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Massachusetts-based iRobot said in its fourth-quarter and full-year 2024 financial results on Wednesday that there is “substantial doubt” concerning the company’s “ability to continue” after profits fell 44% in the fourth quarter compared to a year earlier.
“iRobot has defined the robotic floorcare category for more than 30 years, and we remain committed to growing and evolving our business across smart home categories amidst a dynamic operating landscape, said Gary Cohen, iRobot CEO in a release. “As we move ahead, we will continue to take decisive action to reclaim our position as the industry leader and build on iRobot’s strong foundation centered around our globally recognized, iconic brand, Roomba.”
The maker of the popular Roomba robot vacuum said that the board is considering a “strategic review of alternatives for the business” due to the company’s failed planned merger with Amazon last year.
That acquisition, which was set to cost $1.7 billion, fell through due to a threat from European Union regulators to block the deal.
Still, iRobot revealed the largest product launch in the company’s 30-year history Tuesday with eight new Roombas, though, in the note, the company said it isn’t counting on success due to several “factors” including, “consumer demand, competition, macroeconomic conditions, and tariff policies.”
The company’s CEO, however, remains more positive.
“Yesterday, we announced the largest product launch in iRobot’s history, better positioning iRobot as the leader in the category that we created,” Cohen said. “Importantly, this strong pipeline of breakthrough new products is expected to be margin-accretive compared to our legacy products and should begin to support year-over-year revenue growth in 2025.”
In the last year, iRobot has reduced its headcount by 50%.
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