iRobot Corporation (NASDAQ: IRBT) — the company that turned “Roomba” into a household verb — is now at the center of a market event investors don’t forget: a pre-packaged Chapter 11 bankruptcy process paired with a deal that hands ownership to its lender and key supplier, Shenzhen PICEA Robotics (Picea). The headline is simple, but the implications for iRobot stock are brutal: Nasdaq trading is set to be suspended on December 22, 2025, and the company has warned that common stockholders are expected to receive no recovery if the plan is approved. [1]
As of Dec. 16, 2025, IRBT is trading like a “restructuring equity” story — the kind where the real action is in court documents and creditor agreements, not product launches. Here’s what happened, what’s been reported today, what the company and regulators have actually filed, and what the most realistic “forecast” looks like from here.
What’s driving iRobot stock today
The catalyst is the company’s restructuring transaction: iRobot entered a Restructuring Support Agreement (RSA) with Picea (described as iRobot’s secured lender and primary contract manufacturer), then voluntarily commenced a pre-packaged Chapter 11 process in the U.S. Bankruptcy Court for the District of Delaware. iRobot says it expects to complete the process by February 2026. [2]
In plain English: this is a negotiated restructuring where the company is trying to move fast, keep operating, and exit under new ownership — but that speed often comes with one big tradeoff for public shareholders.
IRBT stock price check: extreme volatility, crash-level repricing
IRBT’s tape reflects that repricing. As of the most recent quote available at the time of data capture (Dec. 16, 2025, 01:15 UTC), iRobot shares were around $1.18, down roughly 73% on the session, with the day’s trading ranging from roughly $0.65 to $2.87 on exceptionally heavy volume.
That level of intraday spread is typical when a stock shifts from “operating business valuation” to “what’s left for equity after creditors get paid,” and when traders pile in around headline risk and potential delisting deadlines.
Nasdaq delisting: the date that matters for IRBT traders
The most concrete near-term milestone isn’t an earnings call — it’s the exchange calendar.
In an SEC filing dated December 15, 2025, iRobot disclosed it was notified that Nasdaq determined to delist the company’s common stock due to the Chapter 11 proceedings, citing Nasdaq Listing Rules 5101, 5110(b), and IM-5101-1. iRobot also said it does not intend to appeal Nasdaq’s determination. [3]
Critically, iRobot stated:
- Trading will be suspended at the open on December 22, 2025
- Nasdaq will file a Form 25-NSE to remove the common stock from listing/registration [4]
For market participants, this is the “hard edge” of the story: once trading is suspended, liquidity can evaporate, spreads can widen further, and many brokers restrict trading or routing (even before formal delisting).
The key line for shareholders: “total loss” language
If you read only one sentence about the forecast for iRobot stockholders, it’s this: iRobot says it expects holders of common stock will not receive any equity in the reorganized company, and that all issued and outstanding equity interests will be cancelled, meaning common stockholders would experience a total loss if the plan is approved. [5]
That is not pundit commentary. It’s the company’s own disclosed expectation in connection with its restructuring process.
This is why “price targets” and conventional valuation debates become mostly academic once a Chapter 11 plan points to equity cancellation.
Will Roombas stop working? Why this matters to the stock narrative
iRobot’s consumer footprint is part of why this story exploded beyond finance pages. The company explicitly says it expects to continue operating in the ordinary course during Chapter 11, with no anticipated disruption to app functionality, customer programs, partners, supply chain relationships, or ongoing product support. [6]
That reassurance matters because iRobot is not just selling a gadget; it’s selling an ecosystem that includes cloud services, software updates, warranties, and retailer relationships. Confidence here affects revenue continuity — which affects whether a “fast, pre-pack exit” is plausible.
How iRobot got here: pressure from competition, tariffs, and a failed Amazon exit
Today’s bankruptcy headlines are the final chapter of a longer unwind:
- The Amazon acquisition attempt (announced in 2022) didn’t close and was ultimately abandoned amid regulatory scrutiny, after which iRobot restructured and cut costs. [7]
- Coverage and analysis point to intensifying competition in robot vacuums, especially from lower-priced or faster-iterating rivals, and to iRobot struggling to keep pace on features and pricing. [8]
- iRobot and reporters have also pointed to tariff uncertainty and import costs as meaningful operational headwinds in 2025, complicating forecasting and planning. [9]
The result: iRobot stock didn’t just “drop on news.” It has been sliding under the weight of a shrinking margin of error — and Chapter 11 is what happens when that margin hits zero.
The financial stress signals were flashing months ago
If this feels sudden, the filings and quarterly reports were already waving red flags.
In its Q3 2025 financial results (quarter ended Sept. 27, 2025), iRobot reported:
- Revenue of $145.8 million, down from $193.4 million a year earlier
- A GAAP operating loss (vs. operating income in the prior-year quarter)
- Cash and cash equivalents of $24.8 million as of Sept. 27, 2025, and notably: the company said it had no sources upon which it can draw for additional capital at that time [10]
That combination — declining revenue, losses, and thin liquidity — is exactly the setup where lenders gain leverage and “strategic alternatives” turn into “creditor-led outcomes.”
The October warning shot: “lowball” buyer interest and explicit bankruptcy risk language
One detail investors are resurfacing today: iRobot had already disclosed that its strategic review process ran into a wall.
In late October 2025, reporting based on an iRobot filing said the last remaining potential counterparty in sale negotiations offered a price significantly lower than recent trading levels, and the company warned that without new funding or capital sources it “may be forced” to curtail or cease operations and would likely seek bankruptcy protection — adding that stockholders would “likely lose all of their investment” in such a scenario. [11]
That’s basically the plot summary of what is now happening — just with dates and courtroom captions filled in.
What the deal does: Picea becomes the owner, iRobot goes private
Under the restructuring transaction described by iRobot, Picea will receive 100% of the equity interests in the company, and iRobot will become a private company after court approval and completion of the process. [12]
Retail Dive’s reporting adds additional color from court documents, including that the transaction contemplates cancellation of certain claims and that common shareholders would receive no recovery. [13]
From a business standpoint, there’s a coherent logic here: the supplier/lender that has the most operational visibility (and the most to lose in a disorderly collapse) takes control, stabilizes manufacturing and financing, and tries to rebuild outside the quarterly earnings microscope.
From a public equity standpoint, it’s hard to sugarcoat: going-private restructurings commonly leave existing common shares impaired or canceled — and iRobot has told investors to expect exactly that if the plan is approved. [14]
Forecasts and analyst targets: why the usual numbers can mislead right now
On Dec. 16, you can still find “12-month price targets” floating around financial portals. For example, one widely visible consensus page shows an average target around $11.94 and a “Neutral” stance based on a very small number of analysts. [15]
But here’s the problem (and it’s not a small one): a traditional price target assumes the equity continues to exist and that the company remains publicly traded.
iRobot’s own restructuring disclosures point toward:
- Delisting and trading suspension on Dec. 22, 2025 [16]
- Cancellation of existing equity interests and no recovery for common stock if the plan is approved [17]
So the most honest “forecast” for IRBT shareholders isn’t a DCF model; it’s a probability question:
- Does the court approve the plan (or something substantially similar) that cancels common equity?
- If yes, what is the practical value of IRBT shares between now and the effective date — especially given the delisting schedule?
That’s why investors should treat conventional targets as stale or structurally incompatible with a bankruptcy-and-delisting setup, unless an analyst has explicitly updated their thesis post-filing.
What investors are watching next (and why the dates matter)
If you’re tracking iRobot stock purely as a news-driven trade, the next checkpoints are more legal/administrative than operational:
- Dec. 22, 2025: Nasdaq trading suspension scheduled at the open (per iRobot’s SEC filing). [18]
- Chapter 11 milestones: Court hearings, plan confirmation, and any revisions to the RSA-backed plan structure (iRobot expects a fast timeline, targeting completion by February 2026). [19]
- Operational continuity signals: whether retailers, suppliers, and customers behave as if iRobot’s “no disruption” pledge is holding. [20]
A key reality: even if IRBT shares remain tradeable for a short window, bankruptcy equity can become a speculative arena where price movements are disconnected from eventual recovery (especially when the company has already flagged “total loss” expectations).
The bottom line on iRobot stock on Dec. 16, 2025
Today’s iRobot stock story is not primarily about Roomba demand or the next smart-home cycle. It’s about capital structure, creditor priority, and a defined delisting timeline.
- iRobot has entered a pre-packaged Chapter 11 process and expects to exit by February 2026 under Picea ownership. [21]
- Nasdaq trading suspension is scheduled for Dec. 22, 2025, and the company isn’t appealing the delisting decision. [22]
- iRobot says common shareholders should expect no recovery and equity cancellation if the plan is approved. [23]
- The stock’s collapse and wild volatility reflect the market rapidly repricing that reality. [24]
The weird lesson here is one the market teaches repeatedly, with very little mercy: a famous consumer brand can still be a very dangerous stock when the balance sheet breaks.
References
1. www.sec.gov, 2. www.sec.gov, 3. www.sec.gov, 4. www.sec.gov, 5. www.sec.gov, 6. www.sec.gov, 7. apnews.com, 8. www.theverge.com, 9. www.retaildive.com, 10. www.prnewswire.com, 11. www.investing.com, 12. www.sec.gov, 13. www.retaildive.com, 14. www.sec.gov, 15. www.investing.com, 16. www.sec.gov, 17. www.sec.gov, 18. www.sec.gov, 19. www.sec.gov, 20. www.sec.gov, 21. www.sec.gov, 22. www.sec.gov, 23. www.sec.gov, 24. apnews.com
