Irobot’s Revenue Has Tanked And It’s Almost Out Of Cash

Things proceed to look bleak for nan original robot vacuum maker. iRobot’s third-quarter results, released past week, show that gross is down and “well beneath our soul expectations owed to continuing marketplace headwinds, ongoing accumulation delays, and unforeseen shipping disruptions,” said Gary Cohen, iRobot CEO, successful a press release.

This meant they had to walk much rate and are now down to nether $25 million. “At this time, nan Company has nary sources upon which it tin tie for further capital,” said Cohen.

The Roomba shaper has been struggling for respective years successful nan look of accrued title from Chinese manufacturers. A sale to Amazon successful 2022 looked to beryllium its lifeline; however, regulatory scrutiny scuppered nan deal, and nan institution was left successful further turmoil. It laid disconnected complete 30 percent of its staff, mislaid its laminitis and CEO, Colin Angle, and was near pinch substantial debt arsenic a consequence of nan fallout.

This year, iRobot launched an entirely caller statement of robot vacuums, ostensibly to amended compete pinch companies for illustration Roborock, Ecovacs, and Dreame, adding lidar navigation to its statement for nan first clip (over VSLAM). The caller models look importantly different from nan original Roombas and much for illustration their competitors. They besides usage a different app pinch less features, but added immoderate caller hardware features nan erstwhile models lacked, including spinning mop pads and a roller mop.

No robot?

In a regulatory filing earlier this month, nan institution warned it may beryllium forced to activity bankruptcy protection following nan breakdown of precocious negotiations pinch a imaginable buyer, and if it couldn’t unafraid further funding.

Roomba customers are understandably concerned astir nan effect these existent financial troubles mightiness person connected their location cleaning robots.

The Verge reached retired to iRobot to inquire what would hap to nan robots should nan institution spell retired of business and received nan pursuing consequence from Michèle Szynal, elder head of firm communications astatine iRobot:

“Consistent pinch our policy, we do not remark connected matters of this quality beyond our nationalist disclosures. As disclosed successful our Form 8-K filed pinch nan SEC, we person reached an statement pinch our superior lender to widen our covenant waiver nether our indebtedness statement done December 1, 2025, successful bid to proceed our progressive and ongoing reappraisal of strategical alternatives, including, but not constricted to, exploring a imaginable waste or strategic transaction and refinancing our debt. As we caput into nan vacation season, we stay focused connected executing our strategy and delivering for our weighted customers, partners, and consumers.“

The institution confirmed that day-to-day operations are continuing arsenic earlier and location person been nary changes to immoderate products aliases support offerings.

Earlier this month, chap American robot vacuum shaper Neato, which shut down successful 2023, pulled nan plug connected its unreality services, leaving its robots unable to pass pinch nan Neato app. However, nan vacuums tin still beryllium controlled manually.

Similarly, if iRobot goes retired of business and its unreality shuts down, astir Roombas should still proceed to activity successful offline mode — pressing nan beingness fastener connected nan robot to start, stop, and dock it. However, they apt wouldn’t beryllium controllable via nan app for features for illustration scheduling aliases circumstantial room cleaning, aliases via sound commands. This imaginable dilemma conscionable further highlights that cloud-connected devices should beryllium enhanced by connectivity, not reliant connected it.