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Pentagon accuses Alibaba, Baidu and BYD, three of China's biggest companies, of supporting the Chinese military

2

Analysts expected oil to surge above $200 but China has quietly kept prices half of that—and can’t for much longer

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Costco CEO Ron Vachris rose from forklift driver to the C-suite without a college degree: ‘Don’t chase a title’ is the career advice that got him there
TechRobots

Roomba creator iRobot was once courted by Amazon for a vacuum revolution. Now, it might go out of business

Irina Ivanova
By
Irina Ivanova
Irina Ivanova
Deputy US News Editor
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Irina Ivanova
By
Irina Ivanova
Irina Ivanova
Deputy US News Editor
Down Arrow Button Icon
March 13, 2025, 6:32 AM ET
After millions of cat rides, Roomba maker iRobot may be closing shop.
After millions of cat rides, Roomba maker iRobot may be closing shop.Getty Images
  • iRobot became synonymous with home robots when it introduced the Roomba vacuum over 20 years ago, eventually selling 50 million models and becoming an acquisition target for Amazon. But the company gave investors a stark warning Wednesday, saying it may go out of business as sales and headcount plummet.  

After dominating the domestic robot category for three decades, Roomba creator iRobot says going out of business is a real possibility.

In its annual earnings report on Wednesday, iRobot said there was “substantial doubt about the Company’s ability to continue as a going concern” and that it was exploring “a broad range” of options, including a potential sale or refinance of its debt. It canceled a planned investor call, scheduled for Wednesday, and declined to give guidance for 2025. 

iRobot adjusted its term loan agreement and hired Canaccord Genuity and BofA Securities as financial advisors for the strategic review.

In the fourth quarter of 2024, iRobot’s revenue plunged by nearly half in the U.S., one-third in Japan and over 40% in Europe, the Middle East and Africa. Sales for the quarter fell to $172 million, down 44% from the year before and below the $180 million Wall Street was expecting. 

iRobot’s stock similarly plunged on the news, closing down 35% on Wednesday. 

iRobot has struggled since the start of last year after a planned acquisition by Amazon fell through. Over the course of 2024, the company slashed its headcount by half, leaving just over 500 employees, cut marketing expenses, and parsed inventory, it said.

“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,” CEO Gary Cohen said in a statement, vowing that the company would “reclaim our position as the industry leader.” 

Started in 1990 as a maker of military robots, iRobot launched its first domestic machine, the disc-shaped Roomba, in 2002. Just two years later, it had sold a million Roombas and inspired a million videos of cats riding vacuums.

About the Author
Irina Ivanova
By Irina IvanovaDeputy US News Editor

Irina Ivanova is the former deputy U.S. news editor at Fortune.

 

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