Seeing Machines shares rose on Tuesday as it said it reached an “inflection point” in its latest financial year, swinging to profitability in the second half as tighter European vehicle-safety rules drove a surge in high-margin royalty income.
The maker of AI-powered driver monitoring technology reported surging revenue, up 45% to US$76.3m for the year to 30 June, with momentum building sharply in the second half: H2 revenue more than doubled to US$52.9m as the mix shifted towards automotive royalties.
Royalty revenue from carmakers rose 135% to US$33.9m over the year, while recurring revenue from its Guardian fleet business grew 12% to US$15.0m.
Paul McGlone, CEO of Seeing Machines, commented: “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.”
That shift, combined with cost discipline, drove the group into profit in the second half, with adjusted EBITDA of US$10.7m to US$11.7m against a US$13.7m loss in the first half.
For the full year, Seeing Machines still expects a modest adjusted EBITDA loss of US$2m to US$3m, but it turned cash flow positive in the second half.
The driver was a step-up in production as carmakers geared up for the EU’s General Safety Regulation, which from 7 July requires camera-based driver monitoring in new vehicle types.
Vehicle production using the company’s technology nearly tripled over the year to 4.5 million units, and there are now 8.2 million cars on the road fitted with its systems, up 120%. It also won fresh business, including expanded programmes worth more than US$40m with two European carmakers and selection by three new Japanese manufacturers.
Cash stood at US$4.3m at year-end, and the company said it is in an exclusive negotiation period to refinance a convertible loan note ahead of its maturity in October.
This is certainly a company to keep a close eye on.