iRobot Reports 32.3% Revenue Decline and $87.3 Million Net Loss in Q1 2025

iRobot Corporation reported a significant decline in its financial performance for the first quarter of fiscal 2025, ending March 29, 2025. The company generated revenue of $101.6 million, a decrease of 32.3% from $150.0 million in the same period last year. This decline was attributed to reduced orders from retailers and distributors, driven by lower consumer sentiment and increased promotional activities to stimulate sales of legacy products ahead of a major product launch. The company recorded a net loss of $87.3 million, compared to a net income of $8.6 million in the prior year, resulting in a loss per share of $2.84.

In terms of operational changes, iRobot has undergone a restructuring plan initiated in early 2024, which included a reduction in workforce and a shift to an asset-light model. The company reported restructuring costs of $7.8 million for the quarter, down from $14.1 million a year earlier. The restructuring aimed to align the company's cost structure with revenue expectations and improve profitability. Additionally, iRobot launched a suite of new floor cleaning robots in March 2025, which contributed to 23% of total revenue during the quarter, although the majority of sales were still from legacy products.

The company’s cash and cash equivalents decreased to $69.9 million from $134.3 million at the end of the previous fiscal year, while restricted cash increased to $40.0 million, earmarked for future loan repayments. iRobot's total liabilities rose to $462.3 million, primarily due to the reclassification of a term loan valued at $224.1 million as a current liability, reflecting concerns about the company's ability to meet its financial covenants. The company is currently in discussions with lenders regarding potential waivers for covenant breaches related to its going concern status.

Geographically, iRobot's revenue from the United States fell by 39.9%, while international revenue decreased by 25.9%. The company is actively exploring strategic alternatives, including potential sales or refinancing options, as part of its ongoing efforts to stabilize its financial position. The board of directors has initiated a formal review process, although there is no assurance that this will lead to successful transactions. The company remains cautious about the impact of ongoing trade policy changes, particularly tariffs affecting imports from China and Vietnam, which could further strain its financial performance.

Looking ahead, iRobot's management has expressed optimism about the potential for new product launches to drive revenue growth and improve profitability. However, they acknowledge that success is contingent on favorable market conditions and consumer demand. The company is focused on optimizing its operations and maintaining liquidity as it navigates these challenges.