Roomba vacuum cleaner maker iRobot, a former $1.4 billion buyout goal of Amazon, raised considerations on Wednesday about its skill to remain in enterprise.
Shares of the corporate fell greater than 35%, extending a multi-year decline from its pandemic-era peak.
“Given macroeconomic and tariff-related uncertainties, there is substantial doubt about iRobot’s ability to continue as a going concern,” iRobot stated in a press release.
The loss-making firm was as soon as valued at $3.56 billion in 2021, pushed by pandemic-fueled demand. It’s now value lower than $200 million.
The corporate’s web loss for the fourth quarter ended December 28, 2024, widened to $77.1 million from $63.6 million a yr earlier. Its income declined by 44% within the fourth quarter.
The corporate’s money reserves dwindled to $134.3 million in 2024, in comparison with $185.1 million in 2023. The debt stood at $200.6 million as of December 28, 2024, its annual submitting confirmed.
The vacuum cleaner maker is having a tough time maintaining with Chinese language rivals corresponding to Ecovacs Robotics, which provide superior options at decrease costs.
The corporate stated it was exploring choices, together with a possible sale or debt refinancing, only a day after it launched eight new Roomba fashions in its greatest product rollout.
In August 2022, iRobot had agreed to a $61-per-share takeover by Amazon, a deal some analysts seen as a lifeline for the corporate and a possible enhancement for Amazon’s good dwelling division.
Nevertheless, robust antitrust objections to the merger and privateness considerations over the spatial knowledge collected by the units led to the deal’s collapse in January final yr.
With the takeover scrapped, founder Colin Angle stepped down as CEO in January final yr, suggesting {that a} chief with turnaround experience would possibly higher serve the corporate.
In Might final yr, the corporate appointed Gary Cohen as CEO to go its restoration efforts.
