IMMERSION CORP
For the period ended Jan 31, 2026. Filed May 4, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jan 31, 2026 · Filed May 4, 2026
IMMR$6.79+1.8%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-10-31; filed 2026-04-14.
0001193125-26-153417
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-01-31; filed 2026-05-04.
0001193125-26-201951
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 86 previous paragraphs and 99 current paragraphs.
38 unchanged; 39 reworded; 18 added; 7 removed; 2 previous and 4 current paragraphs rearranged.
Tables are not compared: 8 previous and 8 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (18)
Current report
Immersion generates license and royalty revenue from a broad portfolio of intellectual property designed to enhance users’ sense of touch when interacting with digital devices. The Company focuses on the following target application areas: mobile devices, wearables, mobile entertainment, console gaming, and automotive. The Company licenses its patented technology to customers that integrate the technology into their products to enhance functionality. These licenses allow customers to offer haptic-enabled devices, content, and other products, which they typically market under their own brand names.
Current report
Product sales are recognized when the customer takes physical possession of the products, which occurs either at the point of sale for products purchased at physical locations or upon receipt of the products by the customers for products ordered through Barnes & Noble Education’s websites and virtual bookstores. Revenue from the sale of digital textbooks, which contains a single performance obligation, is recognized upon delivery of the digital content as product revenue in the condensed consolidated financial statements. Revenue from the rental of physical textbooks is deferred and recognized over the rental period based on the passage of time commencing at the point of sale, when control of the product transfers to the customer and is recognized as rental income in the condensed consolidated financial statements. Rental revenue and margin dollars deferral from third fiscal quarter is higher compared to prior year due to the growth of the BNC First Day® programs. Depending on the product mix offered under the BNC First Day® offerings, revenue recognized is consistent with the policies for product, digital and rental sales, net of an anticipated opt-out or return provision.
Current report
Impairment loss
Current report
Barnes & Noble Education reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable in accordance with ASC 360-10, Accounting for the Impairment or Disposal of Long-Lived Assets.
Current report
During the three months and nine months ended January 31, 2026, Barnes & Noble Education evaluated certain store-level long-lived assets for impairment. Based on the results of the impairment tests, Barnes & Noble Education recognized an impairment loss of $1.0 million (both pre-tax and after-tax), comprised of $0.4 million, $0.2 million, and $0.4 million of property and equipment, operating lease right-of-use assets, and amortizable intangibles, respectively, on the condensed consolidated statement of operations.
Current report
During the three months and nine months ended January 31, 2025, Barnes & Noble Education evaluated certain store-level long-lived assets for impairment. Based on the results of the impairment tests, Barnes & Noble Education recognized an impairment loss of $1.2 million (both pre-tax and after-tax), comprised of 0.2 million, $0.2 million, and $0.8 million of property and equipment, operating lease right-of-use assets, and amortizable intangibles, respectively, on the condensed consolidated statement of operations.
Current report
Other (income) expense
Current report
During the three and nine months ended January 31, 2026, the Company recognized other expense of $1.1 million and $8.3 million, respectively, primarily related to investigation costs incurred by Barnes & Noble Education.
Current report
During the three months ended January 31, 2025, the Company recognized other income, net of $6.2 million, primarily related to income of $7.6 million related to the termination of liabilities associated with a frozen retirement benefit plan.
Current report
During the nine months ended January 31, 2025, the Company recognized other income, net of $1.1 million, primarily related to the following items incurred by Barnes & Noble Education: (i) $9.0 million related to the termination of liabilities associated with a frozen retirement benefit plan; (ii) severance and other employee termination benefit costs of $2.1 million associated with the elimination of certain positions as part of cost reduction initiatives; (iii) severance expense of $2.0 million primarily related to the resignation of the former Chief Executive Officer on June 11, 2024; (iv) legal and advisory professional fees other charges of $0.9 million related to restructuring and process improvement initiatives; and (v) expenses of $1.3 million related to the settlement of a class action lawsuit and associated legal fees.
Current report
Interest income and other income (expense)
Current report
Interest income and other income (expense), net decreased by $21.2 million for the nine months ended January 31, 2026, compared with the corresponding period in the prior year. This decrease was driven primarily by a $19.2 million unfavorable period-over-period change in realized and unrealized gains and losses on marketable equity securities and derivative instruments, from a $29.0 million net gain in the prior-year period to a $9.8 million net gain in the current period. The decrease was also attributable to $1.3 million of lower interest income, primarily due to lower invested balances in fixed-income securities and lower interest rates.
Current report
Interest expense
Current report
Net interest expense decreased by $0.2 million to $4.0 million during the three months ended January 31, 2026, from $4.2 million during the three months ended January 25, 2025. The decrease was primarily due to lower borrowings and lower interest rates. Interest expense for the three and nine months ended January 31, 2026 included $0.3 million and $1.0 million, respectively, of waiver fees incurred in connection with the Investigation.
Current report
Net interest expense decreased by $1.3 million to $9.8 million during the nine months ended January 31, 2026, from $11.1 million during the nine months ended January 31, 2025. The decrease was primarily due to lower borrowings and lower interest rates.
Current report
Income tax benefit (expense)
Current report
Net cash used in operating activities was $24.8 million for the nine months ended January 31, 2026, an increase of $82.9 million compared to the nine months ended January 31, 2025. The increase was primarily driven by higher accounts payable and accrued liabilities and lower other assets partially offset by lower net income and higher accounts receivables and inventories.
Current report
Immersion Stock Repurchase Program
Removed paragraphs (7)
Previous report
Restructuring and other charges
Previous report
During the three months ended October 31, 2025, Barnes & Noble Education recognized restructuring and other charges of $4.3 million, primarily related to investigation costs. During the three months ended October 31, 2024, restructuring and other charges were not material.
Previous report
Restructuring and other charges totaled $7.2 million for the six months ended October 31, 2025, consisting primarily of $5.6 million of investigation related costs and impairment charges. For the period from June 10, 2024 to October 31, 2024, restructuring and other charges were $5.1 million, primarily consisting of $2.0 million of severance related to the resignation of the former Chief Executive Officer on June 11, 2024, $1.1 million of severance and other employee termination and benefit costs associated with cost reduction initiatives, and $0.5 million of legal and advisory fees related to restructuring, process improvements, and other charges.
Previous report
Barnes & Noble Education recognized an increase to additional paid-in capital for the reimbursement of its former Chief Executive Officer’s severance by VitalSource, a principal stockholder, as part of the June 10, 2024 financing transactions.
Previous report
Interest expense primarily reflects interest charges on Barnes & Noble Education’s credit facility. Interest expense decreased by $1.6 million for the three months ended October 31, 2025, compared to the prior year period, primarily due to lower borrowings and lower interest rates. For the six months ended October 31, 2025, interest expense decreased by $1.1 million compared to the period from June 10, 2024 to October 31, 2024, also due to lower borrowings and lower interest rates.
Previous report
Income tax benefit (expense), the changes in the provision for income taxes are described below:
Previous report
Net cash provided by operating activities was $9.0 million for the six months ended October 31, 2025, an increase of $73.0 million compared to the six months ended October 31, 2024. The increase was primarily driven by Barnes & Noble Education’s timing of payments to vendors for inventory purchases, partially offset by higher accounts and other receivables, higher merchandise inventories, and lower net income.
Reworded paragraphs (39)
Previous wording
The financial information presented in this Quarterly Report on Form 10-Q includes the financial information of Barnes & Noble Education for the 26 weeks ended November 1, 2025 and for the period from June 10, 2024 to October 31, 2024.
Current wording
The financial information presented in this Quarterly Report on Form 10-Q includes the financial information of Barnes & Noble Education for the 39 weeks ended January 31, 2026 and for the period from June 10, 2024 to January 31, 2025.
Previous wording
We have adopted a business model under which we offer licenses to our patented technology to our customers and offer our customers enabling software, related tools and technical assistance related to integrating our patented technology into our customers’ products or enhance the functionality of our patented technology. Our licenses enable our customers to deploy haptic-enabled devices, content and other offerings, which they typically sell under their own brand names. We and our wholly-owned subsidiaries hold more than 400 issued or pending patents worldwide as of October 31, 2025. Our patents cover a wide range of digital technologies and ways in which touch-related technology can be incorporated into and between hardware products and components, systems software, application software, and digital content.
Current wording
As of January 31, 2026, the Company and its wholly-owned subsidiaries held more than 400 issued or pending patents worldwide. These patents cover a broad range of digital technologies and methods for incorporating touch-related technology across hardware products and components, systems software, application software, and digital content.
Previous wording
The following is a summary of our results of operation for the three and six months ended October 31, 2025 and 2024 (in thousands, except for percentages):
Current wording
The following is a summary of our results of operation for the three and nine months ended January 31, 2026 and 2025 (in thousands, except for percentages):
Previous wording
Immersion revenue is generated primarily from fixed fee license agreements and per-unit royalty agreements. Royalty and license revenue consists of per-unit royalties earned based on usage or net sales by licensees and fixed license fees for our IP and software.
Current wording
Immersion generates revenue primarily from fixed-fee license agreements and per-unit royalty arrangements. Royalty and license revenue includes per-unit royalties based on licensees’ usage or net sales, as well as fixed license fees for the Company’s intellectual property and software.
Previous wording
Fixed fee license revenue decreased by $9.9 million in the second quarter of the current year compared to the same period in the prior year, mainly due to an increase in gaming license revenue in the prior year resulting from a one time perpetual license agreement executed in that quarter. Fixed fee license revenue for the six months ended October 31, 2025, decreased by $54.5 million compared to the same period in the prior year, primarily due to three one time perpetual license agreements in gaming and mobility applications executed in the prior year period, with no comparable agreements in the current year period.
Current wording
Fixed-fee license revenue decreased by $5.0 million for the three months ended January 31, 2026, compared with the same period in the prior year, primarily due to lower automotive license revenue. The prior-year quarter included a one-time perpetual license agreement that did not recur in the current-year quarter. For the nine months ended January 31, 2026, fixed-fee license revenue decreased by $59.6 million compared with the same period in the prior year, primarily due to four one-time perpetual license agreements in gaming, mobility, and automotive applications executed in the prior-year period, with no comparable agreements in the current-year period.
Previous wording
Per-unit royalty revenue increased by $1.6 million in the second quarter of the current year compared to the same period in the prior year, primarily due to stronger seasonal orders from our largest per-unit royalty customer. For the six months ended October 31, 2025, per-unit royalty revenue increased by $1.6 million compared to the same period in the prior year, driven by improved business levels from multiple customers in mobility and other applications.
Current wording
Per-unit royalty revenue was relatively flat for the three months ended January 31, 2026, compared with the same period in the prior year. For the nine months ended January 31, 2026, per-unit royalty revenue increased by $1.6 million compared with the same period in the prior year, driven by higher business levels from multiple customers in gaming, mobility, and other applications, as well as contributions from three new customers in other applications, partially offset by lower year-over-year royalty-generating activity from multiple other customers.
Previous wording
For the three months ended October 31, 2025, revenues generated in Asia, North America, and Europe represented 77%, 21%, and 2% of total revenue, respectively, compared to 90%, 5%, and 5% for the prior year period. For the six months ended October 31, 2025, revenues generated in Asia, North America, and Europe represented 73%, 25%, and 2% of total revenue, respectively, compared to 96%, 3%, and 1% in the prior year period. Revenue can vary significantly from period to period due to the timing and geographic location of the contracting entity.
Current wording
For the three months ended January 31, 2026, revenue generated in Asia, North America, and Europe represented 75%, 22%, and 3% of total revenue, respectively, compared with 31%, 9%, and 60%, respectively, in the prior-year period. For the nine months ended January 31, 2026, revenue generated in Asia, North America, and Europe represented 74%, 24%, and 2% of total revenue, respectively, compared with 88%, 4%, and 8%, respectively, in the prior-year period. Revenue may vary significantly from period to period based on the timing of agreements and the geographic location of the contracting entity.
Previous wording
The following is a summary of operating expenses for the three and six months ended October 31, 2025 and 2024 (in thousands, except for percentages):
Current wording
The following is a summary of operating expenses for the three and nine months ended January 31, 2026 and 2025 (in thousands, except for percentages):
Previous wording
For the three months ended October 31, 2025, selling and administrative expenses decreased by $1.2 million compared to the same prior year period primarily due to lower variable compensation.
Current wording
For the three months ended January 31, 2026, selling and administrative expenses decreased by $2.4 million compared with the same prior year period primarily due to lower stock-based and variable compensation.
Previous wording
For the six months ended October 31, 2025, selling and administrative expenses decreased by $10.9 million compared to the same prior year period due to a decrease of $5.9 million in legal costs associated with the settlement of patent litigation in the prior year, and a $4.2 million decrease in compensation, benefits, and other personnel-related costs.
Current wording
For the nine months ended January 31, 2026, selling and administrative expenses decreased by $13.4 million compared with the same prior year period due to a $6.5 million decrease in stock-based and variable compensation, and a decrease of $5.9 million in legal costs associated with the settlement of patent litigation in the prior year.
Previous wording
Barnes & Noble Education is one of the largest contract operators of physical and virtual bookstores for college and university campuses and K-12 institutions across the United States. Barnes & Noble Education is also one of the largest textbook wholesalers, and inventory management hardware and software providers. Barnes & Noble Education operates 1,128 physical and virtual bookstores, delivering essential educational content and general merchandise within a dynamic omnichannel retail environment.
Current wording
Barnes & Noble Education is one of the largest contract operators of physical and virtual bookstores for college and university campuses and K-12 institutions across the United States. Barnes & Noble Education is also one of the largest textbook wholesalers, and inventory management hardware and software providers. Barnes & Noble Education operates 1,120 physical and virtual bookstores, delivering essential educational content and general merchandise within a dynamic omnichannel retail environment.
Previous wording
The strengths of Barnes & Noble Education’s business include the ability to compete by developing new products and solutions to meet market needs, the large operating footprint with direct access to students and faculty, the well-established, deep relationships with academic partners and stable long-term contracts and the well-recognized brands. Barnes & Noble Education provides product and service offerings designed to address the most pressing issues in higher education, including affordable access, enhanced convenience and improved affordability through innovative course material delivery models designed to drive improved student experiences and outcomes. Barnes & Noble Education offers the BNC First Day® affordable access course material programs, consisting of First Day Complete and First Day, which provide faculty-required course materials on or before the first day of class at below market rates, as compared to the total retail price for the same course materials if purchased separately (a la carte), and students are billed the below market rate directly by the institution as a course charge or included in tuition. These programs have allowed Barnes & Noble Education to reverse historical long-term trends in course materials revenue declines, which has been observed at those schools where such programs have been adopted, and improve predictability of the future results. Barnes & Noble Education is moving quickly to accelerate the BNC First Day® programs strategy. Institutions continued to adopt BNC First Day® programs during the first half of fiscal 2026, and Barnes & Noble Education continues to expand participation across the partner schools.
Current wording
The strengths of Barnes & Noble Education’s business include the ability to compete by developing new products and solutions to meet market needs, the large operating footprint with direct access to students and faculty, the well-established, deep relationships with academic partners and stable long-term contracts and the well-recognized brands. Barnes & Noble Education provides product and service offerings designed to address the most pressing issues in higher education, including affordable access, enhanced convenience and improved affordability through innovative course material delivery models designed to drive improved student experiences and outcomes. Barnes & Noble Education offers the BNC First Day®affordable access course material programs, consisting of First Day Completeand First Day, which provide faculty-required course materials on or before the first day of class at below market rates, as compared to the total retail price for the same course materials if purchased separately (a la carte), and students are billed the below market rate directly by the institution as a course charge or included in tuition. These programs have allowed Barnes & Noble Education to reverse historical long-term trends in course materials revenue declines, which has been observed at those schools where such programs have been adopted, and improve predictability of the future results. Barnes & Noble Education is moving quickly to accelerate the BNC First Day® programs strategy. Institutions continued to adopt BNC First Day® programs during the first three quarters of fiscal 2026.
Previous wording
Barnes & Noble Education’s business is highly seasonal, particularly with respect to textbook sales and rentals, with the major portion of sales and operating profit realized during the second and third fiscal quarters when college students generally purchase and rent textbooks for the upcoming semesters and lowest in the first and fourth fiscal quarters. Barnes & Noble Education’s quarterly results also may fluctuate depending on the timing of the start of the various schools’ semesters, as well as shifts in Barnes & Noble Education’s fiscal calendar dates. These shifts in timing may affect the comparability of Barnes & Noble Education’s results across periods.
Current wording
Barnes & Noble Education’s business is highly seasonal, particularly with respect to textbook sales and rentals, with the major portion of sales and operating profit realized during the second and third fiscal quarters when college students generally purchase and rent textbooks for the upcoming semesters and lowest in the first and fourth fiscal quarters. Barnes & Noble Education’s quarterly results also may fluctuate depending on the timing of the start of the various schools’ semesters, as well as shifts in Barnes & Noble Education’s fiscal calendar dates. During the current fiscal year, Barnes & Noble Education experienced a modest increase in the number of academic start periods occurring in the 13 and 39 weeks ended January 31, 2026, compared to the prior year, primarily due to differences in the fiscal calendar week alignment year over year.
Previous wording
Given the growth of BNC First Day® affordable access course material programs, the timing of cash collection from the school partners may shift to periods subsequent to when the revenue is recognized. When a school adopts Barnes & Noble Education’s BNC First Day® affordable access course material offerings, cash collection from the school generally occurs after the institution's drop/add dates, which is later in the working capital cycle, particularly in the third quarter given the timing of the Spring Term and Barnes & Noble Education’s quarterly reporting period, as compared to direct-to-student point-of-sale transactions where cash is generally collected during the point-of-sale transaction or within a few days from the credit card processor. As a higher percentage of Barnes & Noble Education’s sales shift to BNC First Day® affordable access course material offerings, Barnes & Noble Education is focused on efforts to better align the timing of its cash outflows to course material vendors and cash inflows from collections from schools. As the concentration of digital product sales increases, revenue will be recognized earlier during the academic term as digital textbook revenue is recognized upon delivery of the digital content compared to: (i) the rental of physical textbooks where revenue is recognized over the rental period; and (ii) a la carte courseware sales where revenue is recognized when the customer takes physical possession of Barnes & Noble Education’s products, which occurs either at the point of sale for products purchased at physical locations or upon receipt of products by Barnes & Noble Education customers for products ordered through its websites and virtual bookstores.
Current wording
Given the growth of the BNC First Day® affordable access course material programs, the timing of cash collection from the school partners may shift to periods subsequent to when the revenue is recognized. When a school adopts the BNC First Day® affordable access course material offerings, cash collection from the school generally occurs after the institution's drop/add dates, which is later in the working capital cycle, particularly in the third quarter given the timing of the Spring Term and our quarterly reporting period, as compared to direct-to-student point-of-sale transactions where cash is generally collected during the point-of-sale transaction or within a few days from the credit card processor. As a higher percentage of the sales shift to BNC First Day® affordable access course material program offerings, Barnes & Noble Education is focused on efforts to better align the timing of the cash outflows to course material vendors and cash inflows from collections from schools. As the concentration of digital product sales increases, revenue will be recognized earlier during the academic term as digital textbook revenue is recognized when the digital content is made available to the customer compared to: (i) the rental of physical textbooks where revenue is recognized over the rental period; and (ii) a la carte courseware sales where revenue is recognized when the customer takes physical possession of Barnes & Noble Education’s products, which occurs either at the point of sale for products purchased at physical locations or upon receipt of products by the customers for products ordered through Barnes & Noble Education’s websites and virtual bookstores.
Previous wording
The following is a summary of Barnes & Noble Education’s results of operations for the three months ended October 31, 2025 and 2024, the six months ended October 31, 2025, and for the period from June 10, 2024 to October 31, 2024 (in thousands):
Current wording
The following is a summary of Barnes & Noble Education’s results of operations for the three months ended January 31, 2026 and 2025, the nine months ended January 31, 2026, and for the period from June 10, 2024 to January 31, 2025 (in thousands):
Previous wording
Total revenue was $644.4 million for the three months ended October 31, 2025, consisting of $598.2 million of product and other sales and $46.2 million of rental sales. Total revenue for the comparable prior year period was $602.1 million, including $559.7 million of product and other sales and $42.4 million of rental sales. The $42.3 million increase in revenue was driven primarily by growth in BNC First Day® programs and a net reduction in physical and virtual locations, some of which were closures of underperforming stores that contribute to improved profitability. Gross Comparable Store Sales increased by $20.3 million during the quarter, reflecting a $58.7 million increase in revenue from BNC First Day programs, which helped offset the decline from closed stores.
Current wording
Total revenue was $515.1 million for the three months ended January 31, 2026, consisting of $471.8 million of product and other sales and $43.3 million of rental sales. Total revenue for the comparable prior year period was $462.8 million, including $419.7 million of product and other sales and $43.1 million of rental sales. The $52.3 million increase in revenue is primarily due to higher comparable store sales of $41.2 million and new store sales of $35.2 million, largely driven by a $71.3 million increase from BNC First Day programs, partially offset by lower sales from closed stores of $16.2 million and lower textbook rental deferral of $9.4 million.
Previous wording
Total revenue was $932.6 million for the six months ended October 31, 2025, consisting of $872.4 million of product and other sales and $60.2 million of rental sales. For the period from June 10, 2024 to October 31, 2024, total revenue was $737.2 million, including $689.8 million of product and other sales and $47.4 million of rental sales. The $195.4 million increase in revenue is primarily due to the prior year period being 40 days shorter, which reduced revenue by approximately $118.0 million on a linear basis. The remaining increase reflects higher comparable store sales and new store sales, largely driven by a $91.7 million increase from BNC First Day programs, partially offset by lower sales from closed stores.
Current wording
Total revenue was $1,447.7 million for the nine months ended January 31, 2026, consisting of $1,344.2 million of product and other sales and $103.5 million of rental sales. For the period from June 10, 2024 to January 31, 2025, total revenue was $1,200.0 million, including $1,109.5 million of product and other sales and $90.6 million of rental sales. The $247.7 million increase in revenue is partially due to the prior year period being 40 days shorter, which reduced revenue by approximately $118.0 million on a linear basis in the first quarter of the prior year. The remaining increase was primarily due to higher comparable store sales of $92.3 million and new store sales of $82.0 million, largely driven by a $163.0 million increase from BNC First Day programs and, partially offset by lower sales from closed stores of $46.7 million.
Previous wording
Cost of sales was 80% of total revenue for the three months ended October 31, 2025, compared to 77% for the three months ended October 31, 2024. The increase was driven primarily by higher costs for course materials, including higher markdowns related to closed stores and increased inventory reserves, partially offset by lower contract costs as a percentage of sales due to the shift to digital and First Day models and the non-renewal of lower performing school contracts.
Current wording
Cost of sales was 82.6% of total revenue for the three months ended January 31, 2026, compared to 76.6% for the three months ended January 31, 2025. The current year quarter net cost increase was primarily due to reduced higher margin logo and non-logo general merchandise sales and higher markdowns related to closed stores, partially offset by lower contract costs as a percentage of sales related to university contracts as a result of the shift to digital and First Day models and lower performing school contracts not renewed.
Previous wording
Cost of sales was also 80% of total revenue for the six months ended October 31, 2025, compared to 77% for the period from June 10, 2024 to October 31, 2024. Product and other cost of sales increased mainly due to higher costs for course materials resulting from higher markdowns, partially offset by lower contract costs as a percentage of sales due to the shift to digital and First Day models and the non renewal of lower performing school contracts. Rental cost of sales increased due to lower rental margin rates, partially offset by lower contract costs as a percentage of sales.
Current wording
Cost of sales was 81.1% of total revenue for the nine months ended January 31, 2026, compared to 77.0% for the period from June 10, 2024 to January 31, 2025. Product and other cost of sales increased in the current year period primarily due to a decrease in higher margin logo and non-logo general merchandise sales, offset by lower contract costs as a percentage of sales related to Barnes & Noble Education’s university contracts as a result of the shift to digital and First Daymodels and lower performing school contracts not renewed.
Previous wording
Selling and administrative expenses were $77.3 million for the three months ended October 31, 2025, an increase of $4.6 million compared to the three months ended October 31, 2024, driven mainly by higher payroll, incentive plan costs, and related operating expenses.
Current wording
Selling and administrative expenses were $72.5 million for the three months ended January 31, 2026, an increase of $1.0 million compared to the three months ended January 31, 2025. This increase was primarily due to higher payroll, incentive plan costs, and related operating expenses.
Previous wording
For the six months ended October 31, 2025, selling and administrative expenses were $145.1 million, an increase of $36.0 million compared to $109.0 million for the period from June 10, 2024 to October 31, 2024. The most significant factor contributing to the year-over-year increase is that the period from June 10, 2024 to October 31, 2024 was 40 days shorter, resulting in approximately $30.0 million lower expenses on a linear basis. The remaining increase is primarily attributable to higher payroll, incentive plan costs, and related operating expenses.
Current wording
For the nine months ended January 31, 2026, selling and administrative expenses were $217.6 million, an increase of $37.1 million compared to $180.5 million for the period from June 10, 2024 to January 31, 2025. One factor contributing to the year-over-year increase is that the period from June 10, 2024 to January 31, 2025 was 40 days shorter, resulting in approximately $30.0 million lower expenses on a linear basis in the first quarter of the prior year. The remaining increase is primarily due to a $3.1 million increase in payroll and related operating costs, and a $3.1 million increase in incentive plan expense attributable to higher payroll, incentive plan costs, and related operating expenses.
Previous wording
Depreciation and amortization expense was $10.5 million for the three months ended October 31, 2025, an increase of $1.1 million compared to the three months ended October 31, 2024, driven mainly by capital additions and accelerated intangible amortization related to closed stores.
Current wording
Depreciation and amortization expense was $10.7 million for the three months ended January 31, 2026, an increase of $0.7 million compared to the three months ended January 31, 2025, driven mainly by capital additions and accelerated intangible amortization related to closed stores.
Previous wording
Depreciation and amortization expense was $20.9 million for the six months ended October 31, 2025, an increase of $6.2 million compared to $14.7 million for the period from June 10, 2024 to October 31, 2024. The primary factor contributing to the increase is that the period from June 10, 2024 to October 31, 2024 was 40 days shorter, resulting in approximately $5.9 million of lower depreciation and amortization expense calculated on a linear basis.
Current wording
Depreciation and amortization expense was $31.6 million for the nine months ended January 31, 2026, an increase of $7.0 million compared to $24.6 million for the period from June 10, 2024 to January 31, 2025. One factor contributing to the increase is that the period from June 10, 2024 to January 31, 2025 was 40 days shorter, resulting in approximately $5.9 million of lower depreciation and amortization expense calculated on a linear basis in the first quarter of the prior year. The remaining net increase is primarily due to capital additions and accelerated intangible amortization related to closed stores.
Previous wording
Interest and other income (expense), net; Interest expense; and Income tax benefit (expense)
Current wording
Interest income and other income (expense), net; Interest expense; and Income tax benefit (expense)
Previous wording
A summary of consolidated interest and other income (expense), net, interest expense, and income taxes for the three and six months ended October 31, 2025 and 2024 are as follows (in thousands, except for percentages):
Current wording
A summary of consolidated interest income and other income (expense), net, interest expense, and income taxes for the three and nine months ended January 31, 2026 and 2025 are as follows (in thousands, except for percentages):
Previous wording
Interest and other income (expense), net consists primarily of interest and dividend income on cash and cash equivalents and marketable debt and equity securities, realized and unrealized gains and losses on marketable equity securities and derivative instruments, and realized gains and losses on marketable debt securities.
Current wording
Interest income and other income (expense), net consists primarily of interest and dividend income earned on cash and cash equivalents and marketable debt and equity securities; realized and unrealized gains and losses on marketable equity securities and derivative instruments; and realized gains and losses on marketable debt securities.
Previous wording
Interest and other income (expense), net increased by $1.0 million for the three months ended October 31, 2025, compared to the same period in the prior year, driven primarily by net gains of $1.9 million from marketable equity securities and derivative instruments, partially offset by a $0.9 million decrease in interest income. For the six months ended October 31, 2025, interest and other income (expense), net decreased by $2.0 million compared to the same period in the prior year, primarily reflecting a $1.8 million decline in interest income due to lower invested balances in fixed‑income securities and lower interest rates.
Current wording
Interest income and other income (expense), net decreased by $19.2 million for the three months ended January 31, 2026, compared with the corresponding period in the prior year. This decrease was driven primarily by an $18.5 million unfavorable period-over-period change in realized and unrealized gains and losses on marketable equity securities and derivative instruments, from a $12.5 million net gain in the prior-year quarter to a $6.0 million net loss in the current quarter. The decrease was also attributable to $0.9 million of lower interest income, primarily due to lower invested balances in fixed-income securities and lower interest rates.
Previous wording
The year-over-year change in Income tax benefit (expense) resulted primarily from the change in income from continuing operations across various tax jurisdictions.
Current wording
The year-over-year change in Income tax benefit (expense) resulted primarily from the change in income from continuing operations across various tax jurisdictions and the resolution of foreign withholding tax matters.
Previous wording
We also maintain liabilities for uncertain tax positions. As of October 31, 2025, we had unrecognized tax benefits under ASC 740 Income Taxes of approximately $13.3 million, of which $11.7 million could be payable in cash. In addition, interest and penalty of $1.3 million could also be payable in cash in relation to unrecognized tax benefits. The total amount of unrecognized tax benefits that would affect our effective tax rate, if recognized, is $13.0 million. We account for interest and penalties related to uncertain tax positions as a component of income tax provision. We do not expect to have any significant changes to unrecognized tax benefits during the next twelve months.
Current wording
We also maintain liabilities for uncertain tax positions. As of January 31, 2026, we had unrecognized tax benefits under ASC 740 Income Taxes of approximately $10.0 million, all of the $10.0 million could be payable in cash. In addition, interest and penalties of $1.6 million could also be payable in cash in relation to unrecognized tax benefits. The total amount of unrecognized tax benefits that would affect our effective tax rate, if recognized, is $11.6 million. We account for interest and penalties related to uncertain tax positions as a component of income tax provision. We do not expect to have any significant changes to unrecognized tax benefits during the next twelve months.
Previous wording
Barnes & Noble Education recorded an income tax expense of $1.8 million on pre-tax income of $4.9 million during the six months ended October 31, 2025, which represented an effective income tax rate of 36.2%.
Current wording
Barnes & Noble Education recorded an income tax expense of $1.8 million on pre-tax income of $5.1 million during the nine months ended January 31, 2026, which represented an effective income tax rate of 34.9%.
Previous wording
Our cash equivalents, investments – current, and investments – noncurrent consist primarily of money-market funds, investments in marketable equity and debt securities, and investments in U.S. treasury securities. All marketable securities are stated at fair value. Realized gains and losses on marketable equity securities and marketable debt securities are recorded in Interest ando ther income (expense), net on the Condensed Consolidated Statements of Operations. Unrealized gains and losses on marketable equity securities are reported as Interest and other income (expense), net on our Condensed Consolidated Statement of Operations. Unrealized gains and losses on marketable debt securities reported as a component of Accumulated other comprehensive income (loss) on our Condensed Consolidated Balance Sheets.
Current wording
Our cash equivalents, investments – current, and investments – noncurrent consist primarily of money-market funds, investments in marketable equity and debt securities, and investments in U.S. treasury securities. All marketable securities are stated at fair value. Realized gains and losses on marketable equity securities and marketable debt securities are recorded in Interest income ando ther income (expense), net on the Condensed Consolidated Statements of Operations. Unrealized gains and losses on marketable equity securities are reported as Interest income and other income (expense), net on our Condensed Consolidated Statement of Operations. Unrealized gains and losses on marketable debt securities reported as a component of Accumulated other comprehensive income (loss) on our Condensed Consolidated Balance Sheets.
Previous wording
Cash, cash equivalents, and investments–current– As of October 31, 2025, our cash, cash equivalents, and investments – current totaled $186.7 million, a $25.3 million increase from $161.4 million on April 30, 2025. In addition, as of October 31, 2025 and April 30, 2025, we had restricted cash of $24.7 million and $19.7 million, respectively.
Current wording
As of January 31, 2026, our cash, cash equivalents, and investments – current totaled $177.9 million, a $16.5 million increase from $161.4 million on April 30, 2025. As of January 31, 2026, approximately 4% or $7.0 million, was held by foreign subsidiaries and may be subject to repatriation tax effects. In addition, as of January 31, 2026 and April 30, 2025, we had restricted cash of $8.3 million and $19.7 million, respectively.
Previous wording
The following is select cash flow information for the six months ended October 31, 2025 and 2024 (in thousands):
Current wording
The following is select cash flow information for the nine months ended January 31, 2026 and 2025 (in thousands):
Previous wording
Cash provided by (used in) operating activities - Our operating activities primarily consist of net income adjusted for certain non-cash items including depreciation and amortization, stock-based compensation expense, loss on disposal of property and equipment, deferred income taxes, net (gains) losses on investments in marketable securities, and the effect of changes in operating assets and liabilities.
Current wording
Our operating activities primarily consist of net income adjusted for certain non-cash items including depreciation and amortization, stock-based compensation expense, loss on disposal of property and equipment, deferred income taxes, net (gains) losses on investments in marketable securities, and the effect of changes in operating assets and liabilities.
Previous wording
Cash provided by (used in) investing activities – Investing activities primarily include purchases and sales of marketable securities and other investments, proceeds from and settlements of derivative instruments, and purchases of property and equipment.
Current wording
Investing activities primarily include purchases and sales of marketable securities and other investments, proceeds from and settlements of derivative instruments, and purchases of property and equipment.
Previous wording
Net cash provided by investing activities was $36.1 million for the six months ended October 31, 2025, an increase of $40.4 million compared to the six months ended October 31, 2024. The increase was primarily driven by the absence of business acquisitions in the current period and lower purchases of marketable and other investments, partially offset by lower proceeds from sales or maturities of marketable securities and other investments.
Current wording
Net cash provided by investing activities was $46.1 million for the nine months ended January 31, 2026, an increase of $41.7 million compared to the nine months ended January 31, 2025. The increase was primarily driven by the absence of business acquisitions in the current period and lower purchases of marketable and other investments, partially offset by lower proceeds from sales or maturities of marketable securities and other investments.
Previous wording
Cash provided by (used in) financing activities –Financing activities primarily include dividend payments, borrowings and repayments under our credit facility, and repurchases of our common stock.
Current wording
Financing activities primarily include dividend payments, borrowings and repayments under our credit facility, and repurchases of our common stock.
Previous wording
Net cash provided by financing activities was $14.3 million for the six months ended October 31, 2025, a decrease of $66.4 million compared to the six months ended October 31, 2024. The decrease was primarily driven by less proceeds from borrowings under Barnes & Noble Education’s credit facility.
Current wording
Net cash provided by financing activities was $24.5 million for the nine months ended January 31, 2026, a decrease of $78.5 million compared to the nine months ended January 31, 2025. The decrease was primarily driven by no proceeds from the sale of Barnes & Noble Education common stock in the current period compared to $78.3 million of net proceeds in the prior year period.
Previous wording
During the three and six months ended October 31, 2025, the Company did not purchase shares under the stock repurchase program. As of October 31, 2025, the Company had $40.6 million available for repurchase under the December 2022 Stock Repurchase Program.
Current wording
During the three and nine months ended January 31, 2026, the Company repurchased 1,700 shares of our common stock for $10 thousand at an average purchase price of $6.30 per share. As of January 31, 2026, the Company had $39.3 million available for repurchase under the December 2022 Stock Repurchase Program.
Rearranged current paragraphs (4)
Current report — wording carried from elsewhere
Cash, cash equivalents, and investments – current
Current report — wording carried from elsewhere
Cash provided by (used in) operating activities
Current report — wording carried from elsewhere
Cash provided by (used in) investing activities
Current report — wording carried from elsewhere
Cash provided by (used in) financing activities
Rearranged previous paragraphs (2)
Previous report — wording carried elsewhere
Immersion generates license and royalty revenues from a wide range of IP that more fully engage users’ sense of touch when operating digital devices. We focus on the following target application areas: mobile devices, wearables, mobile entertainment, console gaming and automotive.
Previous report — wording carried elsewhere
Total cash, cash equivalents, and short‑term investments were $186.7 million as of October 31, 2025, of which approximately 9%, or $16.7 million, was held by foreign subsidiaries and may be subject to repatriation tax effects.