Seeing Machines (LSE:SEE) reported mixed results for the half year to 31 December 2025, with adjusted revenue falling 8% to US$23.4 million as income from OEM engineering services and licence agreements declined. However, the company recorded strong growth in recurring revenue streams, with annualised recurring revenue rising to US$14 million and Aftermarket sales increasing 18%, driven by continued demand for its Guardian driver monitoring safety system.
Automotive production volumes incorporating the company’s technology increased sharply, rising 62% to around 1.1 million vehicles during the period. This expansion boosted higher-margin royalty revenue by 33% to US$8.4 million and helped narrow the adjusted EBITDA loss to US$13.7 million. Cash reserves stood at US$3.4 million at period end, although the balance was later supported by a post-period lump-sum royalty payment and the establishment of a new receivables financing facility.
The company also strengthened its position in driver and occupant monitoring systems, with more than 4.8 million vehicles globally now using its technology. New programme wins in Europe and Japan, along with growing demand in the Aftermarket segment—including large fleet and autonomous vehicle orders in North America—added to commercial momentum. Seeing Machines is also developing new technologies such as 3D Cabin Perception Mapping and impairment detection tools aligned with emerging U.S. safety priorities, alongside its Future Mobility Group initiatives.
These developments are expected to position the company to benefit from the implementation of Europe’s General Safety Regulation (GSR) requirements, which are anticipated to drive further royalty growth. Management continues to target positive adjusted EBITDA in the second half of FY2026 while also working to refinance a convertible note due in 2026.
From an outlook perspective, the company still faces financial challenges, including ongoing losses and negative operating cash flow. Near-term technical indicators also appear weak. However, management commentary points to regulatory tailwinds, expanding automotive adoption and cost-control measures aimed at achieving cash-flow breakeven.
More about Seeing Machines
Seeing Machines is an Australia-based technology company specialising in AI-powered, vision-based monitoring systems designed to improve safety in transport. Its solutions track driver attention and cognitive state using computer vision, embedded processing and advanced optics. The technology is used across automotive, commercial fleet, off-road and aviation sectors, supplying driver and occupant monitoring systems to global automotive manufacturers, Tier 1 suppliers and fleet operators.
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