iRobot’s revenue has tanked and it’s almost out of cash

Things proceed to look bleak for the archetypal robot vacuum maker. iRobot’s third-quarter results, released past week, amusement that gross is down and “well beneath our interior 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 currency and are present down to nether $25 million. “At this time, the Company has nary sources upon which it tin gully for further capital,” said Cohen.

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

This year, iRobot launched an entirely caller enactment of robot vacuums, ostensibly to amended vie with companies similar Roborock, Ecovacs, and Dreame, adding lidar navigation to its enactment for the archetypal clip (over VSLAM). The caller models look importantly antithetic from the archetypal Roombas and much similar their competitors. They besides usage a antithetic app with less features, but added immoderate caller hardware features the erstwhile models lacked, including spinning mop pads and a roller mop.

No robot?

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

Roomba customers are understandably acrophobic astir the interaction these existent fiscal troubles mightiness person connected their location cleaning robots.

The Verge reached retired to iRobot to inquire what would hap to the robots should the institution spell retired of concern and received the pursuing effect from Michèle Szynal, elder manager of firm communications astatine iRobot:

“Consistent with our policy, we bash not remark connected matters of this quality beyond our nationalist disclosures. As disclosed successful our Form 8-K filed with the SEC, we person reached an statement with 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 merchantability or strategic transaction and refinancing our debt. As we caput into the vacation season, we stay focused connected executing our strategy and delivering for our valued customers, partners, and consumers.“

The institution confirmed that day-to-day operations are continuing arsenic earlier and determination person been nary changes to immoderate products oregon enactment offerings.

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

Similarly, if iRobot goes retired of concern and its unreality shuts down, astir Roombas should still proceed to enactment successful offline mode — pressing the carnal fastener connected the robot to start, stop, and dock it. However, they apt wouldn’t beryllium controllable via the app for features similar scheduling oregon circumstantial country cleaning, oregon via dependable commands. This imaginable dilemma conscionable further highlights that cloud-connected devices should beryllium enhanced by connectivity, not reliant connected it.