Seeing Machines Ltd (AIM:SEE, OTC:SEEMF, FRA:M2Z), the AI-powered driver monitoring technology company, has reported record automotive production volumes of 1.28 million units in the three months to 31 March 2026, up 122% on the previous quarter and 259% on the same period a year earlier.
The surge was driven by car manufacturers scaling up fitment of driver and occupant monitoring systems (DMS/OMS) ahead of a July 2026 European General Safety Regulation (GSR) deadline, which will require the technology across new vehicle platforms.
Royalty revenue in the quarter exceeded the total generated across the entire first half of the financial year, reflecting the operating leverage built into the company's automotive licensing model.
More than 6.1 million cars are now on the road carrying Seeing Machines technology, up 88% from 3.2 million a year ago.
The company said it expects to deliver positive adjusted EBITDA in both Q3 and the second half of FY2026, and anticipates production volumes will rise again in Q4.
In its aftermarket Guardian division, which sells monitoring hardware and software to commercial fleet operators, unit sales fell to 1,610 from 3,764 in the prior quarter, with the company attributing the dip to timing, saying some expected Q3 orders had shifted into Q4.
Guardian annual recurring revenue (ARR), which reflects connected and activated hardware generating subscription income, rose 5% to $14.7 million.
Chief executive Paul McGlone described Q3 as a clear inflexion point, saying the step-change in quarterly volumes marked the beginning of a new phase of higher and more consistent production as the company moves into financial year 2027.
"This is supported by regulation and our embedded position across major OEM programs," he said, adding that the company's focus remained on converting momentum into sustained royalty growth as global transport safety requirements continue to strengthen.