iRobot Corporation (NASDAQ:IRBT) shares tumbled 8% on Monday after the company disclosed in an SEC filing that its last remaining potential buyer had made a takeover offer “significantly lower” than its recent trading levels, casting serious doubt on the likelihood of a successful sale.
The filing revealed that the company’s strategic review is still ongoing but has encountered a major obstacle. iRobot stated that “during our most recent negotiations in a potential sale transaction, the last remaining potential counterparty offered a price per share that it would be willing to pay to acquire our company that was significantly lower than the trading price of our stock over recent months.”
The document also highlighted iRobot’s worsening financial condition. The company has been relying on repeated waiver extensions from its lenders to avoid default on its covenant obligations. The current extension is set to expire on December 1, 2025. If no further extension is secured, the company could be in default on its credit agreement.
iRobot’s cash reserves have continued to decline, standing at $40.6 million as of June 28, 2025, against a term loan with a fair value of $203.2 million. The company has already used the remaining $36 million in restricted cash from the termination of its previous deal with Amazon to fund operations.
The filing warned that if lenders do not provide additional support or if the company fails to secure alternative funding soon, it “may be forced to significantly curtail or cease operations and would likely seek bankruptcy protection.” It added that in such a scenario, shareholders would “likely lose all of their investment.”