Seeing Machines has delivered an outstanding FY update, having achieved +92% adj. revenue growth in H2 to $52.9m, driven by a 216% increase in OEM royalty revenue to $25.5m, reflecting skyrocketing demand, as EU General Safety Regulation (GSR) came into force shortly after year-end. This growth has in turn transformed SEE’s P&L, as the company expects to deliver c.$+11m EBITDA in H2 (vs. $-12m in 2H25) and as a result, FY LBITDA of $2-3m is materially better than our $-8mE. As for outlook, this strong FY outturn bodes well for FY27 and we envisage continued strong regulatory driven demand in Europe and global expansion, hence another year of growth and margin progression - potentially in excess of forecasts, given OEM strength. Moreover, following this update (and H2 profitability) we are even more confident that the Convertible Loan Note obligation will be refinanced, and on potentially attractive terms also. We have the stock trading on 3-3.5x EV/FY27 sales this is not expensive for a royalty driven market leader, benefitting from regulatory tailwinds and long-term design wins. From time-to-time stocks appear on AIM that really ‘rip’ (e.g. KWS, IQG, CER and more lately FTC). History would suggest it pays to be involved.
