Becker Business Podcast

Episode: Roomba Goes Broke
Host: Scott Becker
Date: December 15, 2025

Episode Overview

In this episode, Scott Becker discusses the recent bankruptcy of Roomba, the pioneering robotic vacuum company once ubiquitous in households. He explores the business trajectory that led to Roomba’s downfall, focusing on issues such as supply chain dependency, tariffs, and the collapse of the company’s stock. Becker provides market insights and explains the potential path forward for Roomba, including the likely takeover by a Chinese supplier.

Key Discussion Points & Insights

1. Introduction to Roomba

[00:30]

• Roomba’s significance:
  • Described as a revolutionary product, the self-vacuuming Roomba was “one of the early cases or use cases for robots” in everyday consumer applications.
  • “What a great concept that it would like clean your house without you having to do it or hiring somebody to do it.” (Scott Becker, 00:41)

2. Summary of Events Leading to Bankruptcy

[00:48]

• Roomba’s financial trouble:
  • Roomba’s popularity faded, and the company faced growing difficulties.
  • Tariffs played a significant role in their struggles:

    “They blame part of this on tariffs. Their main supplier is in China. They import almost everything from China, even though they're US based.” (Scott Becker, 00:52)

• Stock decline:
  • “On Friday, the stock went down about 14%. Today, as they actually file for bankruptcy, the stock is down about 80%.” (Scott Becker, 01:04)
  • “The stock has been down over the last five years, about 94%. That’s before today's loss of probably almost everything.” (Scott Becker, 01:22)

3. Potential Takeover and Outcomes

[01:10]

• Supplier to take over:
  • The likely path forward is for Roomba’s main Chinese supplier to take over operational control:

    “Their hope is that essentially their main supplier, who's based in China, will take them over and keep operating largely as normal and that it'll move back in the right direction.” (Scott Becker, 01:10)

• Impact on shareholders:
  • “What they have said is the common stockholders in this bankruptcy are likely to be entirely wiped out.” (Scott Becker, 01:28)

4. Roomba’s Place in Innovation

[01:45]

• Reflection on invention:
  • “An amazing invention. Again, it’s found itself in a lot of trouble now.” (Scott Becker, 01:14)
  • Becker reiterates Roomba’s significance as an innovative, household name product but acknowledges the harsh business realities leading to its bankruptcy.

Notable Quotes & Memorable Moments

• “Roomba, one of those ubiquitous interesting things God loves the idea, is now going bankrupt.”
  (Scott Becker, 01:42)

• On shareholder consequences:

  “The common stockholders in this bankruptcy are likely to be entirely wiped out.”
  (Scott Becker, 01:28)

• On the significance of product innovation:

  “What a great concept that it would like clean your house without you having to do it or hiring somebody to do it.”
  (Scott Becker, 00:41)

Important Timestamps

• 00:30 — Start of Roomba bankruptcy discussion
• 00:48 — Supply chain, tariffs, and stock decline
• 01:10 — Supplier takeover, company’s future
• 01:28 — Impact on stockholders
• 01:42 — Reflection on Roomba’s invention and bankruptcy

Episode Tone & Style

Scott Becker maintains his usual informative, slightly conversational tone, blending factual reporting with business analysis. He expresses respect for the original innovation of Roomba, while directly addressing the harsh economic impact and potential future for both the company and its stakeholders.