Is iRobot going bust? What to know before buying that Roomba Black Friday deal

[ad_1] The iRobot Roomba 105 Vac (pictured) is a part of the corporate's redesigned lineup.

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ZDNET's key takeaways iRobot stays vulnerable to shutting down.That raises questions on the way forward for Roomba vacuums. Black Friday customers ought to proceed cautiously. After asserting a product redesign earlier this yr, iRobot is as soon as once more within the information for its danger of chapter -- and its newest monetary submitting is eye-opening. The corporate had introduced the reinvention of its full product line this previous March, as a Hail Mary transfer to regain its once-dominant share of the robotic vacuum market.

Sadly, the most recent SEC submitting signifies that iRobot is hanging by a thread, rendering this effort futile.

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Final spring, iRobot's SEC filings painted a bleak monetary outlook for the corporate over the following 12 months. Now, the corporate is vulnerable to declaring chapter in a matter of weeks. iRobot, the maker of Roomba robotic vacuums, is dealing with extreme monetary challenges, together with substantial debt, mortgage difficulties, market struggles, and declining income.

In keeping with the most recent submitting, iRobot could also be pressured to "considerably curtail or stop operations and sure search chapter safety" if it will possibly't safe new funding earlier than Dec. 1, 2025.

The corporate laid off 40% of its workforce in 2024, diminished hiring, closed workplaces, subleased a part of its headquarters, and reduce advertising and marketing prices. These measures saved iRobot $126.4 million on the time, however they weren't sufficient to stabilize the corporate. In early 2025, iRobot was banking on the launch of a totally new product line to reestablish its spot within the robotic market, which has been weakened by sturdy competitors from Roborock, Dreame, and Ecovacs.

A part of its redesign concerned adopting sure options which have lengthy been supplied in these opponents' robotic vacuums, similar to twin rotating mop pads and a clear advertising and marketing technique on its gadgets. Nonetheless, the brand new SEC filings state that capital dropped from $134 million on the finish of 2024 to simply $25 million in September 2025.

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iRobot was additionally exploring different methods, similar to promoting or merging with one other firm or securing new financing to help itself, however the potential purchaser dropped out after the negotiations failed. Whereas the board continues to discover options to the corporate's demise, the submitting signifies {that a} deal exterior chapter is unlikely.

Do you have to purchase a Roomba this Black Friday? Black Friday offers on Roombas will definitely be tempting, however might carry danger for shoppers. iRobot is dealing with potential chapter inside weeks, except it secures emergency funding or a purchaser. Because of this Roombas are dealing with an unsure future, with a scarcity of help, a possible scarcity of alternative elements, and no long-term software program updates.

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This is not a assure, but when iRobot recordsdata for chapter or, worse, shuts down, customers may even see cloud options cease working, like mapping updates and app entry. iRobot has additionally reduce R&D and working money, which may have an effect on how -- or if -- software program bugs and integration points shall be addressed.

What occurs to your Roomba if iRobot goes underneath? Maria Diaz/ZDNET If iRobot shuts down, current Roomba fashions would proceed to work, however they'd be offline and performance in a restricted method. iRobot would stop providing buyer help, software program updates, and help for sure sensible dwelling integrations that depend on cloud servers. Because of this you'd possible have the ability to use your Roomba from the iRobot app or by means of the robotic's button to launch it, however you'd in all probability encounter extra bugs that will not have a repair and be unable to make use of Alexa or Google Assistant for voice management.

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With out updates to the iRobot app or your Roomba, your robotic vacuum would even be susceptible to potential exploits by malicious actors if it stays related to the web.

Alternative elements would even be a lot tougher to come back by. You'd must depend on third-party distributors and unbiased producers for filters, brushes, mud baggage, and different elements. These might not work as meant or could also be incompatible with the robotic's system.

Why is iRobot struggling financially? Beth Mauder/ZDNET iRobot is at the moment burdened by heavy debt that has turn out to be unmanageable because the market has shifted and opponents have taken excessive spots within the robotic vacuum market. In 2023, the corporate secured a $200 million mortgage from The Carlyle Group, with the intention of supporting its operations in the course of the Amazon merger overview. The Amazon takeover fell by means of, and the corporate has been caught with the mortgage since.

Even with its cost-cutting measures in 2024, iRobot's income declined 23.4% by the top of the yr in comparison with 2023, dropping to $681.8 million. Till Sept. 27, 2025, the YoY whole income had declined by 26.5%.

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iRobot amended the mortgage with The Carlyle Group to acquire a short lived waiver on sure monetary obligations, which resulted within the firm incurring $3.6 million in charges and requiring it to problem 6% of its inventory warrants to lenders. As of now, iRobot has no new capital sources remaining and has drawn the final $5 million of restricted money as of Sept. 30.

The corporate attributes its present monetary outlook to a number of elements, together with the lack of market share to aggressive Chinese language opponents similar to Roborock, decrease client demand, and macroeconomic elements.