Shares of iRobot Corp. (NASDAQ: IRBT) took a steep 36% dive on Wednesday following a worrisome announcement from the Roomba robotic vacuum maker. The company expressed “substantial doubt” about its ability to continue as a going concern for at least 12 months after its 2024 financial statements were released. The news sent investors rushing to sell off their holdings.
In response to the uncertainty, iRobot scrapped its 2025 financial outlook and canceled its planned fourth-quarter earnings call. The company pointed to several risks tied to its upcoming product launches, including unpredictable consumer demand, growing competition, challenging macroeconomic conditions, and shifting tariff policies. These concerns will be detailed in its Annual Report on Form 10-K for the year ended December 28, 2024.
Q4 Results Show Bigger Losses
The selloff came as iRobot (NASDAQ: IRBT) reported its fourth-quarter results, which revealed financial strain. The company recorded an adjusted loss per share (EPS) of $2.06, compared to a $1.82 loss in the same quarter the previous year. Revenue also declined, falling to $172 million from $307.5 million a year ago. Despite the downturn, both the loss and revenue figures beat Wall Street estimates.
The stock has been on a downward spiral, losing more than 60% of its value over the last 12 months. iRobot’s market capitalization is now valued at $124.07 million.
Board Welcomes New Independent Director
In a separate development, iRobot Corp. (NASDAQ: IRBT) announced the appointment of Neal P. Goldman as an independent director, effective immediately. His addition expands the board to nine members, with eight serving independently. Goldman brings expertise in strategic planning, financial management, and corporate turnaround consulting—skills that could aid the struggling company.
Goldman is the CEO of SAGE Capital Investments, LLC, and Chairman of the Board at Talos Energy. He previously held senior roles at Och Ziff Capital Management and co-founded Brigade Capital Management. His expertise could prove valuable, as InvestingPro data shows iRobot grappling with a negative EBITDA of $105 million and a 13% revenue decline over the last twelve months.
