Roomba-Maker iRobot's Shares Plunged Over 80% In Monday Pre-Market: What's Going On? - iRobot (NASDAQ:IRBT)

Company Overview - iRobot Corp. has filed for Chapter 11 bankruptcy protection after 35 years in business, with its stock plummeting 83.42% in pre-market trading [1][2] - The company will be acquired by Shenzhen PICEA, which will enable iRobot to sustain its operations and fulfill financial obligations [2][3] Financial Performance - iRobot's revenue fell nearly 25% in Q3 2025, with mid-tier and premium robots accounting for 74% of sales, down from 79% the previous year [3] - Cash and cash equivalents decreased to $24.8 million as of September 27, 2025, from $40.6 million in late June [3] Market Challenges - CEO Gary Cohen indicated that revenue missed expectations due to market headwinds, production delays, and shipping disruptions, which increased cash usage and pressured profitability [4] - The company's shares dropped over a third in October after the last potential buyer withdrew from negotiations due to iRobot's financial conditions [5] Industry Context - Despite iRobot's challenges, the robotics industry has been gaining traction, with stocks like Serve Robotics Inc. and Richtech Robotics Inc. experiencing a rally following reports of government plans to boost the industry [6]