iRobot Corporation (NASDAQ: IRBT) — the Roomba robot vacuum pioneer that helped make “robots in the home” feel normal — is now at a make-or-break moment for investors. On December 14–15, 2025, the company announced it has entered a court-supervised, pre-packaged Chapter 11 bankruptcy process tied to a deal that would transfer ownership to its secured lender and primary contract manufacturer, Shenzhen PICEA Robotics (together with Santrum Hong Kong). [1]
For IRBT stockholders, the headline isn’t just “bankruptcy.” It’s the line in iRobot’s own announcement that changes everything: the company expects common shareholders to receive no recovery if the plan is approved — with all existing equity cancelled — and the company to go private. [2]
That combination (Chapter 11 + expected equity cancellation + going-private transaction) is why IRBT is suddenly less like a typical consumer-tech stock story and more like a capital-structure reality check.
What happened to iRobot stock today
iRobot’s bankruptcy filing and “going private” plan immediately reframed how markets look at IRBT. Commentary around the announcement pointed to sharp volatility, including pre-market strength after a steep prior-session decline, as traders reacted to clarity on the company’s near-term path. [3]
As of December 15, 2025, widely quoted market data showed IRBT trading around $4.32, with an intraday range roughly $4.17 to $5.68, and a 52‑week range of about $1.40 to $13.06. [4]
For longer-term context: IRBT’s all-time high closing price is commonly cited as $161.16 (January 27, 2021) — meaning the stock has already lived through an epic boom-to-bust arc before arriving at this bankruptcy moment. [5]
The deal structure: pre-pack Chapter 11, then iRobot goes private
The company’s official announcement (distributed via PR Newswire) says iRobot has entered a Restructuring Support Agreement (RSA) with Picea, and that iRobot and certain affiliates have voluntarily commenced a pre-packaged Chapter 11 process in the District of Delaware. The company says it expects to complete the process by February 2026. [6]
Key elements iRobot disclosed:
- Picea will receive 100% of the equity interests in iRobot after the restructuring, and iRobot will become a private company. [7]
- iRobot says its shares of common stock will no longer be listed on Nasdaq (or any other national exchange) once the transaction is completed. [8]
- Most consequential for investors: iRobot states it expects common shareholders will not receive equity in the reorganized company, and that all existing equity interests will be cancelled, meaning common stockholders would face a total loss if the Chapter 11 plan is approved. [9]
This is why analysts and experienced restructuring investors tend to treat bankrupt equities like IRBT as “option-like” instruments: they can still trade, sometimes wildly, but their value is dominated by the legal and financial priority ladder — and common stock is at the bottom.
Will Roombas keep working? iRobot says operations continue
One of the most consumer-relevant questions is whether a bankruptcy filing risks “bricking” devices, shutting down the app, or ending support.
iRobot is explicitly trying to calm that fear. The company says it expects no disruption to app functionality, customer programs, partner relationships, supply chain relationships, or product support during the Chapter 11 process. [10]
It also said it filed “customary motions” intended to let it keep operating normally and pay employees and vendors through the court-supervised process. [11]
Why iRobot ended up here: cash pressure, competition, tariffs, and a failed Amazon exit
Bankruptcies rarely happen because of a single bad quarter. iRobot’s 2025 filing is the visible end of a long chain of stressors — some operational, some strategic, some geopolitical.
1) Weak sales momentum and shrinking liquidity
In its third-quarter 2025 results (reported November 6, 2025), iRobot said revenue fell to $145.8 million from $193.4 million a year earlier, with a GAAP gross margin of 31.0%. [12]
Just as important: iRobot reported cash and cash equivalents of $24.8 million as of September 27, 2025 and noted that it had no sources available to draw for additional capital at that time. [13]
That’s the kind of sentence that makes creditors sit upright.
2) “Substantial doubt” about continuing as a going concern — and explicit bankruptcy warning
Earlier in 2025, iRobot’s filings flagged the risk of running out of road. In a Form 10‑Q for the period ended June 28, 2025, iRobot disclosed that management concluded there was substantial doubt about the company’s ability to continue as a going concern, described covenant waivers and strategic review efforts, and stated that if lenders accelerated repayment, iRobot would likely seek bankruptcy protection — adding that in such proceedings, stockholders would likely lose their entire investment. [14]
That disclosure reads today like the plot synopsis for the current episode.
3) Competitive pressure from lower-priced rivals
Reuters described iRobot’s profitability being eroded by lower-priced rivals, naming Chinese competitors including Ecovacs Robotics, and emphasized that competition forced pricing pressure and investment in technology upgrades. [15]
Tech coverage echoed this: iRobot remains a famous brand, but the robot vacuum market has become brutally crowded, with strong offerings from Chinese-owned brands and manufacturers. [16]
4) Tariffs hit the cost structure
Reuters reported iRobot was hurt by new U.S. tariffs — highlighting a 46% levy on imports from Vietnam, where iRobot manufactures vacuums for the U.S. market — and said the tariffs added $23 million in costs in 2025. [17]
5) The Amazon acquisition that didn’t happen
iRobot’s “clean exit” plan was supposed to be Amazon.
In August 2022, iRobot announced an agreement for Amazon to acquire iRobot at $61 per share, valuing the transaction at approximately $1.7 billion (including net debt). [18]
But the deal eventually collapsed amid regulatory pressure. Reuters has repeatedly referred to the abandoned transaction as a $1.4 billion sale after the parties amended terms and the process dragged on. [19]
When the merger was terminated in January 2024, iRobot announced an operational restructuring plan and disclosed Amazon would pay iRobot a $94 million termination fee, with significant portions tied to advisory fees and debt repayment mechanics. [20]
From there, iRobot was left trying to stabilize a stressed balance sheet while competing in an unforgiving hardware category — and now, in December 2025, the stabilization attempt has become a court process.
Who is Picea Robotics — and why is it ending up owning iRobot?
In iRobot’s announcement, Picea is described as both iRobot’s secured lender and primary contract manufacturer. [21]
Reuters reported that Picea acquired iRobot’s debt and that under iRobot’s bankruptcy plan, Picea will take 100% of iRobot’s equity while cancelling the remaining $190 million on a 2023 loan and an additional $74 million owed under the manufacturing agreement, with other creditors and suppliers to be paid in full. [22]
On the industry side, The Verge described Picea as one of the largest robot vacuum original design manufacturers (ODMs) — meaning it designs and builds products for multiple brands — and noted it also sells devices under its own 3i brand. [23]
In iRobot’s own description, Picea says it has R&D and manufacturing facilities in China and Vietnam, claims over 7,000 employees, more than 1,300 IP rights, and says it has manufactured and sold more than 20 million robot vacuums. [24]
Translation: iRobot’s future, if the plan is approved, moves from “standalone public-company turnaround” to “brand and product roadmap inside a manufacturing-led owner.”
Forecasts and analyst outlook: why the usual price targets may not matter now
When a public company files Chapter 11 — especially when it states it expects to cancel existing equity — traditional “IRBT stock forecast” pages become a little like using a weather app on the surface of the Sun. You still get numbers… but the environment has changed so radically that the forecast model may not apply.
Here’s what is meaningful as of December 15, 2025:
The most important forecast is the court timeline
iRobot expects to complete the pre-packaged Chapter 11 process by February 2026. [25]
If approved, iRobot says:
- it becomes private,
- it is no longer listed on Nasdaq, and
- current common stock is cancelled with no recovery for holders. [26]
That is the central “forecast” investors have to weigh.
Earnings calendars and Wall Street models may be overtaken by events
Some market calendars still list iRobot’s next earnings timing (for example, an February 11, 2026 date appeared on at least one widely used earnings page), but bankruptcy proceedings and a going-private process can change reporting schedules and corporate communications quickly. [27]
If you see bullish price targets today, treat them as stale until proven otherwise
It’s common to find third-party “price target” summaries that look upbeat even when a restructuring has effectively reset the company’s equity story. Those targets may be based on pre-bankruptcy analyst inputs, automated aggregation, or older expectations — and may not incorporate iRobot’s explicit statement that common shareholders are expected to receive no recovery if the plan is confirmed. [28]
If there’s a single critical-thinking rule for IRBT right now, it’s this: in a Chapter 11 where the company itself says current equity is expected to be cancelled, the default assumption is not “undervalued turnaround” — it’s “high risk of total loss.”
What IRBT investors should watch next
Because this is now a restructuring story, the catalysts are mostly legal and procedural:
- Bankruptcy court milestones in Delaware (first-day motions, plan confirmation schedule, objections, any competing bids).
- Any revisions to the Chapter 11 plan that could alter stakeholder recoveries.
- Nasdaq listing status and potential delisting timing as the process moves toward privatization. [29]
- Operating performance during Chapter 11, especially whether iRobot can maintain supply chain continuity, product support, and customer confidence (which iRobot says it expects to do). [30]
Bottom line: iRobot stock is now a restructuring-driven trade, not a normal operating-company investment
As of December 15, 2025, the iRobot (IRBT) story has crossed a threshold: it’s no longer primarily about Roomba features, holiday demand, or even quarterly revenue. It’s about a pre-packaged Chapter 11 process designed to hand ownership to Picea and delever the company — with iRobot explicitly warning that current common shareholders are expected to get no recovery if the plan is approved. [31]
That doesn’t mean IRBT can’t move up or down in the near term — bankruptcy equities often swing dramatically. It means the reason it moves is now dominated by court developments and capital-structure priority, not classic valuation logic.
References
1. www.prnewswire.com, 2. www.prnewswire.com, 3. www.tipranks.com, 4. www.investing.com, 5. www.macrotrends.net, 6. www.prnewswire.com, 7. www.prnewswire.com, 8. www.prnewswire.com, 9. www.prnewswire.com, 10. www.prnewswire.com, 11. www.prnewswire.com, 12. www.prnewswire.com, 13. www.prnewswire.com, 14. www.sec.gov, 15. www.reuters.com, 16. www.theverge.com, 17. www.reuters.com, 18. media.irobot.com, 19. www.reuters.com, 20. media.irobot.com, 21. www.prnewswire.com, 22. www.reuters.com, 23. www.theverge.com, 24. www.prnewswire.com, 25. www.prnewswire.com, 26. www.prnewswire.com, 27. public.com, 28. www.prnewswire.com, 29. www.prnewswire.com, 30. www.prnewswire.com, 31. www.prnewswire.com
