iRobot (IRBT) AI Stock Analysis

• Market Cap: $122.87M
• Dividend Yield: N/A
• Average Volume (3M): 2.38M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.65
• Revenue Growth: -27.44%
• EPS Growth: -2.92%
• Country: US
• Employees: 1,372
• Sector: Consumer Cyclical
• Sector Strength: 64
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): -1.95
• Shares Outstanding: 31,105,480
• 10 Day Avg. Volume: 1,917,202
• 30 Day Avg. Volume: 2,377,607
• PEG Ratio: <0.01
• Price to Book (P/B): -187.14
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -2.46
• Enterprise Value/Market Cap: 2.68
• Enterprise Value/Revenue: 0.11
• Enterprise Value/Gross Profit: 2.60
• Enterprise Value/Ebitda: -0.72
• 1Y Price Target: $3.50
• Price Target Upside: -11.39% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 44 Neutral
• Price Target: $3.50 ▼(-11.39%Downside)

iRobot's overall score is significantly impacted by its poor financial performance and negative valuation metrics. While there is some short-term technical momentum, the long-term outlook remains concerning due to the company's heavy reliance on waivers and strategic adjustments to address financial instability.

Positive Factors

Product Launch

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

Strategic Initiatives

The company's strategic initiatives are gaining traction.

Negative Factors

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.

Market Competition

There are concerns about competition impacting iRobot's market share.

Supply Chain

Supply chain disruptions are a challenge for iRobot Corporation.

iRobot Business Overview & Revenue Model

Company Description

iRobot Corporation (IRBT) is a leading global consumer robot company that designs and builds robots for home cleaning applications. Headquartered in Bedford, Massachusetts, iRobot is renowned for its flagship product, the Roomba robotic vacuum cleaner, which has become synonymous with automated home cleaning. The company also offers other home robots, such as the Braava line of robot mops, and is continuously innovating in the smart home space to enhance the ease and efficiency of household chores.

How the Company Makes Money

iRobot generates revenue primarily through the sale of its consumer robots, particularly the Roomba and Braava product lines, which are sold globally through various channels, including direct-to-consumer via its website, online retail partners, and traditional brick-and-mortar stores. The company also offers accessories and replacement parts, which contribute to its revenue stream. Additionally, iRobot has ventured into smart home technology, developing advanced features for its robots, such as app control and voice assistant integrations, which can drive customer engagement and sales. The company may also explore partnerships and collaborations with other technology firms to enhance its product offerings and market reach.

iRobot Financial Statement Overview

Summary

iRobot is facing serious financial challenges, including declining revenue, negative EBIT and net income, negative stockholders' equity, high leverage, and negative cash flows. These factors indicate significant financial instability and operational inefficiency.

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	Mar 2022	Mar 2021
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: Positive
• Last Price: 3.95
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IRBT, the sentiment is Positive. The current price of 3.95 is above the 20-day moving average (MA) of 3.45, above the 50-day MA of 3.19, and below the 200-day MA of 5.96, indicating a neutral trend. The MACD of 0.27 indicates Negative momentum. The RSI at 70.78 is Negative, neither overbought nor oversold. The STOCH value of 84.08 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IRBT.

iRobot Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SN	74 Outperform	$15.58B	35.15	24.75%	―	27.33%	134.09%
HBB	73 Outperform	$266.62M	7.95	21.86%	2.46%	5.46%	18.70%
MBC	69 Neutral	$1.49B	15.16	8.02%	―	1.30%	-44.70%
WHR	59 Neutral	$6.03B	803.70	0.37%	6.45%	-18.43%	-97.97%
Sector *	57 Neutral	HK$24.53B	3.90	-2.03%	6.19%	-0.31%	-67.70%
VIOT	49 Neutral	$197.84M	25.46	5.61%	―	―	―
IRBT	44 Neutral	$122.87M	―	-237.51%	―	-27.44%	-2.92%

iRobot Corporate Events

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.

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.