EX-99.1 3 d907756dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

 

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Contacts:   
Investor Relations    Michele Szynal
iRobot Corp.    Corporate Communications
(781) 430-3003    iRobot Corp.
investorrelations@irobot.com    (508) 751-2689
   mszynal@irobot.com

iRobot Reports Second-Quarter 2025 Financial Results

BEDFORD, Mass. - iRobot Corp. (NASDAQ: IRBT), a leader in consumer robots, today announced its financial results for the second quarter ended June 28, 2025.

“Our second quarter performance fell short of our expectations, due to persistent market headwinds and delays in scaling production and sales of our new products,” said Gary Cohen, iRobot CEO. “While we made meaningful progress on gross margin expansion, tightened control over operating expenses, and improved net losses, our cash position continued to decline as we supported new product launches - posing ongoing challenges to liquidity and operational flexibility. Although early consumer response to our latest product launches has been encouraging, broader market pressures and financial constraints remain significant hurdles to improved performance.

“As our Board of Directors continues its review of strategic alternatives for our business, we remain steadfast in executing our iRobot Elevate strategy and delivering the trusted products our customers value.”

Second Quarter 2025 Financial Results (in millions, except per share amounts and percentages)

 

     Q2 2025     Q2 2024  

Revenue

   $ 127.6     $ 166.4  

GAAP Gross Margin¹

     30.0     16.5

Non-GAAP Gross Margin¹

     30.2     16.7

GAAP Operating Expenses

   $ 75.0     $ 88.5  

Non-GAAP Operating Expenses

   $ 65.5     $ 75.9  

GAAP Operating Loss²

   ($ 36.7   ($ 61.1

Non-GAAP Operating Loss²

   ($ 27.0   ($ 48.2

GAAP Net Loss Per Share³

   ($ 0.68   ($ 2.41

Non-GAAP Net Loss Per Share³

   ($ 0.27   ($ 1.96

 

  1)

In Q2 2024, GAAP and Non-GAAP gross margin were negatively impacted by an $18.4 million non-recurring charge related to the write-off of excess component inventory and the losses on non-cancelable purchase commitments as part of the transition to our new product development paradigm with our contract manufacturers (the “Manufacturing Transition Charge”), which reduced GAAP and non-GAAP gross margin by 11.1 percentage points.

 

 

  2)

In Q2 2024, GAAP and Non-GAAP operating loss were negatively impacted by the Manufacturing Transition Charge.

 

 

iRobot Corporation

8 Crosby Drive, Bedford, MA 01730-1402 • 781.430.3000 • Fax 781.430.3001 • www.irobot.com


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  3)

In Q2 2024, GAAP and Non-GAAP net loss per share were negatively impacted by the Manufacturing Transition Charge, which reduced GAAP and non-GAAP net loss per share by $0.63.

 

Balance Sheet and Operational Highlights

 

   

As of June 28, 2025, the Company’s cash and cash equivalents totaled $40.6 million, compared with $69.9 million as of March 29, 2025. As of June 28, 2025, the Company had an additional $36.0 million of restricted cash set aside for future repayment of its term loan, subject to limited ability of the Company to utilize such amount at the discretion of the lenders for the purchase of inventory.

 

   

As of June 28, 2025, the Company’s inventory totaled $88.2 million, representing a 13% reduction from the second quarter of 2024.

 

   

In the second quarter of 2025, revenue increased 6% in Japan, declined 33% in the U.S. and declined 17% in EMEA over the prior-year period. Excluding the unfavorable foreign currency impact, Japan revenue increased 7% and EMEA revenue declined 16% over the prior-year period.

 

   

Revenue from mid-tier robots (with an MSRP between $300 and $499) and premium robots (with an MSRP of $500 or more) represented 73% of total robot sales in the second quarter of 2025 versus 76% from the same period last year.

Marketing Highlights

 

   

In July, iRobot introduced its most powerful and intelligent 2-in-1 robot to date, the Roomba® Max 705 Combo Robot + AutoWash Dock. Designed for the busiest homes, the Roomba Max 705 Combo delivers a deep, hands-free clean with 175 times more power-lifting suction*, AI-driven technology to avoid clutter left by kids and pets, and a first-of-its-kind roller mop cover that keeps carpets dry.

 

   

For the 11th consecutive year, Roomba was a featured product in Amazon’s Prime Day event, which was held July 8-11. iRobot was ranked #1, #2 and #3 for the bestselling robot vacuum cleaners during Prime Day. The Company’s products received a record number of Prime Day related media mentions in outlets including: Good Morning America, Better Homes & Gardens, HuffPost, Rolling Stone, GQ, Forbes Vetted, Real Simple and more.

 

   

In June, iRobot announced the debut of a multi-platform marketing campaign, its first since 2023. Beginning on June 16, television spots featuring the new tagline, “Roomba. Made for This,” began airing in the U.S. on premium streaming services including Hulu, Amazon Prime Video, Peacock, Paramount+ and more.

 

  *

Performance in spot-clean mode with full battery compared to Roomba® 600 series robots.

 

iRobot Corporation

8 Crosby Drive, Bedford, MA 01730-1402 • 781.430.3000 • Fax 781.430.3001 • www.irobot.com


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Ongoing Strategic Review

As previously announced, iRobot’s Board of Directors is conducting a review of strategic alternatives, including, but not limited to, exploring a potential sale or strategic transaction, and refinancing the Company’s debt. This review process is ongoing.

The Board has not set a timetable for the conclusion of this review, and there can be no assurance that the exploration of strategic alternatives will result in any transactions or outcomes. The Company does not intend to disclose developments relating to this process until it determines that further disclosure is appropriate or necessary.

The Company remains actively engaged in ongoing collaborative and constructive discussions with its primary lender while the Board continues its strategic review. On August 6, 2025, the Company further amended its existing term loan to extend the covenant waiver under the term loan to September 19, 2025. 

In light of the ongoing strategic review, the Company will not host an earnings conference call or webcast regarding its second quarter 2025 results and has suspended its practice of providing financial guidance.

About iRobot

iRobot is a global consumer robot company that designs and builds thoughtful robots and intelligent home innovations that make life better. iRobot introduced the first Roomba robot vacuum in 2002. Today, iRobot is a global enterprise that has sold millions of robots worldwide. iRobot’s product portfolio features technologies and advanced concepts in cleaning, mapping and navigation. Working from this portfolio, iRobot engineers are building robots and smart home devices to help consumers make their homes easier to maintain and healthier places to live. For more information about iRobot, please visit www.irobot.com.

Cautionary Statement Regarding Forward-Looking Statements

This communication contains “forward-looking statements” within the meaning of the federal securities laws, including Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which relate to, among other things: the Board’s review of strategic alternatives for the business; and the Company’s business plans and strategies and the anticipated impact thereof. These forward-looking statements are based on the Company’s current expectations, estimates and projections about its business and industry, all of which are subject to change. In this context, forward-looking statements often address expected future business and financial performance and financial condition, and often contain words such as “expect,” “anticipate,” “intend,” “plan,” “believe,” “could,” “seek,” “see,” “will,” “may,” “would,” “might,” “potentially,” “estimate,” “continue,” “expect,” “target,” similar expressions or the negatives of these words or other comparable terminology that convey uncertainty of future events or outcomes. All forward-looking statements by their nature address matters that involve risks and uncertainties, many of which are beyond the Company’s control, and are not guarantees of future results. These and other forward-looking statements are not guarantees of future results and are subject to risks, uncertainties and assumptions that could cause actual results to differ materially from those expressed in any forward-looking statements. Accordingly, there are or will be important factors that could cause actual results to differ materially from those indicated in such statements and, therefore, you should

 

iRobot Corporation

8 Crosby Drive, Bedford, MA 01730-1402 • 781.430.3000 • Fax 781.430.3001 • www.irobot.com


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not place undue reliance on any such statements and caution must be exercised in relying on forward-looking statements. Important risk factors that may cause such a difference include, but are not limited to: (i) the Company’s ability to obtain capital when desired on favorable terms, if at all; (ii) the Company’s ability to realize the benefits of its operational restructuring; (iii) the impact of various global conflicts on the Company’s business and general economic conditions; (iv) the Company’s ability to implement its business strategy; (v) the risk that disruptions from the Company’s operational restructuring will harm its business, including current plans and operations; (vi) the ability of the Company to retain and hire skilled personnel; (vii) loss of any key employee; (viii) failure of the Company’s primary contract manufacturer to meet the Company’s requirements; (ix) legislative, regulatory and economic developments affecting the Company’s business; (x) general economic and market developments and conditions; (xi) the evolving legal, regulatory and tax regimes under which the Company operates; (xii) potential business uncertainty, including changes to existing business relationships that could affect the Company’s financial performance; (xiii) unpredictability and severity of catastrophic events, including, but not limited to, acts of terrorism or outbreak of war or hostilities; (xiv) current supply chain challenges; (xv) the financial strength of the Company’s customers and retailers; (xvi) the impact of any applicable tariffs on goods imported into the United States; (xvii) competition; (xviii) cybersecurity risks; (xix) failure to obtain additional waivers from the Company’s lenders of the Company’s obligation to comply with certain covenants under the Company’s credit agreement; and (xx) the results and impact of the Board’s strategic review of alternatives for the business, as well as the Company’s response to any of the aforementioned factors. Additional risks and uncertainties that could cause actual outcomes and results to differ materially from those contemplated by the forward-looking statements are included under the caption “Risk Factors” in the Company’s most recent annual and quarterly reports filed with the SEC and any subsequent reports on Form 10-K, Form 10-Q or Form 8-K filed from time to time and available at www.sec.gov. While the list of factors presented here is considered representative, no such list should be considered to be a complete statement of all potential risks and uncertainties. Unlisted factors may present significant additional obstacles to the realization of forward-looking statements. Consequences of material differences in results as compared with those anticipated in the forward-looking statements could include, among other things, business disruption, operational problems, financial loss, legal liability and similar risks, any of which could have a material adverse effect on the Company’s financial condition, results of operations, or liquidity. The forward-looking statements included herein are made only as of the date hereof. The Company does not assume any obligation to publicly provide revisions or updates to any forward-looking statements, whether as a result of new information, future developments or otherwise, should circumstances change, except as otherwise required by securities and other applicable laws.

###

iRobot Contacts

Public Relations: mszynal@irobot.com

Investor Relations: InvestorRelations@irobot.com

 

iRobot Corporation

8 Crosby Drive, Bedford, MA 01730-1402 • 781.430.3000 • Fax 781.430.3001 • www.irobot.com


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iRobot Corporation

Consolidated Statements of Operations

(in thousands, except per share amounts)

(unaudited)

 

     For the three months ended     For the six months ended  
     June 28, 2025     June 29, 2024     June 28, 2025     June 29, 2024  

Revenue

   $ 127,558     $ 166,361     $ 229,127     $ 316,375  

Cost of revenue:

        

Cost of product revenue

     89,259       138,895       168,857       252,808  

Restructuring and other

     —        —        1,658       —   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total cost of revenue

     89,259       138,895       170,515       252,808  

Gross profit

     38,299       27,466       58,612       63,567  

Operating expenses:

        

Research and development

     13,766       23,230       28,453       57,108  

Selling and marketing

     39,003       39,980       65,054       69,696  

General and administrative

     21,069       16,926       40,085       (36,785

Restructuring and other

     1,032       8,230       7,206       22,377  

Amortization of acquired intangible assets

     145       168       280       339  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

     75,015       88,534       141,078       112,735  
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating loss

     (36,716     (61,068     (82,466     (49,168

Other income (expense), net

     13,385       (8,849     (27,680     (12,034
  

 

 

   

 

 

   

 

 

   

 

 

 

Loss before income taxes

     (23,331     (69,917     (110,146     (61,202

Income tax (benefit) expense

     (523     729       (65     837  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net loss

   $ (22,808   $ (70,646   $ (110,081   $ (62,039
  

 

 

   

 

 

   

 

 

   

 

 

 

Net loss per share:

        

Basic

   $ (0.68   $ (2.41   $ (3.41   $ (2.16

Diluted

   $ (0.68   $ (2.41   $ (3.41   $ (2.16

Number of shares used in per share calculations:

        

Basic

     33,410       29,309       32,259       28,740  

Diluted

     33,410       29,309       32,259       28,740  

Stock-based compensation included in above figures:

        

Cost of revenue

   $ 197     $ 270     $ 543     $ 1,099  

Research and development

     757       802       1,668       3,699  

Selling and marketing

     808       1,163       1,772       2,500  

General and administrative

     2,001       2,275       5,093       5,160  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total

   $ 3,763     $ 4,510     $ 9,076     $ 12,458  
  

 

 

   

 

 

   

 

 

   

 

 

 

 

iRobot Corporation

8 Crosby Drive, Bedford, MA 01730-1402 • 781.430.3000 • Fax 781.430.3001 • www.irobot.com


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iRobot Corporation

Condensed Consolidated Balance Sheets

(unaudited, in thousands)

 

     June 28, 2025     December 28, 2024  

Assets

    

Cash and cash equivalents

   $ 40,568     $ 134,303  

Restricted cash

     36,000       1,259  

Accounts receivable, net

     56,072       49,865  

Inventory

     88,236       76,029  

Other current assets

     23,903       27,046  
  

 

 

   

 

 

 

Total current assets

     244,779       288,502  

Property and equipment, net

     10,959       15,835  

Operating lease right-of-use assets

     12,995       14,322  

Deferred tax assets

     10,403       9,817  

Goodwill

     182,449       167,288  

Intangible assets, net

     3,274       3,212  

Other assets

     15,461       17,161  
  

 

 

   

 

 

 

Total assets

   $ 480,320     $ 516,137  
  

 

 

   

 

 

 

Liabilities and stockholders’ (deficit) equity

    

Accounts payable

   $ 166,785     $ 106,367  

Accrued expenses

     76,859       100,597  

Deferred revenue and customer advances

     9,773       11,280  

Term loan

     203,186       —   
  

 

 

   

 

 

 

Total current liabilities

     456,603       218,244  

Term loan

     —        200,604  

Operating lease liabilities

     19,069       21,598  

Other long-term liabilities

     12,340       14,452  
  

 

 

   

 

 

 

Total long-term liabilities

     31,409       236,654  
  

 

 

   

 

 

 

Total liabilities

     488,012       454,898  

Stockholders’ (deficit) equity

     (7,692     61,239  
  

 

 

   

 

 

 

Total liabilities and stockholders’ (deficit) equity

   $ 480,320     $ 516,137  
  

 

 

   

 

 

 

 

iRobot Corporation

8 Crosby Drive, Bedford, MA 01730-1402 • 781.430.3000 • Fax 781.430.3001 • www.irobot.com


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iRobot Corporation

Consolidated Statements of Cash Flows

(unaudited, in thousands)

 

     For the six months ended  
     June 28, 2025     June 29, 2024  

Cash flows from operating activities:

    

Net loss

   $ (110,081   $ (62,039

Adjustments to reconcile net loss to net cash used in operating activities:

    

Depreciation and amortization

     4,385       11,116  

(Gain) loss on equity investment

     (394     375  

Stock-based compensation

     9,076       12,458  

Provision for inventory excess and obsolescence

     1,015       11,715  

Change in fair value of term loan

     2,687       4,746  

Debt issuance costs expensed under fair value option

     16,828       477  

Deferred income taxes, net

     292       (1,682

Other

     3,112       (3,858

Changes in operating assets and liabilities — (use) source

    

Accounts receivable

     (3,735     9,240  

Inventory

     (12,816     35,848  

Other assets

     5,700       26,117  

Accounts payable

     59,428       (63,875

Accrued expenses and other liabilities

     (32,114     (871
  

 

 

   

 

 

 

Net cash used in operating activities

     (56,617     (20,233

Cash flows from investing activities:

    

Additions of property and equipment

     —        (118

Purchase of investments

     (14     (46
  

 

 

   

 

 

 

Net cash used in investing activities

     (14     (164

Cash flows from financing activities:

    

Income tax withholding payment associated with restricted stock vesting

     (257     (463

Proceeds from issuance of common stock, net of issuance costs

     —        17,942  

Repayment of term loan

     (4,000     (34,947

Payment of debt issuance costs

     —        (477
  

 

 

   

 

 

 

Net cash used in financing activities

     (4,257     (17,945

Effect of exchange rate changes on cash, cash equivalents and restricted cash

     1,914       853  

Net decrease in cash, cash equivalents and restricted cash

     (58,974     (37,489

Cash, cash equivalents and restricted cash, at beginning of period

     137,951       187,887  
  

 

 

   

 

 

 

Cash, cash equivalents and restricted cash, at end of period

   $ 78,977     $ 150,398  
  

 

 

   

 

 

 

Cash, cash equivalents and restricted cash, at end of period:

    

Cash and cash equivalents

   $ 40,568     $ 108,513  

Restricted cash

     36,000       40,543  

Restricted cash, non-current (included in other assets)

     2,409       1,342  
  

 

 

   

 

 

 

Cash, cash equivalents and restricted cash, at end of period

   $ 78,977     $ 150,398  
  

 

 

   

 

 

 

 

iRobot Corporation

8 Crosby Drive, Bedford, MA 01730-1402 • 781.430.3000 • Fax 781.430.3001 • www.irobot.com


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iRobot Corporation

Supplemental Information

(unaudited)

 

     For the three months ended      For the six months ended  
     June 28, 2025      June 29, 2024      June 28, 2025      June 29, 2024  

Revenue by Geographical Region *

           

United States

   $ 56,441      $ 84,364      $ 97,881      $ 153,260  

EMEA

     33,253        39,894        66,200        84,982  

Japan

     29,424        27,818        51,373        55,536  

Other

     8,440        14,285        13,673        22,597  
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 127,558      $ 166,361      $ 229,127      $ 316,375  
  

 

 

    

 

 

    

 

 

    

 

 

 

Robot Units Shipped *

           

2-in-1

     453        274        765        463  

Solo and other

     63        300        161        567  
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

     516        574        926        1,030  
  

 

 

    

 

 

    

 

 

    

 

 

 

Revenue by Product Category **

           

2-in-1

   $ 100      $ 76      $ 165      $ 132  

Solo and other

     28        90        64        184  
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 128      $ 166      $ 229      $ 316  
  

 

 

    

 

 

    

 

 

    

 

 

 

Average gross selling prices for robot units

   $ 301      $ 330      $ 299      $ 337  

Headcount

     509        726        

 

*

in thousands

**

in millions

Certain numbers may not total due to rounding

 

iRobot Corporation

8 Crosby Drive, Bedford, MA 01730-1402 • 781.430.3000 • Fax 781.430.3001 • www.irobot.com


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iRobot Corporation

Explanation of Non-GAAP Measures

In addition to disclosing financial results in accordance with U.S. GAAP, this earnings release contains references to the non-GAAP financial measures described below. We use non-GAAP measures to internally evaluate and analyze financial results. We believe these non-GAAP financial measures provide investors with useful supplemental information about the financial performance of our business, enable comparison of financial results between periods where certain items may vary independent of business performance, and enable comparison of our financial results with other public companies, many of which present similar non-GAAP financial measures.

Our non-GAAP financial measures reflect adjustments based on the following items. These non-GAAP financial measures should not be considered a substitute for, or superior to, financial measures calculated in accordance with GAAP, and the financial results calculated in accordance with GAAP and reconciliations from these results should be carefully evaluated.

Amortization of Acquired Intangible Assets: Amortization of acquired intangible assets consists of amortization of intangible assets including completed technology, customer relationships, and reacquired distribution rights acquired in connection with business combinations as well as any non-cash impairment charges associated with intangible assets in connection with our past acquisitions. Amortization charges for our acquisition-related intangible assets are inconsistent in size and are significantly impacted by the timing and valuation of our acquisitions. We exclude these charges from our non-GAAP measures to facilitate an evaluation of our current operating performance and comparisons to our past operating performance.

Net Merger, Acquisition and Divestiture (Income) Expense: Net merger, acquisition and divestiture (income) expense primarily consists of professional fees associated with mergers, acquisitions and the review of strategic alternatives, including, but not limited to, exploring a potential sale or strategic transaction. During the first quarter of fiscal 2024, the adjustment included the one-time net termination fee received as a result of the termination of the iRobot-Amazon Merger. The occurrence and amount of these costs will vary depending on the timing and size of these transactions. We exclude these charges from our non-GAAP measures to facilitate an evaluation of our current operating performance and comparisons to our past operating performance.

Stock-Based Compensation: Stock-based compensation is a non-cash charge relating to stock-based awards. We exclude this expense as it is a non-cash expense, and we assess our internal operations excluding this expense and believe it facilitates comparisons to the performance of other companies.

Restructuring and Other: Restructuring charges are related to one-time actions associated with realigning resources, enhancing operational productivity and efficiency, or improving our cost structure in support of our strategy. Such actions are not reflective of ongoing operations and include costs primarily associated with severance and related costs, costs associated with early termination of contracts, charges related to paused work unrelated to our core business, costs associated with the

 

iRobot Corporation

8 Crosby Drive, Bedford, MA 01730-1402 • 781.430.3000 • Fax 781.430.3001 • www.irobot.com


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Chief Executive Officer transition and other non-recurring costs directly associated with resource realignments tied to strategic initiatives or changes in business conditions. We exclude these items from our non-GAAP measures when evaluating our recent and prospective business performance as such items vary significantly based on the magnitude of the action and do not reflect anticipated future operating costs. In addition, these charges do not necessarily provide meaningful insight into the fundamentals of current or past operations of our business.

Gain/Loss on Strategic Investments: Gain/loss on strategic investments includes fair value adjustments, realized gains and losses on the sales of these investments and losses on the impairment of these investments. We exclude these items from our non-GAAP measures because we do not believe they correlate to the performance of our core business and may vary in size based on market conditions and events. We believe that the exclusion of these gains or losses provides investors with a supplemental view of our operational performance.

Debt Issuance Costs: Debt issuance costs include various incremental fees paid to third parties and warrants issued in connection with the issuance or amendment of debt.

Income Tax Adjustments: Income tax adjustments include the tax effect of the non-GAAP adjustments, calculated using the appropriate statutory tax rate for each adjustment. We regularly assess the need to record valuation allowance based on the non-GAAP profitability and other factors. We also exclude certain tax items, including the impact from stock-based compensation windfalls/shortfalls, which are not reflective of income tax expense incurred as a result of current period earnings. We believe disclosure of the income tax provision before the effect of such tax items is important to permit investors’ consistent earnings comparison between periods.

 

iRobot Corporation

8 Crosby Drive, Bedford, MA 01730-1402 • 781.430.3000 • Fax 781.430.3001 • www.irobot.com


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iRobot Corporation

Supplemental Reconciliation of GAAP Actuals to Non-GAAP Actuals

(in thousands, except per share amounts)

(unaudited)

 

     For the three months ended     For the six months ended  
     June 28, 2025     June 29, 2024     June 28, 2025     June 29, 2024  

GAAP Revenue

   $ 127,558     $ 166,361     $ 229,127     $ 316,375  

GAAP Gross Profit

   $ 38,299     $ 27,466     $ 58,612     $ 63,567  

Stock-based compensation

     197       270       543       1,099  

Restructuring and other

     —        —        1,658       —   
  

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP Gross Profit

   $ 38,496     $ 27,736     $ 60,813     $ 64,666  
  

 

 

   

 

 

   

 

 

   

 

 

 

GAAP Gross Margin

     30.0     16.5     25.6     20.1

Non-GAAP Gross Margin

     30.2     16.7     26.5     20.4

GAAP Operating Expenses

   $ 75,015     $ 88,534     $ 141,078     $ 112,735  

Amortization of acquired intangible assets

     (145     (168     (280     (339

Stock-based compensation

     (3,566     (4,240     (8,533     (11,359

Net merger, acquisition and divestiture (expense) income

     (4,768     43       (5,718     74,159  

Restructuring and other

     (1,032     (8,230     (7,206     (22,377
  

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP Operating Expenses

   $ 65,504     $ 75,939     $ 119,341     $ 152,819  
  

 

 

   

 

 

   

 

 

   

 

 

 

GAAP Operating Expenses as a % of GAAP Revenue

     58.8     53.2     61.6     35.6

Non-GAAP Operating Expenses as a % of Non-GAAP Revenue

     51.4     45.6     52.1     48.3

GAAP Operating Loss

   $ (36,716   $ (61,068   $ (82,466   $ (49,168

Amortization of acquired intangible assets

     145       168       280       339  

Stock-based compensation

     3,763       4,510       9,076       12,458  

Net merger, acquisition and divestiture expense (income)

     4,768       (43     5,718       (74,159

Restructuring and other

     1,032       8,230       8,864       22,377  
  

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP Operating Loss

   $ (27,008   $ (48,203   $ (58,528   $ (88,153
  

 

 

   

 

 

   

 

 

   

 

 

 

GAAP Operating Margin

     (28.8 )%      (36.7 )%      (36.0 )%      (15.5 )% 

Non-GAAP Operating Margin

     (21.2 )%      (29.0 )%      (25.5 )%      (27.9 )% 

 

iRobot Corporation

8 Crosby Drive, Bedford, MA 01730-1402 • 781.430.3000 • Fax 781.430.3001 • www.irobot.com


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iRobot Corporation

Supplemental Reconciliation of GAAP Actuals to Non-GAAP Actuals continued

(in thousands, except per share amounts)

(unaudited)

 

     For the three months ended     For the six months ended  
     June 28, 2025     June 29, 2024     June 28, 2025     June 29, 2024  

GAAP Income Tax (Benefit) Expense

   $ (523   $ 729     $ (65   $ 837  

Tax effect of non-GAAP adjustments

     178       416       226       1,017  

Other tax adjustments

     922       (416     791       (608
  

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP Income Tax Expense

   $ 577     $ 729     $ 952     $ 1,246  
  

 

 

   

 

 

   

 

 

   

 

 

 

GAAP Net Loss

   $ (22,808   $ (70,646   $ (110,081   $ (62,039

Amortization of acquired intangible assets

     145       168       280       339  

Stock-based compensation

     3,763       4,510       9,076       12,458  

Net merger, acquisition and divestiture expense (income)

     4,768       (43     5,718       (74,159

Restructuring and other

     1,032       8,230       8,864       22,377  

(Gain) loss on strategic investments

     (394     —        (394     375  

Debt issuance costs

     5,627       238       18,636       477  

Income tax effect

     (1,100     —        (1,017     (409
  

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP Net Loss

   $ (8,967   $ (57,543   $ (68,918   $ (100,581
  

 

 

   

 

 

   

 

 

   

 

 

 

GAAP Net Loss Per Diluted Share

   $ (0.68   $ (2.41   $ (3.41   $ (2.16

Amortization of acquired intangible assets

     —        0.01       0.01       0.01  

Stock-based compensation

     0.11       0.15       0.28       0.43  

Net merger, acquisition and divestiture expense (income)

     0.14       —        0.17       (2.58

Restructuring and other

     0.03       0.28       0.27       0.78  

(Gain) loss on strategic investments

     (0.01     —        (0.01     0.01  

Debt issuance costs

     0.17       0.01       0.58       0.02  

Income tax effect

     (0.03     —        (0.03     (0.01
  

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP Net Loss Per Diluted Share

   $ (0.27   $ (1.96   $ (2.14   $ (3.50
  

 

 

   

 

 

   

 

 

   

 

 

 

Number of shares used in diluted per share calculation

     33,410       29,309       32,259       28,740  

Supplemental Information

        

Days sales outstanding

     40       37      

GAAP Days in inventory

     90       67      

Non-GAAP Days in inventory(1)

     90       67      

 

(1) 

Non-GAAP Days in inventory is calculated as inventory divided by (Revenue minus Non-GAAP Gross Profit), multiplied by 91 days.

 

iRobot Corporation

8 Crosby Drive, Bedford, MA 01730-1402 • 781.430.3000 • Fax 781.430.3001 • www.irobot.com