iRobot income declined 23.3% in Q2 of 2025. Supply: iRobot
Most robotics corporations would kill to earn $127.6 million in 1 / 4. However not iRobot Corp. The Roomba maker continued its monetary slide, reporting that second-quarter 2025 income was down 23.3% yr over yr. The sharp decline highlights ongoing challenges for iRobot because it struggles with slowing demand, elevated competitors, and the aftermath of its failed acquisition by Amazon.
iRobot mentioned its Q2 income elevated 6% in Japan however declined 33% within the U.S. and decreased 17% in EMEA over the prior-year interval. The corporate’s income in Q1 2025 was $101.6 million, which was a 32% drop yr over yr from $150 million.
iRobot CEO Gary Cohen acknowledged the outcomes fell in need of expectations, citing market challenges and slower-than-anticipated scaling of latest product strains. Whereas iRobot noticed enchancment in gross margins and working effectivity, Cohen mentioned the corporate’s money place stays below pressure, limiting flexibility and elevating considerations about liquidity.
“Whereas we made significant progress on gross margin enlargement, tightened management over working bills, and improved internet losses, our money place continued to say no as we supported new product launches — posing ongoing challenges to liquidity and operational flexibility,” he mentioned. “Though early shopper response to our newest product launches has been encouraging, broader market pressures and monetary constraints stay important hurdles to improved efficiency.”
Issues have gotten so dangerous that iRobot has suspended future monetary steering and opted to not host an earnings name for the quarter. The corporate mentioned its board is constant a beforehand introduced overview of strategic options, together with a possible sale, strategic transaction, or refinancing of present debt. No timeline has been set for the conclusion of the method.
As of June 28, iRobot’s money and money equivalents totaled $40.6 million, in contrast with $69.9 million as of March 29. Additionally as of June 28, it had a further $36 million of restricted money put aside for future reimbursement of its time period mortgage.
iRobot’s quarterly income has fallen over 4 years. (Click on right here to enlarge.) Chart created by Google Gemini and verified by The Robotic Report.
iRobot struggles proceed
Cohen inherited a multitude when he was named CEO in Might 2024. He joined simply three months after Amazon terminated its $1.7 billion acquisition of iRobot. Cohen took over for longtime CEO Colin Angle, who held the place since 2007.
Angle left after the Amazon acquisition failed. He had based Bedford, Mass.-based iRobot with fellow MIT roboticists Rodney Brooks and Helen Greiner in 1990.
Sadly, issues have solely gotten worse since Cohen took over the reins. iRobot has gone by means of a number of rounds of layoffs, with the final public axing going down in November 2024. On prime of the failed Amazon acquisition, elevated competitors and the shortcoming to diversify its product line have put iRobot in its present predicament.
iRobot labored on quite a lot of robots earlier than launching its Roomba robotic vacuum in 2002. It has gone on to promote greater than 50 million robots worldwide.
However the firm struggled to diversify its shopper robotics portfolio, shelving a robotic garden mower it had been engaged on for almost 20 years. iRobot noticed its share of the robotic vacuum market shrink lately as a consequence of elevated competitors, geopolitical challenges, and different points.
Angle has quietly entered the house robotics house once more with a brand new startup referred to as Acquainted Machines & Magic, presently working in stealth mode. He’s joined by former iRobot CTO Chris Jones, robotics veteran Ira Renfrew, and others. The enterprise has already secured $15 million in funding.
What does the long run maintain for iRobot? Can it rebound? Will or not it’s offered? Will it exit of enterprise? Tell us your ideas within the feedback.
