iRobot Corp. reported a revenue decline for the first quarter of 2025 as the company continued its operational restructuring and initiated a major product refresh. The company posted first-quarter revenue of $101.6 million, down from $150 million in the same period in 2024, representing a 32.3% year-over-year decrease.
iRobot attributed the decline to efforts to clear legacy product inventory ahead of the launch of its new Roomba models and 2-in-1 vacuum and mop devices. The company also cited macroeconomic pressures and competitive challenges as contributing factors. U.S. revenue dropped 39.9%, while revenue from the EMEA region fell 26.9%. In Japan, revenue was down 20.8% year-over-year; excluding currency effects, the decline in Japan was 10%.
The company reported a GAAP net loss of $87.3 million, or $2.84 per share, compared with net income of $8.6 million, or $0.30 per share, in the first quarter of 2024. The 2024 results included a one-time $75 million termination fee related to the cancellation of its merger agreement with Amazon. On a non-GAAP basis, the net loss widened to $60 million, or $1.95 per share, from $43 million, or $1.53 per share, in the prior-year period.
Gross margin on a GAAP basis declined to 20.0% from 24.1%, while non-GAAP gross margin decreased to 22.0% from 24.6%. Operating expenses were $66.1 million on a GAAP basis, compared with $24.2 million a year earlier. However, non-GAAP operating expenses fell to $53.8 million from $76.9 million, reflecting cost-cutting measures under the company’s ongoing “iRobot Elevate” turnaround strategy.
CEO Gary Cohen stated that the company has overhauled its R&D and supply chain model to reduce production costs and improve innovation. Most U.S.-bound imports now originate from Vietnam and are subject to a 10% tariff rate.
iRobot began rolling out its new product lineup in late March, with launches in North America, Europe, and Japan. The company highlighted extensive media coverage during these launches but did not specify sales figures. Revenue from mid- and premium-tier robots accounted for 76% of total robot sales, compared with 81% in the same period last year.
As of March 29, 2025, iRobot reported $112.3 million in cash and equivalents, down from $138 million at the end of Q4 2024. Inventory levels declined to $69 million from $76 million over the same period.
The company’s Board of Directors is continuing a review of strategic alternatives, including a potential sale or refinancing of its debt. The company extended the waiver on its term loan covenants to June 6, 2025, and remains in discussions with its primary lender. No timetable has been set for the conclusion of the strategic review. In line with this process, iRobot did not provide a 2025 financial outlook and did not host a quarterly earnings call.
