📊 IMMR Key Takeaways
Is IMMR a Good Investment? Thesis Analysis
Despite massive revenue growth from an apparent acquisition, Immersion Corp exhibits severe operational distress with -$61.7M operating cash flow, negative operating margins at -9.0%, and deeply negative free cash flow of -$65.4M. The combination of unprofitable growth, minimal 12.3% gross margins, and rapidly depleting cash reserves creates an unsustainable financial position with limited runway.
Why Buy IMMR? Key Strengths
- Adequate current ratio of 2.23x provides near-term liquidity buffer
- Moderate leverage with 0.35x debt-to-equity ratio limits financial risk
- Substantial asset base of $1.3B suggests acquisition created scale
IMMR Investment Risks to Consider
- Severe negative operating cash flow of -$61.7M indicates operational deterioration despite revenue growth
- Negative free cash flow of -$65.4M with only $90.1M cash implies ~18 months runway at current burn rate
- Poor quality growth: 9916% revenue spike appears acquisition-driven and margin-dilutive with negative operating leverage
- Critically low gross margin of 12.3% suggests integration challenges or business model deterioration
- Negative operating and net income indicate fundamental unprofitability
Key Metrics to Watch
- Operating cash flow trajectory and path to positive OCF
- Gross margin expansion to sustainable levels above 25-30%
- Operating leverage improvement to achieve EBIT profitability
- Cash burn rate and remaining runway relative to debt maturities
- Revenue sustainability post-integration and organic growth metrics
IMMR Financial Metrics
💡 AI Analyst Insight
Strong liquidity with a 2.23x current ratio provides a solid financial cushion.
IMMR Profitability Ratios
IMMR vs Technology Sector
How IMMERSION CORP compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is IMMR Overvalued or Undervalued?
Based on fundamental analysis, IMMERSION CORP shows some fundamental concerns relative to the Technology sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
IMMR Balance Sheet & Liquidity
IMMR 5-Year Financial Trend & Growth Analysis
5-Year Trend Summary: IMMERSION CORP's revenue has grown significantly by 4,228% over the 5-year period, indicating strong business expansion. The most recent EPS of $1.04 reflects profitable operations.
IMMR Growth Metrics (YoY)
IMMR Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $183.5M | -$930.0K | $-0.03 |
| Q3 2025 | $9.5M | $2.7M | $0.08 |
| Q2 2025 | $7.0M | $323.0K | $0.01 |
| Q2 2024 | $7.0M | $7.0M | $0.21 |
| Q1 2024 | $7.1M | $8.3M | $0.25 |
| Q3 2023 | $9.5M | $2.7M | $0.08 |
| Q2 2023 | $7.0M | -$1.8M | $-0.05 |
| Q1 2023 | $7.1M | $5.1M | $0.15 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
IMMR Capital Allocation
IMMR SEC 10-K & 10-Q Filing Analysis
Access official SEC EDGAR filings for IMMERSION CORP (CIK: 0001058811)
📋 Recent SEC Filings
❓ Frequently Asked Questions about IMMR
What is the AI rating for IMMR?
IMMERSION CORP (IMMR) has an AI rating of STRONG SELL with 88% confidence, based on fundamental analysis of SEC EDGAR filings.
What are IMMR's key strengths?
Claude: Adequate current ratio of 2.23x provides near-term liquidity buffer. Moderate leverage with 0.35x debt-to-equity ratio limits financial risk.
What are the risks of investing in IMMR?
Claude: Severe negative operating cash flow of -$61.7M indicates operational deterioration despite revenue growth. Negative free cash flow of -$65.4M with only $90.1M cash implies ~18 months runway at current burn rate.
What is IMMR's revenue and growth?
IMMERSION CORP reported revenue of $292.0M.
Does IMMR pay dividends?
IMMERSION CORP does not currently pay dividends.
Where can I find IMMR SEC filings?
Official SEC filings for IMMERSION CORP (CIK: 0001058811) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is IMMR's EPS?
IMMERSION CORP has a diluted EPS of $-0.03.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is IMMR a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, IMMERSION CORP has a STRONG SELL rating with 88% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is IMMR stock overvalued or undervalued?
Valuation metrics for IMMR: ROE of -0.3% (sector avg: 22%), net margin of -0.3% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.
Should I buy IMMR stock in 2026?
Our dual AI analysis gives IMMERSION CORP a combined STRONG SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is IMMR's free cash flow?
IMMERSION CORP's operating cash flow is $-61.7M, with capital expenditures of $3.7M. FCF margin is -22.4%.
How does IMMR compare to other Technology stocks?
Vs Technology sector averages: Net margin -0.3% (avg: 18%), ROE -0.3% (avg: 22%), current ratio 2.23 (avg: 2.5).