v3.26.3
SEGMENT REPORTING
 3 Months Ended
Jul. 31, 2026
SEGMENT REPORTING  
SEGMENT REPORTING

NOTE 3. SEGMENT REPORTING

The Company operates as two operating and reporting segments, Immersion and Barnes & Noble Education. We identify these segments based on the distinct business activities of each company as they are managed separately.

Our Chief Executive Officer, as the Company’s Chief Operating Decision Maker, uses Operating income (loss) as the profitability metric for the purposes of making decisions related to the allocation of resources to each segment and assessing performance of each segment.

Due to the nonhomogeneous operations of Immersion and Barnes & Noble Education, the Company’s Condensed Consolidated Balance Sheets and Condensed Consolidated Statement of Operations, separately present the operating assets, liabilities, and operations of Immersion’s business from the operating assets, liabilities, and operations of Barnes & Noble Education’s business. Our Condensed Consolidated Statements of Operations includes each segment’s significant segment expenses. Summarized financial information for our reportable segments is reported below (in thousands):

 

 

Three Months Ended July 31,

 

(in thousands)

 

2026

 

 

2025

 

Revenues:

 

 

 

 

 

 

Immersion

 

$

3,804

 

 

$

3,872

 

Barnes & Noble Education

 

 

290,595

 

 

 

288,160

 

Total revenues

 

 

294,399

 

 

 

292,032

 

 

 

 

 

 

 

Cost of sales (excludes depreciation and amortization expense):

 

 

 

 

 

 

Barnes & Noble Education

 

 

234,015

 

 

 

233,594

 

Operating expenses:

 

 

 

 

 

 

Immersion

 

 

 

 

 

 

Selling and administrative expenses

 

 

3,498

 

 

 

3,695

 

Barnes & Noble Education

 

 

 

 

 

 

Selling and administrative expenses

 

 

67,316

 

 

 

67,805

 

Depreciation and amortization expense

 

 

10,204

 

 

 

10,397

 

Restructuring and other charges

 

 

—

 

 

 

—

 

Other income

 

 

(652

)

 

 

2,896

 

 

 

76,868

 

 

 

81,098

 

Total operating expenses

 

 

80,366

 

 

 

84,793

 

Operating Income (Loss):

 

 

 

 

 

 

Immersion

 

 

306

 

 

 

177

 

Barnes & Noble Education

 

 

(20,288

)

 

 

(26,532

)

Operating Loss

 

$

(19,982

)

 

$

(26,355

)

The reconciliation between segment Operating Income (Loss) and Income (Loss) Before Income Taxes is included within our Condensed Consolidated Statements of Operations.

Geographically, Immersion’s revenues have historically been concentrated in Asia, primarily in Japan and Korea. The geographic distribution of revenues for Asia, North America, Europe and Africa for the three months ended July 31, 2026, represented 67%, 29%, 1% and 3% of total revenue, respectively, compared with 68%, 5%, 27%, and 0%, respectively, in the prior-year period.

The following table is a summary of Property and Equipment Additions and Total Assets by reportable segment (in thousands):

 

(in thousands)

 

July 31,
2026

 

 

April 30,
2026

 

Property and Equipment Additions

 

 

 

 

 

 

Immersion

 

$

—

 

 

$

—

 

Barnes & Noble Education

 

 

3,529

 

 

 

16,196

 

Total property and equipment additions

 

$

3,529

 

 

$

16,196

 

 

 

 

 

 

 

 

Total Assets

 

 

 

 

 

 

Immersion

 

$

230,015

 

 

$

210,850

 

Barnes & Noble Education

 

 

946,499

 

 

 

841,492

 

Total assets

 

$

1,176,514

 

 

$

1,052,342

 

As of July 31, 2026 and April 30, 2026, 87% and 13% of Immersion’s long-lived assets were located in Canada and the U.S., respectively, and Barnes & Noble Education’s long-lived assets were located in the U.S.