iRobot Corporation

Dear Fellow Shareholders:

iRobot continues to make meaningful progress on its iRobot Elevate turnaround strategy. In March 2025, the company initiated the largest new product launch in iRobot’s history. The new suite of technologically innovative Roomba® vacuums and 2-in-1 vacuums and mops includes advanced features and a new Roomba® Home app for more intuitive control. While most new products have been available since early April, the company is pleased with the positive reactions from distributors, retailers, media, and consumers.

This launch represents a strong pipeline of innovative products expected to be margin-accretive compared to legacy products. Navigating a dynamic macro environment, iRobot believes its new products and lower overall cost structure will support improved long-term profitability.

Operationally, progress has been driven by the iRobot Elevate strategic plan implemented in 2024 to strengthen the Company’s financial foundation. The operational structure has been reshaped to align with industry benchmarks, headcount has been reduced by over 50%, and inventory and cash outflows have been significantly reduced. Investment in focused sales and marketing supports the largest launch in the company's history.

iRobot has also achieved a significant reduction in its cost structure by transforming its R&D and supply chain model to better leverage design capabilities and contract manufacturing partnerships. This reinvention allows for a greater focus on innovation and improvements to product features, quality, and software.

Overall, the significantly lower cost structure contributed positively to first-quarter financial results, reflecting a transition period of clearing legacy product inventory. As distribution and retail availability of new products expand, iRobot expects solid sales traction to support year-over-year revenue growth in 2025, with continued progress towards gross-margin expansion and improved cash flow from operations.

The Company’s Board of Directors is reviewing strategic alternatives, including a potential sale or strategic transaction, and refinancing the Company’s debt. This review process is ongoing, with no set timetable. The Company does not intend to disclose developments until further disclosure is deemed appropriate or necessary.

iRobot remains engaged in discussions with its primary lender while the Board continues its strategic review. On April 30, 2025, the company amended its term loan to extend the covenant waiver to June 6, 2025.

Unveiling the Most Ambitious and Innovative Product Launch in iRobot’s History

Following the March 11th product launch announcement, excitement from employees, partners, and consumers has grown, marking a new era for iRobot.

In early April, iRobot made the following robots available across North America and select European markets: Roomba® 105 Vac Robot series, Roomba® 205 DustCompactor™ Vac Robot, Roomba® 205 DustCompactor™ Combo Robot, Roomba® Plus 405 Combo Robot + AutoWash™ Dock, and Roomba® Plus 505 Combo Robot + AutoWash™ Dock, featuring PerfectEdge® Technology. In late April, the Roomba® Max 705 Vac Robot + AutoEmpty™ Dock was announced.

In mid-April, the new product lineup was introduced to the Japan market at a press event in Tokyo. Over 100 business, tech, consumer media, and social media outlets attended, responding enthusiastically, with subsequent media coverage being positive.

Spotlighted Robots and Key Features:

• Roomba® 105 Vac Robot Series: Featuring 70x more power-lifting suction* (*compared with Roomba® 600 series robots).
• Roomba® 205 DustCompactor™ Vac Robot & Roomba® 205 DustCompactor™ Combo Robot: Devours dirt while the industry-leading DustCompactor™ innovation packs away debris for months.
• Roomba® Plus 405 Combo Robot + AutoWash™ Dock: Boasts intense suction, deep scrubbing, and a maintenance-free dock.
• Roomba® Plus 505 Combo Robot + AutoWash™ Dock: Features PerfectEdge® Technology for deep corner cleaning, a hands-free multi-function dock that automatically empties debris, washes, and heat-dries mop pads, and self-cleans when finished.
• Roomba® Max 705 Vac Robot + AutoEmpty™ Dock: Engineered for spotless, pet-loving homes, offering iRobot's highest level of vacuuming and cleaning with 180x more power-lifting suction, Dual-Rubber Brushes, and a self-emptying dock.

Media Buzz and Coverage

The product launch was amplified by a major global marketing campaign engaging millions of potential consumers across television, social media, audio platforms, and podcasts, driving strong awareness and demand.

Coverage included:

• U.S.: The Verge, Android Authority, PCMag.com, and Vacuum Wars.
• France: Les Numeriques, JV Tech, Labo Maison, and Frandroid.
• Spain: Alaka, El Espanol, La Vanguardia, and Europa Press.
• UK: The Independent, TechRadar, Tech Advisor, and Stuff.

What Our Customers Are Saying

Initial product reviews from consumers are very positive. Channel partners have provided enthusiastic feedback, underscoring iRobot’s momentum and commitment to cutting-edge solutions. Examples include:

“This is a very clear lineup that consumers will appreciate.”

“Nice to see iRobot bringing innovation back.”

“Love the GRID design, product looks great.”

“Best line review I’ve ever seen from iRobot.”

“Thank you for listening and bringing us product with the features we’ve been asking for.”

“I’m very happy with the progress iRobot is making. Thank you for listening.”

“Great design evolution. 205 Compact matches with Japanese consumers.”

“Good to see some unique innovations on the 205 and 705 (new Roomba Models).”

Looking Ahead

iRobot is energized by the positive and enthusiastic response to its new product launch and remains confident in achieving top and bottom line results as these products gain momentum.

Thank you for your continued support of iRobot. Further updates will be shared in the Second Quarter 2025 Shareholder Letter.

Sincerely,
Gary Cohen
Chief Executive Officer
May 6, 2025

Cautionary Statement Regarding Forward-Looking Statements

This communication contains “forward-looking statements” within the meaning of federal securities laws. These statements relate to the Company’s expectations regarding financial profile, impact of new products in 2025, improved profitability, 2025 product sales, revenue growth, gross margin expansion, cash flow from operations, the Board’s review of strategic alternatives, business plans, strategies, and their impact. These statements are based on current expectations, estimates, and projections, which are subject to change. Forward-looking statements often address expected future business and financial performance and condition, using words like “expect,” “anticipate,” “intend,” “plan,” “believe,” etc. All forward-looking statements inherently address matters involving risks and uncertainties beyond the Company’s control and are not guarantees of future results. Actual results could differ materially from those expressed due to various risks and uncertainties.

Important risk factors include, but are not limited to: the Company’s ability to obtain capital, realize benefits of operational restructuring, the impact of global conflicts and economic conditions, ability to implement business strategy, risks from operational restructuring, ability to retain and hire key personnel, legislative, regulatory, and economic developments, general economic and market conditions, evolving legal, regulatory, and tax regimes, potential business uncertainty, and unpredictability and severity of catastrophic events.

Additional risks and uncertainties that could cause actual outcomes to differ materially from those contemplated by forward-looking statements are included under “Risk Factors” in the Company’s most recent annual and quarterly reports filed with the SEC. These reports are available at www.sec.gov. The list of factors presented is representative, not exhaustive. Unlisted factors may present significant additional obstacles.

Consequences of material differences in results could include business disruption, operational problems, financial loss, legal liability, and similar risks, any of which could adversely affect the Company’s financial condition, results of operations, or liquidity. Forward-looking statements are made as of the date hereof, and the Company assumes no obligation to publicly provide revisions or updates, except as required by law.

For more details on first quarter results, read the full Q1 news release available on iRobot’s Investor Relations Website here.