iRobot (IRBT) AI Stock Analysis

• Market Cap: $52.51M
• Dividend Yield: N/A
• Average Volume (3M): 3.88M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.44
• 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: 1,971,919
• 30 Day Avg. Volume: 3,881,677
• 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: 6.09
• 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: $1.50 ▼(-9.09% Downside)

iRobot's overall stock score is primarily impacted by its poor financial performance and concerning valuation metrics. The technical analysis also indicates bearish momentum, further weighing down the score. The absence of earnings call insights and corporate events leaves the financial and technical aspects as the primary drivers of the stock's current outlook.

Positive Factors

Revenue Beat

Exceeding revenue expectations indicates potential resilience in sales strategy and market demand, suggesting possible stabilization in revenue trends.

Subscription Services

Subscription services enhance customer retention and create a steady revenue stream, supporting long-term financial stability and growth.

Strategic Partnerships

Strategic partnerships can drive innovation and expand market presence, providing a competitive edge and supporting long-term growth.

Negative Factors

Declining Revenue

Consistent revenue decline indicates challenges in market demand or competitive positioning, potentially impacting long-term viability.

Negative Profit Margins

Negative profit margins suggest operational inefficiencies and cost management issues, which could hinder sustainable profitability.

Solvency Issues

Negative equity and potential solvency issues threaten financial stability, limiting the company's ability to invest in growth opportunities.

iRobot Business Overview & Revenue Model

Company Description

iRobot Corporation is a global leader in consumer robotics, primarily known for its innovative robotic vacuum cleaners, including the popular Roomba series. Founded in 1990, the company operates in the consumer electronics sector and focuses on smart home technology, offering products that automate household chores and enhance user convenience. In addition to robotic vacuums, iRobot also produces a range of floor mopping devices and has expanded its offerings to include advanced cleaning solutions that incorporate artificial intelligence and connectivity features.

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: 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 Negative. The current price of 1.65 is below the 20-day moving average (MA) of 2.04, below the 50-day MA of 3.26, and below the 200-day MA of 3.70, indicating a bearish trend. The MACD of -0.53 indicates Negative momentum. The RSI at 33.00 is Neutral, neither overbought nor oversold. The STOCH value of 28.11 is Neutral, 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	$13.77B	24.09	27.36%	―	18.87%	58.76%
HBB	68 Neutral	$209.44M	6.67	20.32%	3.27%	-6.24%	24.18%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
VIOT	61 Neutral	$169.21M	6.92	13.16%	2.89%	23.11%	―
MBC	58 Neutral	$1.41B	17.40	6.19%	―	1.77%	-44.11%
WHR	51 Neutral	$4.34B	―	-6.68%	6.85%	-11.36%	-133.01%
IRBT	38 Underperform	$52.51M	―	-338.61%	―	-31.70%	-44.97%

iRobot Corporate Events

iRobot Corporation Faces Revenue Decline in Q3 2025

iRobot Corporation is a global consumer robot company known for designing and building intelligent home innovations, including the popular Roomba robot vacuum, aimed at making life easier and homes healthier. In its latest earnings report for the third quarter of 2025, iRobot Corporation revealed a significant decline in revenue, falling short of internal expectations due to market headwinds, production delays, and shipping disruptions. This has resulted in increased cash usage and pressured profitability.

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.

The most recent analyst rating on (IRBT) stock is a Hold with a $5.50 price target. To see the full list of analyst forecasts on iRobot stock, see the IRBT Stock Forecast page.

iRobot Extends Waiver Period Amid Financial Challenges

iRobot Corporation announced several amendments to its Credit Agreement with TCG Senior Funding L.L.C., extending the waiver period for certain covenant obligations until October 24, 2025. This extension is crucial for iRobot as it faces financial challenges, including doubts about its ability to continue as a going concern, which could lead to default and potential bankruptcy if not resolved. The company is also undergoing a strategic review process to explore potential sales or strategic transactions, but the uncertainty surrounding this process has negatively impacted its stock price and could further affect its operations and financial condition.

The most recent analyst rating on (IRBT) stock is a Hold with a $4.00 price target. To see the full list of analyst forecasts on iRobot stock, see the IRBT Stock Forecast page.