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iRobot Issues Warning About Its Future Amid Financial Struggles
iRobot, the company behind the popular Roomba vacuum, has raised concerns about its ability to continue operations. In a recent statement, the company expressed "significant doubt" about its future, citing financial challenges.
On Wednesday, iRobot released its consolidated financial statements for 2024, highlighting "significant doubts about the company’s ability to continue operating for at least the next 12 months." The announcement accompanied the company’s annual financial results.
In the fiscal year, iRobot reported revenues of $681 million, marking a more than 23% decline compared to the previous year. The company also recorded a net loss of $145.5 million.
iRobot Roomba vacuum cleaners on display at a Target store. (Alex Tai/Sopa Images/Lightrocket via Getty Images)
Earlier this week, iRobot unveiled a lineup of new vacuum robots set to launch on March 18, including the Dust 205 Vac and Dust Roomba 205 Combo. However, the company cautioned that the success of these new products is uncertain, citing factors such as consumer demand, competition, macroeconomic conditions, and regulatory policies.
Challenges and Competition
In its annual report, iRobot highlighted "aggressive competition" in key markets like EMEA, Japan, and the U.S. throughout 2024. The company also disclosed changes to its loan agreement, which include a $3.6 million fee, according to an SEC filing.
Last year, iRobot initiated an operational restructuring aimed at stabilizing the company. The effort focused on improving profitability and strengthening growth initiatives to expand its market share in the mid- and premium-tier segments. This move followed Amazon’s decision to abandon its proposed acquisition of iRobot due to regulatory hurdles in Europe.
Amazon Abandons iRobot Acquisition
The deal, initially agreed upon in 2022, faced opposition from European antitrust regulators, ultimately leading to its termination. Amazon’s withdrawal has added to iRobot’s challenges as it navigates a tough competitive landscape.
In response, iRobot has reduced marketing expenses and adjusted product pricing, leading to a "meaningful" decline in year-over-year operating costs in 2024. The company has also begun exploring strategic alternatives, including debt refinancing and potential transactions, through a formal review process.
Roomba robot vacuums by iRobot on display at a store in California. (Justin Sullivan/Getty Images)
Despite these efforts, iRobot’s board has not set a timeline for completing the strategic review and cautioned that there is no guarantee the process will result in any agreements or transactions.
A Legacy at Risk
Founded in 1990, iRobot revolutionized home cleaning with the introduction of the Roomba vacuum in 2002. However, the company now faces an uncertain future as it grapples with financial losses and intense competition.
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