#USA #Bedford #COVID-19 #iRobot #Roomba

iRobot Reports Third-Quarter 2025 Financial Performance

iRobot Corp. (NASDAQ: IRBT), a leader in the consumer robotics space, has recently announced disappointing financial results for the third quarter ended September 27, 2025. A stark drop in revenue highlights the company's struggle against persistent market headwinds, manufacturing delays, and logistical disruptions that have forced them to adjust expectations downwards. In the words of CEO Gary Cohen, the company’s performance fell significantly short of internal forecasts, causing both cash strain and pressure on profitability with limited opportunity to effectively manage fixed costs.

Q3 Financial Overview

• - Revenue: $145.8 million, down from $193.4 million in Q3 2024, marking a decline of approximately 24.5%.
• - GAAP Gross Margin: 31.0%, slightly below the previous year’s 32.2%.
• - Non-GAAP Gross Margin: 31.2%, compared to 32.4% last year.
• - GAAP Operating Loss: $(17.7) million, a significant drop from a $7.3 million profit in Q3 2024.
• - Net Loss Per Share: $(0.62), compared to a loss of $(0.21) for the same period last year.

This drop in revenue was notably impacted, with U.S. sales declining by 33%, EMEA by 13%, and Japan by 9% compared to the same time last year. To break it down further, mid-tier robots (priced between $300 and $499) and premium models ($500 or more) made up 74% of total sales during Q3 2025, a decline from 79% the previous year.

Balance Sheet Concerns

As of September 27, iRobot's cash and cash equivalents amounted to $24.8 million, a sharp decrease from $40.6 million as of June 28, 2025. The company also reported $5.0 million in restricted cash, fully utilized by September 30, indicating a tightening financial situation with no additional immediate capital sources available.

• - Inventory: Increased to $140.9 million from $149.2 million in Q3 2024.
• - Operating Expenses: Rose to $62.9 million from $55.1 million year-over-year.

Strategic Review Process

iRobot has initiated a strategic review process aiming to enhance profitability and manage ongoing operational challenges more effectively. Investors are encouraged to review the detailed Form 10-Q filed with the SEC to understand results and strategic plans in depth.

As a globally recognized name in consumer robotics, iRobot has pioneered the industry since the launch of its first Roomba vacuum in 2002. With millions of units sold globally, the company focuses on engineering cutting-edge robots equipped with advanced technologies in cleaning, mapping, and navigation, signaling to consumers its ambitious drive to enhance home maintenance ease and promote healthier living environments.

Closing Remarks

While the latest results may paint a troubling picture for iRobot, the ongoing strategic evaluation process reflects the company’s commitment to addressing current challenges head-on. The execution of their innovations will be crucial in the upcoming quarters as they aim to regain market momentum and sustain their industry-leading position.

For additional insights and comprehensive details about iRobot’s product offerings, visit irobot.com.

Forward-Looking Statements: The company has made several forward-looking statements regarding profitability and capital requirements which are subject to uncertainties and should be reviewed with caution.

Overall, the disappointing results from this quarter emphasize the pressing challenges the robotics market faces, particularly in the realms of supply chain and market dynamics. Stakeholders will keenly watch how iRobot navigates through this phase and what adaptive strategies they implement moving forward.