iRobot Reports 23.3% Revenue Decline and $22.8 Million Net Loss in Q2 2025

iRobot Corporation reported a significant decline in financial performance for the second quarter of fiscal 2025, with total revenue of $127.6 million, down 23.3% from $166.4 million in the same period last year. For the first half of the fiscal year, revenue decreased by 27.6% to $229.1 million compared to $316.4 million in the prior year. The decline was attributed to reduced orders from retailers and distributors, driven by lower consumer sentiment and spending, as well as increased promotional activities to stimulate sales of legacy products ahead of new product launches. The company also reported a net loss of $22.8 million for the quarter, an improvement from a loss of $70.6 million in the previous year, while the six-month net loss totaled $110.1 million, compared to $62.0 million in the same period last year.

iRobot's gross profit for the second quarter increased to $38.3 million, resulting in a gross margin of 30.0%, up from 16.5% a year earlier. This improvement was primarily due to the absence of significant charges related to obsolete inventory that impacted the previous year's results. Operating expenses decreased to $75.0 million from $88.5 million, reflecting cost-cutting measures and a reduction in research and development expenses, which fell by 40.7% to $13.8 million. The company has been undergoing a restructuring plan initiated in early 2024, which included a reduction in workforce and a shift to an asset-light model.

In terms of strategic developments, iRobot launched a new suite of floor cleaning robots in March 2025, which contributed to 49% of total revenue during the first half of the fiscal year. The company is also actively engaged in a strategic review process to explore potential sales or refinancing options, as it faces substantial doubt about its ability to continue as a going concern. As of June 28, 2025, iRobot's cash and cash equivalents stood at $40.6 million, a decrease from $134.3 million at the end of the previous fiscal year, while restricted cash totaled $36.0 million, earmarked for future loan repayments.

Operationally, iRobot's total robot units shipped decreased by 10.1% year-over-year, reflecting increased competition and delays in scaling production for new products. The company reported a significant increase in accounts payable, which rose to $166.8 million, indicating a shift in its working capital management. The company’s employee headcount has also been reduced as part of its restructuring efforts, which are expected to continue to impact operational costs moving forward.

Looking ahead, iRobot anticipates that its new product launches and strategic initiatives will help improve its market position and financial performance. However, the company remains cautious due to ongoing challenges in consumer demand and potential impacts from U.S. trade policies, including increased tariffs on imports. The management has indicated that it will continue to optimize production and reduce discretionary spending while exploring strategic alternatives to enhance liquidity and operational efficiency.