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07. November 2025
Irobot Posts Sharpest Revenue Decline Yet As Sales Plummet 246 In Q3 2025
iRobot Corp., the manufacturer of popular Roomba robot vacuums, has reported its third-quarter financial results for 2025. The company’s revenue declined by 24.6% from $193.4 million in Q3 2024 to $145.8 million, further underscoring the growing financial struggles faced by the Bedford, Mass.-based firm.
This downward trend is consistent with iRobot’s performance over the past year, as revenue dropped 23.3% year-over-year in Q2 2025 and 33% in the U.S. market during the third quarter of this year. The company’s inability to leverage its fixed cost base has resulted in increased cash usage and reduced profitability.
“We are facing significant headwinds in the market, and our production delays and shipping disruptions have further exacerbated these challenges,” stated Gary Cohen, iRobot CEO. “While we remain committed to delivering innovative products that meet the evolving needs of our customers, we must also take concrete steps to ensure the long-term sustainability of our business.”
The company’s cash position has taken a significant hit, with $24.8 million in cash and cash equivalents as of Sept. 27, compared to $40.6 million at the end of June. This decline underscores the increasing financial strain on iRobot and raises concerns about its ability to access additional capital.
In a candid assessment, iRobot’s management has acknowledged that it “has no sources upon which it can draw for additional capital.” The company’s Form 10-Q filing with the U.S. Securities and Exchange Commission revealed substantial doubt about its ability to continue as a going concern. If iRobot fails to secure new funding in the near term, it may be forced to significantly curtail or cease operations, potentially seeking bankruptcy protection.
To understand how iRobot has reached this point, it is essential to examine the company’s history and the factors that have contributed to its financial struggles. Founded in 1990 by Colin Angle, iRobot began as a pioneer in the robot vacuum space, with the vision of making practical robots a reality. The company’s early success was marked by the sale of over 50 million Roombas worldwide, solidifying its position as a leading player in the industry.
However, as more companies entered the market with their own robot vacuums, iRobot struggled to keep up or diversify its portfolio. One notable example is the shelving of a robotic lawn mower project that had been under development for nearly two decades. This decision has left many wondering about the company’s willingness to innovate and adapt in response to changing market conditions.
The attempted acquisition by Amazon in 2022, which would have seen the e-commerce giant pay $1.7 billion for iRobot, highlights the challenges faced by the company. After the agreement was announced, iRobot acquired new debt, leading to a significant reduction in the proposed purchase price. The deal ultimately fell through due to “undue and disproportionate” regulatory scrutiny.
In early 2024, Colin Angle stepped down as CEO, marking a significant leadership transition for the company. Gary Cohen took over the role, bringing with him a wealth of experience in the industry. However, despite his efforts, iRobot has continued to face challenges, including multiple rounds of layoffs, with the most recent reduction taking place in November 2024.
The decline in revenue from mid-tier robot vacuum cleaners (with a manufacturer’s suggested retail price between $300 and $499) and premium robots (with an MSRP of $500 or more) represents a significant shift in the market. These products now account for only 74% of total robot sales, compared to 79% during the same period last year.
Excluding foreign currency impacts, revenue declined 14% in EMEA and remained flat in Japan over the prior-year period. This regional breakdown underscores the challenges faced by iRobot across different markets, with the company struggling to maintain its competitiveness in regions where it has traditionally been strong.
In light of these developments, investors and stakeholders are left wondering about the future prospects of iRobot Corp. As the company navigates this challenging landscape, it is essential that management takes concrete steps to address the financial struggles faced by the business. This may involve exploring alternative funding options or implementing strategies to enhance its competitiveness in the market.
Ultimately, the fate of iRobot Corp. hangs in the balance, with the company’s ability to access additional capital and secure a sustainable future uncertain. The outcome of this situation will have significant implications for investors, stakeholders, and the broader industry, serving as a cautionary tale about the importance of adaptability and innovation in an ever-evolving market landscape.
As iRobot continues to face these challenges, it is essential that the company remains committed to delivering innovative products that meet the evolving needs of its customers. By doing so, it may be able to mitigate some of the financial struggles faced by the business and position itself for long-term success.