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 Years Ended April 30,
	2026			2025
Basic
Numerator:
Net income (loss) attributable to Immersion Stockholders	$	4,524		$	64,284
Adjustment for Immersion's portion of Barnes & Noble Education's EPS to be included in the numerator for Immersion's basic EPS calculation (a)		(8	)		(1,626	)
Net income (loss) attributable to Immersion Stockholders, basic	$	4,516		$	62,658

Denominator:
Weighted-average shares outstanding, basic		32,864			32,219
Net income (loss) attributable to Immersion stockholders per share, basic	$	0.14		$	1.94

Diluted
Numerator:
Net income (loss) attributable to Immersion Stockholders	$	4,524		$	64,284
Adjustment for Immersion's portion of Barnes & Noble Education's EPS to be included in the numerator for Immersion's diluted EPS calculation (a)		(27	)		(1,659	)
Net income (loss) attributable to Immersion stockholders, diluted	$	4,497		$	62,625

Denominator:
Weighted-average shares outstanding, basic		32,864			32,219
Shares related to outstanding options, unvested RSUs, RSAs, and PSUs		263			784
Weighted-average shares outstanding, diluted		33,127			33,003
Net income (loss) attributable to Immersion stockholders per share, diluted	$	0.14		$	1.90

(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 years ended April 30, 2026 and 2025, the Company had no outstanding stock options or awards that could potentially dilute basic earnings per share in the future.