Executive Summary

Reported Q3 2024 (company-reported as Q2 FY2025; quarter ended Oct 31, 2024): Total revenues $616.2M, GAAP diluted EPS $0.83, Non‑GAAP diluted EPS $1.22, driven by consolidation of Barnes & Noble Education (BNED) beginning June 10, 2024 .
BNED contributed the vast majority of consolidated revenue this quarter (Product & other $559.7M; Rental income $42.4M), while Immersion standalone royalty & license revenue was $14.1M .
Board declared a special cash dividend of $0.245/share payable Jan 24, 2025 (record date Jan 10, 2025), a potential stock reaction catalyst and signal on capital returns .
Comparability caveat: Immersion changed fiscal year to May–April; YoY comparators in the release reference the three months ended June 30, 2023, not Oct 2023, due to impracticality of recasting prior periods .

What Went Well and What Went Wrong

What Went Well
- Scale-up from BNED consolidation lifted total revenue to $616.2M; operating income rose to $64.4M this quarter .
- Non‑GAAP profitability strong: Non‑GAAP net income to Immersion stockholders $40.2M ($1.22 per diluted share) .
- Capital return: “Underscoring our financial strength, we announced a special dividend of $0.245 per share... We will continue to pursue thoughtful capital allocation as we aim to build our business and create long term shareholder value.” — Eric Singer, Chairman & CEO .
What Went Wrong
- Operating expense base stepped up materially with consolidation: GAAP OpEx $86.3M vs $33.2M in Q2 2024 (June 30), reflecting BNED .
- Interest expense emerged post-consolidation ($4.5M this quarter; BNED long-term borrowings $177.6M), pressuring below‑the‑line results .
- Limited visibility/guidance and comparability issues due to fiscal-year shift and lack of recast prior-year quarter; YoY references in the release are to June 30, 2023 .

All amounts in $USD thousands except per-share metrics.

Metric	Q1 2024 (Mar 31)	Q2 2024 (Jun 30)	Q3 2024 / Q2 FY2025 (Oct 31)
Total Revenues	43,847	99,424	616,249
Operating Income	16,614	25,406	64,407
GAAP Operating Expenses	27,233	33,212	86,332
Non‑GAAP Operating Expenses	26,064	25,165	73,240
Net Income Attributable to Immersion Stockholders	18,655	28,945	27,157
GAAP Diluted EPS ($)	0.59	0.89	0.83
Non‑GAAP Diluted EPS ($)	0.63	1.14	1.22
Diluted Shares (000s)	31,406	32,525	32,917

Company-provided YoY comparators (for comparability, management references the three months ended June 30, 2023):

Metric	YoY Comparator (Jun 30, 2023)
Total Revenues	6,983
GAAP Diluted EPS ($)	0.21
Non‑GAAP Diluted EPS ($)	0.26
GAAP Operating Expenses	3,870
Non‑GAAP Operating Expenses	2,483
Operating Income	3,113
Net Income Attributable to Immersion Stockholders	7,028

Segment/revenue-type breakdown

Select balance sheet snapshot (consolidated)

Metric	Apr 30, 2024	Oct 31, 2024
Total Assets	246,521	1,320,118
Total Liabilities	45,291	837,631
Equity Attributable to Immersion Stockholders	201,230	310,881
Noncontrolling Interest	—	171,606

Notes: Cash and cash equivalents at Immersion standalone were $68.9M on Oct 31, 2024, vs $28.9M on Jun 30, 2024 and $91.1M on Mar 31, 2024 .

Management did not provide formal financial guidance in the Q3 2024 (Q2 FY2025) materials. The following capital return item was disclosed:

Metric	Period	Previous Guidance	Current Guidance/Action	Change
Special Dividend	Payable Jan 24, 2025 (record Jan 10, 2025)	N/A	$0.245 per share special cash dividend	New action

Other updates:

Fiscal-year change to May 1–April 30; quarters now end Jul 31, Oct 31, Jan 31, Apr 30; comparability to prior quarters is limited .

No earnings call transcript was available in our corpus for this quarter.

Narrative trends from recent management communications (press releases):

Topic	Q1 2024 (Mar 31)	Q2 2024 (Jun 30)	Q3 2024 / Q2 FY2025 (Oct 31)	Trend
IP monetization/protection	“Operating from a position of strength as we work to protect and monetize our intellectual property.”	“We continue to work to protect and monetize our intellectual property.”	Not reiterated explicitly in this release; focus shifted to capital allocation/dividend	Stable emphasis earlier; shift to capital returns this quarter
Capital allocation / dividends	Quarterly dividend noted (Q1)	Dividend maintained; BNED investment highlighted	Special $0.245/share dividend announced; emphasis on “thoughtful capital allocation”	Increasing focus on shareholder returns
Corporate structure / fiscal calendar	N/A	BNED consolidation initiated (from June 10, 2024)	Fiscal-year change to align with BNED; BNED fully consolidated in quarter	Structural integration advancing

“Immersion executed well against its key business objectives in the quarter. Underscoring our financial strength, we announced a special dividend of $0.245 per share... We will continue to pursue thoughtful capital allocation as we aim to build our business and create long term shareholder value.” — Eric Singer, Chairman & CEO .
Earlier in 2024: “We continue to work to protect and monetize our intellectual property... We will continue to seek to drive long-term shareholder value from a position of strength and through thoughtful capital allocation,” in the context of the BNED investment .
“I am pleased with the strong start to 2024... Immersion is operating from a position of strength as we work to protect and monetize our intellectual property.” — Q1 2024 .

An earnings call transcript for Q3 2024 (Q2 FY2025) was not available in our document set; no Q&A themes to report.

Wall Street consensus (S&P Global) for revenue and EPS could not be retrieved at this time due to data access limitations; therefore, we cannot quantify beats/misses vs consensus for Q3 2024 (Q2 FY2025). Consensus data unavailable via S&P Global at time of request.

Consolidation of BNED is the dominant driver of revenue scale ($616.2M total revenue) and the step-up in operating expenses and interest expense; modeling should reflect BNED’s revenue mix and cost structure as well as noncontrolling interest .
Immersion standalone royalty & license revenue was $14.1M this quarter, a sharp step-down from $52.4M in Q2 2024; investors should separate standalone vs consolidated trends when assessing the core haptics licensing trajectory .
Operating income expanded to $64.4M despite higher OpEx, indicating near-term profitability resilience at the consolidated level; however, interest expense and noncontrolling interest materially affect net attributable earnings and EPS .
Special dividend of $0.245/share underscores balance sheet capacity and a shareholder-return stance; watch for any updates to regular dividend cadence or further capital returns .
Fiscal-year change and lack of recast prior-year quarter complicate YoY analysis; use management-provided comparators cautiously and prioritize sequential/structural analysis .
Absence of formal guidance heightens the importance of upcoming filings and any future calls for visibility into BNED integration, cost controls, and standalone licensing momentum .

Supporting documents and figures are sourced from the company’s 8‑K and press releases as cited above.