iRobot (IRBT) AI Stock Analysis

• Market Cap: $106.34M
• Dividend Yield: N/A
• Average Volume (3M): 1.63M
• 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: 80
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): -0.27
• Shares Outstanding: 31,367,897
• 10 Day Avg. Volume: 1,306,662
• 30 Day Avg. Volume: 1,626,984
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 2.43
• Enterprise Value/Revenue: 0.43
• Enterprise Value/Gross Profit: 1.85
• Enterprise Value/Ebitda: -1.69
• 1Y Price Target: $3.00
• Price Target Upside: -8.26% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 40 Underperform
• Price Target: $3.00 ▼(-8.26% Downside)

iRobot's overall stock score is heavily impacted by its poor financial performance, characterized by declining revenues, negative profitability, and high leverage. Technical analysis indicates weak momentum, while valuation metrics reflect high risk and limited appeal. The absence of an earnings call and negative corporate events further underscore the company's challenges.

Positive Factors

Financial Performance

Q2 gross margin was better than expected, which should result in smaller losses than previously modeled.

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 in 2025.

Negative Factors

Credit Agreement

IRBT further amended its credit agreement to extend the waiver period for its covenants.

Financial Position

IRBT has entered the important second half season hamstrung by a weakened financial position and uncertain market dynamics.

Revenues Decline

Revenues declined 23% year-over-year, reflecting ongoing market challenges and delays in ramping production of new products.

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 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	595.24M	681.85M	890.58M	1.18B	1.56B	1.43B
Gross Profit	139.54M	142.36M	196.20M	350.09M	550.30M	670.23M
EBITDA	-152.84M	-101.99M	-231.29M	-213.81M	32.21M	181.08M
Net Income	-193.56M	-145.52M	-304.71M	-286.30M	30.39M	147.07M
Balance Sheet
Total Assets	480.32M	516.14M	733.70M	835.44M	1.18B	1.19B
Cash, Cash Equivalents and Short-Term Investments	76.57M	134.30M	185.12M	117.95M	234.50M	483.72M
Total Debt	226.88M	227.10M	234.33M	38.66M	43.46M	50.48M
Total Liabilities	488.01M	454.90M	537.21M	359.73M	467.71M	385.29M
Stockholders Equity	-7.69M	61.24M	196.49M	475.72M	716.72M	804.43M
Cash Flow
Free Cash Flow	-69.61M	-33.34M	-117.66M	-102.35M	-61.90M	200.45M
Operating Cash Flow	-69.61M	-33.22M	-114.79M	-90.02M	-31.97M	232.05M
Investing Cash Flow	-104.00K	-254.00K	-3.10M	2.25M	-48.12M	-22.25M
Financing Cash Flow	-3.05M	-16.74M	185.37M	2.94M	-148.44M	-21.26M

iRobot Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.27
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 3.27 is below the 20-day moving average (MA) of 3.60, below the 50-day MA of 3.87, and below the 200-day MA of 5.21, indicating a bearish trend. The MACD of -0.16 indicates Positive momentum. The RSI at 40.69 is Neutral, neither overbought nor oversold. The STOCH value of 36.18 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	78 Outperform	$16.51B	31.97	26.91%	―	23.48%	109.43%
MBC	74 Outperform	$1.68B	17.60	7.15%	―	4.05%	-47.49%
HBB	68 Neutral	$198.65M	6.42	20.79%	3.11%	-2.09%	-5.04%
Sector *	61 Neutral	$17.87B	13.25	-4.88%	3.05%	1.25%	-14.67%
WHR	49 Neutral	$5.21B	738.81	-5.35%	6.79%	-16.05%	-127.65%
VIOT	49 Neutral	$238.78M	27.09	5.61%	2.70%	-8.42%	―
IRBT	40 Underperform	$106.34M	―	-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.