Roomba-Maker iRobot's Shares Plunge Over 80% In Monday Pre-Market: What's Going On?

Benzinga·12/15/2025 10:14:20

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iRobot Corp. (NASDAQ:IRBT), the company behind the popular Roomba cleaning robots, has filed for bankruptcy after 35 years in the business. The stock has plunged 83.42% in the Monday pre-market.

iRobot Files Chapter 11, To Go Private

On Sunday, the Massachusetts-based robotics company announced that it had filed for Chapter 11 bankruptcy protection in the District of Delaware court.

The company will be acquired outright by its main manufacturer and lender, Shenzhen PICEA, a vacuum cleaner maker with R&D and production operations in China and Vietnam. The deal is designed to enable iRobot to sustain its business, advance product development, and fulfill its financial obligations.

Following the acquisition, iRobot will transition to private ownership under PICEA, and its common shares will be delisted from public stock exchanges.

iRobot, founded in 1990 by three Massachusetts Institute of Technology (MIT) roboticists, is best known for launching the Roomba robot vacuum in 2002.

Revenue Slump, Cash Crunch Hit iRobot

The bankruptcy filing comes after a tumultuous period for iRobot. In the third quarter of 2025, iRobot's revenue fell nearly 25% with mid-tier and premium robots accounting for 74% of sales, down from 79% a year earlier. Cash and cash equivalents declined to $24.8 million as of September 27, 2025, from $40.6 million in late June.

CEO Gary Cohen said revenue missed expectations due to market headwinds, production delays, and shipping disruptions, increasing cash usage and pressuring profitability.

In October, the company’s shares plummeted by over a third after the last potential buyer withdrew from sale negotiations, citing iRobot’s strained financial conditions, a significant blow to the company, which had been grappling with an uncertain future since Amazon.com Inc. (NASDAQ:AMZN) abandoned its planned $1.7 billion acquisition in January 2024, citing regulatory hurdles.

On a year-to-date basis, iRobot stock lost 45.66%, as per data from Benzinga Pro.

Despite these challenges, the robotics industry has been gaining traction. In December, robotics-linked stocks such as Serve Robotics Inc. (NASDAQ:SERV), Richtech Robotics Inc. (NASDAQ:RR), as well as iRobot, experienced a rally following reports of the Trump administration’s plans to issue an executive order to supercharge the industry’s growth.