iRobot's revenue has tanked and it's almost out of cash

"Things continue to look bleak for the original robot vacuum maker. iRobot's third-quarter results, released last week, show that revenue is down and "well below our internal expectations due to continuing market headwinds, ongoing production delays, and unforeseen shipping disruptions," said Gary Cohen, iRobot CEO, in a press release. This meant they had to spend more cash and are now down to under $25 million."

"The Roomba manufacturer has been struggling for several years in the face of increased competition from Chinese manufacturers. A sale to Amazon in 2022 looked to be its lifeline; however, regulatory scrutiny scuppered the deal, and the company was left in further turmoil. It laid off over 30 percent of its staff, lost its founder and CEO, Colin Angle, and was left with substantial debt as a result of the fallout."

"This year, iRobot launched an entirely new line of robot vacuums, ostensibly to better compete with companies like Roborock, Ecovacs, and Dreame, adding lidar navigation to its line for the first time (over VSLAM). The new models look significantly different from the original Roombas and more like their competitors. They also use a different app with fewer features, but added some new hardware features the previous models lacked, including spinning mop pads and a roller mop."

iRobot reported third-quarter revenue declines attributed to market headwinds, production delays, and shipping disruptions. Cash reserves fell below $25 million, and the company stated it currently has no available sources of additional capital. Competitive pressure from Chinese manufacturers eroded market share, and a blocked 2022 sale to Amazon precipitated layoffs exceeding 30 percent, executive departures including founder Colin Angle, and substantial debt. iRobot introduced a redesigned vacuum lineup featuring lidar navigation, new hardware such as spinning mop pads and a roller mop, and a different, feature-reduced app. A regulatory filing warned the company may be forced to take further actions.

Read at The Verge