REG - Seeing Machines Ltd - Trading Update - H1 FY2026

Seeing MachinesAnnouncement

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RNS Number : 4330T  Seeing Machines Limited  18 February 2026

 

Seeing Machines Limited ("Seeing Machines" or the "Company")

 

 

18 February 2026

H1 FY2026 Trading Update

 

Six months to GSR: Automotive Growth Inflection Point Approaches

 

Seeing Machines Limited (AIM: SEE), the advanced computer vision technology
company that designs AI-powered operator monitoring systems to improve
transport safety, publishes a trading update for the six months to 31 December
2025 ("H1 FY2026"), based on unaudited numbers.

 

The Company is entering a key phase as it prepares for the 7 July 2026 EU
General Safety Regulation (GSR) deadline, which mandates camera-based Driver
Monitoring System ("DMS") technology for all newly registered vehicles.

 

KEY FINANCIAL HIGHLIGHTS:

 * Reported revenue for H1 FY2026 is expected to be in the range US$23.4m -
US$24.0m (H1 FY2025: US$25.3m).The decrease reflects lower non‑recurring
engineering ("NRE") activity as major automotive programs mature and
transition into production phases, as well as the absence of license revenue
associated with prior exclusivity arrangements

 * Annualised Recurring Revenue ("ARR") increased to US$14.0m (30 June 2025:
US$13.5m), supported by growing Guardian connections

 * Reduced operating expenses from prior corresponding period as benefits from
strategic reorganisation conducted in FY2025 continue to be realised

 * Cash at 31 December 2025 of US$3.4m (30 June 2025: US$22.6m).Post period
end,an accelerated lump sum royalty payment of approximately US$14.1 million
was received from a Tier 1 automotive customer under an existing Automotive
Program Guarantee

 * Adjusted EBITDA loss expected to be in the range US$13.1m - $13.7m (H1 FY2025:
US$17.7m)

 

KEY OPERATIONAL HIGHLIGHTS:

Automotive:

 * Market leadership reinforced, with cars on the road using Seeing Machines'
Driver and Occupant Monitoring System ("DMS/OMS") technology reaching
4,818,731 units, representing 67% year-on-year growth compared to cars on road
at 31 December 2024 of 2,883,745 units

 * Production volumes during H1 FY2026 of 1,088,530 units (H1 FY2025: 672,323)
representing 62% growth with Automotive royalty revenue increasing 43% to
US$9.0m (H1 FY2025 US$6.3m)

 * Expansion of an existing European Tier 1 and OEM automotive program, with an
expected additional US$10m in initial lifetime value, supporting enhanced
interior perception for semi-automated vehicle functionality, with production
expected to commence in 2028

 * New production award in Japan with Mitsubishi Electric Mobility Corporation,
alongside an advanced development project with another prominent Japanese OEM,
with a formal award expected in H1 CY2026

 * Launch of market-ready impairment detection capability at the 45th Mothers
Against Drunk Driving ("MADD") Conference in the USA, addressing non-transient
impairment including alcohol, a key focus of the US regulatory roadmap

 * Successful debut of the Company's next-generation 3D Cabin Perception Mapping
platform at CES 2026, marking a major step forward in real-time in-cabin
intelligence for future mobility applications

 

Aftermarket:

 * US$1.8m Guardian order received from a leading North American autonomous
vehicle operator to support expansion of its test fleet across additional US
locations

 * Major Guardian order of 1,100 units from a US-based multinational fleet
operator, with discussions underway regarding further expansion during the
current calendar year

 * Continued collaboration with Mitsubishi Electric Automotive America, including
the Company's first Guardian fleet win in the US

 * Formation of a dedicated Future Mobility Group to support the growing
autonomous and next-generation mobility ecosystem

 

Working Capital and Cash Balance:

Cash balance reduced by US$19.1m during H1 FY2026 to US$3.4m. Approximately
US$13.1m was related to operating performance, US$5.0m to working capital
movements and US$1.0m was deferred consideration for the acquisition of
Asaphus (announced on 8 July 2024). The increase in working capital was
primarily driven by higher inventory levels. These are expected to unwind
during H2 FY2026 as delivery commitments are met.

 

Outlook:

With GSR implementation imminent, automotive production volumes are expected
to increase materially over the coming quarters. Seeing Machines is positioned
to benefit from accelerating royalty volume, expanding recurring revenues and
improved operating leverage as OEM compliance strategies move into production.
The Company continues to trade in line with market expectations and is pleased
with the continued recent momentum. Adjusted EBITDA is expected to be positive
in Q3 and the second half of FY2026.

 

Paul McGlone, CEO of Seeing Machines, commented: "During the first half, we
made strong progress in reshaping the business for scale as we approach a key
regulatory and commercial inflection point. Looking ahead, we expect royalty
revenues to accelerate as OEMs roll out their compliance strategies, alongside
continued growth in Guardian connections driving higher annual recurring
revenue. Our focus remains firmly on generating positive cashflow in H2
FY2026."

 

The Company expects to publish its unaudited H1 FY2026 Results and Directors
Report in March 2026.

 

This announcement contains inside information under the UK Market Abuse
Regulation. The person responsible for arranging for the release of this
announcement on behalf of the Company is Paul McGlone, CEO.

 

Enquiries:

 

 Seeing Machines Limited                    +61 2 6103 4700
 Paul McGlone - CEO

 Sophie Nicoll - Corporate Communications

 Stifel Nicolaus Europe Limited (Nominated Adviser and Joint Broker)            +44 20 7710 7600
 Alex Price

 Fred Walsh

 Brough Ransom

 Ben Good

 Singer Capital Markets (Joint Broker)      +44 20 7496 3000
 James Serjeant

 Dan Ingram

 Amber Higgs

 Russell Cook

About Seeing Machines (AIM: SEE), a global company founded in 2000 and
headquartered in Australia, is an industry leader in vision-based monitoring
technology that enable machines to see, understand and assist people. Seeing
Machines is revolutionizing global transport safety. Its technology portfolio
of AI algorithms, embedded processing and optics, power products that need to
deliver reliable real-time understanding of vehicle operators. The technology
spans the critical measurement of where a driver is looking, through to
classification of their cognitive state as it applies to accident risk.
Reliable "driver state" measurement is the end-goal of Driver Monitoring
Systems (DMS) technology. Seeing Machines develops DMS technology to drive
safety for Automotive, Commercial Fleet, Off-road and Aviation. The company
has offices in Australia, USA, Europe and Asia, and supplies technology
solutions and services to industry leaders in each market vertical.

www.seeingmachines.com (http://www.seeingmachines.com)

 

 

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