Seeing Machines reports lower revenue, improved underlying performance

(Sharecast News) - Shares in Seeing Machines were in the red on Friday morning after the group reported a decline in first-half revenue, despite improved underlying performance driven by rising automotive royalties and production volumes. For the six months ended 31 December, adjusted revenue fell to $23.4m from $25.3m a year earlier, reflecting reduced OEM-related non-recurring engineering and licence income.

However, higher-margin recurring streams strengthened, with annualised recurring revenue rising to $14.0m from $13.5m, while aftermarket revenue increased 18% to $12.7m.

Automotive royalties, a key focus for the group, rose 33% to $8.4m as production volumes increased 62% to 1.09 million units.

Total cars on the road using its technology reached 4.82 million, up 67% year-on-year, underscoring the company's growing scale in driver and occupant monitoring systems.

Gross profit edged down to $13.3m from $14.0m, although margins improved to 58% from 55% due to a more favourable sales mix.

The AIM-traded firm said its adjusted EBITDA loss narrowed by $4.0m to $13.7m.

Cash at the period end stood at $3.4m, down from $22.6m as at 30 June, although the company said it received a $14.1m accelerated royalty payment from a tier one automotive customer after the reporting period.

It said it had also secured a receivables funding facility of up to AUD 11m ($7.8m/£5.7m) to support working capital.

Operationally, the company reported continued momentum across its automotive and aftermarket segments, including new programme wins in Europe and Japan and further fleet orders for its Guardian system.

It also highlighted ongoing product development, including its 3D Cabin Perception Mapping platform and impairment detection capabilities.

"We delivered strong underlying performance in the half, with automotive royalties growing 33% alongside a 62% increase in production volumes, and continued expansion in Guardian driving recurring revenue growth and improved margins," said chief executive Paul McGlone.

"As regulatory adoption accelerates, particularly with GSR in Europe, we expect further growth in production and royalties and remain on track to deliver positive adjusted EBITDA in the second half of 2026."

The company said it continued to trade in line with market expectations and expected adjusted EBITDA to turn positive in the third quarter and for the second half as a whole, supported by increasing royalty volumes as regulatory requirements drive adoption.

At 1032 GMT, shares in Seeing Machines were down 4.48% at 2.96p.

Reporting by Josh White for Sharecast.com.

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