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iRobot Reports Second-Quarter 2025 Financial Results
iRobotiRobot(US:IRBT) Prnewswire·2025-08-07 11:30

Core Insights - iRobot Corp reported disappointing second quarter results for 2025, with revenue of $127.6 million, a decline of 23.3% from $166.4 million in Q2 2024, attributed to market challenges and production delays [3][11] - The company achieved a GAAP gross margin of 30.0%, significantly improved from 16.5% in the previous year, indicating progress in cost management despite revenue decline [3][11] - iRobot's cash position decreased to $40.6 million from $69.9 million in the previous quarter, raising concerns about liquidity as the company continues to support new product launches [2][11] Financial Performance - Revenue for Q2 2025 was $127.6 million, down from $166.4 million in Q2 2024, with notable declines in the U.S. (33%) and EMEA (17%), while Japan saw a 6% increase [3][11] - GAAP operating loss improved to $36.7 million from $61.1 million year-over-year, and non-GAAP operating loss decreased to $27.0 million from $48.2 million [3][11] - Net loss per share was $0.68, a significant improvement from $2.41 in Q2 2024, reflecting better operational efficiency [3][11] Strategic Initiatives - The Board of Directors is reviewing strategic alternatives, including potential sales or refinancing options, with no set timetable for completion [8][9] - iRobot is actively engaging with its primary lender to amend existing loan terms, extending the covenant waiver to September 19, 2025 [10][11] - The company launched a new marketing campaign and introduced the Roomba Max 705 Combo Robot, aiming to enhance product visibility and consumer engagement [11][12] Operational Highlights - As of June 28, 2025, iRobot's inventory was $88.2 million, a 13% reduction from the previous year, indicating improved inventory management [11] - The company shipped 516 robot units in Q2 2025, a decrease from 574 units in Q2 2024, reflecting the impact of market conditions on sales [18][19] - iRobot's products were featured prominently during Amazon's Prime Day, ranking as the top-selling robot vacuum cleaners [11][12]