Net profit plunges over 31%! Roborock continues under pressure.

The hype around robot vacuum cleaners has passed, and market valuations have become more reasonable.

Currently, the market structure for robot vacuum cleaners is largely established, but the moats of companies are not solid. The competitive landscape among leading companies is prone to change, making overseas markets a key growth driver.

On February 27th, the "Robot Vacuum King" Roborock released its 2025 performance forecast. The financial report shows that the company achieved revenue of 18.616 billion yuan in 2025, a year-on-year increase of 55.85%; net profit attributable to the parent company was 1.360 billion yuan, a year-on-year decrease of 31.19%; and adjusted net profit was 1.087 billion yuan, a year-on-year decrease of 32.90%.

Faced with this report showing "revenue growth without profit growth," the market had already reacted in advance. Since mid-September 2025, Roborock's stock price has fallen by over 35% and has currently broken below the key support level.

Regarding the significant revenue growth, Roborock stated that it was mainly due to relatively strong demand in the domestic market for smart robot vacuum cleaners and floor washing machines driven by the national "trade-in" subsidy policy during the reporting period. Simultaneously, the company continuously launched new products tailored to consumer needs through technological and product innovation, further improved its product and price matrices, seized market opportunities, and drove sustained high-speed business growth. In overseas markets, the company continued to advance brand building, improved its full-price-range product layout, expanded into new markets and reached new users through refined channel operations and proactive market strategies, effectively enhancing brand and product influence, and achieving stable growth in overseas revenue. While the business grew rapidly, the company's leading position in the global market was further consolidated.

Roborock also stated that according to the latest IDC report, the company's sales and market share of smart robot vacuum cleaners in the global market have consistently ranked first worldwide.

Regarding the reasons for the decline in net profit, Roborock attributed it mainly to the impact on overall gross margin in the initial stages due to the full-price-range layout of the floor washing machine business and the rapid expansion of new product categories. At the same time, the company implemented more aggressive market strategies, leading to a corresponding increase in sales expenses.

In short, the expansion into new categories had a phased impact on the company's overall gross margin, and market expansion also brought about increased expenses.

Financial report data shows that by the end of the third quarter of 2025, Roborock's sales expenses reached 3.180 billion yuan, compared to 1.564 billion yuan in the same period last year, doubling year-on-year, while revenue growth was lower than the growth in sales expenses.

It is worth noting that by the end of the third quarter of 2025, Roborock's total R&D expenses amounted to 1.028 billion yuan. As a smart small home appliance manufacturer, technology is the core of long-term development. The competitive advantages of current leading companies can easily be weakened by technological iteration, which requires vigilance.

Furthermore, although Roborock's global market share for smart robot vacuum cleaners remains first, its net profit was surpassed by Ecovacs by the end of the third quarter. In terms of quarterly performance, the company's fourth-quarter revenue was 6.55 billion yuan, showing significant growth, but its net profit of 322 million yuan was significantly weaker than in the second and third quarters.

At the same time, the founder's continuous share reduction has also become an important factor putting pressure on the stock price. According to media statistics, Roborock's actual controller, Chang Jing, has cashed out over 900 million yuan since 2023 through methods like centralized bidding and inquiry-based transfers, reducing his shareholding ratio from 23.26% in 2021 to 20.99% in September 2025.

After the earnings release, several brokerages issued research reports:

Kaiyuan Securities believes that Roborock has become the world's number one robot vacuum cleaner brand, is optimistic about the rapid increase in the company's revenue scale under its brand-first strategy, and that reduced losses from new categories will drive steady improvement in profitability, maintaining a "Buy" rating.

CICC pointed out that Roborock's performance fell short of expectations, mainly due to losses from new businesses such as the domestic trade-in policy, floor washing machines, and lawn mowers dragging down performance, therefore lowering profit expectations and maintaining an "Outperform Industry" rating.

Guolian Minsheng Securities stated that Roborock's fourth-quarter revenue continued its high growth, with a significant pull from overseas markets, but profitability was under pressure due to adjustments in business strategy and intense market competition. The brokerage believes that the company's global leadership position has been preliminarily established, its performance has resilience, and suggests paying attention to subsequent product layout and progress in cost reduction and efficiency improvement, waiting for the recovery of profitability after the company balances its operational pace. New categories like lawn mowers are expected to contribute incremental growth, maintaining a "Recommend" rating.

Kan Jian Finance believes that Roborock's high revenue growth mainly benefited from the "State Subsidies" policy and incremental overseas markets, but the decline in net profit was affected by both new product launches and increased marketing expenses. The company needs to plan ahead to address the risk of future "State Subsidies" tapering. Overall, at the current stage, scale and marketability have a more significant impact on smart small home appliance companies, but long-term development still relies on technological innovation. Therefore, companies need to increase R&D investment, solidify core competitiveness, and avoid the erosion of their moats.