Free cash flow remains unstable, swinging from a positive $66.3 million in 2025Q3 to a negative $37.5 million in 2025Q4, reflecting the inherent difficulty in predicting cash conversion from licensing settlements.
| Metric | Jan'26 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 |
|---|
| Cash from Operations | 25.32M | -57.58M | 20.6M | 40.15M | 17.45M | 22K | -34.1M | 69.92M | -43.83M | 22.04M | 10.04M | 291K | 21.15M | -4.25M | 2.38M | -1.8M | -18.32M | -30.35M | 84.52M | 5.34M | 2.21M | -15.55M | -12.58M | 888K | -12.93M | -17.25M | 700K | -1.8M |
| Operating CF Margin % | 1.45% | -3.7% | 60.73% | 104.38% | 49.73% | 0.07% | -94.84% | 63.01% | -125.18% | 38.61% | 15.85% | 0.55% | 44.56% | -13.21% | 7.76% | -5.78% | -66.07% | -108.46% | 243.54% | 19.16% | 9.1% | -65.44% | -62.21% | 4.39% | -67.22% | -113.01% | 6.42% | -20.69% |
| Operating CF Growth % | 143.97% | -379.5% | -48.69% | 130.08% | 79213.64% | 100.06% | -148.77% | 259.54% | -298.84% | 119.43% | 3351.89% | -98.62% | 597.81% | -278.75% | 232.13% | 90.18% | 39.64% | -135.91% | 1483.57% | 141.49% | 114.21% | -23.61% | -1516.67% | 106.87% | 25.06% | -2564.14% | 138.89% | - |
| Net Income | 9.04M | 93.58M | 33.98M | 30.66M | 12.48M | 5.4M | -20.04M | 54.34M | -45.29M | -40.03M | 2.86M | 4.12M | 40.16M | -5.72M | -1.6M | -5.93M | -28.28M | -47.69M | 117.02M | -10.42M | -13.09M | -20.74M | -16.97M | -16.53M | -21.75M | -22.17M | -4.4M | -1.7M |
| Depreciation & Amortization | 42.31M | 35.37M | 67K | 812K | 762K | 1.93M | 2.2M | 855K | 968K | 910K | 1.02M | 567K | 663K | 2.21M | 2.52M | 2.33M | 1.56M | 1.99M | 1.91M | 1.74M | 1.99M | 2.47M | 3.52M | 4.7M | 6.97M | 6M | 1.6M | 400K |
| Stock-Based Compensation | 13.31M | 15.28M | 3.4M | 3.57M | 2.34M | 4.76M | 5.46M | 8.69M | 6.1M | 6.11M | 5.47M | 5.29M | 4.64M | 3.15M | 3.56M | 3.41M | 4.52M | 4.06M | 2.73M | 2.94M | 0 | 128K | 1.28M | 1.28M | 0 | 0 | 0 | 0 |
| Deferred Taxes | 3.18M | 7.09M | 3.53M | -5.1M | 531K | -2.48M | 431K | 109K | -32K | 24.27M | 9.94M | 1.89M | -30.72M | -3.01M | -94K | -94K | 1.38M | 7.38M | -7.38M | -2.92M | 0 | -128K | -1.28M | -1.28M | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | -46.17M | -1.68M | -16.18M | 3.22M | 3.71M | -29K | 1.04M | -83K | 33K | -24.25M | -9.93M | -1.82M | 30.74M | 3.15M | 5K | 58K | -746K | 163K | -12.97M | 3.57M | 516K | 617K | 2.07M | 5.09M | 4.72M | 2.83M | 2.1M | 200K |
| Working Capital Changes | 3.67M | -207.22M | -4.18M | 6.98M | -2.38M | -9.55M | -23.18M | 6.01M | -5.61M | 55.03M | 697K | -9.76M | -24.33M | -4.03M | -2.01M | -1.58M | 3.24M | 3.74M | -16.79M | 10.44M | 12.79M | 2.1M | -1.2M | 7.63M | -2.87M | -3.9M | 1.4M | -700K |
| Change in Receivables | -59.82M | 17.62M | -1.01M | 735K | 248K | 1.17M | -2.33M | -245K | 576K | -171K | 1.81M | -2.44M | 1.04M | -504K | 2.21M | 2.21M | 3.35M | -1.73M | -317K | -503K | 0 | -500K | 135K | 135K | 0 | 0 | 0 | 0 |
| Change in Inventory | 7.32M | 15.9M | 0 | 0 | -248K | -1.17M | 2.33M | -11.33M | 34K | 1.82M | -8.39M | -210K | 141K | 282K | -17K | 713K | 1.4M | 360K | -965K | 79K | -814K | 293K | 29K | -163K | -256K | -524K | -200K | -200K |
| Change in Payables | 16.23M | -189M | -41K | 84K | -148K | -660K | -2.81M | -3.04M | 696K | 5.32M | -19K | -10K | 341K | -18K | -24K | -902K | -1.44M | 1.47M | -618K | 191K | 0 | 805K | 421K | 421K | 0 | 0 | 0 | 0 |
| Cash from Investing | 45.06M | 3.38M | 3.4M | -29.41M | -87.68M | 2.95M | 10.92M | 8.24M | 11.07M | 7.84M | -1.34M | 13.27M | -18.16M | 6.06M | -3.31M | -6.2M | -26.9M | 25.26M | -55.16M | -2.74M | -1.99M | -2.54M | -2.01M | 2.1M | -795K | -8.99M | -5.4M | 200K |
| Capital Expenditures | -14.88M | -11.24M | 0 | -30K | -335K | -47K | -150K | -74K | -125K | -343K | -4.43M | -779K | -234K | -4.24M | -3.5M | -2.67M | -4.16M | -5.48M | -3.55M | -2.74M | -967K | -623K | -441K | -442K | -612K | -2.84M | -500K | -100K |
| CapEx % of Revenue | 0.85% | 0.72% | - | 0.08% | 0.95% | 0.15% | 0.42% | 0.07% | 0.36% | 0.6% | 6.99% | 1.47% | 0.49% | 13.19% | 11.44% | 8.57% | 15% | 19.58% | 10.23% | 9.85% | 3.98% | 2.62% | 2.18% | 2.18% | 3.18% | 18.6% | 4.59% | 1.15% |
| Acquisitions | -1.73M | -31.38M | 0 | 4K | -5.38M | 0 | -11.07M | 0 | 0 | 0 | 0 | 0 | 0 | -3.24M | -3.34M | -2.16M | -2.59M | 2.39M | 2.11M | 0 | 0 | 0 | -2.54M | 0 | 0 | -2.06M | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 9.39M | 792K | 8.93M | 4K | 5.38M | 0 | 11.07M | 8.31M | 11.19M | 1M | 3.09M | 14.05M | -17.93M | 3.49M | 3.44M | 2.51M | 2.83M | -2.39M | -2.11M | -1.61M | -1.02M | -1.92M | -1.57M | 0 | 0 | -6.49M | -500K | -600K |
| Cash from Financing | -17.5M | 60.95M | -16.75M | -13.41M | 62.2M | -29.93M | -1.33M | 8.21M | 518K | 1.97M | 1.93M | -13.31M | 6.59M | -4.55M | -4.01M | 418K | 278K | -16.61M | 25.16M | 1.28M | 2.18M | 21.44M | 26.79M | -4.67M | 660K | 683K | 48.6M | 3.7M |
| Debt Issued (Net) | -19.08M | 1.86M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -1.4M | -5K | -11K | 19.97M | 25.9M | -5.04M | -103K | -96K | 3.7M | 100K |
| Equity Issued (Net) | -2.57M | -2.38M | -8.26M | -13.18M | 59.19M | -30.64M | -2.74M | 0 | -328K | -729K | 367K | -15M | 0 | -4.55M | -6.45M | -9K | 134K | -16.81M | 13.05M | 1.25M | 2.25M | 1.76M | 893K | 319K | 763K | 779K | 49.6M | 5.4M |
| Dividends Paid | -7.04M | -12.85M | -7.41M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -281K | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -2.38M | -2.38M | -8.26M | -13.24M | 0 | -30.64M | -2.74M | 218K | -328K | -729K | 0 | -15M | 0 | -5.72M | -6.45M | -9K | 0 | -18.39M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -1.8M |
| Other Financing | 11.18M | 74.32M | -1.07M | -229K | 3.01M | 711K | 1.41M | 8.21M | 846K | 2.69M | 1.56M | 1.69M | 6.59M | 0 | 2.44M | 427K | 144K | 200K | 13.51M | 36K | -55K | 0 | 0 | 50K | 0 | 0 | -800K | -100K |
| Net Change in Cash | 52.88M | 6.75M | 7.25M | -2.67M | -8.03M | -26.96M | -24.51M | 86.37M | -32.24M | 31.85M | 10.63M | 244K | 9.58M | -2.74M | -4.95M | -7.58M | -44.94M | -21.72M | 54.48M | 3.84M | 2.63M | 3.8M | 13.02M | -1.66M | -13.09M | -25.56M | 43.9M | 2.1M |
| Free Cash Flow | 10.43M | -68.81M | 20.6M | 40.12M | 17.11M | -25K | -34.25M | 69.85M | -43.95M | 21.7M | 5.62M | -488K | 20.92M | -8.49M | -1.13M | -4.46M | -22.48M | -35.83M | 80.96M | 2.59M | 1.24M | -16.17M | -13.02M | 446K | -13.54M | -20.09M | 200K | -1.9M |
| FCF Margin % | 0.6% | -4.42% | 60.73% | 104.3% | 48.77% | -0.08% | -95.26% | 62.94% | -125.54% | 38.01% | 8.86% | -0.92% | 44.07% | -26.4% | -3.68% | -14.35% | -81.07% | -128.04% | 233.31% | 9.31% | 5.12% | -68.06% | -64.39% | 2.2% | -70.4% | -131.61% | 1.83% | -21.84% |
| FCF Growth % | 115.16% | -434.04% | -48.65% | 134.4% | 68556% | 99.93% | -149.03% | 258.92% | -302.56% | 286.45% | 1250.61% | -102.33% | 346.3% | -652.93% | 74.74% | 80.13% | 37.27% | -144.25% | 3022.41% | 108.61% | 107.69% | -24.21% | -3019.51% | 103.29% | 32.6% | -10144% | 110.53% | - |
| FCF per Share | 0.32 | -2.08 | 0.63 | 1.20 | 0.54 | -0.00 | -1.09 | 2.22 | -1.51 | 0.75 | 0.19 | -0.02 | 0.71 | -0.31 | -0.04 | -0.16 | -0.80 | -1.21 | 2.56 | 0.11 | 0.05 | -0.71 | -0.64 | 0.02 | -0.72 | -1.13 | 0.03 | -0.49 |
| FCF Conversion (FCF/Net Income) | -5.38x | -0.90x | 0.61x | 1.31x | 1.40x | 0.00x | 1.70x | 1.29x | 0.97x | -0.56x | 3.51x | 0.07x | 0.53x | 0.59x | -0.69x | 0.30x | 0.65x | 0.60x | 0.72x | -0.51x | -0.17x | 0.75x | 0.74x | -0.05x | 0.59x | 0.78x | -0.07x | 0.49x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 32K | 1.79M | 1.41M | 88K | 65K | 160K | 151K | 191K | 419K | 156K | 47K | 18K | 21K | 3.3M | 34K | 54K | 1.59M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Erratic cash flow conversion
As reported in financial statements, Immersion's operating cash flow frequently diverges from net income, evidenced by a volatile OCF/NI ratio that reached a negative 9.10 in 2025Q1, suggesting that reported accounting profits are often decoupled from the actual timing of cash collections from licensing agreements.
The extreme variance in the OCF/NI ratio indicates that Immersion's earnings are heavily influenced by non-cash accruals and the timing of settlement recognition. Investors should monitor this divergence closely, as it implies that net income may provide a misleading picture of the company's ability to generate actual liquidity from its intellectual property portfolio.
Based on Immersion's reported figures, free cash flow trajectory remains highly erratic, swinging from a positive $66.3 million in 2025Q3 to a negative $37.5 million in 2025Q4, which underscores the inherent instability of a business model reliant on lumpy, event-driven royalty payments and legal settlements.
The lack of a consistent FCF generation trend suggests that the company's operational cash profile is not yet mature enough to support predictable capital allocation. This volatility warrants further investigation into whether the recent cash outflows are indicative of structural cost increases or merely timing differences in the collection of large-scale licensing fees.
According to recent SEC filings, Immersion's working capital dynamics are characterized by massive quarterly fluctuations, such as the $108.7 million swing in 2024Q3, which suggests that the company's cash position is highly sensitive to the timing of large accounts receivable settlements from major OEM partners.
These dramatic shifts in working capital indicate that the company's cash flow is subject to the payment cycles of a concentrated customer base. The reliance on these large, infrequent inflows creates significant liquidity risk, as any delay in collections can immediately strain the company's ability to fund ongoing operations.
As indicated by the provided data, Immersion's cash flow statement is heavily impacted by significant stock-based compensation and fluctuating legal-related expenditures, which often mask the true underlying cash burn associated with maintaining and defending the company's extensive patent portfolio against global technology competitors.
The consistent presence of stock-based compensation alongside volatile operating cash flows suggests that the company may be using equity to preserve cash while simultaneously absorbing high legal costs. This strategy appears to be a defensive measure to protect the IP moat, but it may also be diluting shareholder value without guaranteeing a commensurate increase in long-term cash-generative capacity.
Quick answers to the most common questions about buying IMMR stock.
Immersion Corporation (IMMR) generated $25.3M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Immersion Corporation (IMMR) generated $10.4M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Immersion Corporation (IMMR) spent $14.9M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Immersion Corporation (IMMR) returned $7.0M to shareholders via cash dividends and spent $2.4M on share repurchases. This shows the company's commitment to returning capital to its equity investors.