iRobot, parent company to Roomba, is facing an uncertain future according to its latest earnings, just over a year after a $1.7 billion acquisition by Amazon was scrapped.
As it revealed its quarterly earnings report Wednesday, iRobot (NASDAQ:IRBT), a maker of robotic vacuum cleaners said it had “substantial doubt about the company’s ability to continue”, with the warning the company’s stock to plummet by 30% in premarket trading.
It also noted its board is exploring a “strategic review of alternatives for the business” that could lead to a sale and refinancing of debt.
The news comes a little after a deal with Amazon to buy iRobot failed due to European Union’s regulatory concerns, founder Colin Angle's departure shortly after, and the company laying off around half of its workforce.
This week, however, it marked the largest product launch its three decades of operation, with the release of eight new Roombas, pinning hopes on them to boost revenue after a difficult fourth quarter where it fell by 44% compared to the same time the year before.
In the earnings release CEO Gary Cohen stayed upbeat, writing that “2024 was a transformational year for iRobot”.
He said iRobot should improve profit margins compared to earlier product lines and “should begin to support year-over-year revenue growth in 2025.”
"As we move ahead, we will continue to take decisive action to reclaim our position as the industry leader and build on iRobot's strong foundation centred around our globally recognised, iconic brand, Roomba."