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iRobot (IRBT)
NASDAQ:IRBT
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iRobot (IRBT) AI Stock Analysis

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iRobot

(NASDAQ:IRBT)

Rating:44Neutral
Price Target:
$4.50
▼(-5.46%Downside)
iRobot's overall stock score is significantly impacted by its poor financial performance, characterized by declining revenues and profitability, along with liquidity challenges. Technical analysis suggests potential short-term recovery, but the negative valuation metrics further reflect the company's ongoing struggles. Corporate events underscore the financial and operational risks facing the company.
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 (IRBT) vs. SPDR S&P 500 ETF (SPY)

iRobot Business Overview & Revenue Model

Company DescriptioniRobot 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 MoneyiRobot 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 Earnings Call Summary

Earnings Call Date:Jul 23, 2025
(Q3-2024)
|
% Change Since: 101.69%|
Next Earnings Date:Nov 11, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture with significant improvements in operational efficiencies and product innovations being offset by missed expectations and challenging market conditions. The company is optimistic about future growth driven by new product launches and restructuring efforts, but current market challenges remain substantial.
Q3-2024 Updates
Positive Updates
Gross Margin Expansion
Expanded gross margin by 590 basis points year-over-year in Q3, reaching 32.4%, up from 26.5% in Q3 2023.
Operating Expense Reduction
Reduced operating expenses by 47% year-over-year, including a 50% reduction in global workforce since the start of 2024.
New Product Launches and Innovations
Launched several new products, including the Roomba Combo 2 Essential and Roomba Vac 2 Essential, which received positive market recognition and are margin accretive.
Restructuring Plan Success
Successfully executed on restructuring plan, cutting operating losses in half for the first three quarters compared to the previous year.
Leadership Transition
Announced a leadership transition with experienced executives taking over key roles, ensuring continuity and stability.
Negative Updates
Missed Expectations
Overall results did not meet expectations set in August due to persistent market segment and competitive headwinds.
Challenging Market Environment
Continued challenging macroeconomic environment for consumers, with specific mention of persistent headwinds impacting Q4 outlook.
Revenue Decline in Key Regions
Revenue declined 20% in Japan and 11% in EMEA, partially offset by a 23% increase in the U.S.
Revised Full Year Guidance
Lowered full-year 2024 revenue guidance to $685 million to $710 million due to ongoing competitive challenges.
Company Guidance
During the iRobot Q3 2024 earnings call, several key metrics and guidance updates were provided. The company reported a year-over-year gross margin expansion of 590 basis points, reaching 32.4% for the quarter, compared to 26.5% in Q3 2023. Operating expenses for the quarter were significantly reduced by 47% year-over-year, totaling $47 million, contributing to an operating income of $15.1 million compared to a loss of $40.6 million in the same quarter last year. However, due to ongoing market challenges, iRobot adjusted its guidance for the full year 2024, expecting revenue to range between $685 million and $710 million, with a gross margin between 25% and 26% and an operating margin of negative 15% to negative 13%. The company emphasized its focus on new product introductions and restructuring efforts, which have led to a 50% reduction in its global workforce and are anticipated to support future profitability and growth in 2025.

iRobot Financial Statement Overview

Summary
iRobot is facing significant financial challenges with declining revenues, increasing losses, and worsening leverage. The negative EBIT, net income, and cash flow issues highlight severe financial instability, necessitating urgent strategic adjustments.
Income Statement
30
Negative
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
25
Negative
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
20
Very Negative
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.
BreakdownDec 2024Dec 2023Dec 2022Mar 2022Mar 2021
Income Statement
Total Revenue681.85M890.58M1.18B1.56B1.43B
Gross Profit142.36M196.20M350.09M550.30M670.23M
EBITDA-101.99M-231.29M-213.81M32.21M181.08M
Net Income-145.52M-304.71M-286.30M30.39M147.07M
Balance Sheet
Total Assets516.14M733.70M835.44M1.18B1.19B
Cash, Cash Equivalents and Short-Term Investments134.30M185.12M117.95M234.50M483.72M
Total Debt227.10M234.33M38.66M43.46M50.48M
Total Liabilities454.90M537.21M359.73M467.71M385.29M
Stockholders Equity61.24M196.49M475.72M716.72M804.43M
Cash Flow
Free Cash Flow-33.34M-117.66M-102.35M-61.90M200.45M
Operating Cash Flow-33.22M-114.79M-90.02M-31.97M232.05M
Investing Cash Flow-254.00K-3.10M2.25M-48.12M-22.25M
Financing Cash Flow-16.74M185.37M2.94M-148.44M-21.26M

iRobot Technical Analysis

Technical Analysis Sentiment
Positive
Last Price4.76
Price Trends
50DMA
3.41
Positive
100DMA
3.44
Positive
200DMA
5.87
Negative
Market Momentum
MACD
0.38
Negative
RSI
65.65
Neutral
STOCH
67.71
Neutral
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 4.76 is above the 20-day moving average (MA) of 3.80, above the 50-day MA of 3.41, and below the 200-day MA of 5.87, indicating a neutral trend. The MACD of 0.38 indicates Negative momentum. The RSI at 65.65 is Neutral, neither overbought nor oversold. The STOCH value of 67.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IRBT.

iRobot Risk Analysis

iRobot disclosed 42 risk factors in its most recent earnings report. iRobot reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

iRobot Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
HBHBB
77
Outperform
$242.11M7.2221.86%2.62%5.46%18.70%
SNSN
74
Outperform
$16.15B36.3624.75%27.33%134.09%
62
Neutral
$16.95B11.10-7.23%3.24%1.71%-24.93%
MBMBC
62
Neutral
$1.43B14.258.02%1.30%-44.70%
WHWHR
56
Neutral
$5.18B690.220.37%7.59%-18.43%-97.97%
49
Neutral
$225.13M26.325.61%
44
Neutral
$139.35M-237.51%-27.44%-2.92%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IRBT
iRobot
4.76
-7.19
-60.17%
WHR
Whirlpool
92.22
-2.19
-2.32%
HBB
Hamilton Beach Brands Holding Company
17.73
-1.72
-8.84%
VIOT
Viomi Technology Co
3.40
2.52
286.36%
MBC
MasterBrand Inc
11.08
-6.20
-35.88%
SN
SharkNinja, Inc.
114.81
43.00
59.88%

iRobot Corporate Events

Private Placements and FinancingRegulatory Filings and Compliance
iRobot Extends Credit Agreement Waiver Period
Negative
Jun 6, 2025

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.

Executive/Board ChangesShareholder Meetings
iRobot Elects New Board Members at Annual Meeting
Neutral
May 20, 2025

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.

Private Placements and FinancingBusiness Operations and StrategyFinancial Disclosures
iRobot Amends Credit Agreement Amid Strategic Review
Negative
May 6, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 15, 2025