iRobot (IRBT) AI Stock Analysis

• Market Cap: $111.36M
• Dividend Yield: N/A
• Average Volume (3M): 2.14M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.76
• Revenue Growth: -25.36%
• EPS Growth: 13.62%
• Country: US
• Employees: 1,372
• Sector: Consumer Cyclical
• Sector Strength: 72
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): -0.27
• Shares Outstanding: 31,367,897
• 10 Day Avg. Volume: 1,272,352
• 30 Day Avg. Volume: 2,139,921
• 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: 2.32
• Enterprise Value/Revenue: 0.41
• Enterprise Value/Gross Profit: 2.04
• Enterprise Value/Ebitda: -1.54
• 1Y Price Target: $4.00
• Price Target Upside: 12.68% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 44 Neutral
• Price Target: $4.00 ▲(12.68% Upside)

iRobot's overall stock score is primarily impacted by its poor financial performance, characterized by declining revenues, negative equity, and cash flow issues. Technical analysis and valuation further reflect the company's challenges, with mixed signals and a negative P/E ratio. The absence of earnings call data and negative corporate events reinforce the need for strategic changes.

Positive Factors

Product Launch

IRBT enters 2025 with a refreshed product offering, having announced a suite of new Roomba products.

Revenue Growth

IRBT expects broader availability of its new products to drive sales, supporting revenue growth and gross margin expansion.

Negative Factors

Consumer Confidence

The multi-point recovery plan comes at a time of flagging consumer confidence, as concerns intensify about the macro environment and tariffs and trade policies.

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.

iRobot Business Overview & Revenue Model

Company Description

iRobot Corporation, founded in 1990, is a consumer electronics company known for its innovative robotic technology. Primarily operating in the home automation sector, iRobot specializes in designing and manufacturing robotic vacuum cleaners and other smart home devices. Its flagship product line includes the Roomba series of robotic vacuums, which have gained significant popularity for their efficiency and convenience in household cleaning. The company also offers products like the Braava series of robotic mops, enhancing its presence in the home cleaning market.

How the Company Makes Money

iRobot generates revenue primarily through the sale of its robotic vacuum cleaners and related home cleaning products. The company follows a direct-to-consumer sales model via its website and through retail partnerships with major retailers, which allows it to reach a broad customer base. Additionally, iRobot generates recurring revenue through subscription services, such as the iRobot Home app that offers advanced features and connectivity. Key revenue streams include the sales of hardware (robotic vacuums and mops) and accessories (replacement parts, cleaning supplies), as well as potential growth from software and subscription services. Strategic partnerships with retailers and technology companies also contribute to its earnings, enhancing its distribution capabilities and expanding its market reach.

iRobot Financial Statement Overview

Summary

iRobot is facing significant financial challenges, with declining revenues, increasing losses, and worsening leverage. The negative stockholders' equity and cash flow issues highlight financial instability, necessitating urgent strategic adjustments.

Income Statement

iRobot has experienced a significant decline in revenue and profitability over the years. The TTM (Trailing-Twelve-Months) data shows a negative EBIT and net income, indicating operational challenges. Gross profit margins have also decreased, showing reduced efficiency in cost management. Overall, revenue and net profit margins have been on a downward trajectory.

Balance Sheet

The balance sheet reveals a concerning negative stockholders' equity in the TTM, reflecting financial instability. The debt-to-equity ratio is not computable due to negative equity, and the company's leverage has increased over the period. The equity ratio has deteriorated from positive to negative, indicating a decrease in financial health.

Cash Flow

Cash flow analysis shows negative operating and free cash flows in the TTM, highlighting liquidity issues. The operating cash flow to net income ratio remains unfavorable, and the company has struggled to generate positive free cash flow consistently over the years, reflecting ongoing financial stress.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	633.40M	681.85M	890.58M	1.18B	1.56B	1.43B
Gross Profit	126.57M	142.36M	196.20M	350.09M	550.30M	670.23M
EBITDA	-167.80M	-101.99M	-231.29M	-213.81M	32.21M	181.08M
Net Income	-241.40M	-145.52M	-304.71M	-286.30M	30.39M	147.07M
Balance Sheet
Total Assets	461.51M	516.14M	733.70M	835.44M	1.18B	1.19B
Cash, Cash Equivalents and Short-Term Investments	69.92M	134.30M	185.12M	117.95M	234.50M	483.72M
Total Debt	249.38M	227.10M	234.33M	38.66M	43.46M	50.48M
Total Liabilities	462.30M	454.90M	537.21M	359.73M	467.71M	385.29M
Stockholders Equity	-793.00K	61.24M	196.49M	475.72M	716.72M	804.43M
Cash Flow
Free Cash Flow	-61.12M	-33.34M	-117.66M	-102.35M	-61.90M	200.45M
Operating Cash Flow	-61.12M	-33.22M	-114.79M	-90.02M	-31.97M	232.05M
Investing Cash Flow	-144.00K	-254.00K	-3.10M	2.25M	-48.12M	-22.25M
Financing Cash Flow	13.12M	-16.74M	185.37M	2.94M	-148.44M	-21.26M

iRobot Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.55
• 50DMA: Negative
• 100DMA: Positive
• 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 3.55 is below the 20-day moving average (MA) of 4.41, below the 50-day MA of 3.85, and below the 200-day MA of 5.58, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 40.81 is Neutral, neither overbought nor oversold. The STOCH value of 3.95 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	79 Outperform	$16.12B	31.39	26.91%	―	23.48%	109.43%
MBC	78 Outperform	$1.57B	16.54	7.15%	―	4.05%	-47.49%
HBB	66 Neutral	$184.09M	5.81	20.79%	3.40%	-2.09%	-5.04%
Sector *	56 Neutral	HK$25.37B	4.80	-2.69%	5.71%	-0.46%	-53.29%
WHR	50 Neutral	$4.60B	738.81	-5.35%	8.51%	-16.05%	-127.65%
VIOT	49 Neutral	$236.05M	26.78	5.61%	2.42%	-8.42%	―
IRBT	44 Neutral	$111.36M	―	-273.81%	―	-25.36%	13.62%

iRobot Corporate Events

iRobot Faces Revenue Decline Amid Market Challenges

iRobot Corporation announced its second-quarter 2025 financial results, revealing a decline in revenue due to market headwinds and production delays. Despite improvements in gross margin and operating expenses, the company’s cash position weakened, posing challenges to liquidity. The company continues to explore strategic alternatives, including potential sales or refinancing, while suspending its earnings call and financial guidance.

iRobot Extends Credit Agreement Waiver Period

iRobot Corporation has entered into multiple amendments to its Credit Agreement with TCG Senior Funding L.L.C., extending the waiver period for certain covenant obligations until August 14, 2025. This extension allows iRobot to avoid default under its credit agreement, but the company remains dependent on further waivers to maintain compliance, highlighting potential financial instability and operational constraints.

iRobot Elects New Board Members at Annual Meeting

On May 16, 2025, iRobot held its Annual Meeting to vote on several key proposals. Neil Goldman and Julien Mininberg were elected to the board of directors, and PricewaterhouseCoopers LLP was ratified as the company’s independent accountants for 2025. However, several amendments to the company’s certificate of incorporation, including eliminating supermajority voting standards, declassifying the board, allowing stockholders to call special meetings, and limiting officer liability, were not approved. An amendment to increase the maximum number of shares under the 2018 Plan was approved, as was the advisory proposal on executive compensation.