iRobot Reports Second-Quarter 2025 Financial Results
BEDFORD, Mass., Aug. 7, 2025 /PRNewswire/ -- iRobot Corp. (NASDAQ:IRBT), a leader in consumer robots, today announced its financial results for the second quarter ended June 28, 2025.
"Our second quarter performance fell short of our expectations, due to persistent market headwinds and delays in scaling production and sales of our new products," said Gary Cohen, iRobot CEO. "While we made meaningful progress on gross margin expansion, tightened control over operating expenses, and improved net losses, our cash position continued to decline as we supported new product launches -- posing ongoing challenges to liquidity and operational flexibility. Although early consumer response to our latest product launches has been encouraging, broader market pressures and financial constraints remain significant hurdles to improved performance.
"As our Board of Directors continues its review of strategic alternatives for our business, we remain steadfast in executing our iRobot Elevate strategy and delivering the trusted products our customers value."
Second Quarter 2025 Financial Results (in millions, except per share amounts and percentages)
Q2 2025
Q2 2024
Revenue
$127.6
$166.4
GAAP Gross Margin¹
30.0 %
16.5 %
Non-GAAP Gross Margin¹
30.2 %
16.7 %
GAAP Operating Expenses
$75.0
$88.5
Non-GAAP Operating Expenses
$65.5
$75.9
GAAP Operating Loss²
($36.7)
($61.1)
Non-GAAP Operating Loss²
($27.0)
($48.2)
GAAP Net Loss Per Share³
($0.68)
($2.41)
Non-GAAP Net Loss Per Share³
($0.27)
($1.96)
1) In Q2 2024, GAAP and Non-GAAP gross margin were negatively impacted by an $18.4 million non-recurring charge related to the write-off of excess component inventory and the losses on non-cancelable purchase commitments as part of the transition to our new product development paradigm with our contract manufacturers (the "Manufacturing Transition Charge"), which reduced GAAP and non-GAAP gross margin by 11.1 percentage points.
2) In Q2 2024, GAAP and Non-GAAP operating loss were negatively impacted by the Manufacturing Transition Charge.
3) In Q2 2024, GAAP and Non-GAAP net loss per share were negatively impacted by the Manufacturing Transition Charge, which reduced GAAP and non-GAAP net loss per share by $0.63.
Balance Sheet and Operational Highlights
As of June 28, 2025, the Company's cash and cash equivalents totaled $40.6 million, compared with $69.9 million as of March 29, 2025. As of June 28, 2025, the Company had an additional $36.0 million of restricted cash set aside for future repayment of its term loan, subject to limited ability of the Company to utilize such amount at the discretion of the lenders for the purchase of inventory.
As of June 28, 2025, the Company's inventory totaled $88.2 million, representing a 13% reduction from the second quarter of 2024.
In the second quarter of 2025, revenue increased 6% in Japan, declined 33% in the U.S. and declined 17% in EMEA over the prior-year period. Excluding the unfavorable foreign currency impact, Japan revenue increased 7% and EMEA revenue declined 16% over the prior-year period.
Revenue from mid-tier robots (with an MSRP between $300 and $499) and premium robots (with an MSRP of $500 or more) represented 73% of total robot sales in the second quarter of 2025 versus 76% from the same period last year.
Marketing Highlights
In July, iRobot introduced its most powerful and intelligent 2-in-1 robot to date, the Roomba® Max 705 Combo Robot + AutoWash™ Dock. Designed for the busiest homes, the Roomba Max 705 Combo delivers a deep, hands-free clean with 175 times more power-lifting suction*, AI-driven technology to avoid clutter left by kids and pets, and a first-of-its-kind roller mop cover that keeps carpets dry.
For the 11th consecutive year, Roomba was a featured product in Amazon's Prime Day event, which was held July 8-11. iRobot was ranked #1, #2 and #3 for the bestselling robot vacuum cleaners during Prime Day. The Company's products received a record number of Prime Day related media mentions in outlets including: Good Morning America, Better Homes & Gardens, HuffPost, Rolling Stone, GQ, Forbes Vetted, Real Simple and more.
In June, iRobot announced the debut of a multi-platform marketing campaign, its first since 2023. Beginning on June 16, television spots featuring the new tagline, "Roomba. Made for This," began airing in the U.S. on premium streaming services including Hulu, Amazon Prime Video, Peacock, Paramount+ and more.*Performance in spot-clean mode with full battery compared to Roomba® 600 series robots.
Ongoing Strategic Review
As previously announced, iRobot's Board of Directors is conducting a review of strategic alternatives, including, but not limited to, exploring a potential sale or strategic transaction, and refinancing the Company's debt. This review process is ongoing.
The 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 transactions or outcomes. The Company does not intend to disclose developments relating to this process until it determines that further disclosure is appropriate or necessary.
The Company remains actively engaged in ongoing collaborative and constructive discussions with its primary lender while the Board continues its strategic review. On August 6, 2025, the Company further amended its existing term loan to extend the covenant waiver under the term loan to September 19, 2025.
In light of the ongoing strategic review, the Company will not host an earnings conference call or webcast regarding its second quarter 2025 results and has suspended its practice of providing financial guidance.
About iRobotiRobot is a global consumer robot company that designs and builds thoughtful robots and intelligent home innovations that make life better. iRobot introduced the first Roomba robot vacuum in 2002. Today, iRobot is a global enterprise that has sold millions of robots worldwide. iRobot's product portfolio features technologies and advanced concepts in cleaning, mapping and navigation. Working from this portfolio, iRobot engineers are building robots and smart home devices to help consumers make their homes easier to maintain and healthier places to live. For more information about iRobot, please visit www.irobot.com.
Cautionary Statement Regarding Forward-Looking Statements
This communication contains "forward-looking statements" within the meaning of the federal securities laws, including Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which relate to, among other things: the Board's review of strategic alternatives for the business; and the Company's business plans and strategies and the anticipated impact thereof. These forward-looking statements are based on the Company's current expectations, estimates and projections about its business and industry, all of which are subject to change. In this context, forward-looking statements often address expected future business and financial performance and financial condition, and often contain words such as "expect," "anticipate," "intend," "plan," "believe," "could," "seek," "see," "will," "may," "would," "might," "potentially," "estimate," "continue," "expect," "target," similar expressions or the negatives of these words or other comparable terminology that convey uncertainty of future events or outcomes. All forward-looking statements by their nature address matters that involve risks and uncertainties, many of which are beyond the Company's control, and are not guarantees of future results. These and other forward-looking statements are not guarantees of future results and are subject to risks, uncertainties and assumptions that could cause actual results to differ materially from those expressed in any forward-looking statements. Accordingly, there are or will be important factors that could cause actual results to differ materially from those indicated in such statements and, therefore, you should not place undue reliance on any such statements and caution must be exercised in relying on forward-looking statements. Important risk factors that may cause such a difference include, but are not limited to: (i) the Company's ability to obtain capital when desired on favorable terms, if at all; (ii) the Company's ability to realize the benefits of its operational restructuring; (iii) the impact of various global conflicts on the Company's business and general economic conditions; (iv) the Company's ability to implement its business strategy; (v) the risk that disruptions from the Company's operational restructuring will harm its business, including current plans and operations; (vi) the ability of the Company to retain and hire skilled personnel; (vii) loss of any key employee; (viii) failure of the Company's primary contract manufacturer to meet the Company's requirements; (ix) legislative, regulatory and economic developments affecting the Company's business; (x) general economic and market developments and conditions; (xi) the evolving legal, regulatory and tax regimes under which the Company operates; (xii) potential business uncertainty, including changes to existing business relationships that could affect the Company's financial performance; (xiii) unpredictability and severity of catastrophic events, including, but not limited to, acts of terrorism or outbreak of war or hostilities; (xiv) current supply chain challenges; (xv) the financial strength of the Company's customers and retailers; (xvi) the impact of any applicable tariffs on goods imported into the United States; (xvii) competition; (xviii) cybersecurity risks; (xix) failure to obtain additional waivers from the Company's lenders of the Company's obligation to comply with certain covenants under the Company's credit agreement; and (xx) the results and impact of the Board's strategic review of alternatives for the business, as well as the Company's response to any of the aforementioned factors. Additional risks and uncertainties that could cause actual outcomes and results to differ materially from those contemplated by the forward-looking statements are included under the caption "Risk Factors" in the Company's most recent annual and quarterly reports filed with the SEC and any subsequent reports on Form 10-K, Form 10-Q or Form 8-K filed from time to time and available at www.sec.gov. While the list of factors presented here is considered representative, no such list should be considered to be a complete statement of all potential risks and uncertainties. Unlisted factors may present significant additional obstacles to the realization of forward-looking statements. Consequences of material differences in results as compared with those anticipated in the forward-looking statements could include, among other things, business disruption, operational problems, financial loss, legal liability and similar risks, any of which could have a material adverse effect on the Company's financial condition, results of operations, or liquidity. The forward-looking statements included herein are made only as of the date hereof. The Company does not assume any obligation to publicly provide revisions or updates to any forward-looking statements, whether as a result of new information, future developments or otherwise, should circumstances change, except as otherwise required by securities and other applicable laws.
iRobot Corporation
Consolidated Statements of Operations
(in thousands, except per share amounts)
(unaudited)
For the three months ended
For the six months ended
June 28, 2025
June 29, 2024
June 28, 2025
June 29, 2024
Revenue
$ 127,558
$ 166,361
$ 229,127
$ 316,375
Cost of revenue:
Cost of product revenue
89,259
138,895
168,857
252,808
Restructuring and other
-
-
1,658
-
Total cost of revenue
89,259
138,895
170,515
252,808
Gross profit
38,299
27,466
58,612
63,567
Operating expenses:
Research and development
13,766
23,230
28,453
57,108
Selling and marketing
39,003
39,980
65,054
69,696
General and administrative
21,069
16,926
40,085
(36,785)
Restructuring and other
1,032
8,230
7,206
22,377
Amortization of acquired intangible assets
145
168
280
339
Total operating expenses
75,015
88,534
141,078
112,735
Operating loss
(36,716)
(61,068)
(82,466)
(49,168)
Other income (expense), net
13,385
(8,849)
(27,680)
(12,034)
Loss before income taxes
(23,331)
(69,917)
(110,146)
(61,202)
Income tax (benefit) expense
(523)
729
(65)
837
Net loss
$ (22,808)
$ (70,646)
$ (110,081)
$ (62,039)
Net loss per share:
Basic
$ (0.68)
$ (2.41)
$ (3.41)
$ (2.16)
Diluted
$ (0.68)
$ (2.41)
$ (3.41)
$ (2.16)
Number of shares used in per share calculations:
Basic
33,410
29,309
32,259
28,740
Diluted
33,410
29,309
32,259
28,740
