iRobot, the firm behind Roomba vacuums, has issued a warning of “substantial doubt” about the future of the company.
The company on Wednesday flagged “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” as it put out its full-year financial results.
iRobot generated $681.0 million in revenue in fiscal 2024, a more than 23% decrease compared to the prior year. Its annual net loss was $145.5 million.
Earlier in the week, it had revealed a slew of new robot vacuums that are slated to hit the market starting March 18, including Roomba 205 DustCompactor Vac Robot, the Roomba 205 DustCompactor Combo Robot and others.
“There 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,” iRobot said as it gave the “substantial doubt” warning.
The Massachusetts-based company saw “aggressive competition” in EMEA, Japan and the U.S. during 2024, according to its annual report.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| IRBT | IROBOT CORP. | 3.06 | -1.00 | -24.75% |
The company also disclosed on Wednesday that a credit agreement it has had for a couple of years has been amended. That move involves incurring a $3.6 million fee, according to an SEC filing.
Early last year, the Roomba maker embarked on an “operational restructuring” that it said would help “position the Company for stabilization in the current environment, while focusing on profitability and advancing key growth initiatives to extend its market share in the mid-tier and premium segments.” iRobot unveiled that initiative not long after it and Amazon agreed to call off a proposed purchase of the Roomba maker by the e-commerce giant.
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The deal had been contending with hurdles from European antitrust regulators.
iRobot on Wednesday said it has trimmed its marketing costs and made its products less expensive, among other measures, as part of the restructuring. Those efforts helped it see a “meaningful” decrease in year-over-year operating expenses in 2024, according to the company.
The company said it has started looking into a “broad range of alternatives” for its business through a “formal strategic review.” Debt refinancing and transactions were among the measures it mentioned it was evaluating.
However, iRobot noted its board “has not set a timetable for the conclusion of this review, and there can be no assurance that the exploration of strategic alternatives will result in any agreements or transactions.”
The company has been operating since 1990. Its first-ever Roomba vacuum debuted in 2002.
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