iRobot 2025 Q1 Earnings Misses Targets with Net Income Down 1114%
Wednesday, May 7, 2025 9:34 am ET
4min read iRobot (IRBT) reported its fiscal 2025 Q1 earnings on May 06th, 2025. iRobot revealed a stark contrast in its earnings performance compared to previous expectations, as the company posted a significant loss rather than a profit. The disappointing results were accompanied by a cautious outlook for the year. The company's leadership did not provide specific guidance adjustments, leaving investors to assess the ongoing impact of strategic changes and market challenges on future performance.
Revenue
The total revenue of iRobot decreased by 32.3% to $101.57 million in 2025 Q1, down from $150.01 million in 2024 Q1.
Earnings/Net Income
iRobot swung to a loss of $2.84 per share in 2025 Q1 from a profit of $0.31 per share in 2024 Q1 (1016.1% negative change). Meanwhile, the company reported a net loss of $-87.27 million in 2025 Q1, reflecting a 1114.0% deterioration from the net income of $8.61 million achieved in 2024 Q1. The earnings performance was poor, with a dramatic drop in EPS reflecting the company's financial struggles.
Price Action
The stock price of iRobot has climbed 4.42% during the latest trading day, has edged down 0.42% during the most recent full trading week, and has jumped 8.01% month-to-date.
Post-Earnings Price Action Review
The strategy of buying iRobot (IRBT) shares after a revenue drop quarter-over-quarter and holding for 30 days demonstrated a loss of 12.77% over the past five years. This indicates that the strategy has consistently underperformed, as declining revenue has been followed by significant stock price decreases. The historical pattern suggests a challenging environment for investors looking to capitalize on short-term rebounds following disappointing earnings reports. Despite occasional upward movements, the overall trend has been negative, highlighting the need for cautious investment strategies in response to fluctuating company performance.
CEO Commentary
“We continued to make meaningful progress on our iRobot Elevate turnaround strategy in the first quarter and initiated the largest new product launch in iRobot's history,” said Gary Cohen, iRobot CEO. The company is encouraged by positive reactions from distributors and consumers, anticipating an uptick in sales as new products become available. iRobot has achieved significant reductions in operating expenses and production costs by transforming its operational model, allowing for a greater focus on innovation. The first quarter reflects a transitional period as the company clears legacy inventory, with expectations for improved profitability driven by new products and a lower cost structure.
Guidance
Cohen indicated that iRobot expects solid sales traction later in the year to support year-over-year revenue growth in 2025. The company anticipates continued gross-margin expansion and improved cash flow from operations. Overall, iRobot remains focused on executing its strategy amid a dynamic macro environment, with a positive outlook for profitability linked to the launch of its innovative product lineup.
Additional News
In recent weeks, iRobot has engaged in strategic activities beyond its earnings report. On March 12, 2025, the company announced the appointment of Neal P. Goldman to its Board of Directors, expanding the board to nine members and bringing expertise in operational and financial transformations. On April 23, 2025, iRobot introduced the Roomba® Max 705 Vac Robot with AutoEmpty™ Dock, marking a significant product launch aimed at boosting consumer interest. Additionally, on March 21, 2025, iRobot disclosed an inducement grant under Nasdaq Listing Rule 5635(c)(4), indicating efforts to attract and retain key talent within the organization as part of its broader strategic initiatives.
Revenue
The total revenue of iRobot decreased by 32.3% to $101.57 million in 2025 Q1, down from $150.01 million in 2024 Q1.
Earnings/Net Income
iRobot swung to a loss of $2.84 per share in 2025 Q1 from a profit of $0.31 per share in 2024 Q1 (1016.1% negative change). Meanwhile, the company reported a net loss of $-87.27 million in 2025 Q1, reflecting a 1114.0% deterioration from the net income of $8.61 million achieved in 2024 Q1. The earnings performance was poor, with a dramatic drop in EPS reflecting the company's financial struggles.
Price Action
The stock price of iRobot has climbed 4.42% during the latest trading day, has edged down 0.42% during the most recent full trading week, and has jumped 8.01% month-to-date.
Post-Earnings Price Action Review
The strategy of buying iRobot (IRBT) shares after a revenue drop quarter-over-quarter and holding for 30 days demonstrated a loss of 12.77% over the past five years. This indicates that the strategy has consistently underperformed, as declining revenue has been followed by significant stock price decreases. The historical pattern suggests a challenging environment for investors looking to capitalize on short-term rebounds following disappointing earnings reports. Despite occasional upward movements, the overall trend has been negative, highlighting the need for cautious investment strategies in response to fluctuating company performance.
CEO Commentary
“We continued to make meaningful progress on our iRobot Elevate turnaround strategy in the first quarter and initiated the largest new product launch in iRobot's history,” said Gary Cohen, iRobot CEO. The company is encouraged by positive reactions from distributors and consumers, anticipating an uptick in sales as new products become available. iRobot has achieved significant reductions in operating expenses and production costs by transforming its operational model, allowing for a greater focus on innovation. The first quarter reflects a transitional period as the company clears legacy inventory, with expectations for improved profitability driven by new products and a lower cost structure.
Guidance
Cohen indicated that iRobot expects solid sales traction later in the year to support year-over-year revenue growth in 2025. The company anticipates continued gross-margin expansion and improved cash flow from operations. Overall, iRobot remains focused on executing its strategy amid a dynamic macro environment, with a positive outlook for profitability linked to the launch of its innovative product lineup.
Additional News
In recent weeks, iRobot has engaged in strategic activities beyond its earnings report. On March 12, 2025, the company announced the appointment of Neal P. Goldman to its Board of Directors, expanding the board to nine members and bringing expertise in operational and financial transformations. On April 23, 2025, iRobot introduced the Roomba® Max 705 Vac Robot with AutoEmpty™ Dock, marking a significant product launch aimed at boosting consumer interest. Additionally, on March 21, 2025, iRobot disclosed an inducement grant under Nasdaq Listing Rule 5635(c)(4), indicating efforts to attract and retain key talent within the organization as part of its broader strategic initiatives.
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