Seeing Machines (LSE:SEE) reported a sharp improvement in FY2026 trading, with strong growth in automotive production volumes and royalty revenue helping the company achieve a profitable second half and move close to breakeven for the full year.
Adjusted revenue increased 45% to $76.3 million, supported by a significant expansion in the company’s automotive business. Production volumes incorporating Seeing Machines technology climbed 195% to 4.49 million units during the year.
Adjusted automotive royalty revenue more than doubled as the growing number of vehicles using the company’s driver and occupant monitoring technology translated into higher recurring income.
The changing revenue mix also strengthened margins. Higher-volume, higher-margin automotive royalties became a larger contributor relative to hardware sales, helping Seeing Machines reach profitability during the second half.
Cash flow also turned positive in H2, representing another important step as the company works towards establishing sustainable profitability and cash generation.
More than 8.2 million vehicles now incorporate Seeing Machines technology. The installed base provides the company with growing exposure to automotive production volumes as existing programmes scale and additional vehicles equipped with its monitoring systems enter production.
Regulatory developments provide another potential growth driver. Newly effective European Union requirements for driver monitoring systems are increasing the importance of technologies capable of assessing driver attention and behaviour.
Seeing Machines is also expanding its automotive programmes with manufacturers in Europe and Japan, while continuing to pursue opportunities through its Guardian commercial fleet technology and emerging autonomous mobility applications.
The combination of accelerating royalty revenue, improved margins and positive second-half cash flow suggests the company’s financial model is beginning to benefit from greater scale. Continued growth in vehicle production volumes could further increase the contribution from automotive royalties.
However, the broader financial position still carries risk. Seeing Machines remains loss-making on a full-year basis, with a negative net margin and negative operating cash flow continuing to weigh on overall financial quality.
Technical indicators provide a more supportive signal, with the shares trading above major moving averages and momentum ranging from neutral to positive.
Valuation remains more difficult to support through traditional earnings measures while the company remains unprofitable, resulting in a negative P/E ratio, while no dividend yield is available.
More about Seeing Machines
Seeing Machines is an Australia-headquartered technology company specialising in computer vision and artificial intelligence systems designed to improve transport safety.
Its technology uses AI algorithms, embedded processing and optical systems to monitor drivers and vehicle occupants, including assessing driver attention and cognitive state.
The company serves automotive manufacturers, commercial fleet operators and emerging autonomous mobility markets through its driver and occupant monitoring technologies.
Seeing Machines shares trade on AIM under the symbol SEE.
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