Seeing Machines reports profitable second half as revenue surges
Seeing Machines Ltd on Tuesday reported a profitable second half and strong annual performance, saying it had reached an inflection point as it benefited from "the operating leverage from higher automotive royalty revenue".
The Canberra-based computer vision technology firm reported adjusted revenue, which includes adjustments linked to minimum royalty guarantees, of USD76.3 million for 2026, up 45% from USD52.8 million a year earlier and in line with expectations.
A key reason for the spike in revenue is that automotive production volumes nearly trebled, rising 195% to 4.5 million units from 1.5 million a year earlier. The increase supported higher-margin royalty revenue as automakers accelerated production of vehicles fitted with Seeing Machines' driver monitoring technology ahead of the European Union's General Safety Regulation mandate.
The GSR came into force on July 7, requiring new vehicle registrations in the EU to meet requirements for driver monitoring systems. The number of vehicles on the road using Seeing Machines' driver and occupant monitoring system technology rose 120% to 8.2 million from 3.7 million.
Annualised recurring revenue increased 12% to USD15.0 million from USD13.5 million.
Seeing Machines said the improvement in adjusted expenses before expenses, taxes, interest, depreciation and amortisation reflected the operating leverage from higher automotive royalty revenue, which carries stronger margins than hardware-based revenue, alongside the company's cost discipline.
Other highlights in 2026 included winning a 1,100-unit Guardian fleet deployment with a leading US multinational, securing more than USD40.0 million in expanded automotive programmes with two European original equipment manufacturers, and being selected for programmes with three new Japanese OEMs.
In January 2026, Seeing Machines launched its 3D Cabin Perception Mapping platform and impairment detection technology during the year, broadening its Cabin AI offering.
For the second half of 2026, Seeing Machines expects an adjusted Ebitda of USD10.7 million to USD11.7 million, while for 2026 it expects losses between USD2.0 million and USD3.0 million.
Benefits from the operational and commercial progress achieved during the second half of 2026 continue to be seen into 2027, the company said.
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. More than 8.2 million vehicles are now on the road with our technology, with Q4 volumes indicative of a transition to a significantly higher quarterly run-rate.
"With the European GSR mandate now in force, demand for our driver and occupant monitoring system technology is increasingly underpinned by regulatory requirements and our expanding Automotive programs, broader Cabin AI capabilities and growing opportunities across Guardian and Future Mobility provide a strong platform for sustained growth. We remain focused on converting this momentum into increasing royalty revenue, cash generation, improving profitability and long-term shareholder value."
Seeing Machines shares were up 7.6% at 5.11 pence on Tuesday afternoon in London.
Copyright 2026 Alliance News Ltd. All Rights Reserved.