17. EARNINGS PER SHARE

We use the two-class method of computing EPS, which is an earnings allocation formula that determines EPS for common stock and any participating securities according to dividends declared. Under the two-class method, basic earnings per share is computed by dividing the income (loss) attributable to Immersion stockholders by the weighted-average number of common stock shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur from share equivalent activity. Potential common stock, computed using the treasury stock method, includes stock options and stock awards.

The following are reconciliations of the denominators used in computing basic and diluted net income per share (in thousands, except per share amounts):

 

Fiscal Year Ended April 30,
2025

 

 

Four Months Ended April 30, 2024

 

 

Calendar Year Ended December 31,
2023

 

Basic

 

 

 

 

 

 

 

 

Numerator:

 

 

 

 

 

 

 

 

Net income attributable to Immersion Stockholders

$

64,284

 

 

$

17,777

 

 

$

33,976

 

Adjustment for Immersion's portion of Barnes & Noble Education's EPS to be included in the numerator for Immersion's basic EPS calculation (a)

 

(1,626

)

 

 

-

 

 

 

-

 

Net income attributable to Immersion Stockholders, basic

$

62,658

 

 

$

17,777

 

 

$

33,976.00

 

 

 

 

 

 

 

 

 

Denominator:

 

 

 

 

 

 

 

 

Weighted-average shares outstanding, basic

 

32,219

 

 

 

31,729

 

 

 

32,214

 

Net income attributable to Immersion stockholders, basic

$

1.94

 

 

$

0.56

 

 

$

1.05

 

 

 

 

 

 

 

 

 

 

Diluted

 

 

 

 

 

 

 

 

Numerator:

 

 

 

 

 

 

 

 

Net income attributable to Immersion Stockholders

$

64,284

 

 

$

17,777

 

 

$

33,976

 

Adjustment for Immersion's portion of Barnes & Noble Education's EPS to be included in the numerator for Immersion's diluted EPS calculation

 

(1,659

)

 

 

-

 

 

 

-

 

Net income attributable to Immersion stockholders, diluted

$

62,625

 

 

$

17,777

 

 

$

33,976

 

 

 

 

 

 

 

 

 

Denominator:

 

 

 

 

 

 

 

 

Weighted-average shares outstanding, basic

 

32,219

 

 

 

31,729

 

 

 

32,214

 

Shares related to outstanding options, unvested RSUs, RSAs, and PSUs

 

784

 

 

 

379

 

 

 

322

 

Weighted average shares outstanding, diluted

 

33,003

 

 

 

32,108

 

 

 

32,536

 

Net income per share attributable to Immersion stockholders, diluted

$

1.90

 

 

$

0.55

 

 

$

1.04

 

 

a)
Barnes & Noble Education has participating securities. Accordingly, for purposes of Immersion’s basic and diluted net income per share computations using the two-class method, the numerator reflects Immersion’s portion of Barnes & Noble Education’s earnings per share, which is determined by multiplying the shares of Barnes & Noble Education held by Immersion by Barnes & Noble Education’s basic and diluted EPS amounts.

 

We include PSUs in the calculation of diluted earnings per share if the applicable performance conditions have been satisfied as of the end of the reporting period and exclude stock equity awards if the performance condition has not been met.

For the fiscal year ended April 30, 2025 and calendar year ended December 31, 2023, the Company had no outstanding stock options or awards that could potentially dilute basic earnings per share in the future.

Historical Timeline

Fiscal YearFiled
2025Mar 12, 2026Showing above
2023Mar 11, 2024
2022Feb 22, 2023
2021Feb 25, 2022
2020Mar 5, 2021
2019Mar 6, 2020

About Earnings Per Share Disclosures

The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.

Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.