Seeing Machines Ltd (AIM:SEE, OTC:SEEMF, FRA:M2Z), the AIM-listed computer vision technology company, said it expected automotive production volumes to “increase materially” in the coming quarters as the EU’s General Safety Regulation deadline approaches.
In the update, it also forecast positive adjusted earnings before interest, tax, depreciation and amortisation in the third quarter and the second half of its financial year.
Seeing Machines said: “With GSR implementation imminent, automotive production volumes are expected to increase materially over the coming quarters.”
It is “positioned to benefit from accelerating royalty volume, expanding recurring revenues and improved operating leverage as OEM compliance strategies move into production”, the firm added.
Revenue for the six months to 31 December 2025 is expected to be $23.4 million to $24.0 million, down from $25.3 million a year earlier.
Seeing Machines said the fall “reflects lower non-recurring engineering activity as major automotive programs mature and transition into production phases, as well as the absence of licence revenue associated with prior exclusivity arrangements”.
Annualised recurring revenue increased to $14 million at 31 December 2025 from $13.5 million at 30 June 2025, which the company said was “supported by growing Guardian connections”.
Adjusted EBITDA loss is expected to be $13.1 million to $13.7 million, compared with a loss of $17.7 million in the prior period.
Cash at 31 December 2025 was $3.4 million, down from $22.6 million at 30 June 2025.
Seeing Machines said that after the period end it received “an accelerated lump sum royalty payment of approximately $14.1 million” from a Tier 1 automotive customer under an existing Automotive Program Guarantee.
It added that cars on the road using its driver and occupant monitoring system technology reached 4.8 million units, up 67% year on year.
Production volumes in the half year rose 62% to 1,088,530 units and automotive royalty revenue increased 43% to $9.0 million, from $6.3 million a year earlier.
Seeing Machines said it had expanded “an existing European Tier 1 and OEM automotive program” with an expected additional $10 million in initial lifetime value, with production expected to start in 2028.
Meanwhile, it also won a new production award in Japan with Mitsubishi Electric Mobility Corporation and was working on an advanced development project with another Japanese original equipment manufacturer, with “a formal award expected in H1 CY2026”.
And it said it launched an impairment detection capability at the 45th Mothers Against Drunk Driving conference in the US and made a debut for its 3D Cabin Perception Mapping platform at CES 2026.
In aftermarket, the company said it received a $1.8 million Guardian order from a North American autonomous vehicle operator and won a 1,100-unit Guardian order from a US-based multinational fleet operator.
Seeing Machines said cash fell $19.1 million in the half year, with $13.1 million related to operating performance, $5.0 million to working capital movements and $1.0 million as deferred consideration for the acquisition of Asaphus.
It said the working capital increase was “primarily driven by higher inventory levels” and added: “These are expected to unwind during H2 FY2026 as delivery commitments are met.”
Paul McGlone, chief executive, said: “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.”
McGlone added: “Our focus remains firmly on generating positive cash flow in H2 FY2026.”