The manufacturer of household robots, iRobot, has warned investors of significant financial difficulties and announced the initiation of a strategic review of the company. The background is a sharp increase in losses and a significant decline in revenue in the fourth quarter. To cut costs, the company has already implemented job cuts.

The stock plunged 36 percent to $4.02 in pre-market trading. Prior to the announcement, the price had fallen 19 percent since the start of the year.

For the fourth quarter, iRobot reported a net loss of $77.1 million ($2.52 per share), after a loss of $63.6 million ($2.28 per share) the previous year. Adjusted for one-time effects, the loss per share was $2.06, exceeding the analysts' expected $1.73 per share.

Revenue fell by 44 percent to 172 million USD, below Wall Street forecasts of 180.8 million USD. The decline was particularly strong in the USA (-47%), followed by Europe, the Middle East, and Africa (-44%), as well as Japan (-34%).

The company had last projected an adjusted loss of $1.20 to $1.50 per share and revenue of $171 million. iRobot did not provide an annual forecast for 2025. Success of new product launches cannot be guaranteed—among other reasons due to uncertain consumer demand, high competition intensity, macroeconomic factors, and changed tariff policies.

Given these uncertainties and their potential impact on the financial situation, there are significant doubts about the company's ability to continue its operations over the next twelve months," iRobot stated in a mandatory report.

The company is currently in talks with its main lender while the board is reviewing strategic alternatives. For this review, the company has engaged the investment banks Canaccord Genuity and BofA Securities as advisors. A timeline for the completion of this process has not been specified.

Since January 2024, when Amazon withdrew its planned $1.7 billion takeover bid, iRobot has cut more than 50 jobs.