0001159167-24-000083 | 10-Q | XBRL Viewer

Accrued Expenses

9 Months Ended

Sep. 28, 2024

Accrued Liabilities, Current [Abstract]

Accrued expenses consisted of the following (in thousands):


	September 28, 2024		December 30, 2023
Accrued warranty	$	19,067	$	24,625
Accrued returns and sales incentives	17,758		12,897
Accrued compensation and benefits	14,289		13,593

Accrued manufacturing and logistics cost	12,211		5,462
Accrued taxes payable	4,721		8,927
Current portion of operating lease liabilities	4,439		5,216
Accrued interest	3,895		4,498

Accrued restructuring and other	3,571		1,894
Derivative liability	82		7,276
Accrued merger related liabilities	—		4,721






Accrued other	8,351		8,890
	$	88,384	$	97,999

Summary of Significant Accounting Policies (Policies)

9 Months Ended

Sep. 28, 2024

Accounting Policies [Abstract]

Basis of Presentation and Foreign Currency Translation

The accompanying consolidated financial statements include those of iRobot and its subsidiaries, after elimination of all intercompany balances and transactions. iRobot has prepared the accompanying unaudited consolidated financial statements in conformity with accounting principles generally accepted in the United States of America ("GAAP"). In addition, certain prior year amounts have been reclassified to conform to the current year presentation, including separate presentation of restructuring and other costs on the consolidated statements of operations. These reclassifications have no material effect on the reported financial results.

In the opinion of management, all adjustments necessary to the unaudited interim consolidated financial statements have been made to state fairly the Company's financial position. Interim results are not necessarily indicative of results for the full fiscal year or any future periods. The information included in this Form 10-Q should be read in conjunction with the Company's audited consolidated financial statements and notes thereto included in its Annual Report on Form 10-K for the fiscal year ended December 30, 2023, filed with the Securities and Exchange Commission on February 27, 2024.

Fiscal Period, Policy

The Company operates and reports using a 52-53 week fiscal year ending on the Saturday closest to December 31. Accordingly, the Company's fiscal quarters end on the Saturday that falls closest to the last day of the third month of each quarter.

Recently Issued Accounting Standards

From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board that are adopted by the Company as of the specified effective date. Unless otherwise discussed, the Company believes that recently issued standards, which are not yet effective, will not have a material impact on the Company's consolidated financial statements upon adoption.

Use of Estimates

The preparation of these financial statements in conformity with GAAP requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities and revenue and expenses. These estimates and judgments, include but are not limited to, revenue recognition, including variable consideration and other obligations such as sales incentives and product returns; impairment of goodwill and long-lived assets; valuation of non-marketable equity investments; valuation of debt; inventory excess and obsolescence; loss on purchase commitments; loss contingencies; and accounting for income taxes and related valuation allowances. The Company bases its estimates and assumptions on historical experience, market participant fair value considerations, projected future cash flows, current economic conditions, and various other factors that the Company believes are reasonable under the circumstances. Actual results and outcomes may differ from the Company's estimates and assumptions.

Cash, cash equivalents and restricted cash

Cash, Cash Equivalents and Restricted Cash

The Company considers all highly liquid investments with maturity of three months or less at the time of purchase to be cash and cash equivalents. The Company's restricted cash balance totaled $42.4 million as of September 28, 2024, $41.1 million of which was set aside for future repayment of the Term Loan subject to limited rights of the Company to utilize such amounts for the purchase of inventory. During the three months ended September 28, 2024, the Company elected to draw down $40.0 million of the restricted cash, which was subsequently received in the fourth quarter of fiscal 2024 and will be used for the purchase of inventory. See Note 9, Debt, for additional information. The remaining $1.4 million of restricted cash is used as collateral for the Company's credit card program and to secure the outstanding letters of credit and is included in other assets on the consolidated balance sheet.

Allowance for Credit Losses

The Company maintains an allowance for credit losses for accounts receivable using an expected loss model that requires the use of forward-looking information to calculate credit loss estimate. The expected loss methodology is developed through consideration of factors including, but not limited to, historical collection experience, current customer credit ratings, customer concentrations, current and future economic and market conditions and age of the receivable. The Company reviews and adjusts the allowance for credit losses on a quarterly basis. Accounts receivable balances are written off against the allowance when the Company determines that the balances are not recoverable. At September 28, 2024 and December 30, 2023, the Company had an allowance for credit losses of $2.7 million.

Inventory

Inventory primarily consists of finished goods and, to a lesser extent, components, which are purchased from contract manufacturers. Inventory is stated at the lower of cost or net realizable value with cost being determined using the standard cost method, which approximates actual costs determined on the first-in, first-out basis. Inventory costs primarily consist of materials, inbound freight, import duties and other handling fees. The Company writes down its inventory for estimated obsolescence or excess inventory based upon assumptions around market conditions and estimates of future demand including consideration of product life cycle status, product development plans and current sales levels. Inventory write-downs and losses on purchase commitments are recorded in cost of revenue. Net realizable value is the estimated selling price less estimated costs of completion, disposal and transportation. Adjustments to reduce inventory to net realizable value are recognized in cost of revenue and have not been significant for the periods presented.

During the second quarter of fiscal 2024, the Company finalized its 2025 product roadmap as part of its transition to a new contract manufacturing paradigm. As a result, the Company evaluated its component inventory on-hand and non-cancelable purchase commitments with its contract manufacturers and suppliers and recorded a charge totaling $18.4 million in cost of product revenue in the second quarter of fiscal 2024. This charge included a $10.3 million non-cash reserve for obsolete or excess component inventory and a $8.1 million charge for losses on non-cancellable purchase commitments.

Short-Term and Strategic Investments

Strategic Investments

The Company holds non-marketable equity securities as part of its strategic investments portfolio. The Company classifies the majority of these securities as equity securities without readily determinable fair values and measures these investments at cost, less any impairment, adjusted for observable price changes in orderly transactions for identical or similar investments of the same issuer. These investments are valued using significant unobservable inputs or data in an inactive market and the valuation requires the Company's judgment due to the absence of market prices and inherent lack of liquidity. The Company monitors non-marketable equity investments for impairment indicators, such as deterioration in the investee's financial condition and business forecasts and lower valuations in recent or proposed financings. The estimated fair value is based on quantitative and qualitative factors including, but not limited to, subsequent financing activities by the investee and projected discounted cash flows. The Company performs an assessment on a quarterly basis to assess whether triggering events for impairment exist and to identify any observable price changes. Changes in fair value of non-marketable equity investments are recorded in other expense, net on the consolidated statements of operations. At September 28, 2024 and December 30, 2023, the Company's equity securities without readily determinable fair values totaled $11.1 million and $11.4 million, respectively, and are included in other assets on the consolidated balance sheets.

Net (Loss) Income Per Share

Net Loss Per Share

Basic loss per share is calculated using the Company's weighted-average outstanding common shares. Diluted loss per share is calculated using the Company's weighted-average outstanding common shares including the dilutive effect of stock awards as determined under the treasury stock method.

The following table presents the calculation of both basic and diluted net loss per share (in thousands, except per share amounts):


	Three Months Ended				Nine Months Ended
	September 28, 2024		September 30, 2023		September 28, 2024		September 30, 2023
Net loss	$	(6,371)	$	(79,205)	$	(68,410)	$	(241,117)
Weighted-average shares outstanding	30,348		27,738		29,276		27,608


Basic and diluted loss per share	$	(0.21)	$	(2.86)	$	(2.34)	$	(8.73)

Employee stock awards representing approximately 2.8 million and 0.8 million shares of Common Stock for the three months ended September 28, 2024 and September 30, 2023, respectively, and approximately 2.9 million and 0.9 million shares for the nine months ended September 28, 2024 and September 30, 2023, respectively, were excluded from the computation of diluted earnings per share as their effect would have been antidilutive.

Debt - Outstanding Debt (Details) - USD ($) $ in Thousands		9 Months Ended
Debt - Outstanding Debt (Details) - USD ($) $ in Thousands	Jan. 31, 2024	Sep. 28, 2024	Sep. 30, 2023
Line of Credit Facility [Line Items]
Repayment		$ (34,947)	$ 0
Remaining changes in fair value		13,515	$ 5,292
Secured Debt \| Credit Agreement \| Line of Credit
Line of Credit Facility [Line Items]
Term Loan at fair value at December 30, 2023		201,501
Repayment	$ (35,000)
Change in fair value of term loan due to instrument-specific credit risk		6,644
Remaining changes in fair value		13,515
Term Loan at fair value as of September 28, 2024		$ 186,713

Industry Segment, Geographic Information and Significant Customers - Additional Information (Detail) - segment	3 Months Ended		9 Months Ended
	Sep. 28, 2024	Sep. 30, 2023	Sep. 28, 2024	Sep. 30, 2023
Revenues from External Customers and Long-Lived Assets [Line Items]
Number of Reportable Segments			1
Revenue Benchmark \| Retail Customer \| Customer Concentration Risk
Revenues from External Customers and Long-Lived Assets [Line Items]
Concentration Risk, Percentage	32.60%	22.40%	27.10%	26.80%

Consolidated Statement of Stockholders' Equity - USD ($) $ in Thousands	Total	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	AOCI Attributable to Parent [Member]
Beginning balance (in shares) at Dec. 31, 2022		27,423,000
Beginning balance at Dec. 31, 2022	$ 475,716	$ 274	$ 257,498	$ 199,415	$ 18,529
Issuance of common stock under employee stock plans (in shares)		9,000
Stock Issued During Period, Value, Stock Options Exercised	9	$ 0	9
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures (in shares)		479,000
Stock Issued During Period, Value, Restricted Stock Award, Net of Forfeitures	0	$ 5	(5)
APIC, Share-based Payment Arrangement, Increase for Cost Recognition	25,880		25,880
Shares Paid for Tax Withholding for Share Based Compensation (in shares)		(46,000)
Stock Withheld to Cover Tax Withholding Requirements Upon Vesting to Restricted Stock Units Amount	(1,924)	$ 0	(1,924)
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent	(5,676)				(5,676)
Net loss	(241,117)			(241,117)
Ending balance (in shares) at Sep. 30, 2023		27,865,000
Ending balance at Sep. 30, 2023	252,888	$ 279	281,458	(41,702)	12,853
Beginning balance (in shares) at Jul. 01, 2023		27,696,000
Beginning balance at Jul. 01, 2023	325,419	$ 277	272,190	37,503	15,449
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures (in shares)		172,000
Stock Issued During Period, Value, Restricted Stock Award, Net of Forfeitures	0	$ 2	(2)
APIC, Share-based Payment Arrangement, Increase for Cost Recognition	9,375		9,375
Shares Paid for Tax Withholding for Share Based Compensation (in shares)		(3,000)
Stock Withheld to Cover Tax Withholding Requirements Upon Vesting to Restricted Stock Units Amount	(105)	$ 0	(105)
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent	(2,596)				(2,596)
Net loss	(79,205)			(79,205)
Ending balance (in shares) at Sep. 30, 2023		27,865,000
Ending balance at Sep. 30, 2023	$ 252,888	$ 279	281,458	(41,702)	12,853
Beginning balance (in shares) at Dec. 30, 2023	27,964,000	27,964,000
Beginning balance at Dec. 30, 2023	$ 196,487	$ 280	290,755	(105,295)	10,747
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures (in shares)		747,000
Stock Issued During Period, Value, Restricted Stock Award, Net of Forfeitures	0	$ 7	(7)
APIC, Share-based Payment Arrangement, Increase for Cost Recognition	17,937		17,937
CEO transition costs related to stock-based awards	(1,140)		(1,140)
Shares Paid for Tax Withholding for Share Based Compensation (in shares)		(49,000)
Stock Withheld to Cover Tax Withholding Requirements Upon Vesting to Restricted Stock Units Amount	(491)	$ 0	(491)
Issuance of common stock, net of issuance costs (in shares)		1,897,000
Issuance of common stock, net of issuance costs	19,359	$ 19	19,340
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent	(13,580)				(13,580)
Net loss	$ (68,410)			(68,410)
Ending balance (in shares) at Sep. 28, 2024	30,559,000	30,559,000
Ending balance at Sep. 28, 2024	$ 150,162	$ 306	326,394	(173,705)	(2,833)
Beginning balance (in shares) at Jun. 29, 2024		30,077,000
Beginning balance at Jun. 29, 2024	149,076	$ 301	319,673	(167,334)	(3,564)
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures (in shares)		300,000
Stock Issued During Period, Value, Restricted Stock Award, Net of Forfeitures	0	$ 3	(3)
APIC, Share-based Payment Arrangement, Increase for Cost Recognition	5,480		5,480
CEO transition costs related to stock-based awards	(143)		(143)
Shares Paid for Tax Withholding for Share Based Compensation (in shares)		(4,000)
Stock Withheld to Cover Tax Withholding Requirements Upon Vesting to Restricted Stock Units Amount	(28)	$ 0	(28)
Issuance of common stock, net of issuance costs (in shares)		186,000
Issuance of common stock, net of issuance costs	1,417	$ 2	1,415
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent	731				731
Net loss	$ (6,371)			(6,371)
Ending balance (in shares) at Sep. 28, 2024	30,559,000	30,559,000
Ending balance at Sep. 28, 2024	$ 150,162	$ 306	$ 326,394	$ (173,705)	$ (2,833)

Industry Segment, Geographic Information and Significant Customers	9 Months Ended
	Sep. 28, 2024
Segment Reporting [Abstract]
Industry Segment, Geographic Information and Significant Customers	Industry Segment, Geographic Information and Significant Customers The Company operates as one operating segment. The Company's consumer robots are offered to consumers through a variety of distribution channels, including chain stores and other national retailers, through the Company's own website and app, dedicated e-commerce websites, the online arms of traditional retailers, and through value-added distributors and resellers worldwide. Significant Customers For the three months ended September 28, 2024 and September 30, 2023, the Company generated 32.6% and 22.4%, respectively, of total revenue from one of its retailers. For the nine months ended September 28, 2024 and September 30, 2023, the Company generated 27.1% and 26.8%, respectively, of total revenue from one of its retailers.

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

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+ Details

Derivative Instruments and Hedging Activities - Schedule of Derivative Instruments (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 30, 2024	Apr. 01, 2023	Sep. 28, 2024	Dec. 30, 2023
Derivative [Line Items]
Derivative, Remaining Maturity			3 years
Foreign Exchange Forward [Member]
Derivative [Line Items]
Derivative, Notional Amount, Terminated Contracts	$ 102,900	$ 151,700
Proceeds from derivative instruments	$ 2,700
Payments for derivative instruments		$ 2,500
Designated as Hedging Instrument [Member]
Derivative [Line Items]
Derivative, Notional Amount			$ 0	$ 114,400
Not Designated as Hedging Instrument [Member]
Derivative [Line Items]
Derivative, Notional Amount			11,900	252,000
Not Designated as Hedging Instrument [Member] \| Foreign Exchange Forward [Member]
Derivative [Line Items]
Derivative instruments (Note 10)			0	2,929
Derivative instruments (Note 10)			82	4,586
Designated as Hedging Instrument [Member] \| Cash Flow Hedging [Member] \| Foreign Exchange Forward [Member]
Derivative [Line Items]
Derivative instruments (Note 10)			0	1,070
Designated as Hedging Instrument [Member] \| Cash Flow Hedging [Member] \| Foreign Exchange Forward [Member] \| Accrued Liabilities [Member]
Derivative [Line Items]
Derivative instruments (Note 10)			0	2,690
Designated as Hedging Instrument [Member] \| Cash Flow Hedging [Member] \| Foreign Exchange Forward [Member] \| Other Noncurrent Liabilities [Member]
Derivative [Line Items]
Derivative instruments (Note 10)			$ 0	$ 367

Commitments and Contingencies (Tables)

9 Months Ended

Sep. 28, 2024

Commitments and Contingencies Disclosure [Abstract]

Activity related to the warranty accrual was as follows (in thousands):


	Three Months Ended				Nine Months Ended
	September 28, 2024		September 30, 2023		September 28, 2024		September 30, 2023
Balance at beginning of period	$	19,765	$	23,935	$	24,625	$	27,379

Provision	3,994		2,869		10,039		11,229
Warranty claims	(4,692)		(4,484)		(15,597)		(16,288)
Balance at end of period	$	19,067	$	22,320	$	19,067	$	22,320

Stockholders' Equity	9 Months Ended
Stockholders' Equity	Sep. 28, 2024
Equity [Abstract]
Stockholders' Equity	Stockholders' Equity ATM Equity Offering In February 2024, the Company entered into an ATM Equity Offering Sales Agreement (the "ATM Agreement") with BofA Securities, Inc. ("BofA") pursuant to which the Company may offer and sell, from time to time, at the Company's option, up to an aggregate of $100.0 million in shares of Common Stock through BofA, as sales agent, in an "at the market" offering. The shares will be offered and sold pursuant to an effective automatic shelf registration statement on Form S-3, which was originally filed with the Securities and Exchange Commission on February 27, 2024. BofA will receive a commission up to 3.00% of the aggregate gross sales proceeds of any Common Stock sold through BofA under the ATM Agreement. During the three and nine months ended September 28, 2024, the Company sold an aggregate of 0.2 million and 1.9 million shares under the ATM Agreement, respectively, and received net proceeds of $1.4 million and $19.4 million, respectively. The issuance costs incurred in connection with the offering were $0.1 million and $1.1 million during the three and nine months ended September 28, 2024, respectively. As of September 28, 2024, $79.6 million remained available for further sale under the ATM Agreement.

- Definition

The entire disclosure for equity.

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-Name Accounting Standards Codification
-Section 50
-Paragraph 16
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-16

Reference 17: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 18
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-18

Reference 18: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 18
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-18

Reference 19: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 18
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-18

+ Details

Restructuring and Other Charges - Additional Information (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 28, 2024 USD ($)	Sep. 30, 2023 USD ($)	Sep. 28, 2024 USD ($) employee	Sep. 30, 2023 USD ($)
Restructuring Cost and Reserve [Line Items]
Restructuring and other	$ 1,922	$ 152	$ 24,298	$ 8,236
Number of positions eliminated \| employee			340
Total cash charges	1,986	152	$ 22,690	8,236
Restructuring costs			4,900
Severance and other personnel costs
Restructuring Cost and Reserve [Line Items]
Total cash charges	$ 998	$ 69	$ 17,198	$ 3,602

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References + Details

Goodwill and Other Intangible Assets

9 Months Ended

Sep. 28, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets

The following table summarizes the activity in the carrying amount of goodwill and intangible assets for the nine months ended September 28, 2024 (in thousands):


	Goodwill		Intangible assets
Balance as of December 30, 2023	$	175,105	$	5,044

Amortization	—		(1,405)
Effect of foreign currency translation	823		(4)
Balance as of September 28, 2024	$	175,928	$	3,635

Debt - Narrative (Details) - USD ($) $ in Thousands				3 Months Ended		9 Months Ended
Debt - Narrative (Details) - USD ($) $ in Thousands	Jan. 31, 2024	Jan. 29, 2024	Jul. 24, 2023	Dec. 28, 2024	Sep. 28, 2024	Sep. 28, 2024	Sep. 30, 2023	Dec. 30, 2023
Line of Credit Facility [Line Items]
Debt issuance costs expensed under fair value option						$ 529	$ 11,837
Accrued interest					$ 3,895	3,895		$ 4,498
Repayments of Long-Term Debt						34,947	$ 0
Interest expense					5,400	16,200
Forecast \| Subsequent Event
Line of Credit Facility [Line Items]
Proceeds from draw down of restricted cash				$ 40,000
Amazon, Inc.
Line of Credit Facility [Line Items]
Proceeds From Termination Of Merger		$ 94,000
Required Proforma Consolidated Core Assets	$ 275,000
Secured Debt \| Line of Credit \| Credit Agreement
Line of Credit Facility [Line Items]
Face amount			$ 200,000		$ 178,308	$ 178,308		$ 200,000
Proceeds net of debt issuance costs			188,200
Debt issuance costs			$ 11,800
PIK interest			2.50%
Minimum of consolidated core assets			$ 250,000
Repayments of Long-Term Debt	35,000
Termination Fee Received, Restricted Cash Set Aside For Future Repayments Of Long-Term Debt	40,000
Secured Debt \| Line of Credit \| Credit Agreement \| Amazon, Inc.
Line of Credit Facility [Line Items]
Principal balance	176,100
Debt Instrument, Consolidated Core Assets	$ 200,000
Secured Debt \| Line of Credit \| Term SOFR \| Credit Agreement
Line of Credit Facility [Line Items]
Basis spread on variable rate			9.00%
Secured Debt \| Line of Credit \| Base Rate \| Credit Agreement
Line of Credit Facility [Line Items]
Basis spread on variable rate			8.00%

Goodwill and Other Intangible Assets (Tables)

9 Months Ended

Sep. 28, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Goodwill

The following table summarizes the activity in the carrying amount of goodwill and intangible assets for the nine months ended September 28, 2024 (in thousands):


	Goodwill		Intangible assets
Balance as of December 30, 2023	$	175,105	$	5,044

Amortization	—		(1,405)
Effect of foreign currency translation	823		(4)
Balance as of September 28, 2024	$	175,928	$	3,635

- Definition

Tabular disclosure of goodwill by reportable segment and in total which includes a rollforward schedule.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 55
-Paragraph 24
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482548/350-20-55-24

Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-1

Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (h)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-1

Reference 4: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
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-URI https://asc.fasb.org//1943274/2147482573/350-20-50-1

Reference 5: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-1

Reference 6: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-1

Reference 7: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
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-Paragraph 1
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-Publisher FASB
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Reference 8: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
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-URI https://asc.fasb.org//1943274/2147482573/350-20-50-1

Reference 9: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (f)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-1

Reference 10: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (g)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-1

Reference 11: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1A
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-1A

Reference 12: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-2

+ Details

Restructuring and Other Charges (Tables)

9 Months Ended

Sep. 28, 2024

Restructuring and Related Activities [Abstract]

Components of Restructuring and Other Charges

The components of restructuring and other charges were as follows (in thousands):


	Three Months Ended				Nine Months Ended
	September 28, 2024		September 30, 2023		September 28, 2024		September 30, 2023
Cash restructuring charges:
Severance and other personnel costs	$	998	$	69	$	17,198	$	3,602
Other restructuring costs	454		83		3,439		4,634
CEO transition costs	534		—		2,053		—
Total cash charges	1,986		152		22,690		8,236

Non-cash charges:
Asset write offs	79		—		2,828		—

CEO transition costs related to stock-based awards	(143)		—		(1,220)		—
Total non-cash charges	(64)		—		1,608		—

Total restructuring and other charges	$	1,922	$	152	$	24,298	$	8,236

The following table presents a roll-forward of cash restructuring-related liabilities, which is included within accounts payable and accrued expenses in the consolidated balance sheet (in thousands):


	Severance and other personnel costs		Other restructuring costs		CEO transition costs		Total
Balance as of December 30, 2023	$	—	$	—	$	—	$	—
Charges	17,198		3,439		2,053		22,690
Cash payments	(16,109)		(1,284)		(1,411)		(18,804)
Balance as September 28, 2024	$	1,089	$	2,155	$	642	$	3,886

Summary of Significant Accounting Policies

9 Months Ended

Sep. 28, 2024

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Basis of Presentation and Foreign Currency Translation

Liquidity

The accompanying unaudited consolidated financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the continuity of operations, realization of assets, and liquidation of liabilities in the normal course of business.

In the third quarter of fiscal 2024, the Company's performance continued to be impacted by lower orders from retailers and distributors largely resulting from a decline in consumer sentiment and increased pricing competition in the market. During the nine months ended September 28, 2024, the Company's revenue declined 12.6%, compared to the nine months ended September 30, 2023. The Company's operating loss of $41.9 million and operating cash outflows of $30.5 million for the nine months ended September 28, 2024 benefited from the one-time receipt of the Parent Termination Fee net of professional fees paid of $75.2 million during the first quarter of fiscal 2024. The Company's operating loss also includes the one-time benefit of $13.5 million related to an intellectual property litigation settlement ("Litigation Settlement") during the third quarter of fiscal 2024 with cash received subsequently in October. At September 28, 2024, the Company's cash and cash equivalents were $99.4 million. The Company also had $42.4 million in restricted cash. During the three months ended September 28, 2024, the Company elected to draw down $40.0 million of the restricted cash which was subsequently received in the fourth quarter of fiscal 2024. The cash will be used for the purchase of inventory and is required to be repaid within five months in accordance with the terms of the loan agreement. It will then be available again during the third quarter of 2025 for purchases of inventory.

Management has considered and assessed its ability to continue as a going concern for the one year from the date that the unaudited consolidated financial statements are issued. Management's assessment included the preparation of cash flow forecasts taking into account the restructuring actions and maintaining debt covenant compliance. On January 29, 2024, following the termination of the Merger Agreement, the Company announced an operational restructuring plan to more closely align its cost structure with near-term revenue expectations and drive profitability. The 2024 operational restructuring plan is structured to:

•achieve gross margin improvements through a focus on design-to-value and more beneficial terms with the Company's existing and new manufacturing partners;

•lower research and development expenditure by pausing work unrelated to the Company's core floorcare business and shifting to greater reliance on contract manufacturers as it relates to the lower-value commodity engineering work;

•return selling and marketing expenditures to a more normalized level, consistent with industry standards in the consumer products market, by centralizing resources on more limited geographies and consolidating marketing efforts for efficiencies; and

•further reduce headcount by approximately 350 employees, which represents approximately 31% of the Company's global workforce as of December 30, 2023.

During the nine months ended September 28, 2024, the Company made significant progress in implementing its 2024 operational restructuring plan. The Company's total operating expenses declined $93.5 million, or 26.7%, which excludes the one-time benefits of $75.2 million related to the Parent Termination Fee and $13.5 million related to the Litigation Settlement, compared to the nine months ended September 30, 2023. Research and development expenses decreased $39.8 million, or 34.2%, while selling and marketing expenses decreased $40.7 million, or 29.1%, during the nine months ended September 28, 2024. Gross margin improved to 32.2% during the third quarter of fiscal 2024, compared to 25.8% during the third quarter of 2023. In addition to the reduction of its headcount, the Company entered into or amended three sublease agreements between fiscal 2022 and 2024 to sublease portions of its headquarters. iRobot expects these sublease agreements will generate $6.1 million in sublease cash payments in the future over the remaining lease terms. The Company expects to continue to right size its global real estate footprint through additional subleasing at its corporate headquarters and the elimination of offices in smaller, underperforming geographies. The Company continues to evaluate its cost structure, and in November 2024, as part of the ongoing restructuring plan, the Company announced an additional round of workforce reductions, totaling approximately 105 employees. Since the start of 2024 and including this new action, the Company has reduced its global workforce by approximately 50%.

Inventory has consumed a significant amount of cash and the Company continues to manage its inventory level carefully to ensure efficiency in its working capital. Days in inventory has improved from 161 days during the third quarter of fiscal 2023 to 104 days in the third quarter of fiscal 2024. The Company plans to continue to manage its inventory to a level that aligns with current run rates and seasonality of the business.

While management estimates such actions will be sufficient to allow it to maintain its debt covenant compliance, and its liquidity and operations in the ordinary course for at least 12 months from the issuance of these financial statements, there can be no assurance the Company will meet its debt covenant compliance and generate sufficient future cash flows from operations due to potential factors, including, but not limited to, further inflation, higher interest rates, ongoing recessionary conditions or continued reduced demand for the Company's products due to consumer sentiment or competition. If the Company is not successful in increasing demand for its products, or if macroeconomic conditions further constrain consumer demand, the Company may continue to experience adverse impacts to revenue and profitability. Additional actions within the Company's control to maintain its liquidity and operations include optimizing its production volumes with contract manufacturers by reducing inventory supply forecast for cancellable purchase orders, further reducing discretionary spending in all areas of the business and realigning resources through ongoing attrition without rehiring activity. In addition, the Company may need

additional financing, including public or private equity or debt financing, to execute on its current or future business strategy, and additional financing may not be available or on terms favorable to the Company.

The consolidated financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classification of liabilities that may result from the outcome of these uncertainties.

Recently Issued Accounting Standards

Use of Estimates

Cash, Cash Equivalents and Restricted Cash

Allowance for Credit Losses

Inventory

Strategic Investments

Net Loss Per Share

The following table presents the calculation of both basic and diluted net loss per share (in thousands, except per share amounts):


	Three Months Ended				Nine Months Ended
	September 28, 2024		September 30, 2023		September 28, 2024		September 30, 2023
Net loss	$	(6,371)	$	(79,205)	$	(68,410)	$	(241,117)
Weighted-average shares outstanding	30,348		27,738		29,276		27,608


Basic and diluted loss per share	$	(0.21)	$	(2.86)	$	(2.34)	$	(8.73)

Leases - Lease Cost (Details) - USD ($) $ in Thousands	3 Months Ended			9 Months Ended
Leases - Lease Cost (Details) - USD ($) $ in Thousands	Sep. 28, 2024	Jun. 29, 2024	Sep. 30, 2023	Sep. 28, 2024	Sep. 30, 2023
Leases [Abstract]
Operating lease cost	$ 1,043		$ 1,359	$ 3,604	$ 4,827
Variable lease cost	716		646	2,669	2,374
Sublease income	(535)		(495)	(1,526)	(819)
Right-of-use asset impairment	167	$ 900	0	1,034	3,048
Net lease cost	$ 1,391		$ 1,510	$ 5,781	$ 9,430

Nature of the Business (Details) - USD ($) $ in Thousands			3 Months Ended	9 Months Ended
Nature of the Business (Details) - USD ($) $ in Thousands	Jan. 31, 2024	Jan. 29, 2024	Mar. 30, 2024	Sep. 28, 2024	Sep. 30, 2023
Business Acquisition [Line Items]
Repayments of Long-Term Debt				$ 34,947	$ 0
Secured Debt \| Credit Agreement \| Line of Credit
Business Acquisition [Line Items]
Repayments of Long-Term Debt	$ 35,000
Termination Fee Received, Restricted Cash Set Aside For Future Repayments Of Long-Term Debt	40,000
Amazon, Inc.
Business Acquisition [Line Items]
Proceeds From Termination Of Merger		$ 94,000
Professional Fees	$ 18,800
Proceeds net of professional fees			$ 75,200

Restructuring and Other Charges - Components of Restructuring and Other Chrages (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 28, 2024	Sep. 30, 2023	Sep. 28, 2024	Sep. 30, 2023
Restructuring Cost and Reserve [Line Items]
Total cash charges	$ 1,986	$ 152	$ 22,690	$ 8,236
Total non-cash charges	(64)	0	1,608	0
Restructuring and other	1,922	152	24,298	8,236
Restructuring Reserve [Roll Forward]
Restructuring Reserve, Beginning Balance			0
Charges	1,986	152	22,690	8,236
Cash payments			(18,804)
Restructuring Reserve, Ending Balance	3,886		3,886
Severance and other personnel costs
Restructuring Cost and Reserve [Line Items]
Total cash charges	998	69	17,198	3,602
Restructuring Reserve [Roll Forward]
Restructuring Reserve, Beginning Balance			0
Charges	998	69	17,198	3,602
Cash payments			(16,109)
Restructuring Reserve, Ending Balance	1,089		1,089
Other restructuring costs
Restructuring Cost and Reserve [Line Items]
Total cash charges	454	83	3,439	4,634
Restructuring Reserve [Roll Forward]
Restructuring Reserve, Beginning Balance			0
Charges	454	83	3,439	4,634
Cash payments			(1,284)
Restructuring Reserve, Ending Balance	2,155		2,155
CEO transition costs
Restructuring Cost and Reserve [Line Items]
Total cash charges	534	0	2,053	0
Restructuring Reserve [Roll Forward]
Restructuring Reserve, Beginning Balance			0
Charges	534	0	2,053	0
Cash payments			(1,411)
Restructuring Reserve, Ending Balance	642		642
Asset write offs
Restructuring Cost and Reserve [Line Items]
Total non-cash charges	79	0	2,828	0
CEO transition costs related to stock-based awards
Restructuring Cost and Reserve [Line Items]
Total non-cash charges	$ (143)	$ 0	$ (1,220)	$ 0

Leases (Tables)

9 Months Ended

Sep. 28, 2024

Leases [Abstract]

Lease, Cost [Table Text Block]

The components of lease expense were as follows (in thousands):


	Three Months Ended				Nine Months Ended
	September 28, 2024		September 30, 2023		September 28, 2024		September 30, 2023
Operating lease cost	$	1,043	$	1,359	$	3,604	$	4,827
Variable lease cost	716		646		2,669		2,374
Sublease income	(535)		(495)		(1,526)		(819)
Right-of-use asset impairment	167		—		1,034		3,048
Net lease cost	$	1,391	$	1,510	$	5,781	$	9,430

Schedule of Leases, Supplemental Cash Flow [Table Text Block]

Supplemental cash flow information related to leases was as follows (in thousands):


	Three Months Ended				Nine Months Ended
	September 28, 2024		September 30, 2023		September 28, 2024		September 30, 2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	1,853	$	1,815	$	5,095	$	6,092
Right-of-use assets obtained in exchange for operating lease liabilities (non-cash)	$	—	$	—	$	811	$	683
Right-of-use asset reductions related to operating lease modifications (non-cash)	$	—	$	—	$	(1,883)	$	—

Lessee, Operating Lease, Liability, Maturity [Table Text Block]

Maturities of operating lease liabilities and sublease payments were as follows as of September 28, 2024 (in thousands):


	Operating Lease Payments		Sublease Payments		Net
Remainder of 2024	$	976	$	(343)	$	633
2025	5,853		(1,003)		4,850
2026	5,907		(1,033)		4,874
2027	5,315		(1,064)		4,251
2028	5,474		(1,096)		4,378
Thereafter	7,574		(1,513)		6,061
Total minimum lease payments	$	31,099	$	(6,052)	$	25,047
Less: imputed interest	3,768
Present value of future minimum lease payments	$	27,331
Less: current portion of operating lease liabilities (Note 8)	4,439
Long-term lease liabilities	$	22,892

Leases

9 Months Ended

Sep. 28, 2024

Leases [Abstract]

Leases

The Company's leasing arrangements primarily consist of operating leases for its facilities which include corporate, sales and marketing and research and development offices and equipment under various non-cancelable lease arrangements. The operating leases expire at various dates through 2030. The Company currently has three sublease agreements for space at its headquarters. At September 28, 2024, the Company's weighted average discount rate was 4.46%, while the weighted average remaining lease term was 5.37 years.

The components of lease expense were as follows (in thousands):


	Three Months Ended				Nine Months Ended
	September 28, 2024		September 30, 2023		September 28, 2024		September 30, 2023
Operating lease cost	$	1,043	$	1,359	$	3,604	$	4,827
Variable lease cost	716		646		2,669		2,374
Sublease income	(535)		(495)		(1,526)		(819)
Right-of-use asset impairment	167		—		1,034		3,048
Net lease cost	$	1,391	$	1,510	$	5,781	$	9,430

Supplemental cash flow information related to leases was as follows (in thousands):


	Three Months Ended				Nine Months Ended
	September 28, 2024		September 30, 2023		September 28, 2024		September 30, 2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	1,853	$	1,815	$	5,095	$	6,092
Right-of-use assets obtained in exchange for operating lease liabilities (non-cash)	$	—	$	—	$	811	$	683
Right-of-use asset reductions related to operating lease modifications (non-cash)	$	—	$	—	$	(1,883)	$	—

Maturities of operating lease liabilities and sublease payments were as follows as of September 28, 2024 (in thousands):


	Operating Lease Payments		Sublease Payments		Net
Remainder of 2024	$	976	$	(343)	$	633
2025	5,853		(1,003)		4,850
2026	5,907		(1,033)		4,874
2027	5,315		(1,064)		4,251
2028	5,474		(1,096)		4,378
Thereafter	7,574		(1,513)		6,061
Total minimum lease payments	$	31,099	$	(6,052)	$	25,047
Less: imputed interest	3,768
Present value of future minimum lease payments	$	27,331
Less: current portion of operating lease liabilities (Note 8)	4,439
Long-term lease liabilities	$	22,892

Accrued Expenses (Tables)

9 Months Ended

Sep. 28, 2024

Accrued Liabilities, Current [Abstract]

Components of Accrued Expenses

Accrued expenses consisted of the following (in thousands):


	September 28, 2024		December 30, 2023
Accrued warranty	$	19,067	$	24,625
Accrued returns and sales incentives	17,758		12,897
Accrued compensation and benefits	14,289		13,593

Accrued manufacturing and logistics cost	12,211		5,462
Accrued taxes payable	4,721		8,927
Current portion of operating lease liabilities	4,439		5,216
Accrued interest	3,895		4,498

Accrued restructuring and other	3,571		1,894
Derivative liability	82		7,276
Accrued merger related liabilities	—		4,721






Accrued other	8,351		8,890
	$	88,384	$	97,999

Fair Value Measurements - Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands	Sep. 28, 2024	Dec. 30, 2023	Jul. 24, 2023
Secured Debt \| Credit Agreement \| Line of Credit
Liabilities:
Term loan (unpaid principal of $178,308) (Note 9)	$ 186,713	$ 201,501
Face amount	178,308	200,000	$ 200,000
Fair Value, Recurring [Member] \| Fair Value, Inputs, Level 1 [Member]
Assets:
Total assets measured at fair value	72,757	120,418
Liabilities:
Total liabilities measured at fair value	0	0
Fair Value, Recurring [Member] \| Fair Value, Inputs, Level 1 [Member] \| Derivative Instrument
Assets:
Derivative instruments (Note 10)		0
Liabilities:
Derivative instruments (Note 10)	0	0
Fair Value, Recurring [Member] \| Fair Value, Inputs, Level 1 [Member] \| Term Loan
Liabilities:
Term loan (unpaid principal of $178,308) (Note 9)	0	0
Fair Value, Recurring [Member] \| Fair Value, Inputs, Level 1 [Member] \| Money Market Funds
Assets:
Money market funds	30,324	117,652
Fair Value, Recurring [Member] \| Fair Value, Inputs, Level 1 [Member] \| Restricted Cash
Assets:
Restricted cash, current	41,082	1,000
Restricted cash, non-current (Note 2)	1,351	1,766
Fair Value, Recurring [Member] \| Fair Value, Inputs, Level 2 [Member]
Assets:
Total assets measured at fair value	0	3,999
Liabilities:
Total liabilities measured at fair value	82	7,643
Fair Value, Recurring [Member] \| Fair Value, Inputs, Level 2 [Member] \| Derivative Instrument
Assets:
Derivative instruments (Note 10)		3,999
Liabilities:
Derivative instruments (Note 10)	82	7,643
Fair Value, Recurring [Member] \| Fair Value, Inputs, Level 2 [Member] \| Term Loan
Liabilities:
Term loan (unpaid principal of $178,308) (Note 9)	0	0
Fair Value, Recurring [Member] \| Fair Value, Inputs, Level 2 [Member] \| Money Market Funds
Assets:
Money market funds	0	0
Fair Value, Recurring [Member] \| Fair Value, Inputs, Level 2 [Member] \| Restricted Cash
Assets:
Restricted cash, current	0	0
Restricted cash, non-current (Note 2)	0	0
Fair Value, Recurring [Member] \| Fair Value, Inputs, Level 3
Assets:
Total assets measured at fair value	0	0
Liabilities:
Total liabilities measured at fair value	186,713	201,501
Fair Value, Recurring [Member] \| Fair Value, Inputs, Level 3 \| Derivative Instrument
Assets:
Derivative instruments (Note 10)		0
Liabilities:
Derivative instruments (Note 10)	0	0
Fair Value, Recurring [Member] \| Fair Value, Inputs, Level 3 \| Term Loan
Liabilities:
Term loan (unpaid principal of $178,308) (Note 9)	186,713	201,501
Fair Value, Recurring [Member] \| Fair Value, Inputs, Level 3 \| Money Market Funds
Assets:
Money market funds	0	0
Fair Value, Recurring [Member] \| Fair Value, Inputs, Level 3 \| Restricted Cash
Assets:
Restricted cash, current	0	0
Restricted cash, non-current (Note 2)	$ 0	$ 0

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Income Taxes (Details) - USD ($) $ in Thousands	Sep. 28, 2024	Sep. 30, 2023	Sep. 28, 2024	Sep. 30, 2023
Income Tax Disclosure [Abstract]
Income tax expense	$ 1,080	$ 598	$ 1,917	$ 5,053
Effective Income Tax Rate Reconciliation, Percent	(20.40%)	(0.80%)	(2.90%)	(2.10%)

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Thousands	Sep. 28, 2024	Sep. 30, 2023	Sep. 28, 2024	Sep. 30, 2023
Pay vs Performance Disclosure
Net loss	$ (6,371)	$ (79,205)	$ (68,410)	$ (241,117)

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

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+ Details

Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 28, 2024	Dec. 30, 2023
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares outstanding	30,559,000	27,964,000
Common stock, shares issued	30,559,000	27,964,000

Goodwill and Other Intangible Assets - Schedule of Goodwill (Details) $ in Thousands	9 Months Ended
	Sep. 28, 2024 USD ($)
Goodwill
Balance as of December 30, 2023	$ 175,105
Effect of foreign currency translation	823
Balance as of September 28, 2024	175,928
Intangible assets
Balance as of December 30, 2023	5,044
Amortization	(1,405)
Effect of foreign currency translation	(4)
Balance as of September 28, 2024	$ 3,635

- Definition

Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized.

+ References + Details

Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 28, 2024	Sep. 30, 2023	Sep. 28, 2024	Sep. 30, 2023
Income Statement [Abstract]
Revenue	$ 193,435	$ 186,176	$ 509,811	$ 583,036
Cost of product revenue	131,058	137,888	383,865	443,932
Amortization of acquired intangible assets	0	292	0	864
Total cost of revenue	131,058	138,180	383,865	444,796
Gross profit	62,377	47,996	125,946	138,240
Research and development	19,630	37,336	76,739	116,576
Selling and marketing	29,270	41,558	98,966	139,630
General and administrative	3,232	28,270	(33,552)	85,116
Restructuring and other	1,922	152	24,298	8,236
Amortization of acquired intangible assets	1,066	174	1,405	529
Total operating expenses	55,120	107,490	167,856	350,087
Operating income (loss)	7,257	(59,494)	(41,910)	(211,847)
Other expense, net	(12,548)	(19,113)	(24,583)	(24,217)
Loss before income taxes	(5,291)	(78,607)	(66,493)	(236,064)
Income tax expense	1,080	598	1,917	5,053
Net loss	$ (6,371)	$ (79,205)	$ (68,410)	$ (241,117)
Basic	$ (0.21)	$ (2.86)	$ (2.34)	$ (8.73)
Diluted	$ (0.21)	$ (2.86)	$ (2.34)	$ (8.73)
Basic	30,348	27,738	29,276	27,608
Diluted	30,348	27,738	29,276	27,608

Leases - Financial Statement Impact of Adopting ASC 842 (Details) - USD ($) $ in Thousands	Sep. 28, 2024	Dec. 30, 2023
Leases [Abstract]
Operating lease right-of-use asset	$ 15,137	$ 19,642
Present value of future minimum lease payments	$ 27,331

Debt (Tables)

9 Months Ended

Sep. 28, 2024

Debt Disclosure [Abstract]

Outstanding Debt

The Company's outstanding debt as of September 28, 2024 was as follows (in thousands):


	Classification	September 28, 2024
Term Loan at fair value at December 30, 2023		$	201,501
Repayment		(34,947)
Change in fair value of term loan due to instrument-specific credit risk	Other comprehensive income	6,644
Remaining changes in fair value	Other expense, net	13,515
Term Loan at fair value as of September 28, 2024		$	186,713

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

+ References

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+ Details

Summary of Significant Accounting Policies - Basic and Diluted Net Income Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 28, 2024	Sep. 30, 2023	Sep. 28, 2024	Sep. 30, 2023
Disclosure Basic And Diluted Net Income Per Share [Abstract]
Net loss	$ (6,371)	$ (79,205)	$ (68,410)	$ (241,117)
Basic	30,348	27,738	29,276	27,608
Diluted	30,348	27,738	29,276	27,608
Basic income per share	$ (0.21)	$ (2.86)	$ (2.34)	$ (8.73)
Diluted income per share	$ (0.21)	$ (2.86)	$ (2.34)	$ (8.73)

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

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- Definition

The amount of net income (loss) for the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period.

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+ Details

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

+ Details

Fair Value Measurements - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended			9 Months Ended
	Sep. 28, 2024	Jun. 29, 2024	Sep. 30, 2023	Sep. 28, 2024	Sep. 30, 2023
Fair Value Disclosures [Abstract]
Right-of-use asset impairment	$ 167	$ 900	$ 0	$ 1,034	$ 3,048
Fair value of remaining right-of-use asset	$ 900			$ 900

Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Sep. 28, 2024	Oct. 25, 2024
Cover [Abstract]
Document Type	10-Q
Document Period End Date	Sep. 28, 2024
Document Quarterly Report	true
Document Transition Report	false
Entity Central Index Key	0001159167
Entity File Number	001-36414
Entity Registrant Name	iROBOT CORPORATION
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	77-0259335
Amendment Flag	false
Entity Address, Address Line One	8 Crosby Drive
Entity Address, City or Town	Bedford
Entity Address, State or Province	MA
Entity Address, Postal Zip Code	01730
City Area Code	781
Local Phone Number	430-3000
Title of 12(b) Security	Common Stock, $0.01 par value
Trading Symbol	IRBT
Security Exchange Name	NASDAQ
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q3
Current Fiscal Year End Date	--12-28
Entity Shell Company	false
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		30,558,808

Income Taxes	9 Months Ended
Income Taxes	Sep. 28, 2024
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The Company's interim provision for income taxes is determined using an estimate of the annual effective tax rate. The Company records any changes affecting the estimated annual effective tax rate in the interim period in which the change occurs. The Company also records the tax effects of certain discrete items, including tax effects of changes in a valuation allowance, during the interim period in which they occur. The Company has assessed, on a jurisdictional basis, the realization of its net deferred tax assets, including the ability to carry back net operating losses, the existence of taxable temporary differences, the availability of tax planning strategies and available sources of future taxable income. The Company has concluded that a valuation allowance on its U.S. net deferred tax assets continues to be appropriate. In addition, valuation allowances were established in certain foreign jurisdictions during fiscal 2023 considering cumulative taxable losses in recent years and uncertainty with respect to future taxable income. A valuation allowance is a non-cash charge, and does not limit the Company’s ability to utilize its deferred tax assets, including its ability to utilize tax loss and credit carryforward amounts, against future taxable income. The amount of the deferred tax assets considered realizable, and the associated valuation allowance, could be adjusted in a future period if estimates of future taxable income change or if objective negative evidence in the form of cumulative losses is no longer present and additional weight is given to subjective evidence such as projections for future growth. For the three months ended September 28, 2024 and September 30, 2023, the Company recorded an income tax expense of $1.1 million and $0.6 million, respectively. The Company's effective income tax rates were (20.4)% and (0.8)% for the three months ended September 28, 2024 and September 30, 2023, respectively. The Company's effective income tax rate differed from the federal statutory tax rate of 21% primarily driven by the impact of the valuation allowance against the Company's U.S. and certain foreign net deferred tax assets. For the nine months ended September 28, 2024 and September 30, 2023, the Company recorded an income tax expense of $1.9 million and $5.1 million, respectively. The Company's effective income tax rates were (2.9)% and (2.1)% for the nine months ended September 28, 2024 and September 30, 2023, respectively. The Company's effective income tax rate differed from the federal statutory tax rate of 21% primarily driven by the impact of the valuation allowance against the Company's U.S. and certain foreign net deferred tax assets.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

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+ Details

Debt

9 Months Ended

Sep. 28, 2024

Debt Disclosure [Abstract]

Debt

Term Loan

On July 24, 2023, the Company entered into a Credit Agreement (the "Credit Agreement") by and among the Company, as borrower, each lender from time to time party thereto and TCG Senior Funding L.L.C., an affiliate of The Carlyle Group, as administrative agent and collateral agent, providing for a $200.0 million senior secured term loan credit facility (the "Term Loan"). Total proceeds from the Term Loan were $188.2 million, net of $11.8 million of debt issuance costs. The Term Loan matures on July 24, 2026.

The Term Loan bears interest at a rate per annum equal to, at the Company's option, (i) a rate based on term SOFR plus a credit spread adjustment plus a 9.00% spread or (ii) a rate based on the base rate plus a rate adjustment plus an 8.00% spread. A portion of each spread equal to 2.5% is paid in kind by capitalizing such option into principal of the Term Loan. In the event of repayment, prepayment or acceleration of all or any portion of the Term Loan, the Company is required to pay to the lenders an additional amount which represents a minimum guaranteed return on the Term Loan that ranges between 1.30x and 1.75x of the principal in accordance with the provisions within the Credit Agreement. The minimum guaranteed return range is based on the date on which it is paid. The Credit Agreement provides for mandatory prepayments of borrowings under certain circumstances, including non-ordinary course asset sales and incurrence of other indebtedness, subject to customary exceptions.

The Credit Agreement contains customary affirmative covenants, including financial statement reporting requirements and delivery of compliance certificates. The Credit Agreement also contains customary negative covenants that limit the Company's and its subsidiaries' ability to, among other things, grant or incur liens, incur additional indebtedness, make certain restricted investments or payments, including payment of dividends on its capital stock and payments on certain permitted indebtedness, enter into certain mergers and acquisitions or engage in certain asset sales, subject in each case to certain exceptions. In addition, the Credit Agreement contains a financial covenant that the Company will not permit its consolidated core assets (comprising cash, accounts receivable and inventory), measured on the last day of each fiscal month, to be less than

$250.0 million which amount is subject to increase or decrease upon certain triggers related to the payment or non-payment of any termination fees under the Amended Merger Agreement (or fees in lieu of such termination fees) and the occurrence or non-occurrence of the Merger.

During the first quarter of 2024, as a result of the termination of the Merger Agreement and receipt of the Parent Termination Fee of $94.0 million from Amazon on January 29, 2024, $35.0 million of such Parent Termination Fee was used immediately to repay a portion of the Term Loan, and $40.0 million of the Parent Termination Fee has been set aside in a restricted account to be used for future repayments of the Term Loan subject to limited rights of the Company to utilize such amounts for the purchase of inventory in the third quarters of fiscal 2024 and 2025. The $35.0 million repayment was applied to the principal, interest and the 1.4x minimum guaranteed return, reducing the principal balance of the loan to $176.1 million. With the termination of the Merger Agreement and the $35.0 million repayment, the applicable minimum guaranteed return ranges between 1.4x and 1.7x of the principal and the consolidated core assets financial covenant is reduced to $200.0 million. To access the $40.0 million of restricted cash for inventory purchases, on the day of such election, the Company must certify to its lenders that the Company has pro forma consolidated core assets of $275.0 million and no default or event of default under the Credit Agreement. During the three months ended September 28, 2024, the Company elected to draw down $40.0 million of the restricted cash, which was subsequently received in the fourth quarter of fiscal 2024. As of September 28, 2024, the Company was in compliance with the covenants under the Term Loan.

The Credit Agreement also contains customary events of default (subject to certain exceptions, thresholds and grace periods), such as the failure to pay obligations when due, breach of certain covenants, including the financial covenant, cross-default or cross-acceleration of certain indebtedness, bankruptcy-related defaults, judgment defaults, and the occurrence of certain change of control events involving the Company. The occurrence of an event of default may result in the termination of the Credit Agreement and acceleration of repayment obligations with respect to any outstanding loans or letters of credit under the Term Loan.

The obligations under the Term Loan are guaranteed by the Company and certain of its subsidiaries located in the United States, United Kingdom, Japan, France and Spain. In addition, the obligations under the Term Loan are secured by a first priority lien on substantially all tangible and intangible property of the Company and the guarantors and pledges of the equity of certain subsidiaries, in each case subject to certain exceptions, limitations and exclusions from the collateral.

Upon issuance, the Company elected to account for the Term Loan under the fair value option. The primary reason for electing the fair value option is for simplification and cost-benefit considerations of accounting for the Term Loan at fair value in its entirety versus bifurcation of the embedded features. The fair value of the Term Loan was determined using a discounted cash flow model which represents Level 3 measurements. The significant assumptions used in the discounted cash flow model include the amount and timing of future cash flows, expected interest rate volatility and the discount rate.

Under the fair value election, debt issuance costs are expensed as incurred, and debt liability is subsequently valued at fair market value, including paid in kind interest, during each reporting period until its settlement.

The Company's outstanding debt as of September 28, 2024 was as follows (in thousands):


	Classification	September 28, 2024
Term Loan at fair value at December 30, 2023		$	201,501
Repayment		(34,947)
Change in fair value of term loan due to instrument-specific credit risk	Other comprehensive income	6,644
Remaining changes in fair value	Other expense, net	13,515
Term Loan at fair value as of September 28, 2024		$	186,713

During the three and nine months ended September 28, 2024, the Company recorded $5.4 million and $16.2 million, respectively, of interest expense in other expense, net on the consolidated statements of operations related to the quarterly cash interest, $3.9 million of which is unpaid and included in accrued expenses on the consolidated balance sheet as of September 28, 2024.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

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+ Details

Insider Trading Arrangements	3 Months Ended	9 Months Ended
Insider Trading Arrangements	Sep. 28, 2024 shares	Sep. 28, 2024 shares
Trading Arrangements, by Individual
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false
Tonya Drake [Member]
Trading Arrangements, by Individual
Material Terms of Trading Arrangement		On August 26, 2024, Tonya Drake, EVP & General Counsel, entered into a trading plan pursuant to Rule 10b5-1 of the Exchange Act. Ms. Drake's Rule 10b5-1 trading plan provides for the sale from time to time of a maximum of 9,651 shares of our common stock pursuant to the terms of the plan. Ms. Drake's Rule 10b5-1 trading plan expires on August 1, 2026, or earlier if all transactions under the trading arrangement are completed. The trading arrangement is intended to satisfy the affirmative defense in Rule 10b5-1(c).
Name	Tonya Drake
Title	EVP & General Counsel
Rule 10b5-1 Arrangement Adopted	true
Adoption Date	August 26, 2024
Arrangement Duration	705 days
Aggregate Available	9,651	9,651
Julie Zeiler [Member]
Trading Arrangements, by Individual
Material Terms of Trading Arrangement		In addition, in our Quarterly Report on Form 10-Q filed with the SEC on May 8, 2024, we inadvertently omitted disclosure regarding the entry into a Rule 10b5-1 trading plan by Julie Zeiler, EVP & Chief Financial Officer, on March 9, 2024. Ms. Zeiler's Rule 10b5-1 trading plan provides for the sale from time to time of a maximum of 24,629 shares of our common stock pursuant to the terms of the plan. Ms. Zeiler's Rule 10b5-1 trading plan expires on March 14, 2026, or earlier if all transactions under the trading arrangement are completed. The trading arrangement is intended to satisfy the affirmative defense in Rule 10b5-1(c).

Derivative Instruments and Hedging Activities (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 28, 2024	Sep. 30, 2023	Sep. 28, 2024	Sep. 30, 2023
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, Remaining Maturity	3 years		3 years
Revenue	$ 193,435	$ 186,176	$ 509,811	$ 583,036
Foreign Exchange Forward [Member] \| Cash Flow Hedging [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) recognized in OCI on Derivative	0	5,105	3,213	7,077
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net	3,519	5,568	11,827	14,249
Other Nonoperating Income (Expense) [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net	$ (494)	$ 2,151	$ 853	$ 3,418

- Definition

Amount of revenue recognized from goods sold, services rendered, insurance premiums, or other activities that constitute an earning process. Includes, but is not limited to, investment and interest income before deduction of interest expense when recognized as a component of revenue, and sales and trading gain (loss).

+ References

+ Details

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 28, 2024	Sep. 30, 2023
Cash flows from operating activities:
Net loss	$ (68,410)	$ (241,117)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	16,912	21,367
Gain (Loss) on Investments	(375)	(3,910)
Stock-based compensation	17,937	25,880
Provision for inventory excess and obsolescence	11,800	1,740
Change in fair value of term loan	13,515	5,292
Debt issuance costs expensed under fair value option	529	11,837
Deferred income taxes, net	(651)	4,115
Other	(6,318)	(8,618)
Changes in operating assets and liabilities — (use) source
Accounts receivable	(22,073)	(7,943)
Inventory	(10,539)	32,935
Other assets	15,598	12,544
Accounts payable	16,674	28,904
Accrued expenses and other liabilities	(15,825)	(4,483)
Net cash used in operating activities	(30,476)	(113,637)
Cash flows from investing activities:
Additions of property and equipment	(118)	(3,132)
Purchase of investments	(56)	(213)
Net cash used in investing activities	(174)	(3,345)
Cash flows from financing activities:
Proceeds from employee stock plans	0	9
Income tax withholding payment associated with restricted stock vesting	(491)	(1,924)
Proceeds from issuance of common stock, net of issuance costs	19,359	0
Repayment of term loan	(34,947)	0
Proceeds from term loan	0	200,000
Payment of debt issuance costs	(529)	(11,837)
Net cash (used in) provided by financing activities	(16,608)	186,248
Effect of exchange rate changes on cash, cash equivalents and restricted cash	1,251	4,193
Net (decrease) increase in cash, cash equivalents and restricted cash	(46,007)	73,459
Cash, cash equivalents and restricted cash, at beginning of period	187,887	117,949
Cash, cash equivalents and restricted cash, at end of period	141,880	191,408
Cash, cash equivalents and restricted cash, at end of period:
Cash and cash equivalents	99,447	189,649
Restricted cash	41,082	0
Restricted cash, non-current (included in other assets)	1,351	1,759
Cash, cash equivalents and restricted cash, at end of period	$ 141,880	$ 191,408

Fair Value Measurements - Summary of Changes in Fair Value of Level 3 Instruments (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 28, 2024	Sep. 30, 2023
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Repayment	$ (34,947)	$ 0
Change in fair value	13,515	$ 5,292
Fair Value, Inputs, Level 3 \| Fair Value, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Beginning balance	201,501
Repayment	(34,947)
Change in fair value	20,159
Ending balance	$ 186,713

Stockholders' Equity (Details) - USD ($) $ in Thousands, shares in Millions	3 Months Ended	9 Months Ended
	Sep. 28, 2024	Sep. 28, 2024	Sep. 30, 2023	Feb. 29, 2024	Feb. 27, 2024
ATM Equity Offering [Line Items]
Proceeds from issuance of common stock, net of issuance costs		$ 19,359	$ 0
ATM Equity Offering Sales Agreement ("ATM Agreement")
ATM Equity Offering [Line Items]
Common Stock, Shares, Sold	0.2	1.9
Proceeds from issuance of common stock, net of issuance costs	$ 1,400	$ 19,400
Payments of Stock Issuance Costs	100	1,100
Common Stock, Remaining Amount Available For Further Sale	$ 79,600	$ 79,600
BofA Securities, Inc. ("BofA") \| ATM Equity Offering Sales Agreement ("ATM Agreement")
ATM Equity Offering [Line Items]
Commission percentage of aggregate gross sale proceeds					3.00%
BofA Securities, Inc. ("BofA") \| ATM Equity Offering Sales Agreement ("ATM Agreement")
ATM Equity Offering [Line Items]
Common Stock, Value Of Shares, Maximum				$ 100,000

Leases - Supplemental Cash Flow (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 28, 2024	Sep. 30, 2023	Sep. 28, 2024	Sep. 30, 2023
Leases [Abstract]
Operating Lease, Payments	$ 1,853	$ 1,815	$ 5,095	$ 6,092
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability	0	0	811	683
Right-of-use asset reductions related to operating lease modifications (non-cash)	$ 0	$ 0	$ (1,883)	$ 0

Summary of Significant Accounting Policies - Additional Information (Details) $ in Thousands, shares in Millions			3 Months Ended					9 Months Ended		12 Months Ended	33 Months Ended
	Jan. 29, 2024 employee	Jul. 24, 2023 USD ($)	Dec. 28, 2024 USD ($)	Sep. 28, 2024 USD ($) shares	Jun. 29, 2024 USD ($)	Mar. 30, 2024 USD ($)	Sep. 30, 2023 USD ($) shares	Sep. 28, 2024 USD ($) sublease_agreement shares	Sep. 30, 2023 USD ($) shares	Dec. 30, 2023 USD ($)	Sep. 28, 2024 USD ($) sublease_agreement
Debt and Equity Securities, FV-NI [Line Items]
Decrease in revenue								12.60%
Operating income (loss)				$ 7,257			$ (59,494)	$ (41,910)	$ (211,847)
Provided by (used in) operating activities								(30,476)	(113,637)
Restricted cash				42,400				42,400			$ 42,400
Cash and cash equivalents				99,447			189,649	$ 99,447	189,649	$ 185,121	$ 99,447
Number of sublease agreements \| sublease_agreement								3			3
Allowance for credit loss				2,700				$ 2,700		2,700	$ 2,700
Equity securities without readily determinable fair value				11,100				11,100		$ 11,400	11,100
Restructuring and other				$ 1,922			$ 152	$ 24,298	$ 8,236
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount \| shares				2.8			0.8	2.9	0.9
Expected number of positions to be eliminated \| employee	350
Restructuring and Related Cost, Expected Number Of Positions Eliminated, Period Percent										31.00%
Lessor, Operating Lease, Payment to be Received				$ 6,052				$ 6,052			6,052
Restricted cash				41,082			$ 0	41,082	$ 0	$ 0	41,082
Restricted cash, non-current (included in other assets)				$ 1,351			$ 1,759	1,351	$ 1,759		1,351
Decrease in operating expense								$ 93,500
Percentage decrease in operating expense								26.70%
Decrease in research and development expense								$ 39,800
Decrease in research in development expense percentage								34.20%
Decrease in selling and marketing expense								$ 40,700
Decrease in selling and marketing expense percentage								29.10%
Gross margin percentage				32.20%			25.80%
Days in inventory				104 days			161 days
Gain on legal settlement				$ 13,500				$ 13,500
Forecast \| Subsequent Event
Debt and Equity Securities, FV-NI [Line Items]
Proceeds from draw down of restricted cash			$ 40,000
2025 Product Roadmap
Debt and Equity Securities, FV-NI [Line Items]
Inventory charge					$ 18,400
Noncash reserve for inventory obsolescence					10,300
Losses on non-cancellable purchase commitments					$ 8,100
Amazon, Inc.
Debt and Equity Securities, FV-NI [Line Items]
Proceeds net of professional fees						$ 75,200
Secured Debt \| Line of Credit \| Credit Agreement
Debt and Equity Securities, FV-NI [Line Items]
Face amount		$ 200,000		$ 178,308				$ 178,308		$ 200,000	$ 178,308
Proceeds net of debt issuance costs		$ 188,200

Derivative Instruments and Hedging Activities (Tables)

9 Months Ended

Sep. 28, 2024

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivative Instruments [Table Text Block]

The fair values of derivative instruments were as follows (in thousands):


		Fair Value
	Classification	September 28, 2024		December 30, 2023
Derivatives not designated as hedging instruments:

Foreign currency forward contracts	Other current assets	$	—	$	2,929

Foreign currency forward contracts	Accrued expenses	82		4,586

Derivatives designated as cash flow hedges:
Foreign currency forward contracts	Other current assets	$	—	$	1,070

Foreign currency forward contracts	Accrued expenses	—		2,690
Foreign currency forward contracts	Long-term liabilities	—		367

Derivative Instruments, Gain (Loss) [Table Text Block]

(Losses) gains associated with derivative instruments not designated as hedging instruments were as follows (in thousands):


		Three Months Ended				Nine Months Ended
	Classification	September 28, 2024		September 30, 2023		September 28, 2024		September 30, 2023
(Loss) gain recognized in income	Other expense, net	$	(494)	$	2,151	$	853	$	3,418


	Gain recognized in earnings on cash flow hedging instruments
	Three Months Ended				Nine Months Ended
	September 28, 2024		September 30, 2023		September 28, 2024		September 30, 2023
	Revenue				Revenue
Consolidated statements of operations in which the effects of cash flow hedging instruments are recorded	$	193,435	$	186,176	$	509,811	$	583,036

Gain on cash flow hedging relationships:
Foreign currency forward contracts:
Amount of gain reclassified from AOCI into earnings	$	3,519	$	5,568	$	11,827	$	14,249

Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) [Table Text Block]

The following tables reflect the effect of derivatives designated as cash flow hedging (in thousands):


	Gain recognized in OCI on Derivative (1)
	Three Months Ended				Nine Months Ended
	September 28, 2024		September 30, 2023		September 28, 2024		September 30, 2023
Foreign currency forward contracts	$	—	$	5,105	$	3,213	$	7,077

(1)The amount represents the change in fair value of derivative contracts due to changes in spot rates.

- Definition

Tabular disclosure of pertinent information about a derivative or group of derivatives on a disaggregated basis, such as for individual instruments, or small groups of similar instruments. May include a combination of the type of instrument, risks being hedged, notional amount, hedge designation, related hedged item, inception date, maturity date, or other relevant item.

+ References + Details

Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 28, 2024	Dec. 30, 2023
Current assets:
Cash and cash equivalents	$ 99,447	$ 185,121
Restricted cash	41,082	0
Accounts receivable, net	101,326	79,387
Inventory	149,156	152,469
Other current assets	32,774	48,513
Total current assets	423,785	465,490
Property and equipment, net	25,405	40,395
Operating lease right-of-use assets	15,137	19,642
Deferred tax assets	9,093	8,512
Goodwill	175,928	175,105
Intangible Assets, Net	3,635	5,044
Other assets	16,932	19,510
Total assets	669,915	733,698
Current liabilities:
Accounts payable	195,133	178,318
Accrued expenses	88,384	97,999
Deferred revenue and customer advances	9,121	10,830
Total current liabilities	292,638	287,147
Term loan	186,713	201,501
Operating lease liabilities	22,892	27,609
Other long-term liabilities	17,510	20,954
Total long-term liabilities	227,115	250,064
Total liabilities	519,753	537,211
Commitments and contingencies (Note 12)
Preferred stock, 5,000 shares authorized and none outstanding	0	0
Common stock, $0.01 par value, 100,000 shares authorized; 30,559 and 27,964 shares issued and outstanding, respectively	306	280
Additional paid-in capital	326,394	290,755
Accumulated deficit	(173,705)	(105,295)
Accumulated other comprehensive (loss) income	(2,833)	10,747
Total stockholders' equity	150,162	196,487
Total liabilities and stockholders' equity	$ 669,915	$ 733,698

Leases - Narrative (Details)	Sep. 28, 2024
Leases [Abstract]
Weighted average discount rate	4.46%
Weighted average remaining lease term (in years)	5 years 4 months 13 days

Revenue Recognition - Significant Judgments (Details) - USD ($) $ in Millions	Sep. 28, 2024	Dec. 30, 2023
Revenue Recognition and Deferred Revenue [Abstract]
Revenue, Remaining Performance Obligation, Amount	$ 13.6	$ 18.4
Refund liability, product returns	16.3	24.6
Refund liability, other credits and incentives	$ 58.3	$ 95.3

Leases - Maturity of Operating Lease Liability (Details) - USD ($) $ in Thousands	Sep. 28, 2024	Dec. 30, 2023
Operating Lease Payments
Remainder of 2024	$ 976
2025	5,853
2026	5,907
2027	5,315
2028	5,474
Thereafter	7,574
Total minimum lease payments	31,099
Less: imputed interest	3,768
Present value of future minimum lease payments	27,331
Current portion of operating lease liabilities	4,439	$ 5,216
Long-term lease liabilities	22,892	$ 27,609
Sublease Payments
Remainder of 2024	(343)
2025	(1,003)
2026	(1,033)
2027	(1,064)
2028	(1,096)
Thereafter	(1,513)
Total minimum lease payments	(6,052)
Net
Remainder of 2024	633
2025	4,850
2026	4,874
2027	4,251
2028	4,378
Thereafter	6,061
Total minimum lease payments	$ 25,047

Fair Value Measurements

9 Months Ended

Sep. 28, 2024

Fair Value Disclosures [Abstract]

Fair Value Measurements

Fair Value Measurements - Recurring Basis

The Company's financial assets and liabilities measured at fair value on a recurring basis were as follows (in thousands):


	Fair Value Measurements as of September 28, 2024
	Level 1		Level 2		Level 3
Assets:
Money market funds	$	30,324	$	—	$	—
Restricted cash (Note 2)	41,082		—		—
Restricted cash, non-current (Note 2)	1,351		—		—




Total assets measured at fair value	$	72,757	$	—	$	—

Liabilities:
Term loan (unpaid principal of $178,308) (Note 9)	$	—	$	—	$	186,713
Derivative instruments (Note 10)	—		82		—
Total liabilities measured at fair value	$	—	$	82	$	186,713


	Fair Value Measurements as of December 30, 2023
	Level 1		Level 2		Level 3
Assets:
Money market funds	$	117,652	$	—	$	—
Restricted cash, current	1,000		—		—
Restricted cash, non-current (Note 2)	1,766		—		—



Derivative instruments (Note 10)	—		3,999		—
Total assets measured at fair value	$	120,418	$	3,999	$	—

Liabilities:
Term loan (unpaid principal of $200,000 ) (Note 9)	$	—	$	—	$	201,501
Derivative instruments (Note 10)	—		7,643		—
Total liabilities measured at fair value	$	—	$	7,643	$	201,501

The following table provides a summary of changes in fair value of our Level 3 instrument for the nine months ended September 28, 2024 (in thousands):


Balance as of December 30, 2023	$	201,501

Repayment	(34,947)
Change in fair value	20,159
Balance as of September 28, 2024	$	186,713

As discussed further in Note 9 to the consolidated financial statements, the Company elected to recognize the Term Loan under the fair value option. The fair value of the Term Loan as of September 28, 2024 has been determined based on a discounted cash flow model, which represents Level 3 measurements. Fair value was estimated using probability-weighted scenarios which include assumptions that are highly subjective and require judgment regarding significant matters, such as the amount and timing of future cash flows, expected interest rate volatility and the discount rate. The use of different assumptions could have a material effect on the fair value estimates.

Fair Value Measurements - Nonrecurring Basis

The Company measures the fair value of certain assets on a nonrecurring basis when events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. During the second quarter of fiscal 2024, as a result of the execution of an amendment to one of its sublease agreements, the Company determined that indicators of impairment existed related to the long-lived assets associated with the subleased space. The right-of-use asset was measured and written down to fair value on a nonrecurring basis as a result of impairment. The fair value measurement was determined using a discounted

cash flow method with unobservable inputs and was classified within Level 3 of the fair value hierarchy. The Company recognized an impairment charge of $0.9 million related to the right-of-use asset and recorded it as a non-cash restructuring and other charge on its consolidated statement of operations in the second quarter of fiscal 2024. The fair value of the remaining right-of-use asset was $0.9 million.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Accrued Expenses (Details) - USD ($) $ in Thousands	Sep. 28, 2024	Dec. 30, 2023
Accounts Payable, Current [Abstract]
Accrued warranty	$ 19,067	$ 24,625
Accrued returns and sales incentives	17,758	12,897
Accrued compensation and benefits	14,289	13,593
Restructuring-related liabilities	3,571	1,894
Current portion of operating lease liabilities	4,439	5,216
Accrued manufacturing and logistics cost	12,211	5,462
Accrued interest	3,895	4,498
Accrued taxes payable	4,721	8,927
Accrued merger related liabilities	0	4,721
Derivative liability	82	7,276
Accrued other	8,351	8,890
Accrued expenses	$ 88,384	$ 97,999

Commitments and Contingencies - Activity Related to Warranty Accrual (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 28, 2024	Sep. 30, 2023	Sep. 28, 2024	Sep. 30, 2023
Movement in Standard Product Warranty Accrual [Roll Forward]
Balance at beginning of period	$ 19,765	$ 23,935	$ 24,625	$ 27,379
Provision	3,994	2,869	10,039	11,229
Warranty usage	(4,692)	(4,484)	(15,597)	(16,288)
Balance at end of period	$ 19,067	$ 22,320	$ 19,067	$ 22,320

Revenue Recognition (Tables)

9 Months Ended

Sep. 28, 2024

Revenue Recognition and Deferred Revenue [Abstract]

Disaggregation of Revenue [Table Text Block]

Disaggregation of Revenue

The following table provides information about disaggregated revenue by geographical region (in thousands):


	Three Months Ended				Nine Months Ended
	September 28, 2024		September 30, 2023		September 28, 2024		September 30, 2023
United States	$	105,137	$	85,781	$	258,398	$	288,725
EMEA	45,902		51,861		130,884		149,421
Japan	27,718		34,713		83,254		110,186
Other	14,678		13,821		37,275		34,704
Total revenue	$	193,435	$	186,176	$	509,811	$	583,036

Contract with Customer, Asset and Liability [Table Text Block]

Contract Balances

The following table provides information about receivables and contract liabilities from contracts with customers (in thousands):


	September 28, 2024		December 30, 2023
Accounts receivable, net	$	100,266	$	77,112

Contract liabilities	14,635		18,702

Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 28, 2024	Sep. 30, 2023	Sep. 28, 2024	Sep. 30, 2023
Disaggregation of Revenue [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	$ 193,435	$ 186,176	$ 509,811	$ 583,036
United States
Disaggregation of Revenue [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	105,137	85,781	258,398	288,725
EMEA
Disaggregation of Revenue [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	45,902	51,861	130,884	149,421
Japan
Disaggregation of Revenue [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	27,718	34,713	83,254	110,186
Other
Disaggregation of Revenue [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	$ 14,678	$ 13,821	$ 37,275	$ 34,704

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References + Details

- Definition

Amount, excluding tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value added and excise.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 924
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SAB Topic 11.L)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479941/924-10-S99-1

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 5
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-5

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 30
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-30

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 42
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-42

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 22
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-22

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-32

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 40
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-40

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 22
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-22

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-32

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 41
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-41

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 4
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-4

+ Details

Revenue Recognition - Contract Balances (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 28, 2024	Sep. 30, 2023	Sep. 28, 2024	Sep. 30, 2023	Dec. 30, 2023
Revenue Recognition and Deferred Revenue [Abstract]
Accounts receivable, net	$ 100,266		$ 100,266		$ 77,112
Contract liabilities	14,635		14,635		$ 18,702
Contract with Customer, Liability, Revenue Recognized	$ 5,100	$ 4,500	$ 8,900	$ 11,300

Nature of the Business	9 Months Ended
Nature of the Business	Sep. 28, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Nature of the Business	Nature of the Business iRobot Corporation ("iRobot" or the "Company") designs, builds and sells robots and home innovations that make life better. The Company's portfolio of home robots and smart home devices features proprietary technologies for the connected home and advanced concepts in cleaning, mapping and navigation. iRobot's durable and high-performing robots are designed using the close integration of software, electronics and hardware. The Company's revenue is primarily generated from product sales through a variety of distribution channels, including chain stores and other national retailers, through the Company's own website and app, dedicated e-commerce websites, the online arms of traditional retailers and through value-added distributors and resellers worldwide. Termination of Merger Agreement As previously disclosed, on August 4, 2022, the Company entered into an Agreement and Plan of Merger (the "Original Merger Agreement") with Amazon.com, Inc., a Delaware corporation ("Parent" or "Amazon"), and Martin Merger Sub, Inc., a Delaware corporation and an indirect wholly owned subsidiary of Amazon ("Merger Sub"), providing for, among other things, the merger of Merger Sub with and into iRobot, with the Company surviving the merger as a wholly owned subsidiary of Parent (the "Merger", and, together with the other transactions contemplated by the Merger Agreement (as defined below), the "Transactions"). On July 24, 2023, iRobot, Amazon and Merger Sub entered into an amendment to the Original Merger Agreement (the "Amendment", and the Original Merger Agreement, as amended and supplemented by the Amendment, the "Merger Agreement"). The Amendment adjusted the merger consideration to reflect the incurrence of the Term Loan (see Note 9, Debt, for additional information). On January 28, 2024, the Company and Amazon mutually agreed to terminate the Merger Agreement and entered into a mutual termination agreement effective as of such date (the "Termination Agreement"). The termination of the Merger Agreement was approved by the Company's Board of Directors ("Board"). In accordance with the terms of the Termination Agreement, Amazon made a cash payment to the Company in the previously agreed amount of $94.0 million (the "Parent Termination Fee") on January 29, 2024. During the first quarter of fiscal 2024, as a result of the termination of the Merger Agreement and receipt of the Parent Termination Fee of $94.0 million from Amazon, the Company made a payment of $18.8 million for professional fees incurred in connection with the Transactions. In accordance with the terms of the Credit Agreement (as defined below), the Company applied $35.0 million to repay a portion of the Term Loan. The remaining $40.0 million of the Parent Termination Fee was set aside as restricted cash to be used for future repayments of the Term Loan subject to limited rights of the Company to utilize such amounts for the purchase of inventory. See Note 9, Debt, for additional information. The Parent Termination Fee received net of professional fees paid was $75.2 million and was recorded during the first quarter of fiscal 2024 as a benefit in general and administrative expenses on the consolidated statements of operations.

Summary of Significant Accounting Policies (Tables)

9 Months Ended

Sep. 28, 2024

Accounting Policies [Abstract]

Schedule of Earnings Per Share, Basic and Diluted

The following table presents the calculation of both basic and diluted net loss per share (in thousands, except per share amounts):


	Three Months Ended				Nine Months Ended
	September 28, 2024		September 30, 2023		September 28, 2024		September 30, 2023
Net loss	$	(6,371)	$	(79,205)	$	(68,410)	$	(241,117)
Weighted-average shares outstanding	30,348		27,738		29,276		27,608


Basic and diluted loss per share	$	(0.21)	$	(2.86)	$	(2.34)	$	(8.73)

Commitments and Contingencies

9 Months Ended

Sep. 28, 2024

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Legal Proceedings

From time to time and in the ordinary course of business, the Company is subject to various claims, charges and litigation. The outcome of litigation cannot be predicted with certainty and some lawsuits, claims or proceedings may be disposed of unfavorably to us, which could materially affect our financial condition or results of operations. For the following litigation matter, a liability is not probable or the amount cannot be reasonably estimated and therefore accruals have not been made.

On March 8, 2024, purported Company shareholder Dylan Das filed a putative class action in the U.S. District Court for the District of New Jersey against the Company and certain of its officers, captioned Dylan Das v. iRobot Corporation, et al., No. 2:24-cv-02138. The parties have agreed to transfer the case to the U.S. District Court for the District of Massachusetts. An amended complaint was filed on July 19, 2024. On September 3, 2024, the Company filed a motion to dismiss ("Motion to Dismiss"). The complaint alleges violations of Sections 10(b), 14(a) and 20(a) of the Securities Exchange Act of 1934, as amended and Rule 10b-5 thereunder based on allegedly false and misleading statements and omissions concerning the likelihood of regulatory approval of the Merger and its impact on the Company's financial performance. The complaint seeks, among other things, unspecified compensatory damages, including interest, in connection with the Company's allegedly inflated stock price, attorneys' fees and costs, and unspecified equitable/injunctive relief. Given the uncertainty of litigation, the preliminary stage of the case, and the legal standards that must be met for, among other things, class certification and success on the merits, the Company cannot estimate the reasonably possible loss or range of loss, if any, that may result from this action. On June 8, 2024, purported Company shareholder Anthony Wren filed a shareholder derivative complaint in the U.S. District Court for the District of Massachusetts against the Company, certain of its current and former members of the board of directors, and certain of its officers, captioned Anthony Wren, derivatively on behalf of iRobot Corp. v. iRobot Corporation, et al., No. 1:24-cv-11498. The parties filed a stipulation staying this action until final resolution on the Motion to Dismiss.

Commitments to Suppliers

The Company utilizes contract manufacturers to build its products and some of its accessories. These contract manufacturers manage the supply of components, capacity and resources to build products based on a forecasted production plan, which typically covers a rolling 12-month period. During the normal course of business, and in order to ensure adequate supply, the Company enters into purchase commitments with contract manufacturers and suppliers. In certain instances, these purchase commitments allow the Company the option to cancel, reschedule and/or adjust the supply requirements based on its business needs for a period of time before the order is due to be fulfilled. In some instances, these purchase commitments are not cancellable in the event of a change in demand or other circumstances, such as where the contract manufacturer and/or supplier has built products, semi-finished products or procured and/or ordered unique, iRobot-specific designs, and/or specific non-cancellable, non-returnable components based on the provided forecasts. If the Company cancels all or part of the orders, or materially reduces forecasted orders, in certain circumstances the Company may be liable to its contract manufacturers and/or suppliers for the cost of the excess components purchased by its contract manufacturers based on the forecasted production plan and the purchase terms of its component suppliers. During the second quarter of fiscal 2024, the Company finalized its 2025 product roadmap as part of its transition to a new contract manufacturing paradigm. As a result, the Company evaluated its component inventory on-hand and non-cancelable purchase commitments with its contract manufacturers and suppliers and recorded a charge totaling $18.4 million in cost of product revenue in the second quarter of fiscal 2024. This charge included a $10.3 million non-cash reserve for obsolete or excess component inventory and a $8.1 million charge for losses on non-cancellable purchase commitments. The loss on purchase commitments is included in accrued manufacturing and logistics cost on the consolidated balance sheets (Note 8).

Guarantees and Indemnification Obligations

The Company enters into standard indemnification agreements in the ordinary course of business. Pursuant to these agreements, the Company indemnifies and agrees to reimburse the indemnified party for losses incurred by the indemnified party, generally the Company’s customers, in connection with any patent, copyright, trade secret or other proprietary right infringement claim by any third party. The term of these indemnification agreements is generally perpetual any time after execution of the agreement. The maximum potential amount of future payments the Company could be required to make under these indemnification agreements is unlimited. The Company has never incurred costs to defend lawsuits or settle claims related to these indemnification agreements. As a result, the Company believes the estimated fair value of these agreements is minimal. Accordingly, the Company had no liabilities recorded for these agreements as of September 28, 2024 and December 30, 2023, respectively.

Warranty

The Company provides warranties on most products and has established a reserve for warranty obligations based on estimated warranty costs. The reserve is included as part of accrued expenses (Note 8) in the accompanying consolidated balance sheets.

Activity related to the warranty accrual was as follows (in thousands):


	Three Months Ended				Nine Months Ended
	September 28, 2024		September 30, 2023		September 28, 2024		September 30, 2023
Balance at beginning of period	$	19,765	$	23,935	$	24,625	$	27,379

Provision	3,994		2,869		10,039		11,229
Warranty claims	(4,692)		(4,484)		(15,597)		(16,288)
Balance at end of period	$	19,067	$	22,320	$	19,067	$	22,320

Fair Value Measurements (Tables)

9 Months Ended

Sep. 28, 2024

Fair Value Disclosures [Abstract]

Schedule of Financial Assets and Liabilities Measured at Fair Value

The Company's financial assets and liabilities measured at fair value on a recurring basis were as follows (in thousands):


	Fair Value Measurements as of September 28, 2024
	Level 1		Level 2		Level 3
Assets:
Money market funds	$	30,324	$	—	$	—
Restricted cash (Note 2)	41,082		—		—
Restricted cash, non-current (Note 2)	1,351		—		—




Total assets measured at fair value	$	72,757	$	—	$	—

Liabilities:
Term loan (unpaid principal of $178,308) (Note 9)	$	—	$	—	$	186,713
Derivative instruments (Note 10)	—		82		—
Total liabilities measured at fair value	$	—	$	82	$	186,713


	Fair Value Measurements as of December 30, 2023
	Level 1		Level 2		Level 3
Assets:
Money market funds	$	117,652	$	—	$	—
Restricted cash, current	1,000		—		—
Restricted cash, non-current (Note 2)	1,766		—		—



Derivative instruments (Note 10)	—		3,999		—
Total assets measured at fair value	$	120,418	$	3,999	$	—

Liabilities:
Term loan (unpaid principal of $200,000 ) (Note 9)	$	—	$	—	$	201,501
Derivative instruments (Note 10)	—		7,643		—
Total liabilities measured at fair value	$	—	$	7,643	$	201,501

Summary of Changes in Fair Value of Level 3 Instruments

The following table provides a summary of changes in fair value of our Level 3 instrument for the nine months ended September 28, 2024 (in thousands):


Balance as of December 30, 2023	$	201,501

Repayment	(34,947)
Change in fair value	20,159
Balance as of September 28, 2024	$	186,713

Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 28, 2024	Sep. 30, 2023	Sep. 28, 2024	Sep. 30, 2023
Statement of Comprehensive Income [Abstract]
Net loss	$ (6,371)	$ (79,205)	$ (68,410)	$ (241,117)
Other comprehensive loss, net of tax:
Net foreign currency translation adjustments	9,773	(3,014)	1,678	615
Net unrealized gains on cash flow hedges	0	5,105	3,213	7,077
Net gains on cash flow hedge reclassified into earnings	(3,519)	(5,568)	(11,827)	(14,249)
Change in fair value of term loan due to instrument-specific credit risk	(5,523)	881	(6,644)	881
Total comprehensive loss	$ (5,640)	$ (81,801)	$ (81,990)	$ (246,793)

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

+ Details

Revenue Recognition

9 Months Ended

Sep. 28, 2024

Revenue Recognition and Deferred Revenue [Abstract]

Revenue Recognition

The Company primarily derives its revenue from the sale of consumer robots and accessories. The Company sells products directly to consumers through online stores and indirectly through resellers and distributors. Revenue is recognized upon transfer of control of promised products or services to customers in an amount that reflects the consideration the Company expects to receive in exchange for those products or services. Revenue is allocated to distinct performance obligations and is recognized net of allowances for returns and other credits and incentives. Revenue is recognized only to the extent that it is probable that a significant reversal of revenue will not occur and when collection is considered probable. Taxes collected from customers, which are subsequently remitted to governmental authorities, are excluded from revenue. Shipping and handling expenses are considered fulfillment activities and are expensed as incurred.

Frequently, the Company's contracts with customers contain multiple promised goods or services. Such contracts may include any of the following, the consumer robot, downloadable app, cloud services, accessories on demand, potential future unspecified software upgrades and extended warranties. For these contracts, the Company accounts for the promises separately as individual performance obligations if they are distinct. Performance obligations are considered distinct if they are both capable of being distinct and distinct within the context of the contract. In determining whether performance obligations meet the criteria for being distinct, the Company considers a number of factors, such as the degree of interrelation and interdependence between obligations, and whether or not the good or service significantly modifies or transforms another good or service in the contract.

The Company allocates revenue to all distinct performance obligations based on their relative stand-alone selling prices ("SSPs"). When available, the Company uses observable prices to determine SSPs. When observable prices are not available, SSPs are established that reflect the Company's best estimates of what the selling prices of the performance obligations would be if they were sold regularly on a stand-alone basis. The Company's process for estimating SSPs without observable prices considers multiple factors that may vary depending upon the facts and circumstances related to each performance obligation including market data or the estimated cost of providing the products or services. The transaction price allocated to the robot is

recognized as revenue at a point in time when control is transferred, generally as title and risk of loss pass, and when collection is considered probable. The transaction price allocated to services and support is deferred and recognized over their service periods. For contracts with a duration of greater than one year, the transaction price allocated to performance obligations that are unsatisfied as of September 28, 2024 and December 30, 2023 was $13.6 million and $18.4 million, respectively.

The Company's products generally carry a one-year or two-year limited warranty that promises customers that delivered products are as specified. The Company does not consider these assurance-type warranties as a separate performance obligation and therefore, the Company accounts for such warranties under Accounting Standards Codification ("ASC") 460, "Guarantees." For contracts with the right to upgrade to a new product after a specified period of time, the Company accounts for this trade-in right as a guarantee obligation under ASC 460. The total transaction price is reduced by the full amount of the trade-in right's fair value and the remaining transaction price is allocated between the performance obligations within the contract.

The Company provides limited rights of returns for direct-to-consumer sales generated through its online stores and certain resellers and distributors. The Company records an allowance for product returns based on specific terms and conditions included in the customer agreements or based on historical experience and the Company's expectation of future returns. In addition, the Company may provide other credits or incentives which are accounted for as variable consideration when estimating the amount of revenue to recognize. Where appropriate, these estimates take into consideration relevant factors such as the Company's historical experience, current contractual requirements, specific known market events and forecasted inventory level in the channels. Overall, these reserves reflect the Company's best estimates, and the actual amounts of consideration ultimately received may differ from the Company's estimates. Returns and credits are estimated at the time of sale and updated at the end of each reporting period as additional information becomes available. As of September 28, 2024, the Company had reserves for product returns of $16.3 million and other credits and incentives of $58.3 million. As of December 30, 2023, the Company had reserves for product returns of $24.6 million and other credits and incentives of $95.3 million. The Company regularly evaluates the adequacy of its estimates for product returns and other credits and incentives. Future market conditions and product transitions may require the Company to take action to change such programs and related estimates. When the variables used to estimate these reserves change, or if actual results differ significantly from the estimates, the Company increases or reduces revenue to reflect the impact. During the three and nine months ended September 28, 2024 and September 30, 2023, changes to these estimates related to performance obligations satisfied in prior periods were not material.

Disaggregation of Revenue

The following table provides information about disaggregated revenue by geographical region (in thousands):


	Three Months Ended				Nine Months Ended
	September 28, 2024		September 30, 2023		September 28, 2024		September 30, 2023
United States	$	105,137	$	85,781	$	258,398	$	288,725
EMEA	45,902		51,861		130,884		149,421
Japan	27,718		34,713		83,254		110,186
Other	14,678		13,821		37,275		34,704
Total revenue	$	193,435	$	186,176	$	509,811	$	583,036

Contract Balances

The following table provides information about receivables and contract liabilities from contracts with customers (in thousands):


	September 28, 2024		December 30, 2023
Accounts receivable, net	$	100,266	$	77,112

Contract liabilities	14,635		18,702

The Company invoices customers based upon contractual billing schedules, and accounts receivable are recorded when the right to consideration becomes unconditional. Contract liabilities include deferred revenue associated with services and extended warranty plans as well as prepayments received from customers in advance of the satisfaction of its performance obligations. During the three months ended September 28, 2024 and September 30, 2023, the Company recognized $5.1 million and $4.5 million, respectively, of the contract liability balance as revenue upon transfer of the products or services to customers. During the nine months ended September 28, 2024 and September 30, 2023, the Company recognized $8.9 million and $11.3 million, respectively, of the contract liability balance as revenue upon transfer of the products or services to customers.

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 9
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-9

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
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-Name Accounting Standards Codification
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-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-10

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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-Topic 606
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-Topic 606
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Name Accounting Standards Codification
-Topic 606
-Publisher FASB
-URI https://asc.fasb.org//606/tableOfContent

+ Details

Derivative Instruments and Hedging Activities

9 Months Ended

Sep. 28, 2024

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments and Hedging Activities

The Company historically entered into derivative instruments that were designated as cash flow hedges to reduce its exposure to foreign currency exchange risk in sales. These contracts had a maturity of three years or less. During the first quarters of 2024 and 2023, the Company terminated foreign currency forward contracts with a notional value of $102.9 million and $151.7 million, respectively, resulting in net cash proceeds of $2.7 million and a net cash payment of $2.5 million, respectively, which were recognized within cash used in operating activities in the consolidated statements of cash flows. Amounts previously recorded in AOCI were frozen at the time of termination, and will be recognized in earnings when the

original forecasted transaction occurs. At September 28, 2024, the Company had no outstanding cash flow hedges. As of December 30, 2023, the Company had outstanding cash flow hedges with a total notional value of $114.4 million.

The Company enters into economic hedges that are not designated as hedges from an accounting standpoint to reduce foreign currency exchange risks related to short term trade receivables and payables. These contracts typically have maturities of approximately one month. At September 28, 2024 and December 30, 2023, the Company had outstanding foreign currency economic hedges with a total notional value of $11.9 million and $252.0 million, respectively.

The fair values of derivative instruments were as follows (in thousands):


		Fair Value
	Classification	September 28, 2024		December 30, 2023
Derivatives not designated as hedging instruments:

Foreign currency forward contracts	Other current assets	$	—	$	2,929

Foreign currency forward contracts	Accrued expenses	82		4,586

Derivatives designated as cash flow hedges:
Foreign currency forward contracts	Other current assets	$	—	$	1,070

Foreign currency forward contracts	Accrued expenses	—		2,690
Foreign currency forward contracts	Long-term liabilities	—		367

(Losses) gains associated with derivative instruments not designated as hedging instruments were as follows (in thousands):


		Three Months Ended				Nine Months Ended
	Classification	September 28, 2024		September 30, 2023		September 28, 2024		September 30, 2023
(Loss) gain recognized in income	Other expense, net	$	(494)	$	2,151	$	853	$	3,418

The following tables reflect the effect of derivatives designated as cash flow hedging (in thousands):


	Gain recognized in OCI on Derivative (1)
	Three Months Ended				Nine Months Ended
	September 28, 2024		September 30, 2023		September 28, 2024		September 30, 2023
Foreign currency forward contracts	$	—	$	5,105	$	3,213	$	7,077

(1)The amount represents the change in fair value of derivative contracts due to changes in spot rates.


	Gain recognized in earnings on cash flow hedging instruments
	Three Months Ended				Nine Months Ended
	September 28, 2024		September 30, 2023		September 28, 2024		September 30, 2023
	Revenue				Revenue
Consolidated statements of operations in which the effects of cash flow hedging instruments are recorded	$	193,435	$	186,176	$	509,811	$	583,036

Gain on cash flow hedging relationships:
Foreign currency forward contracts:
Amount of gain reclassified from AOCI into earnings	$	3,519	$	5,568	$	11,827	$	14,249

Restructuring and Other Charges

9 Months Ended

Sep. 28, 2024

Restructuring and Related Activities [Abstract]

Restructuring and Other Charges

During the three months ended September 28, 2024 and September 30, 2023, the Company recorded restructuring and other charges of $1.9 million and $0.2 million, respectively, in the consolidated statements of operations. During the nine months ended September 28, 2024 and September 30, 2023, the Company recorded restructuring and other charges of $24.3 million and $8.2 million, respectively, in the consolidated statements of operations.

The components of restructuring and other charges were as follows (in thousands):


	Three Months Ended				Nine Months Ended
	September 28, 2024		September 30, 2023		September 28, 2024		September 30, 2023
Cash restructuring charges:
Severance and other personnel costs	$	998	$	69	$	17,198	$	3,602
Other restructuring costs	454		83		3,439		4,634
CEO transition costs	534		—		2,053		—
Total cash charges	1,986		152		22,690		8,236

Non-cash charges:
Asset write offs	79		—		2,828		—

CEO transition costs related to stock-based awards	(143)		—		(1,220)		—
Total non-cash charges	(64)		—		1,608		—

Total restructuring and other charges	$	1,922	$	152	$	24,298	$	8,236

On January 29, 2024, following the termination of the Merger Agreement, the Company announced an operational restructuring plan which includes a reduction in headcount. As of September 28, 2024, approximately 340 employees have been notified, with $1.0 million and $17.2 million of restructuring cost recorded during the three and nine months ended September 28, 2024, respectively. These charges consist primarily of employee termination benefits including severance, payroll taxes and other benefits.

In addition, the operational restructuring plan includes actions to pause work unrelated to the Company's core floorcare business and, as a result, during the nine months ended September 28, 2024, the Company recorded restructuring costs of $4.9 million. These charges typically consist of write-offs on certain fixed assets as well as material liabilities at contract manufacturers due to discontinuation of programs.

In conjunction with the termination of the Merger Agreement, Colin Angle, the Company's then-Chief Executive Officer, stepped down as an officer of the Company and from his position as chairman of the Board effective January 28, 2024. The Board appointed Glen D. Weinstein, the Company's then Executive Vice President and Chief Legal Officer, as Interim Chief Executive Officer while a search was conducted for a permanent CEO. On May 6, 2024, the Company appointed Gary S. Cohen as the Company's Chief Executive Officer. Gary S. Cohen succeeded Glen D. Weinstein as the principal executive officer of the Company. Glen D. Weinstein provided transition services as a Company employee during the transition period. CEO transition costs represent costs incurred for CEO search fees and charges associated with the transition-related agreements with Colin Angle and Glen D. Weinstein which include compensation during the transition period as well as adjustments for modification of stock-based awards.

The following table presents a roll-forward of cash restructuring-related liabilities, which is included within accounts payable and accrued expenses in the consolidated balance sheet (in thousands):


	Severance and other personnel costs		Other restructuring costs		CEO transition costs		Total
Balance as of December 30, 2023	$	—	$	—	$	—	$	—
Charges	17,198		3,439		2,053		22,690
Cash payments	(16,109)		(1,284)		(1,411)		(18,804)
Balance as September 28, 2024	$	1,089	$	2,155	$	642	$	3,886

The Company expects the people-related balance to be paid within the fourth quarter of 2024, and the remaining balance to be paid within fiscal 2025.