iRobot’s financial outlook has worsened since Amazon abandoned its $1.7 billion acquisition deal, citing regulatory scrutiny. The company has struggled to generate cash and pay off debts. In an attempt to reignite revenue growth, iRobot launched eight new Roombas but warned that success is uncertain due to limited consumer demand, tariff uncertainty, and heightened competition from robotic vacuum makers based in China.
The company’s fourth-quarter revenue sagged 44% year over year to $172 million, missing estimates. It posted a net loss of $77.1 million and a one-time manufacturing transition charge of $2.06 per share. iRobot took a $200 million loan to fund operations but amended the loan for a temporary waiver.
As part of its financial review, iRobot’s board is considering alternatives such as refinancing debt or exploring a potential sale. The company’s workforce has been significantly reduced since the Amazon deal fell apart, with 51% of staff laid off since December 2023.
The decision by Amazon to walk away from the acquisition highlights the challenges iRobot faces in competing with rivals like Anker, Ecovacs, and Roborock, which dominate the robotic vacuum market.
Source: https://www.cnbc.com/2025/03/12/shares-of-irobot-tank-30percent-after-roomba-maker-issues-going-concern.html