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Irobot, the company behind Roomba Vacuums, issued a warning of “substantial doubt” about the company's future.
On Wednesday, the company released its full-year financial results, flagging its “great doubts about the company's ability to continue as a continuing concern for at least 12 months from the date of publication of its consolidated 2024 financial statements.”
Irobot generated revenue of $681 million in 2024, down more than 23% compared to the previous year. That annual net loss was $145.5 million.
iRobot vacuum cleaner you can see at Target Superstore. (Alex Tai/Sopa Images/Lightrocket bygetty Images/Getty Images)
Earlier this week, it was revealed that many new robot vacuum cleaners are scheduled to be available on the market from March 18th, including the Roomba 205 DustCompactor VAC robot and the Roomba 205 DustCompactor Combo Robot.
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“There is no guarantee that new product launches will be successful due to potential factors such as consumer demand, competition, macroeconomic conditions, and tariff policy,” Irobot said it gave a “substantial doubt” warning.
The Massachusetts-based company saw “offensive competition” in 2024 in EMEA, Japan and the US, according to its annual report.
| Ticker | safety | last | change | change % |
|---|---|---|---|---|
| IRBT | iRobot Corp. | 3.06 | -1.00 |
-24.75% |
The company also revealed on Wednesday that its credit agreements it had been holding for several years had been amended. The move will cost a $3.6 million fee, according to SEC filings.
Earlier last year, Loomba Maker embarked on an “operational restructuring,” which he said would “help position the company for stabilization in the current environment.” Meanwhile, it focused on profitability and key growth initiatives, and increased market share in the mid-tier and premium segments. iRobot announced its initiative and Amazon agreed to cancel the proposed purchase of the Loomba Maker by the e-commerce giant.
Amazon will end acquisition of Irobot due to regulatory hurdles
The deal was fighting hurdles from European antitrust regulators.
iRobot said Wednesday it reduced marketing costs and made the product cheaper, among other measures, as part of its restructuring. According to the company, these efforts helped us see a “meaning” decline in “meaning” operating expenses year-on-year in 2024.
The Roomba Robot vacuum cleaner, created by Irobot, will be on display on the shelf of a bed bath in Larkspur, California on August 5, 2022. (Justin Sullivan/Getty Images/Getty Images)
The company said it began investigating “wide range of alternatives” for its business through a “formal strategic review.” Refinancing and trading the debt was one of the measures it was valued.
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However, Irobot said the board “has not set a schedule for the conclusion of this review and there is no guarantee that strategic alternative research will result in contracts or transactions.”
The company has been in business since 1990. In 2002, the first Roomba Vacuum debuted.
