iRobot Corporation

Q3 2024 revenue was $193.4 million versus $186.2 million in Q3 2023. Q3 gross margin was 32.4%, up from 26.5% a year ago. Operating expenses were $47.7 million versus $90.1 million in the prior-year quarter, and operating income was $15.1 million versus an operating loss of $40.6 million. Net income per share was $0.03 versus a net loss per share of $2.82 in Q3 2023; the $13.5 million IP litigation settlement added $0.44 per share. For Q4, revenue is guided to $175 million to $200 million, gross margin to 24% to 27%, operating loss to $31 million to $22 million, and net loss per share to $1.50 to $1.20. Full-year 2024 revenue is now expected at $685 million to $710 million, gross margin at 25% to 26%, operating expenses at $274 million to $276 million, operating margin at negative 15% to negative 13%, and net loss per share at $4.91 to $4.60.

Gary Cohen framed the quarter as a turnaround in progress, saying iRobot’s brand and new operating model are the foundation of the “iRobot Elevate” strategy. He emphasized gross margin expansion, lower costs, a revamped product pipeline, and a major 2025 refresh that he said would be margin-accretive. His tone was cautious on the near term because of market and competitive pressure, but optimistic about 2025, when he expects growth to return as new products scale.

Julie Zeiler highlighted the hard numbers behind the improvement: revenue of $193.4 million, gross margin of 32.4%, operating expenses of $47.7 million, operating income of $15.1 million, and cash used in operations of $10.2 million. She noted cash and cash equivalents of $99.4 million, restricted cash of $41.1 million, inventory of $149.2 million, and only under $1 million expected for full-year capital spending. She also walked through the guidance reset, including 2024 revenue of $685 million to $710 million, gross margin of 25% to 26%, operating expenses of $274 million to $276 million, and the expectation of significantly better second-half cash flow than first half, excluding the Amazon termination fee received in Q1.

Analysts focused on whether gross margin could stay in the 30s in 2025, and management declined to give explicit 2025 guidance, saying it would come later, likely with Q4 results. They did confirm they expect full-year 2025 year-over-year top-line growth, with the second half stronger than the first as the product lineup ramps. Questions also centered on the Essentials product line and retailer relationships after the Amazon disruption; management said the new lineup should be margin-accretive and that relationships with retailers remain positive, with line reviews still ahead.