iRobot(IRBT) - 2025 Q3 - Quarterly Results

Financial Performance - Q3 2025 revenue was $145.8 million, a decline of 33% compared to $193.4 million in Q3 2024[2] - GAAP net loss per share for Q3 2025 was ($0.62), compared to ($0.21) in Q3 2024[2] - For the nine months ended September 27, 2025, iRobot Corporation reported a net loss of $131.6 million, compared to a net loss of $68.4 million for the same period in 2024, representing an increase in losses of approximately 92.5%[16] - Total revenue for the nine months ended September 27, 2025, was $375.0 million, down 26.3% from $509.8 million in the same period of 2024[18] - GAAP Net Loss for the three months ended September 27, 2025, was $21,526 million, compared to a loss of $6,371 million for the same period in 2024, representing a significant increase in losses[33] - Non-GAAP Net Loss for the three months ended September 27, 2025, was $8,026 million, while it was a profit of $1,046 million in the same period of 2024, indicating a substantial decline in performance[33] Cash and Liquidity - Cash and cash equivalents decreased to $24.8 million as of September 27, 2025, down from $40.6 million as of June 28, 2025[4] - The company has no sources for additional capital as of September 27, 2025[4] - Cash, cash equivalents, and restricted cash at the end of the period were $31.8 million, a significant decrease from $141.9 million at the end of the same period in 2024[16] Operating Expenses - Total operating expenses for Q3 2025 were $62.9 million, an increase from $55.1 million in Q3 2024[2] - The company reported a GAAP operating loss of $17.7 million in Q3 2025, compared to an operating income of $7.3 million in Q3 2024[2] - iRobot's operating expenses for the nine months ended September 27, 2025, were $204.0 million, up from $167.9 million in the same period of 2024, representing an increase of 21.5%[31] Sales and Revenue Breakdown - Revenue from mid-tier and premium robots represented 74% of total robot sales in Q3 2025, down from 79% in the same period last year[5] - Revenue in the U.S. declined by 33%, EMEA by 13%, and Japan by 9% year-over-year[4] - Revenue from the United States for the nine months ended September 27, 2025, was $168.7 million, a decrease of 34.7% compared to $258.4 million in the prior year[18] - The average gross selling price for robot units was $311 for the nine months ended September 27, 2025, compared to $329 in the same period of 2024, indicating a decrease of approximately 5.5%[18] - iRobot shipped a total of 1,481 robot units in the nine months ended September 27, 2025, down 16.0% from 1,762 units in the same period of 2024[18] Inventory and Management - Inventory as of September 27, 2025, totaled $140.9 million, compared to $149.2 million in Q3 2024[4] - GAAP Days in Inventory increased to 128 days for the three months ended September 27, 2025, compared to 104 days in the same period of 2024, suggesting potential inventory management issues[33] - Non-GAAP Days in Inventory also remained at 128 days for the three months ended September 27, 2025, consistent with GAAP figures[33] Profitability Metrics - The company reported a GAAP gross margin of 27.7% for the nine months ended September 27, 2025, compared to 24.7% for the same period in 2024, reflecting an improvement of 3.0 percentage points[31] - Non-GAAP gross profit for the nine months ended September 27, 2025, was $106.3 million, compared to $127.4 million in the same period of 2024, a decrease of 16.6%[31] - Stock-based compensation expenses of $12.9 million for the nine months ended September 27, 2025, compared to $17.9 million in the same period of 2024[31] - Stock-based compensation for the three months ended September 27, 2025, was $3,854 million, down from $5,480 million in the same period of 2024[33] - Non-GAAP Net Loss Income Per Diluted Share for the three months ended September 27, 2025, was $(0.23), compared to $0.03 for the same period in 2024, reflecting a decline in profitability[33] Strategic Investments - The company reported a loss on strategic investments of $1,960 million for the three months ended September 27, 2025, with no losses reported in the same period of 2024[33] Shareholder Metrics - The number of shares used in diluted per share calculation increased to 34,866 million for the three months ended September 27, 2025, from 30,551 million in the same period of 2024[33] - Days Sales Outstanding decreased to 36 days for the three months ended September 27, 2025, compared to 48 days in the same period of 2024, indicating improved collection efficiency[33]