iRobot Corporation (NASDAQ:IRBT) shares plummeted more than 35% after the company expressed "substantial doubt about the company's ability to continue" operations over the next 12 months.
The Roomba-maker said in a statement that there is “no assurance that the new product launches will be successful due to potential factors, including, but not limited to consumer demand, competition, macroeconomic conditions, and tariff policies.”
iRobot’s board of directors has initiated a formal strategic review to evaluate its options, including refinancing debt and exploring potential sales or strategic transactions.
Meanwhile, for the fourth quarter, iRobot reported a loss per share of $2.06, worse than the loss per share of $1.76 expected by analysts.
Revenue fell by 44% year-over-year to $172 million, missing estimates of $184.5 million.
In light of its current situation, iRobot cancelled its Q4 and full-year 2024 results call and did not provide a 2025 outlook.
“As we move ahead, we will continue to take decisive action to reclaim our position as the industry leader and build on iRobot's strong foundation centered around our globally recognized, iconic brand, Roomba,” iRobot CEO Gary Cohen said in a statement.
Shares of iRobot traded down 35.5.7% at about $4 late morning on Wednesday.