Cautious Hold Rating on iRobot Amid Revenue Decline and Financial StrainWe are updating our 2025 model following IRBT’s Q2 report last week. Revenues declined 23% y/o/y (vs. our estimate of a -25% decline), reflecting ongoing market challenges and delays IRBT experienced in ramping production of new products. While the company has been encouraged by consumer response to its new products, IRBT has entered the important 2H season hamstrung by a weakened financial position ($40.6MM cash/$203MM of debt) and uncertain market dynamics. Q2 gross margin was better than expected, which should result in smaller losses than we were modeling earlier in the year despite taking our revenue expectations down for the 2H. On August 6th, IRBT further amended its credit agreement to extend the waiver period for its covenants from Aug. 14 th to Sept. 19, 2025.