Seeing Machines to post revenue dip as prepares for EU regulation

(Alliance News) - Seeing Machines Ltd on Wednesday said it expects to report a fall in interim revenue, citing lower non-recurring engineering activity, ahead of a new EU safety law that is set to take effect in July.

The Canberra-based computer vision technology said it anticipates to report revenue of between USD23.4 million and USD24.0 million for the six months to December 31, at least 5.1% lower than USD25.3 million a year prior.

Annualised recurring revenue rose 3.7% to USD14.0 million from USD13.5 million, Seeing Machines said.

The firm said that major automotive programmes are maturing amid a transition into production phases, as it prepares for the July 7 EU General Safety Regulation [GSR] deadline, which mandates camera-based driver monitoring system technology for all newly registered vehicles.

Shares in Seeing Machines dove 20% to 3.35 pence each on Wednesday afternoon in London.

Chief Executive Officer Paul McGlone said: "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 original equipment manufacturers 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 the second half of financial year 2026."

Seeing Machines said: "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 original equipment manufacturer compliance strategies move into production. The company continues to trade in line with market expectations and is pleased with the continued recent momentum. Adjusted earnings before interest, tax, depreciation and amortisation [are] expected to be positive in the third quarter and the second half of financial year 2026."

The company expects to publish interim results in March.

By Martin Miraglia, Alliance News reporter

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