iRobot Q2 Revenue Falls Short, Suspends Guidance Amid Strategic Review

iRobot Q2 revenue fell short of expectations at $127.6 mln, with a net loss due to market headwinds and production delays. Gross margin improved, but cash position declined significantly. The company suspended financial guidance amid a strategic review and faces ongoing market pressures and financial constraints.

Bedford, Mass., Aug. 7, 2025 /PRNewswire/ -- iRobot Corp. (NASDAQ: IRBT), a leading consumer robot company, today reported its financial results for the second quarter ended June 28, 2025. The company's revenue fell short of expectations, totaling $127.6 million, compared to $166.4 million in the same period last year. The net loss widened to $36.7 million from $61.1 million in the prior year, despite improvements in gross margins and operating expenses.

The company attributed the underperformance to persistent market headwinds and delays in scaling production and sales of its new products. Gary Cohen, iRobot CEO, stated, "Our second quarter performance fell short of our expectations due to these challenges. While we made meaningful progress on gross margin expansion and tightened control over operating expenses, our cash position continued to decline as we supported new product launches."

Despite the challenges, iRobot's gross margin improved to 30.0% from 16.5% in the prior year, while non-GAAP gross margin stood at 30.2%. Operating expenses declined to $75.0 million from $88.5 million, and non-GAAP operating expenses were $65.5 million, down from $75.9 million. However, the cash position declined significantly, with the company's cash and cash equivalents totaling $40.6 million as of June 28, 2025, down from $69.9 million as of March 29, 2025.

The company's revenue from mid-tier and premium robots represented 73% of total robot sales in the second quarter of 2025, down from 76% in the same period last year. Revenue increased by 6% in Japan but declined by 33% in the U.S. and 17% in EMEA over the prior-year period.

iRobot introduced its most powerful and intelligent 2-in-1 robot, the Roomba Max 705 Combo, in July. The company also launched a multi-platform marketing campaign featuring the new tagline, "Roomba. Made for This," in June.

The company's Board of Directors is conducting a strategic review, exploring potential sales or strategic transactions, and refinancing the Company's debt. The review process is ongoing, and the company has suspended its practice of providing financial guidance.

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