iRobot, the creator of the Roomba, is facing its biggest financial crisis after the collapse of its latest sale negotiations and a 44% year-on-year drop in revenue reflected in its March report. The company has warned that, without radical change, could file for bankruptcy protection on the horizon of the coming months.
The situation took a turn when Amazon withdrew from the deal due to the hefty price tag. antitrust scrutiny in Europe and the United StatesSince then, iRobot has not found a viable alternative. Its shares fell 33% in one day and have accumulated a drop of more than 50% this year, while acknowledging that It is not in advanced talks with any buyers..
From MIT pioneer to a future on the tightrope
Founded in 1990 by Colin Angle, Helen Greiner, and Rodney Brooks, iRobot was born out of MIT with projects related to defense and rescue. Among its first machines, Ariel stood out, a robot for coastal operations that This represented an improvement over torpedo-type designs. of the time, and which demonstrated the potential of applied robotics.
The leap to mainstream success came in 2002 with Roombaa device shaped like a "disc with wheels" that turned autonomous cleaning into a mass-market product. Over time, the brand achieved more than 40 million units sold and it came to encompass nearly 60% of the market during its growth phase, rising to become an icon of the connected home.
Former employees and experts emphasize that iRobot was the "unicorn" that proved domestic robotics could be a business. Its eventual demise It would leave a void in the innovation ecosystem from Massachusetts and in the American robotics industry, which nurtured talent and entrepreneurship throughout the region.
Regulation and a failed purchase with Amazon
Amazon agreed to acquire iRobot for $1.700 billion, but the objections of Brussels and Washington The European Commission rejected the deal in January due to concerns about self-preference in the marketplace. The Commission feared that integrating iRobot would give Amazon a significant advantage over third-party sellers on its platform.
Following that withdrawal, the company initiated a strategic review process that has ultimately come to a standstill. The last offer received valued the stock below market price. And the talks broke down after a prolonged period of exclusive negotiations. iRobot canceled its usual fourth-quarter earnings call and warned that It may not last 12 months without financial support.
Even with the public defense of Amazon CEO Andy Jassy, ​​who called the block an example of "misguided regulation," European regulators maintained their position. Competitive imbalance in the marketplace and the protection of the retail ecosystem outweighed the argument of industrial scale.
The competitive pincer movement: China accelerates, iRobot gets stuck
At the same time, the market has become both more demanding and cheaper. Brands like Roborock, Ecovacs, Dreame, and Xiaomi have popularized features such as LiDAR mapping, scrubbing, automatic emptying and AI-powered navigation, in addition to innovations visible at European trade fairs such as IFA Berlin (robotic arms or robots that climb stairs).
The data supports the turnaround: according to IDC, 11,2 million robot vacuum cleaners were distributed in the first half of the year (+16,5% year-on-year). Roborock leads with a 20,7% market share, followed by Ecovacs (13,9%), Dreame (12,3%) and Xiaomi (10,1%), while iRobot falls to fifth place with 7,9%.
At the product level, iRobot remained committed to vision navigation and "single-function" equipment, while its rivals They integrated vacuuming and mopping with better performance and price. Added to this are 25% tariffsRising R&D and marketing costs and a relocation of the supply chain to Malaysia or Mexico that did not materialize.
The result has been a streak of 12 quarters of lossessluggish sales despite new launches and a workforce cut by more than 50% to 541 employees. In independent tests, several Roomba models They have fallen behind competitors in autonomy or capabilities.
Debt, liquidity, and time is running out.
To weather the storm while the sale was being attempted, iRobot hired in 2023 a $200 million loan with CarlyleFollowing the failure of the agreement with Amazon, the company has been stringing together extensions of the grace period —the latest until December 1, 2025— without resolving its cash flow problem.
In communications to the US regulator, the company admits that, without capital injection or new extensions, could be forced to drastically reduce its operations or to take advantage of insolvency legislationThe management itself has hinted that, if a solution is not found, bankruptcy would be the most likely outcome.
On the stock market, the pressure is severe: the stock plunged as much as 33% in a single day and has been on a downward trend for a losses exceeding 50% so far this yearIn the medium term, the window of operational continuity without external support is narrowing, and some scenarios already point to timeframes that do not extend beyond the middle of the next cycle.
Impact on Europe and on Spanish households
For the European consumer, this context can translate into irregular availability of stock, spare parts and service If the company reduces activity. At the same time, the supply from rivals—very present in distributors in Spain—pushes prices down and accelerates the adoption of advanced features.
China's strength is not limited to vacuuming: the ecosystem incorporates robotic lawnmowers with strong pulling power in Europe (upward exports and nearly a third market share) and solutions for pools and connected homes. The market, previously concentrated in one brand, is widely distributed today and with shorter innovation cycles.
For iRobot, maintaining its premium positioning in Europe will require financing, competitive product and channel agreements that guarantee after-sales service. Without these pillars, the company risks losing even more ground in a continent that now sets the pace for the category.
The iRobot case encapsulates several forces: a regulatory veto that thwarted its rescueA market shift that rewards ecosystems and price, and a relentless financial burden. If the company secures capital and technological focusIt will have room to stay in the game; otherwise, its legacy as a pioneer will remain as that of a brand that paved the way and was surpassed by the new wave.