Roomba Vacuum Cleaner Maker Irobot, which was Amazon's previous $1.4 billion acquisition target, raised concerns about its ability to stay in business on Wednesday.
The company's shares fell by more than 35%, extending the multi-year decline from the peak of the pandemic era.
“Given macroeconomic and tariff-related uncertainties, there is a great doubt about iRobot's capabilities as a continuing concern,” iRobot said in a statement.
The loss-added company was valued at $3.56 billion in 2021 due to demand for pandemic fuel. It is now worth less than $200 million.
The company's net loss for the fourth quarter, which ended December 28, 2024, increased to $77.1 million from $63.6 million the previous year. That revenue fell 44% in the fourth quarter.
The company's cash reserves fell to $134.3 million in 2024 compared to $185.1 million in 2023. The debt was $206 million as of December 28, 2024.
Vacuum Cleaner Maker is struggling to keep up with Chinese rivals such as ECOVACS Robotics.
The company said it was exploring options, including potential sales and debt refinancing, the day after launching eight new Roomba models with its largest product deployment.
In August 2022, Irobot agreed to a $61 share takeover by Amazon. This is some of the analysts seen as a potential enhancement to the company's lifeline and Amazon's Smart Home Division.
However, there was a strong antitrust objection to mergers and privacy concerns over spatial data collected by devices that led to the collapse of transactions last January.
With the discarded takeover, founder Colin Angle resigned as CEO last January, suggesting that a leader with expertise in transition could be suited to the company.
Last May, the company appointed Gary Cohen as CEO and carried out its recovery efforts.
