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 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):


	Three Months Ended January 31,						Nine Months Ended January 31,
	2026			2025			2026		2025
				As Restated					As Restated
Basic
Numerator:
Net income (loss) attributable to Immersion Stockholders	$	(10,266	)	$	24,061		$	795	$	81,942
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			(29	)		1		432
Net income (loss) attributable to Immersion Stockholders, basic	$	(10,265	)	$	24,032		$	796	$	82,374

Denominator:
Weighted-average shares outstanding, basic		32,939			32,294			32,797		32,159
Net income (loss) attributable to Immersion stockholders per share, basic	$	(0.31	)	$	0.74		$	0.02	$	2.56

Diluted
Numerator:
Net income (loss) attributable to Immersion Stockholders	$	(10,266	)	$	24,061		$	795	$	81,942
Adjustment for Immersion's portion of Barnes & Noble Education's EPS to be included in the numerator for Immersion's diluted EPS calculation (a)		1			(76	)		1		385
Net income (loss) attributable to Immersion stockholders, diluted	$	(10,265	)	$	23,985		$	796	$	82,327

Denominator:
Weighted-average shares outstanding, basic		32,939			32,294			32,797		32,159
Shares related to outstanding options, unvested RSUs, RSAs, and PSUs		—			761			273		800
Weighted average shares outstanding, diluted		32,939			33,055			33,070		32,959
Net income (loss) attributable to Immersion stockholders per share, diluted	$	(0.31	)	$	0.73		$	0.02	$	2.50

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 three months ended January 31, 2026, the Company had outstanding RSU awards of 152 thousand that could potentially dilute earnings per share in the future, but these RSU awards are excluded from the calculation of diluted earnings per share because their effect would have been anti-dilutive. For the nine months ended January 31, 2026 and the three and nine months ended January 31, 2025, the Company had no outstanding stock options or awards that could potentially dilute basic earnings per share in the future.