iRobot Q2 revenue down 21%, net losses improved, cash position declined.

• iRobot Q2 financial results fell short of expectations • Market headwinds and production delays impacted performance • Gross margin expansion and expense control improved • Net losses improved, but cash position declined • Latest product launches have encouraging consumer response • Broader market pressures and financial constraints remain a challenge • Board reviewing strategic alternatives for the business.

Bedford, Mass., Aug. 7, 2025 /PRNewswire/ -- iRobot Corp. (NASDAQ: IRBT), a leading consumer robot company, today announced its financial results for the second quarter ended June 28, 2025. The company's performance fell short of expectations, primarily due to persistent market headwinds and delays in scaling production and sales of its new products [1].

Key Financial Highlights

- Revenue: iRobot reported revenue of $127.6 million for the second quarter of 2025, down 24% year-over-year (YoY) from $166.4 million in Q2 2024 [1].
- Gross Margin: The company's gross margin improved to 30.0% in Q2 2025, up from 16.5% in the same period last year. Non-GAAP gross margin was 30.2% [1].
- Operating Expenses: Operating expenses declined to $75.0 million in Q2 2025, down from $88.5 million in Q2 2024. Non-GAAP operating expenses were $65.5 million [1].
- Operating Loss: The company reported a GAAP operating loss of $36.7 million in Q2 2025, a significant improvement from the $61.1 million loss in the same period last year. Non-GAAP operating loss was $27.0 million [1].
- Net Loss Per Share: iRobot's GAAP net loss per share was $0.68 in Q2 2025, down from $2.41 in Q2 2024. Non-GAAP net loss per share was $0.27 [1].

Market and Operational Challenges

The company attributed its underperformance to market headwinds and production delays. Despite improvements in gross margin expansion and expense control, the cash position declined to $40.6 million as of June 28, 2025, from $69.9 million at the end of March 2025 [1]. The company has also faced broader market pressures and financial constraints, which continue to pose significant hurdles to improved performance.

Product Launches and Consumer Response

iRobot introduced its most powerful and intelligent 2-in-1 robot, the Roomba Max 705 Combo Robot + AutoWash™ Dock, in July. The product received encouraging consumer response, with early sales data showing positive market acceptance [1]. Additionally, Roomba was a featured product in Amazon's Prime Day event, where it ranked #1, #2, and #3 for the bestselling robot vacuum cleaners [1].

Strategic Review and Future Outlook

The company's Board of Directors is conducting a strategic review of alternatives, including a potential sale or strategic transaction, and refinancing its debt. The Board has not set a timetable for the conclusion of this review, and there is no assurance that the exploration of strategic alternatives will result in any transactions or outcomes [1]. iRobot has also suspended its practice of providing financial guidance and will not host an earnings conference call or webcast regarding its second quarter 2025 results.

References

[1] https://www.prnewswire.com/news-releases/irobot-reports-second-quarter-2025-financial-results-302523929.html