iRobot (IRBT) AI Stock Analysis

• Market Cap: $72.28M
• Dividend Yield: N/A
• Average Volume (3M): 1.53M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.57
• Revenue Growth: -27.44%
• EPS Growth: -2.92%
• Country: US
• Employees: 1,372
• Sector: Consumer Cyclical
• Sector Strength: 61
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): -1.95
• Shares Outstanding: 30,628,586
• 10 Day Avg. Volume: 1,272,132
• 30 Day Avg. Volume: 1,527,722
• PEG Ratio: 0.11
• Price to Book (P/B): 0.31
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -2.59
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 1

iRobot's stock score is low due to significant financial challenges, including declining revenues and persistent losses, despite some improvements in debt levels. Technical indicators also reflect a bearish outlook. Valuation is unattractive, compounded by negative earnings and no dividends. While strategic initiatives like the 'iRobot Elevate' plan are underway, the market remains cautious about the company's ability to achieve a successful turnaround.

Positive Factors

Product Development

Analysts see potential in new product developments at iRobot, which could enhance company performance.

Product Launch

IRBT enters 2025 with a refreshed product offering, having announced a suite of new Roomba products, which should provide a lift to IRBT’s gross margins as they scale.

Strategic Initiatives

IRobot Corporation is showing progress on its turnaround efforts, with strategic initiatives gaining traction.

Negative Factors

Competitive Pressure

There are concerns about competition impacting iRobot's market share, which could affect future revenues.

Financial Stability

IRBT’s $224MM Term Loan is now a current liability far exceeding available cash, raising doubt about the company’s ability to continue as a going concern.

Supply Chain

Supply chain disruptions are a challenge for iRobot Corporation, potentially affecting production and delivery timelines.

iRobot Business Overview & Revenue Model

Company Description

iRobot Corporation designs, builds, and sells robots and home innovation products in the United States, Europe, the Middle East, Africa, Japan, and internationally. The company offers floor care products, including Roomba floor vacuuming robots; Roomba accessories and consumables, such as the Clean Base Automatic Dirt Disposal, replacement dirt disposal bags for the Clean Base, filters, brushes, and batteries; Braava family of automatic floor mopping robots; and Braava accessories and consumables, which include cleaning solution, washable and disposable mopping pads, replacement tanks, and batteries, as well as subscription services. It also provides H1 Handheld Vacuum, a portable vacuum; H1 Handheld Vacuum accessories comprising filters, chargers, batteries, and an extension kit that converts the H1 Handheld Vacuum into a stick vacuum; air purifiers under the Aeris brand; Root robots to help children learn how to code; and Create 2, a mobile robot platform that offers an opportunity for educators, developers, and high-school and college students to program behaviors, sounds, movements, and add additional electronics, as well as sells filters and fabric covers. The company sells its products through chain stores and other national retailers, distributors, and resellers, as well as through its website and app, and e-commerce websites. iRobot Corporation was incorporated in 1990 and is headquartered in Bedford, Massachusetts.

How the Company Makes Money

iRobot makes money primarily through the sale of its robotic vacuum cleaners, mops, and related accessories. The company's revenue model is based on the direct sale of its products to consumers via its online platform, as well as through partnerships with major retailers and distributors worldwide. iRobot also generates income from service plans and extended warranties, providing customers with additional support and maintenance options. Furthermore, the company invests in research and development to enhance its product offerings, leveraging advancements in artificial intelligence and machine learning to maintain its competitive edge in the market. Strategic partnerships and collaborations with other technology firms may also contribute to its earnings by expanding its product ecosystem and improving functionality.

iRobot Financial Statement Overview

Summary

iRobot faces significant financial challenges, with declining revenues and persistent losses. Negative profitability margins and a weakened equity position are concerning, though reduced debt levels and stable liquidity provide some cushion.

Income Statement

The income statement reveals a concerning trend with declining revenue and profitability. The revenue has significantly dropped from $1.56 billion in 2022 to $681.85 million in 2024. The company has been operating at a loss, with a negative net profit margin and declining gross profit margin. EBIT and EBITDA margins are also negative, indicating operational challenges and inefficiencies.

Balance Sheet

The balance sheet indicates a declining equity position, with stockholders' equity decreasing from $716.72 million in 2022 to $61.24 million in 2024. However, the company has managed to reduce its total debt significantly, improving its debt-to-equity ratio. The equity ratio has weakened, reflecting the reduction in equity. The company maintains a stable cash position, which offers some liquidity cushion.

Cash Flow

Cash flows present a mixed picture. Operating cash flow has improved slightly but remains negative, indicating ongoing cash burn issues. Free cash flow has also shown improvement but is still in the negative territory. The company has managed to reduce its capital expenditures, which helps mitigate cash outflows. The operating cash flow to net income ratio remains unfavorable, highlighting the challenge of generating cash from operations.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Mar 2022	Mar 2021
Income Statement		Total Revenue
681.85M	890.58M	1.18B	1.56B	1.43B
	Gross Profit
142.36M	196.20M	350.09M	550.30M	670.23M
	EBIT
-106.82M	-264.08M	-240.38M	-1.10M	146.32M
	EBITDA
-52.56M	-231.29M	-213.81M	32.21M	181.08M
	Net Income Common Stockholders
-145.52M	-304.71M	-286.30M	30.39M	147.07M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
134.30M	185.12M	117.95M	234.50M	483.72M
	Total Assets
516.14M	733.70M	835.44M	1.18B	1.19B
	Total Debt
21.60M	234.33M	38.66M	43.46M	50.48M
	Net Debt
-112.70M	49.20M	-79.29M	-158.00M	-382.15M
	Total Liabilities
454.90M	537.21M	359.73M	467.71M	385.29M
	Stockholders Equity
61.24M	196.49M	475.72M	716.72M	804.43M
Cash Flow		Free Cash Flow
-33.34M	-117.66M	-102.35M	-61.90M	200.45M
	Operating Cash Flow
-33.22M	-114.79M	-90.02M	-31.97M	232.05M
	Investing Cash Flow
-254.00K	-3.10M	2.25M	-48.12M	-22.25M
	Financing Cash Flow
-16.74M	185.37M	2.94M	-148.44M	-21.26M

iRobot Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2.55
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IRBT, the sentiment is Neutral. The current price of 2.55 is above the 20-day moving average (MA) of 2.26, below the 50-day MA of 3.28, and below the 200-day MA of 7.03, indicating a neutral trend. The MACD of -0.19 indicates Negative momentum. The RSI at 47.63 is Neutral, neither overbought nor oversold. The STOCH value of 60.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IRBT.

iRobot Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SN	74 Outperform	$11.24B	25.77	24.75%	―	27.33%	134.09%
HBB	73 Outperform	$198.70M	5.93	21.86%	3.17%	5.46%	18.70%
MBC	64 Neutral	$1.52B	12.44	8.02%	―	1.30%	-44.70%
Sector *	61 Neutral	$6.68B	11.75	3.01%	3.94%	2.61%	-21.96%
WHR	51 Neutral	$4.45B	592.81	0.37%	8.75%	-18.43%	-97.97%
VIOT	49 Neutral	$91.42M	10.37	5.61%	―	―	―
IRBT	46 Neutral	$72.28M	―	-237.51%	―	-27.44%	-2.92%

iRobot Corporate Events

iRobot Amends Credit Agreement Amid Strategic Review

On March 11, 2025, iRobot Corporation amended its credit agreement, extending a waiver on certain financial obligations until June 6, 2025, as part of its strategic review process. In the first quarter of 2025, iRobot reported a significant decrease in revenue and operating income compared to the previous year, amid a major product launch and ongoing strategic review. The company is focused on its ‘iRobot Elevate’ turnaround strategy, aiming for improved profitability and sales growth through new product innovations.

Spark’s Take on IRBT Stock

According to Spark, TipRanks’ AI Analyst, IRBT is a Neutral.

iRobot faces significant financial and operational challenges, reflected in its declining revenues and persistent losses. The stock’s technical indicators are bearish, with price trends signaling downward momentum. Valuation is complicated by negative earnings, and the absence of dividends further reduces attractiveness. Overall, strategic improvements are needed to enhance the company’s financial health and market performance.

To see Spark’s full report on IRBT stock, click here.

iRobot Approves Executive Bonuses Amid Strategic Review

On March 26, 2025, iRobot Corporation’s Board of Directors approved cash retention bonuses for its executive officers to ensure their continued employment through the end of the year as part of a strategic review of business alternatives. Additionally, an Executive Sale Bonus Plan was approved, allowing executives to receive bonuses based on the proceeds from a potential sale event, highlighting the company’s efforts to retain key leadership during a period of strategic evaluation.

iRobot Board Member Dr. Ruey-Bin Kao to Depart

On March 18, 2025, Dr. Ruey-Bin Kao informed iRobot Corporation’s Board of Directors that he will not seek re-election at the upcoming 2025 annual stockholders’ meeting. His decision was not due to any disagreements with the company, indicating a smooth transition without operational or policy conflicts.

iRobot Amends Credit Agreement and Expands Board

On March 11, 2025, iRobot Corporation amended its Credit Agreement with TCG Senior Funding L.L.C., waiving certain covenant obligations until May 6, 2025, and requiring more frequent financial reporting. Additionally, Neal P. Goldman was appointed to iRobot’s Board of Directors on March 10, 2025, expanding the board to nine members. Goldman’s extensive experience in strategic planning and financial management is expected to aid iRobot’s ongoing turnaround strategy.