Business
Agreement
Seeing Machines Limited will receive an accelerated lump sum royalty payment of approximately US$14.1 million from a Tier 1 automotive customer, replacing future royalties over four years and significantly boosting profitability and cash generation in the second half of FY2026, with the third quarter expected to be the first of positive earnings and cash. Automotive royalty revenues are projected to increase materially in the next two quarters due to the European General Safety Regulation rollout, accelerating demand for driver monitoring technology. The Guardian Aftermarket solution is also gaining traction, with a quarterly sales run rate expected to exceed 6,000 units by Q3 FY2026, positioning the company for improved positive cash flow in early 2026 and progress towards meeting convertible note obligations. Disclaimer*
About this update from Seeing Machines Limited
[{"type":"text","content":"\n\n \nSeeing Machines Limited (\"Seeing Machines\" or the \"Company\")\n \nSeeing Machines to receive accelerated lump sum royalty payment of ~US$14.1m under Automotive Program Guarantee\n 6 January 2026\nSeeing Machines Limited (AIM: SEE), the advanced computer vision technology company that designs AI-powered operator monitoring systems to improve transport safety, today announced it will receive an accelerated lump sum royalty payment of approximately US$14.1 million from a Tier 1 automotive customer under an existing Automotive Program Guarantee.\nThe payment, which will be received this month, relates to a material change to a production program which has enabled a renegotiation of the royalty payment terms, under guarantee. The accelerated payment is being made in lieu of future royalty payments that would otherwise have been received over the next four years.\nThe accelerated cash generated from this payment and associated revenue recognised will further increase profitability and cash generation in the second half of FY2026. The third quarter of FY2026 represents a significant financial milestone for the Company as it will be the first quarter of generating positive earnings and cash.\nLooking ahead, automotive royalty revenues are expected to increase materially over the next two quarters, driven by the rollout of General Safety Regulation (GSR) legislation across Europe. These regulatory requirements are anticipated to accelerate both demand for and fitment rates of Seeing Machines' proven driver monitoring technology, particularly in European vehicle programs, supporting additional high-margin royalty revenue.\nIn parallel, the Guardian Aftermarket solution continues to gain traction in new geographies, particularly in Europe and North America. As momentum builds, Guardian is expected to achieve a quarterly sales run rate exceeding 6,000 units by Q3 FY2026.\nWith these developments, Seeing Machines expects to deliver improved positive cash flow in early 2026, reinforcing the Company's progress toward sustainable financial performance.\nPaul McGlone, CEO of Seeing Machines, said: \"The guarantees we have in place with this customer mean that we are able to receive guaranteed royalty revenue for this program as originally planned and, in this case, benefit from an accelerated, high-margin cash injection that ...