iRobot’s future isn’t looking up

iRobot, the maker of the Roomba robot vacuum, has been facing significant challenges in recent quarters. Despite launching a new product line, the company's revenue declined by 23% to $127.6 million in the second quarter, with the crucial US and European markets being hit the hardest. The company has struggled to compete with increased competition from Chinese manufacturers and the collapse of a proposed sale to Amazon, leaving it deeply in debt. Earlier this year, CEO Gary Cohen warned that iRobot could shut down within 12 months if the situation did not improve. In the latest earnings announcement, Cohen acknowledged that while customer response to the new products has been "encouraging," the company did not meet its goals due to "persistent market headwinds and delays in scaling production and sales." As a result, the company is still considering a potential sale or other "strategic alternatives" to address its financial difficulties.