KEY TAKEAWAYS
- Shares of iRobot Corp. are plunging Wednesday after the company behind the Roomba robotic vacuum warned about its “ability to continue as a going concern” and started a strategic review.
- The investor selloff came as the company’s loss widened and sales dropped in the fourth quarter.
- iRobot shares have lost more than 60% of their value in the last 12 months.
Shares of iRobot Corp. (IRBT) are plunging around 40% Wednesday after the company behind the Roomba robotic vacuum warned about its “ability to continue as a going concern” and started a strategic review.
The company also scrapped its 2025 outlook and fourth-quarter earnings call.
“As will be noted in iRobot’s Annual Report on Form 10-K for the year ended December 28, 2024 (10-K), there can be no assurance that the new product launches will be successful due to potential factors, including, but not limited to consumer demand, competition, macroeconomic conditions, and tariff policies,” iRobot said Wednesday.
“Given these uncertainties and the implication they may have on the Company’s financials, there is substantial doubt about the Company’s ability to continue as a going concern for a period of at least 12 months from the date of the issuance of its consolidated 2024 financial statements,” the company added.
The investor selloff came as the company’s loss widened and sales dropped in the fourth quarter. The company reported a fourth-quarter adjusted loss per share (EPS) of $2.06, versus the $1.82 loss the same period the previous year. Fourth quarter revenue was $172 million, down from $307.5 million the same period last year. Both numbers were above estimates.
iRobot shares have lost more than 60% of their value in the last 12 months.
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