimates an EPS of $0.26, indicating projected EPS growth of 82.9%, alongside a revenue estimate of $14.3M.

This page is an AI-written research summary of Immersion Corporation (IMMR). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

Related: IMMR income statement, IMMR balance sheet, IMMR key metrics, IMMR analyst forecast, IMMR chart. See the IMMR stock overview for the latest quote and news.