Smart Eye AB (SEYE) AI Stock Analysis

• Market Cap: kr2.02B
• Dividend Yield: N/A
• Average Volume (3M): 310.41K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.42
• Revenue Growth: 10.25%
• EPS Growth: -698.93%
• Country: SE
• Employees: 289
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): -1.31
• Shares Outstanding: 38,678,480
• 10 Day Avg. Volume: 512,411
• 30 Day Avg. Volume: 310,414
• PEG Ratio: 0.65
• Price to Book (P/B): 2.29
• Price to Sales (P/S): 7.35
• P/FCF Ratio: -71.70
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 6.56
• Revenue Forecast (FY): kr747.20M

• Rating: 44 Neutral
• Price Target: kr51.00 ▼(-36.76% Downside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is driven primarily by weak financial quality—persistent losses and ongoing cash burn—despite strong revenue growth and improving 2025 operating trajectory. Technicals are also soft with bearish momentum signals. Valuation provides limited support due to negative earnings and no dividend data.

Positive Factors

Consistent revenue growth

Sustained multi-year revenue expansion indicates durable product demand and growing market penetration. For a software firm tied to OEM programs, steady top-line growth supports scale in R&D and integration, increasing odds that design wins convert into volume-linked recurring revenues.

Attractive unit economics

Persistently high gross margins imply the core eye‑tracking software captures value and can generate strong contribution per unit. As vehicle and research volumes scale, this margin profile supports operating leverage and the potential to move toward sustained profitability once fixed costs are absorbed.

Design‑win model & regulatory tailwind

The business model relies on OEM design wins that convert into series production revenue, creating multi-year, volume-linked streams. Structural regulatory adoption of driver monitoring systems increases addressable market and strengthens the likelihood that current pipeline converts to durable recurring revenues.

Negative Factors

Structural unprofitability

Recurring negative EBIT and net losses across reported years show the company has not yet achieved sustainable profitability. Even with 2025 improvement toward breakeven EBITDA, persistent losses raise execution risk and mean future profitability depends on continued revenue scaling and cost control.

Weak cash generation

Consistent negative operating and free cash flow indicates the business consumes external capital to fund operations and growth. This structural cash burn increases reliance on financing, limits reinvestment flexibility, and heightens vulnerability to tighter capital markets or slower revenue conversion.

Rising leverage in 2025

A marked increase in debt after years of low leverage reduces financial flexibility and raises interest and refinancing risks. With ongoing losses, higher leverage can strain the equity buffer, constrain strategic choices, and amplify downside if revenue or margin improvements stall.

Smart Eye AB Business Overview & Revenue Model

Company Description

Smart Eye AB (publ) develops human insight artificial intelligence (AI) technology solutions that understands, supports, and predicts human behavior in the Nordics countries, rest of Europe, North America, Asia, and internationally. The company offers driver monitoring systems and interior sensing solutions for automotive market; and AIS, an end-to-end driver monitoring hardware and software system for fleet and aftermarket. It also provides various behavioral research products, including smart eye research instruments under the Smart Eye Pro, AI-X, XO, and Aurora names, as well as offers smart recorders, software, and analysis services to automotive, aviation and aerospace, media and marketing, psychology and neuroscience, and behavioral research industries. In addition, the company offers media analytics platform comprising emotion AI for video testing, cloud-based service used for analyzing images and videos of humans expressing emotion to support qualitative research, and software development kits that enable developers to incorporate emotion sensing to their apps and digital experiences; and iMotions, a human insights software to collect and analyze human behavior data through eye tracking, galvanic skin response, facial expression analysis, EEG, EMG, and ECG on one convenient platform. Smart Eye AB (publ) was incorporated in 1999 and is headquartered in Gothenburg, Sweden.

How the Company Makes Money

Smart Eye makes money mainly by selling its eye-tracking/driver-monitoring software and related solutions to customers, with the automotive segment typically structured around design wins that lead to production programs once a vehicle platform goes into series production. Key revenue streams generally include: (1) Automotive/DMS revenues: licensing of software (and in some cases associated deliverables such as algorithms, integration support, and engineering services) to automotive OEMs and tier-1 suppliers; revenues tend to scale as vehicles incorporating Smart Eye’s technology enter production and unit volumes increase. (2) Non-automotive/research revenues: sales of eye-tracking products and software used in academic and commercial research, usability testing, and human behavior analysis; these are commonly sold as hardware/software bundles and/or software licenses, sometimes with maintenance/support. (3) Services and support: professional services related to integration, customization, and ongoing support for enterprise and automotive customers. Significant earnings drivers include the pace of regulatory adoption of driver monitoring requirements, the conversion of automotive design wins into series production (which increases recurring/volume-linked revenues), and partnerships in the automotive supply chain (e.g., working with tier-1 suppliers that integrate Smart Eye’s software into broader in-cabin sensing systems).

Smart Eye AB Financial Statement Overview

Summary

Strong multi-year revenue growth and high gross profit indicate solid demand and unit economics, but the company remains structurally unprofitable with consistently negative EBIT/net income and ongoing negative operating and free cash flow. 2025 shows improvement (near-breakeven EBITDA and reduced cash burn), but the sharp increase in debt raises financial risk while losses persist.

Income Statement

Revenue growth has been consistently strong over the multi-year period (from 2020–2024), with 2025 showing mid-single-digit growth, indicating demand is still expanding. Gross profit remains high, suggesting attractive unit economics. However, the business is still structurally unprofitable: EBIT and net income are negative every year provided, and while EBITDA improved materially in 2025 (near breakeven), profitability has not yet stabilized. The overall picture is improving operating trajectory but still high earnings risk.

Balance Sheet

The company has a sizable equity base relative to assets, which provides a buffer while it operates at a loss. Leverage was very low in 2020–2024, but total debt stepped up sharply in 2025, increasing financial risk versus prior years. Even so, the balance sheet still appears more equity-supported than debt-supported, though continued losses could pressure equity over time.

Cash Flow

Cash generation is weak: operating cash flow is negative every year shown, and free cash flow is also consistently negative, implying the business is consuming cash rather than funding itself internally. There is improvement in 2025 versus 2024 (meaningfully smaller cash burn), but free cash flow growth has been volatile and remains negative in level terms. This keeps financing needs elevated and increases sensitivity to capital markets.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	403.67M	355.05M	302.23M	219.54M	109.68M
Gross Profit	182.24M	319.00M	267.10M	192.50M	97.25M
EBITDA	2.69M	-80.31M	-161.39M	-193.80M	-71.71M
Net Income	-172.75M	-230.41M	-75.54M	-340.29M	-132.71M
Balance Sheet
Total Assets	1.90B	1.92B	1.83B	1.68B	1.75B
Cash, Cash Equivalents and Short-Term Investments	134.81M	22.40M	79.73M	62.66M	278.36M
Total Debt	333.01M	57.59M	5.01M	62.75M	78.91M
Total Liabilities	604.67M	324.13M	269.00M	378.31M	295.44M
Stockholders Equity	1.30B	1.59B	1.56B	1.30B	1.45B
Cash Flow
Free Cash Flow	-41.37M	-220.78M	-129.50M	-275.55M	-158.59M
Operating Cash Flow	-39.11M	-115.92M	-121.53M	-180.12M	-102.38M
Investing Cash Flow	-117.20M	-104.86M	-95.56M	-95.44M	-313.80M
Financing Cash Flow	268.99M	164.28M	234.07M	59.14M	476.08M

Smart Eye AB Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 80.65
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:SEYE, the sentiment is Negative. The current price of 80.65 is above the 20-day moving average (MA) of 57.08, above the 50-day MA of 69.65, and above the 200-day MA of 73.14, indicating a bearish trend. The MACD of -3.93 indicates Negative momentum. The RSI at 31.01 is Neutral, neither overbought nor oversold. The STOCH value of 26.16 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SE:SEYE.

Smart Eye AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
LIME	61 Neutral	kr2.62B	34.18	32.28%	1.41%	11.23%	16.24%
FPIP	55 Neutral	kr1.22B	2.92	―	1.92%	-8.38%	-38.17%
ENEA	55 Neutral	kr1.06B	27.75	―	―	0.86%	73.68%
CINT	52 Neutral	kr1.29B	-0.52	-50.59%	―	-21.66%	―
SEYE	44 Neutral	kr2.02B	-17.17	―	―	10.25%	-698.93%
TERRNT.B	42 Neutral	kr139.17M	-2.94	-128.85%	―	―	24.94%