iRobot, the company behind the Roomba vacuum, is circling the drain. Once a $3.56 billion pandemic-era darling, it’s now clinging to a valuation under $200 million. Investors are jumping ship, with shares plunging more than 35% as the company warns it may not survive.
Blame a brutal mix of economic uncertainty, trade tariffs, and relentless competition from cheaper Chinese rivals. iRobot’s fourth-quarter losses ballooned to $77.1 million, up from $63.6 million the year before. Revenue nosedived 44%, proving that even robot vacuums can’t clean up this kind of mess.
Amazon once had a $1.4 billion deal to buy iRobot, but regulators killed it over antitrust concerns. Now, the company is scrambling for options—talks of a sale, refinancing, or even a last-ditch restructuring. Meanwhile, its debt has climbed to $200.6 million, outpacing its dwindling cash reserves.
Despite its financial freefall, iRobot just launched eight new Roomba models in its biggest rollout yet. Bold move, but will it save them? Investors don’t seem convinced.
The competition is fierce, with Chinese brands like Ecovacs Robotics offering smarter, cheaper alternatives. Consumers are making the switch, leaving iRobot struggling to justify its premium price tag. If the company doesn’t turn things around fast, the Roomba might sweep itself right into history.
Five Fast Facts
- iRobot was founded by MIT roboticists in 1990 and originally built robots for the military.
- The Roomba was launched in 2002 and sold over a million units in its first two years.
- Amazon’s failed attempt to buy iRobot would have been one of its biggest acquisitions in recent years.
- Chinese brand Ecovacs, one of iRobot’s main competitors, started as a window-cleaning robot company.
- Roombas map users’ homes using sensors, leading to privacy concerns about potential data collection.
