iRobot could soon be out of business, the Roomba's creator admitting that there's "substantial doubt about [its] ability to continue as a going concern." It's a drastic fall for the company whose Roombas were once synonymous with robot vacuums in general.
Revealed on Wednesday, iRobot's dire assessment came as part of its financial results for Q4 2024, which showed that revenue had fallen by 44 percent compared to the same time the previous year. Comparative results for the full financial year weren't quite as bad, with revenue dropping a little over 23 percent from $890.6 million in 2023 to $681.8 million in 2024. Still, those aren't numbers iRobot wants to see shrink at all.
Of course, iRobot has been attempting to address the problem for a while. Acknowledging the company's struggles, iRobot noted that since a January 2024 restructuring it had cut over half its staff, decreased spending on marketing, reduced inventory, and lowered the price of its products by overhauling its research and development model.
The company also pointed to the recent unveiling of its 2025 lineup, with CEO Gary Cohen calling it the "largest product launch in iRobot's history." Even so, iRobot admitted that its future could very well depend upon how this lineup performs over the next year.
"[T]here can be no assurance that the new product launches will be successful due to potential factors, including, but not limited to consumer demand, competition, macroeconomic conditions, and tariff policies," wrote iRobot. "Given these uncertainties and the implication they may have on the Company's financials, there is substantial doubt about the Company's ability to continue as a going concern for a period of at least 12 months from the date of the issuance of its consolidated 2024 financial statements."
The news sent iRobot's stock plummeting, ending 35 percent down when markets closed on Wednesday. The fall continued on Thursday, with iRobot's shares closing nearly a further 25 percent down. As of writing, iRobot's shares are priced at $3.06, less than half of their value on Tuesday before the financial results were released.
iRobot's poor financial results follow the collapse of a $1.4 billion acquisition deal with Amazon last January. Initially signed in 2022, both parties terminated the deal due to antitrust concerns from the European Union. In a statement at the time, iRobot said that the acquisition had "no path to regulatory approval in the European Union, preventing Amazon and iRobot from moving forward together." Now it seems iRobot may not be able to move forward at all.
The company is hopeful that its overhauled lineup of robot vacuums will facilitate revenue growth and help get it back on track. However, iRobot's financial struggles will likely cause potential customers to think twice before picking up a new Roomba. If it can't turn itself around, some people may end up without access to support or spare parts for their brand new gadget.
