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BEDFORD, Mass. -On Wednesday, iRobot Corp . (NASDAQ:IRBT) reported disappointing fourth quarter results, with revenue falling sharply year-over-year and missing analyst estimates.
The robotics company’s shares tumbled -17.59% in premarker trading following the release.
iRobot posted Q4 revenue of $172 million, down 44% from $307.5 million in the same quarter last year and well below Wall Street expectations. The company attributed the revenue decline to higher promotional spending, timing of orders from its largest customer, and ongoing competitive challenges.
Adjusted loss per share came in at $2.06, compared to a loss of $1.82 per share in Q4 2023.
"2024 was a transformational year for iRobot, marked by the continued and successful execution of our five-point iRobot Elevate turnaround strategy as we’ve meaningfully reduced operating losses, improved gross margins and optimized cash flow," said Gary Cohen, iRobot CEO.
However, the company warned in its 10-K filing that there is "substantial doubt" about its ability to continue as a going concern for the next 12 months, citing uncertainties around new product launches and other factors.
iRobot’s board of directors has initiated a strategic review to evaluate alternatives, including refinancing debt or exploring a potential sale. The company said it remains focused on executing its business strategy during this process.
For the full year 2024, iRobot reported revenue of $681.8 million, down 23.4% from $890.6 million in 2023. The company’s cash and cash equivalents totaled $134.3 million at year-end.
iRobot plans to launch its largest product lineup in company history later this month, which it expects to be margin-accretive compared to legacy products. However, the company is not providing a 2025 outlook at this time given the ongoing strategic review.
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