- iRobot, the makers of the Roomba vacuum cleaner, said there is “substantial doubt” about the company’s future. The news came a day after the company announced its biggest product launch ever.
- According to iRobot, the lineup includes eight Roombas that feature improved power-lifting suction, debris-compacting systems and dual-spinning mop pads.
- iRobot warned there is no guarantee that the new Roombas will solve the company’s woes.
Full Story
On Wednesday, March 12, just a day after it announced a suite of new consumer robots, the makers of the Roomba vacuum laid out a possible bleak future for the Massachusetts-based company.
What has happened since the Amazon-iRobot deal collapsed?
In January 2024, a proposed $1.7 billion iRobot merger with Amazon fell through over scrutiny from European Union regulators.
In its fourth quarter financial report, iRobot said its board has initiated a formal strategic review of “alternatives for the business,” meaning refinancing the company’s debt or agreeing on a future potential sale, as its revenue fell 44% from the same period in 2024.
Roomba first entered the market in 2002, but in recent years, it has faced strong competition from rivals in the robotic vacuum cleaner department, fueling iRobot’s search for ways to stay competitive.
Since the demise of Amazon’s ill-fated acquisition, iRobot launched an operational restructuring plan that has seen a cut to over 50% of its workforce and a reinvention of its research and development lab.
What are the new Roombas that iRobot announced?
iRobot hopes its lineup of eight new Roomba robots — the biggest product launch in the company’s 30-year history — will navigate the company to renewed success.
According to iRobot, the lineup includes Roombas that feature improved power-lifting suction, debris-compacting systems and dual-spinning mop pads. The new Roombas become available on March 18.
iRobot CEO Gary Cohen said the new vacuums “underscore the return of iRobot as the category creator and our leadership position that was established more than three decades ago.”
What does the future hold for iRobot?
iRobot warned there is no guarantee that the eight new Roombas will solve the company’s woes.
“There can be no assurance that the new product launches will be successful due to potential factors, including, but not limited to consumer demand, competition, macroeconomic conditions, and tariff policies,” the company said in its report.
It added, “Given these uncertainties and the implication they may have on the Company’s financials, there is substantial doubt about the Company’s ability to continue as a going concern for a period of at least 12 months.”
iRobot said there is no timetable for the board to conclude its review and that there is no assurance that an exploration for a possible sale will amount to one.
