iRobot (IRBT) AI Stock Analysis

• Market Cap: $14.84M
• Dividend Yield: N/A
• Average Volume (3M): 39.48M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.48
• Revenue Growth: -31.70%
• EPS Growth: -44.97%
• Country: US
• Employees: 1,372
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): -0.23
• Shares Outstanding: 31,826,202
• 10 Day Avg. Volume: 68,853,895
• 30 Day Avg. Volume: 39,481,051
• PEG Ratio: 0.03
• Price to Book (P/B): 3.84
• Price to Sales (P/S): 0.35
• P/FCF Ratio: -7.06
• Enterprise Value/Market Cap: 21.53
• Enterprise Value/Revenue: 0.58
• Enterprise Value/Gross Profit: 2.66
• Enterprise Value/Ebitda: -1.76
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): -3.5
• Revenue Forecast (FY): $525.13M

• Rating: 38 Underperform
• Price Target: $0.44 ▼(-73.45% Downside)

iRobot's overall stock score is heavily impacted by its poor financial performance and valuation, both scoring at the lowest end of the scale. The technical analysis also reflects a bearish outlook. The company's bankruptcy filing and impending delisting from Nasdaq further exacerbate the situation, making it a high-risk investment.

Positive Factors

Strategic Partnerships

Strategic partnerships and subscription services enhance product capabilities and customer retention, supporting long-term revenue stability.

Product Innovation

Innovative products with AI and connectivity features position iRobot as a leader in smart home technology, driving long-term consumer demand.

Direct-to-Consumer Model

A direct-to-consumer model allows iRobot to maintain better margins and customer relationships, supporting sustainable growth and market presence.

Negative Factors

Bankruptcy Filing

The bankruptcy filing indicates severe financial distress, impacting long-term viability and shareholder value, with a focus on restructuring.

Negative Cash Flow

Negative cash flow challenges limit iRobot's ability to invest in growth and innovation, threatening its financial stability and operational capacity.

Nasdaq Delisting

Delisting from Nasdaq reduces market visibility and investor confidence, complicating future capital raising and impacting long-term business prospects.

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 generates revenue primarily through the sale of its robotic cleaning products, including vacuum cleaners and mopping devices. The company employs a direct-to-consumer sales model through its e-commerce platform, as well as retail partnerships with major electronics and home goods retailers. In addition to product sales, iRobot has developed subscription services that provide customers with additional features and support, contributing to recurring revenue. The company also invests in strategic partnerships and collaborations, enhancing its product capabilities and market reach, which can drive additional sales and customer retention.

iRobot Financial Statement Overview

Summary

iRobot is facing significant financial difficulties, with declining revenues, negative profit margins, and cash flow challenges. The balance sheet reveals potential solvency issues with negative equity. Despite some improvements in cash flow growth, the overall financial health remains weak, requiring strategic interventions to stabilize operations and improve profitability.

Income Statement

iRobot's income statement shows significant challenges, with declining revenue and negative profit margins. The TTM data reveals a gross profit margin of 22.35% and a net profit margin of -38.11%, indicating substantial losses. Revenue has decreased consistently over the past few years, with a TTM revenue growth rate of -8.01%. The EBIT and EBITDA margins are also negative, reflecting ongoing operational inefficiencies.

Balance Sheet

The balance sheet highlights a concerning financial position, with negative stockholders' equity in the TTM period, leading to a negative debt-to-equity ratio. This indicates potential solvency issues. The return on equity is also negative, reflecting poor profitability. However, the equity ratio is not available due to negative equity, which complicates the assessment of financial stability.

Cash Flow

Cash flow analysis shows negative operating and free cash flows, with a TTM free cash flow growth rate of 53.65%, which is misleading due to prior negative values. The operating cash flow to net income ratio is negative, indicating cash flow challenges. The free cash flow to net income ratio is 1.0, suggesting that cash flow is entirely consumed by losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	547.00M	681.85M	890.58M	1.18B	1.56B	1.43B
Gross Profit	120.28M	142.36M	196.20M	350.09M	550.30M	670.23M
EBITDA	-181.19M	-101.99M	-231.29M	-211.94M	32.21M	181.08M
Net Income	-208.72M	-145.52M	-304.71M	-286.30M	30.39M	147.07M
Balance Sheet
Total Assets	481.57M	516.14M	733.70M	835.44M	1.18B	1.19B
Cash, Cash Equivalents and Short-Term Investments	24.83M	134.30M	185.12M	117.95M	234.50M	483.72M
Total Debt	223.05M	227.10M	234.33M	38.66M	49.68M	56.80M
Total Liabilities	508.46M	454.90M	537.21M	359.73M	467.71M	385.29M
Stockholders Equity	-26.89M	61.24M	196.49M	475.72M	716.72M	804.43M
Cash Flow
Free Cash Flow	-106.95M	-33.34M	-117.66M	-102.35M	-61.90M	200.45M
Operating Cash Flow	-106.95M	-33.22M	-114.79M	-90.02M	-31.97M	232.05M
Investing Cash Flow	500.00K	-254.00K	-3.10M	2.25M	-48.12M	-22.25M
Financing Cash Flow	-4.50M	-16.74M	185.37M	2.94M	-148.44M	-21.26M

iRobot Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.65
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IRBT, the sentiment is Negative. The current price of 1.65 is below the 20-day moving average (MA) of 2.33, below the 50-day MA of 2.86, and below the 200-day MA of 3.29, indicating a bearish trend. The MACD of -0.39 indicates Positive momentum. The RSI at 35.74 is Neutral, neither overbought nor oversold. The STOCH value of 0.86 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IRBT.

iRobot Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SN	76 Outperform	$16.27B	28.46	27.36%	―	18.87%	58.76%
LEG	68 Neutral	$1.51B	6.94	26.20%	1.80%	-6.03%	―
HBB	68 Neutral	$213.87M	6.81	20.32%	2.99%	-6.24%	24.18%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
PRPL	50 Neutral	$80.87M	-1.42	-9999.00%	―	-9.47%	48.11%
ATER	47 Neutral	$6.90M	-0.43	-46.32%	―	-26.81%	40.22%
IRBT	38 Underperform	$14.84M	―	-338.61%	―	-31.70%	-44.97%

iRobot Corporate Events

iRobot Faces Nasdaq Delisting Amid Bankruptcy

On December 15, 2025, iRobot Corporation was informed by Nasdaq that its common stock would be delisted due to the company’s voluntary Chapter 11 bankruptcy proceedings initiated on December 14, 2025. The trading of iRobot’s common stock is set to be suspended on December 22, 2025, marking a significant shift in the company’s financial standing and impacting its stakeholders.

iRobot Files for Chapter 11 Bankruptcy

On December 14, 2025, iRobot filed for Chapter 11 bankruptcy to implement a financial restructuring plan, allowing its acquisition by Picea, a key supplier and secured lender. This move aims to strengthen iRobot’s financial foundation, reduce debt, and ensure continuity in operations, although existing shareholders are expected to lose their investments as the company’s stock will be delisted.

iRobot Faces Financial Challenges Amid Recent Acquisition

On November 24, 2025, Santrum Hong Kong Co., Limited, a subsidiary of Shenzhen PICEA Robotics Co., Ltd., acquired all rights and interests under a Credit Agreement from affiliates of The Carlyle Group, assuming $190.7 million in outstanding principal and interest. This acquisition impacts iRobot Corporation, which owes Picea $161.5 million for manufacturing, with $90.9 million past due. The company is in active discussions with Picea to resolve non-payment issues and is also reviewing strategic alternatives, including potential sales or transactions, amidst financial difficulties that could lead to bankruptcy. The waiver of covenant obligations has been extended until January 15, 2026, but the company’s financial condition remains precarious, with significant risks of default and potential bankruptcy proceedings that could result in no recovery for stockholders.

iRobot Secures Waivers to Avoid Financial Default

iRobot Corporation has been granted a series of waivers by its lenders, extending the period during which it is not required to meet certain financial covenants until December 1, 2025. This extension provides temporary relief from potential default under its credit agreement, which could have led to severe financial consequences, including bankruptcy. Despite these extensions, iRobot’s financial condition is precarious, with declining cash reserves and a failed attempt to secure a strategic sale, leaving the company dependent on further waivers or additional capital to continue operations.