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iRobot (IRBT)
NASDAQ:IRBT
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iRobot
(NASDAQ:IRBT)
44Neutral
Positive Factors
Cost Management
Margins and EPS were better-than-expected, benefiting from aggressive costs actions taken in recent quarters, as well as a $13.5MM benefit from a favorable IP settlement.
Financial Performance
IRBT managed to show a 4% year-over-year revenue increase, the first quarterly year-over-year growth in three years.
Product Development
IRBT enters 2025 with a refreshed product offering, having announced a suite of new Roomba products.
Negative Factors
Competitive Environment
There are concerns about competition impacting iRobot's market share.
Market Confidence
The multi-point recovery plan comes at a time of flagging consumer confidence, as concerns intensify about the macro environment and tariffs and trade policies.
Revenue Performance
Q3 revenues were 11% below the low end of guidance and well below consensus for 17% growth.
iRobot (IRBT) vs. S&P 500 (SPY)
Market Cap
$102.30M
Dividend YieldN/A
Average Volume (3M)2.73M
Price to Earnings (P/E)―
Beta (1Y)1.24
Revenue Growth-23.06%
EPS Growth56.09%
CountryUS
Employees1,113
SectorConsumer Cyclical
Sector Strength51
IndustryHome and Homeware
Share Statistics
EPS (TTM)-4.84
Shares Outstanding30,628,586
10 Day Avg. Volume4,702,493
30 Day Avg. Volume2,733,966
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.15
Price to Cash Flow (P/CF)-9.20
P/FCF Ratio10.10
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusHold
Number of Analyst Covering1
iRobot Business Overview & Revenue Model
Company DescriptioniRobot Corporation is a leading global consumer robot company that designs and builds innovative robots for home cleaning and automation. Founded in 1990 and headquartered in Bedford, Massachusetts, iRobot is best known for its Roomba robot vacuum cleaners and Braava robot mops. The company operates within the consumer electronics sector and focuses on creating smart home devices that simplify household chores and improve the quality of life for its users.
How the Company Makes MoneyiRobot makes money primarily through the sale of its robotic vacuum cleaners, mops, and related accessories. The company's revenue model is based on the direct sale of its products to consumers via its online platform, as well as through partnerships with major retailers and distributors worldwide. iRobot also generates income from service plans and extended warranties, providing customers with additional support and maintenance options. Furthermore, the company invests in research and development to enhance its product offerings, leveraging advancements in artificial intelligence and machine learning to maintain its competitive edge in the market. Strategic partnerships and collaborations with other technology firms may also contribute to its earnings by expanding its product ecosystem and improving functionality.
iRobot Financial Statement Overview
Summary
iRobot faces significant financial challenges, with declining revenues and persistent losses. Negative profitability margins and a weakened equity position are concerning, though reduced debt levels and stable liquidity provide some cushion.Income Statement
The income statement reveals a concerning trend with declining revenue and profitability. The revenue has significantly dropped from $1.56 billion in 2022 to $681.85 million in 2024. The company has been operating at a loss, with a negative net profit margin and declining gross profit margin. EBIT and EBITDA margins are also negative, indicating operational challenges and inefficiencies.40
Negative
Balance Sheet
The balance sheet indicates a declining equity position, with stockholders' equity decreasing from $716.72 million in 2022 to $61.24 million in 2024. However, the company has managed to reduce its total debt significantly, improving its debt-to-equity ratio. The equity ratio has weakened, reflecting the reduction in equity. The company maintains a stable cash position, which offers some liquidity cushion.55
Neutral
Cash Flow
Cash flows present a mixed picture. Operating cash flow has improved slightly but remains negative, indicating ongoing cash burn issues. Free cash flow has also shown improvement but is still in the negative territory. The company has managed to reduce its capital expenditures, which helps mitigate cash outflows. The operating cash flow to net income ratio remains unfavorable, highlighting the challenge of generating cash from operations.50
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 681.85M | 890.58M | 1.18B | 1.56B | 1.43B | Gross Profit |
| 142.36M | 196.20M | 350.09M | 550.30M | 670.23M | EBIT |
| -106.82M | -264.08M | -240.38M | -1.10M | 146.32M | EBITDA |
| -52.56M | -231.29M | -213.81M | 32.21M | 181.08M | Net Income Common Stockholders |
| -145.52M | -304.71M | -286.30M | 30.39M | 147.07M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 134.30M | 185.12M | 117.95M | 234.50M | 483.72M | Total Assets |
| 516.14M | 733.70M | 835.44M | 1.18B | 1.19B | Total Debt |
| 21.60M | 234.33M | 38.66M | 43.46M | 50.48M | Net Debt |
| -112.70M | 49.20M | -79.29M | -158.00M | -382.15M | Total Liabilities |
| 454.90M | 537.21M | 359.73M | 467.71M | 385.29M | Stockholders Equity |
| 61.24M | 196.49M | 475.72M | 716.72M | 804.43M |
| Cash Flow | Free Cash Flow | |||
| -33.34M | -117.66M | -102.35M | -61.90M | 200.45M | Operating Cash Flow |
| -33.22M | -114.79M | -90.02M | -31.97M | 232.05M | Investing Cash Flow |
| -254.00K | -3.10M | 2.25M | -48.12M | -22.25M | Financing Cash Flow |
| -16.74M | 185.37M | 2.94M | -148.44M | -21.26M |
iRobot Technical Analysis
Negative
3.12
Price Trends
6.94
Negative
7.57
Negative
8.11
Negative
Market Momentum
-1.24
Positive
28.45
Positive
27.66
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IRBT, the sentiment is Negative. The current price of 3.12 is below the 20-day moving average (MA) of 4.77, below the 50-day MA of 6.94, and below the 200-day MA of 8.11, indicating a bearish trend. The MACD of -1.24 indicates Positive momentum. The RSI at 28.45 is Positive, neither overbought nor oversold. The STOCH value of 27.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IRBT.
iRobot Risk Analysis
iRobot disclosed 42 risk factors in its most recent earnings report. iRobot reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
iRobot Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $28.17B | 10.94 | 13.15% | 2.84% | -1.87% | -6.15% | |
77 Outperform | $27.47B | 30.11 | 8.14% | 1.32% | -10.71% | -7.39% | |
73 Outperform | $182.37B | 79.37 | 15.62% | ― | 17.24% | 27.76% | |
73 Outperform | $14.23B | 27.09 | 20.29% | 0.53% | 5.52% | 16.59% | |
69 Neutral | $30.45B | 33.95 | 26.22% | 1.90% | -11.28% | -23.69% | |
59 Neutral | $12.60B | 11.17 | 0.97% | 3.72% | 1.34% | -21.34% | |
44 Neutral | $102.30M | ― | -112.92% | ― | -23.06% | 56.09% |
* Consumer Cyclical Sector Average
Performance Comparison
IRBT
iRobot
3.12
-5.64
-64.38%
ISRG
Intuitive Surgical
507.90
108.81
27.26%
ROK
Rockwell Automation
268.08
-17.90
-6.26%
TER
Teradyne
85.68
-26.70
-23.76%
KMTUY
Komatsu
30.83
1.34
4.54%
FANUY
Fanuc
14.59
0.65
4.66%
iRobot Earnings Call Summary
Earnings Call Date: Mar 12, 2025 | % Change Since: -50.55% | Next Earnings Date: May 6, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture with significant improvements in operational efficiencies and product innovations being offset by missed expectations and challenging market conditions. The company is optimistic about future growth driven by new product launches and restructuring efforts, but current market challenges remain substantial.Highlights
Gross Margin Expansion
Expanded gross margin by 590 basis points year-over-year in Q3, reaching 32.4%, up from 26.5% in Q3 2023.
Operating Expense Reduction
Reduced operating expenses by 47% year-over-year, including a 50% reduction in global workforce since the start of 2024.
New Product Launches and Innovations
Launched several new products, including the Roomba Combo 2 Essential and Roomba Vac 2 Essential, which received positive market recognition and are margin accretive.
Restructuring Plan Success
Successfully executed on restructuring plan, cutting operating losses in half for the first three quarters compared to the previous year.
Leadership Transition
Announced a leadership transition with experienced executives taking over key roles, ensuring continuity and stability.
Lowlights
Missed Expectations
Overall results did not meet expectations set in August due to persistent market segment and competitive headwinds.
Challenging Market Environment
Continued challenging macroeconomic environment for consumers, with specific mention of persistent headwinds impacting Q4 outlook.
Revenue Decline in Key Regions
Revenue declined 20% in Japan and 11% in EMEA, partially offset by a 23% increase in the U.S.
Revised Full Year Guidance
Lowered full-year 2024 revenue guidance to $685 million to $710 million due to ongoing competitive challenges.
Company Guidance
During the iRobot Q3 2024 earnings call, several key metrics and guidance updates were provided. The company reported a year-over-year gross margin expansion of 590 basis points, reaching 32.4% for the quarter, compared to 26.5% in Q3 2023. Operating expenses for the quarter were significantly reduced by 47% year-over-year, totaling $47 million, contributing to an operating income of $15.1 million compared to a loss of $40.6 million in the same quarter last year. However, due to ongoing market challenges, iRobot adjusted its guidance for the full year 2024, expecting revenue to range between $685 million and $710 million, with a gross margin between 25% and 26% and an operating margin of negative 15% to negative 13%. The company emphasized its focus on new product introductions and restructuring efforts, which have led to a 50% reduction in its global workforce and are anticipated to support future profitability and growth in 2025.iRobot Corporate Events
Executive/Board ChangesShareholder Meetings
iRobot Board Member Dr. Ruey-Bin Kao to Depart
Neutral
Mar 19, 2025
On March 18, 2025, Dr. Ruey-Bin Kao informed iRobot Corporation’s Board of Directors that he will not seek re-election at the upcoming 2025 annual stockholders’ meeting. His decision was not due to any disagreements with the company, indicating a smooth transition without operational or policy conflicts.
Executive/Board ChangesPrivate Placements and FinancingBusiness Operations and Strategy
iRobot Amends Credit Agreement and Expands Board
Neutral
Mar 12, 2025
On March 11, 2025, iRobot Corporation amended its Credit Agreement with TCG Senior Funding L.L.C., waiving certain covenant obligations until May 6, 2025, and requiring more frequent financial reporting. Additionally, Neal P. Goldman was appointed to iRobot’s Board of Directors on March 10, 2025, expanding the board to nine members. Goldman’s extensive experience in strategic planning and financial management is expected to aid iRobot’s ongoing turnaround strategy.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.