Tue, May 6, 8:49 PM (17 days ago)
**iRobot Corporation (IRBT) Q1 2025 Financial Summary** **Financial Health & Performance:** - **Revenue:** $101.6 million, a 32.3% decline from $150.0 million in Q1 2024. - **Gross Profit:** $20.3 million, down from $36.1 million in Q1 2024. - **Net Loss:** $87.3 million, compared to a net income of $8.6 million in Q1 2024. - **Cash and Cash Equivalents:** $69.9 million, down from $134.3 million in Q1 2024. - **Restricted Cash:** $42.4 million, with $40.0 million set aside for future repayment of the Term Loan. **Profit Margins:** - **Gross Margin:** 20.0%, down from 24.1% in Q1 2024. - **Operating Margin:** -45.0%, compared to 7.9% in Q1 2024. **Cash Flow:** - **Net Cash Used in Operating Activities:** $26.5 million, primarily due to the net loss and changes in working capital. - **Net Cash Used in Investing Activities:** $0.01 million, related to the purchase of investments. - **Net Cash Used in Financing Activities:** $0.1 million, related to payment for employee tax withholdings. **Earnings Changes:** - **Basic EPS:** -$2.84, compared to $0.31 in Q1 2024. - **Diluted EPS:** -$2.84, compared to $0.30 in Q1 2024. **Quarterly Performance Discussion:** - Revenue decline attributed to reduced demand, promotional activities, and tariff impacts. - Gross margin decrease due to promotional activities and lower revenue. - Significant increase in net loss due to higher operating expenses and other expenses, including debt issuance costs. **Trends & Uncertainties:** - **Product Launches:** New product launches in March 2025, with limited revenue contribution in Q1. - **Tariffs:** Increased tariffs on imports from China and Vietnam, expected to impact costs. - **Credit Agreement:** Amendments to extend waiver periods for covenant compliance, with substantial doubt about the company's ability to continue as a going concern. - **Strategic Review:** Board-initiated review of strategic alternatives, including potential sale or refinancing. **Future Operations Impact:** - **Cost Control:** Ongoing efforts to optimize production volumes, reduce discretionary spending, and realign resources. - **Liquidity:** Dependence on continued waivers from lenders and successful execution of strategic alternatives. - **Market Risks:** Exposure to exchange rate fluctuations and potential impacts on international revenue and expenses.