iRobot 2025 Q2 Earnings Narrowed Losses but Revenue Slides 23%

iRobot (IRBT) reported its fiscal 2025 Q2 earnings on Aug 8, 2025, showing a narrowed net loss and improved per-share performance, though falling short of broader market expectations. The company’s revenue dropped significantly year-over-year, and it did not provide EPS guidance, citing ongoing demand uncertainty.

Revenue
iRobot’s total revenue for the quarter declined by 23.3% to $127.56 million, compared to $166.36 million in the same period last year, reflecting weaker demand and ongoing operational challenges.

Earnings/Net Income
The company significantly reduced its net loss, reporting a loss of $0.68 per share in 2025 Q2, compared to $2.41 per share in the prior-year quarter, representing a 71.8% improvement. On an absolute basis, the net loss narrowed to $-22.81 million, a 67.7% reduction from $-70.65 million in 2024 Q2. This marked a step toward financial stabilization, indicating a positive trend in earnings improvement.

Price Action
Shares of iRobot experienced a rough post-earnings performance, tumbling 8.86% during the latest trading day and 7.13% over the past full week. Month-to-date, the stock posted a slight 0.77% gain amid mixed investor sentiment.

Post-Earnings Price Action Review
A post-earnings trading strategy of buying iRobot stock following the earnings report and holding for 30 days performed poorly, delivering a -95.92% return. The strategy underperformed the benchmark by 182.12%, highlighted by a maximum drawdown of 0.00% and a Sharpe ratio of -0.61, indicating substantial risk with no reward. These results underscore the market’s skepticism despite the company’s improved net loss.

CEO Commentary
During the earnings call, iRobot’s CEO acknowledged the company’s disappointing performance, citing weak demand and operational headwinds. The CEO highlighted declining domestic market share and aggressive competition from Chinese manufacturers as key challenges. However, the leader emphasized ongoing investments in visual SLAM and carpet cleaning technologies to reinforce the company's position in “cleaning performance.” The tone remained cautiously optimistic, with the CEO expressing confidence in the long-term value of iRobot’s innovations and adaptability to evolving consumer needs. Strategic focus areas included product differentiation, international expansion, and managing pricing pressures.

Guidance
Looking ahead, the CEO guided for Q3 revenue in the range of $120–125 million, with a continued focus on cost control and R&D investment. While no EPS guidance was provided due to demand uncertainty, the CEO outlined plans to streamline product lines and optimize supply chain operations to enhance profitability.

Additional News
Within three weeks of the earnings report, iRobot did not announce any mergers, acquisitions, or C-level personnel changes. The company also did not issue dividend or share repurchase updates. The broader market remained focused on iRobot’s operational adjustments and technology investments rather than structural corporate moves. Notably, the stock’s post-earnings performance drew attention from short-term traders and analysts, though long-term strategic moves remain central to the company’s narrative.