Seeing Machines has reported positive second-half cash flow and a sharp increase in automotive royalty revenue as safety regulation accelerates adoption of camera-based driver-monitoring systems.
Adjusted revenue increased 45% to $76.3m in the year to June. Growth accelerated heavily in the second half, when adjusted revenue reached $52.9m, 126% above the first six months.
Automotive royalty revenue increased 135% to $33.9m, supported by a near-tripling in production volumes. Almost 4.49m vehicles using Seeing Machines technology were produced during the year, compared with 1.52m previously.
Chief executive Paul McGlone said: “FY2026 was a pivotal year for Seeing Machines, with record Automotive production volumes, strong revenue growth and a profitable second half that demonstrates the operating leverage in our business.”
The company expects adjusted EBITDA of between $10.7m and $11.7m for the second half, reversing a $13.7m loss in the first six months. The full-year adjusted EBITDA loss is expected to narrow to between $2m and $3m.
Cash stood at $4.3m at the end of June, compared with $3.4m six months earlier, without the company drawing on its available funding facilities.
Receivables and royalties due increased to $25.3m as automotive revenue expanded late in the year. Collecting those balances will therefore be an important component of near-term cash generation.
The acceleration comes as driver-monitoring technology becomes a regulatory requirement across more new vehicles in Europe. Systems use cameras and software to detect factors including driver attention, distraction, fatigue, and other behaviours associated with safety risk.
Regulation can change the economics of a specialist automotive supplier quickly. Technology companies may spend years funding engineering, validation, and integration before a vehicle platform enters production. Once software is installed across high-volume programmes, royalties can expand much faster than the underlying development cost base.
Seeing Machines is beginning to show that operating leverage. Higher-margin automotive royalties are taking a larger share of revenue as production volumes increase, allowing additional installations to contribute more directly to earnings.
More than 8.2m vehicles are now on the road with the company’s technology. Fourth-quarter production exceeded 2.1m units, indicating a substantially higher run rate than earlier periods.
The growth also reflects the increasing role of software and sensors inside vehicle cabins. Safety systems are expanding beyond monitoring the driver towards occupant detection, impairment assessment, and integration with increasingly automated driving systems.
Seeing Machines is developing products in those areas alongside its core automotive programmes. It has also established a Future Mobility Group targeting applications linked to autonomous driving.
Its Guardian aftermarket business provides another recurring revenue stream by supplying driver-monitoring systems to commercial fleets. Annual recurring revenue in that operation reached $15m, up 12%.
Commercial fleets offer a different adoption route from passenger vehicles because operators can retrofit existing vehicles rather than waiting for technology to enter production at a manufacturer. Insurance, safety performance, regulation, and fleet-management requirements can all influence demand.
Financing remains a point to monitor. Seeing Machines has been negotiating the refinancing of a convertible loan note due in October. Sustainable positive cash generation would reduce dependence on external capital after years of development spending.
The company has now entered the stage at which regulatory adoption and production scale can begin translating into financial returns. The next test is whether the sharp rise in vehicle volumes produces sustained profitability rather than a single strong half year.
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