Seeing Machines (SEE) H1 2025 earnings summary

Executive summary

• Achieved $12 million annualized OpEx reduction, targeting cash flow break-even in 2025, with profitability driven by automotive royalties, Gen 3 launch, and cost cuts.

• Secured $32.8 million investment from Mitsubishi Electric Mobility, resulting in a 19.9% equity stake and expanded global distribution, especially in the US and Europe.

• Maintained market leadership with over 2.88 million vehicles using its technology, up 90% year-over-year.

• Strategic partnerships and acquisitions, including Valeo and Asaphus Vision, to expand AI/ML capabilities and European presence.

• Confidence in repaying the $60 million convertible note due October 2026, supported by projected cash flow and multiple financing options.

Financial highlights

• H1 FY2025 revenue was $25.3 million, down 2% year-over-year; OEM revenue rose 27% to $14.5 million, Aftermarket fell 25% to $10.8 million.

• Gross profit increased 32% to $14.0 million, with gross margin improving from 35% to 55% (targeting 70% by June 2026).

• EBITDA loss improved to $9.7 million (from $14.3 million); adjusted EBITDA loss improved by $8.8 million to $17.7 million.

• Cash burn averaged $3 million/month, now reduced to $2 million/month post-cost cuts, with further reductions expected as Gen 3 ramps up.

• Cash balance at 31 Dec 2024 was $39.6 million, up from $23.4 million at 30 Jun 2024.

Outlook and guidance

• Automotive royalty volumes expected to increase 10x by June 2026, driven by EU GSR regulation mandating DMS in all vehicles.

• Board expects FY2025 performance in line with consensus: revenue $58 million, adjusted EBITDA $(28.9) million.

• Three new OEM programs, including VW, launching in 2025, with minimum volume guarantees underpinning FY26 revenue.

• Expects cash flow break-even run rate during calendar 2025, with $10 million/quarter cash generation expected by mid-2026.

• Anticipates second-half revenue skew due to automotive sector volatility, but guaranteed royalty revenue to support cash flow.