NEW YORK, Oct. 27, 2025 (GLOBE NEWSWIRE) -- SunCar Technology Group Inc. (the "Company" or "SunCar") $(SDA)$, a leader in digitalizing auto insurance and auto services, today announced financial results for the six months ended June 30, 2025.
First Half 2025 Highlights
-- Total revenue increased by 9% to $222.3 million for the six months ended
June 30, 2025, from $203.1 million for the six months ended June 30,
2024.
-- Net loss for the six months ended June 30, 2025, of $5.5 million,
compared to $60.1 million in the prior year period.
-- Adjusted EBITDA for the six months ended June 30, 2025, of $2.5 million,
compared to $6 million in the prior year period.
-- EV insurance premiums for the six months ended June 30, 2025, increased
111.3% to $697.6 million compared to $330.2 million in the prior year
period.
-- Tesla: Deepened collaboration with Tesla on its renewal business, and
SunCar's newly added benefits package is now available for purchase
directly from Tesla's official app.
-- Xiaomi: Strengthened partnership with Xiaomi, recently taking over
management of the company's insurance renewal business to help mitigate
the risk of policies lapsing.
-- NIO: Delivered system optimizing user experience for NIO Inc.'s brands,
NIO, Onvo, and Firefly, significantly improving the efficiency of
insurance policy issuance.
-- Li Auto: Partnered with Li Auto to develop a self-service insurance
application within its customer app.
-- Leapmotor: Launched Leapmotor's digital auto insurance platform for
policy renewals and claims processing.
-- Huawei: Won the bid for the HarmonyOS Smart Car Alliance and initiated a
strategic partnership with Huawei.
-- China ZheShang Bank: Initiated an innovative auto services project
integrating multiple auto services, including maintenance, fuel,
designated driver, and parking.
-- Shanghai Rural Commercial Bank: After 10 years working with the Bank,
SunCar was named the Bank's exclusive mobility services provider.
Management Commentary
"I am very pleased with our strong execution in the first half of 2025, as SunCar achieved rapid development in terms of new EV insurance premiums in China. We are focused on generating positive net income for the second half of 2025 while still delivering solid revenue growth. In our insurance segment, we continue to deepen our EV partnerships and demonstrate a unique value proposition to the market. We expect our insurance platform to be a strong long-term growth driver for the business," said Zaichang Ye, Chairman and Chief Executive Officer of SunCar Technology Group.
Mr. Ye continued, "A recent key milestone was the integration of ByteDance's Doubao large language model ("LLM") into our platform, marking an important step forward in SunCar's AI-driven digitalization transformation. By combining Doubao LLM's capabilities with our industry-specific intelligent cloud infrastructure, we expect to strengthen our 'Cloud + AI' advantage and accelerate our evolution into an intelligent, fully integrated service hub."
Business Highlights
Auto Insurance Overview
-- NIO: Optimized system experience for NIO Inc.'s brands: NIO, Onvo, and
Firefly, significantly improving the efficiency of policy issuance.
-- Li Auto: Partnered with Li Auto to develop a self-service insurance
application within its customer app. Streamlined delivery times, enhanced
user experience received positive feedback from both Li Auto and its
customers. Nationwide rollout is planned for the second half of the year.
-- Leapmotor: Successfully commenced launch of the digital insurance system
for policy renewals and claims processing.
-- China Post: Signed a new agreement with China Post, expanding our
distribution network by 174 additional partner stores in 2025.
-- Huawei: Won the bid for the HarmonyOS Smart Car Alliance and initiated a
strategic partnership with Huawei.
-- Tesla: Deepened collaboration with Tesla, newly adding a driver benefits
package which is now available for purchase on Tesla's official app; and
began partnering on the company's digital insurance renewals business.
-- Xiaomi: Strengthened partnership, becoming the partner for the company's
digital insurance renewals business, mitigating policy lapse risk.
-- XPeng: Expanded cooperation with XPeng to enhance its system capabilities
and support online sales of extended warranties and service products.
-- Jiayi Auto Insurance Agency: Acquired Jiangxi agency to expand our
regional coverage and promote the company's business in Jiangxi
Auto Services Overview
-- China ZheShang Bank: Successfully won the bid for an innovative auto
services project to integrate driver maintenance, fueling, designated
driver, and parking services.
-- Shanghai Rural Commercial Bank: Working with the bank since 2023, Suncar
was named the sole provider of the bank's mobility services, including
concierge and VIP lounge services.
-- China Construction Bank: Successfully bid for the Sichuan Province Branch
Dragon Card Auto Card Car Wash Benefits Procurement Project.
-- PICC: Secured in-policy designated driver contracts with 13 provincial
branches of PICC, including Beijing, Shanghai, Zhejiang, Yunnan, and
Xinjiang. Each agreement is structured as a "one-plus-one" renewal.
-- Ping An: Expanded partnership with Ping An P&C, adding new car cleaning
and detailing services in Xinjiang, Tibet, and Guizhou. Won bid for
designated driver services with the Sichuan branch and established
cooperation with Ping An headquarters on airport lounge services.
-- Dadi P&C: Under a framework agreement with Dadi P&C's headquarters, added
auto service collaborations with the retail divisions of its Zhejiang,
Jiangsu, Henan, and Beijing branches.
-- Other Partnerships: Established additional partnerships with Pacific
Insurance (Zhejiang and Jiangsu branches) and Taiping P&C (Guizhou
branch), among others.
First Half 2025 Financial Results
-- Total Revenue increased 9% to $222.3 million for the six months ended
June 30, 2025, compared to $203.1 million for the same period in 2024,
reflecting continued growth in SunCar's auto eInsurance and technology
services segments.
-- Auto insurance premiums for EVs increased from US$330.2 million for the
six months ended June 30, 2024 to US$697.6 million for the six months
ended June 30, 2025, representing a year-over-year growth of 111.3%.
Revenue from EV insurance services amounted to US$31.5 million for the
six months ended June 30, 2025, as compared to US$14.6 million for the
six months ended June 30, 2024, representing a significant increase of
115.8%.
-- Auto eInsurance Revenue increased 33% to $97.8 million, compared to $73.7
million in the prior-year period, driven by strong partnerships with
emerging EV OEMs such as Tesla, Xiaomi, and Nio, and a surge in EV
insurance demand. SunCar ranked first in China for auto insurance
premiums tailored to EV owners.
-- Technology Services Revenue grew 11% to $24.3 million, compared to $21.9
million in the prior year period, reflecting increased adoption of
SunCar's enterprise software tools. Growth was supported by new customer
acquisitions and the ongoing transition toward a SaaS-based model for
enterprise clients.
-- Auto Services Revenue decreased 7% to $100.1 million, compared to $107.5
million in the prior year period. The decrease was driven by the
deliberate decision to discontinue certain low-margin businesses in the
first half of 2025 and the accompanying decrease in service orders.
-- Total Operating Costs and Expenses decreased 15% to $223.5 million,
compared to $261.7 million, mainly due to $62 million in share-based
compensation recognized in 2024.
-- Integrated Service Costs decreased 6% to $101.5 million, compared to
$107.6 million in the prior year period, consistent with the decline in
Auto Services revenue.
-- Promotional Service Expenses rose 32% to $94.1 million from $71.1 million,
in line with the expansion of the auto eInsurance business.
-- Selling Expenses increased 8% to $11.0 million, from $10.2 million,
primarily due to higher promotion expenses for our IT services and market
expansion costs that supported growth in the technology services segment.
-- General and Administrative Expenses decreased 63% to $15.2 million, from
$40.5 million, largely driven by the decrease of $31 million in
share-based compensation related to the 2024 Equity Incentive Plan.
-- Research and Development Expenses decreased 95% to $1.8 million from
$32.2 million in the prior-year period, due to the absence of $31.0
million in share-based compensation related to the 2024 Equity Incentive
Plan.
Net Loss and Adjusted EBITDA
The Company believes that Adjusted EBITDA, as defined below, is useful in evaluating our operational performance distinct and apart from certain expenses that may not be indicative of our recurring core business operating results and non-operational expenses. Adjusted EBITDA is defined as Net loss adjusted for depreciation and amortization, financial expenses, net, investment income, other non-recurring income, net, income tax benefit, share-based compensation, and non-recurring expenses related to capital raises.
Net loss Margin is defined as net loss divided by total revenues, and Adjusted EBITDA Margin is defined as Adjusted EBITDA divided by total revenues.
The following table reconciles Net loss to Adjusted EBITDA for the six months ended June 30, 2024 and 2025.
For the six months ended June 30,
-----------------------------------------
2024 2025
----------------------- ----------------
(In thousands)
Net loss $ (60,140) $ (5,535)
Depreciation and amortization 1,813 2,978
Financial expenses, net 2,302 2,077
Investment income (306) (246)
Other non-recurring
(income)/expenses, net (734) 2,220
Income tax benefit 267 291
Share-based compensation(1) 62,785 742
Transaction fees(2) 53 15
Adjusted EBITDA $ 6,040 $ 2,542
============= ==== ========== ===
Net loss Margin -29.6% -2.5%
Adjusted EBITDA Margin 3.0% 1.1%
(1) Non-cash expense related to
compensation costs for equity
classified awards by the
subsidiary. (2) Includes
non-recurring transaction
related fees and expenses
associated with the Company's
capital raises.
2025 Outlook
Zaichang Ye, Chairman and Chief Executive Officer of SunCar Technology Group, said "We have taken a strategic step to prioritize profitability and cash generation. While we continue to expect solid organic revenue growth, our focus will be on accounts and partnerships that enhance margins and long-term value. As a result of these actions, we are withdrawing our previous full-year revenue guidance of $521 million to $539 million. The demand environment remains healthy, and we are confident that our disciplined approach will position SunCar for sustainable, profitable growth."
About SunCar Technology Group Inc.
Founded in 2007, SunCar is transforming the customer journey for auto services and auto insurance in China, the largest passenger vehicle market in the world. SunCar develops and operates cloud-based platforms that seamlessly connect drivers with a wide range of auto services and insurance coverage options through a nationwide network of sales partners. As a result, SunCar has established itself as the leader in China in the auto eInsurance market for electric vehicles and the B2B auto services market. The Company's intelligent cloud platform empowers its enterprise customers to access, manage, and optimize their auto eInsurance and auto service offerings. Through SunCar, drivers gain access to a wide variety of high-quality services from tens of thousands of independent providers, all from a single application. For more information, please visit: https://suncartech.com.
Forward-Looking Statements
This press release contains information about the Company's view of its future expectations, plans, and prospects that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from historical results or those indicated by these forward-looking statements as a result of a variety of factors including, but not limited to, risks and uncertainties associated with its ability to raise additional funding, its ability to maintain and grow its business, variability of operating results, its ability to maintain and enhance its brand, its development and introduction of new products and services, the successful integration of acquired companies, technologies and assets into its portfolio of products and services, marketing and other business development initiatives, competition in the industry, general government regulation, economic conditions, dependence on key personnel, the ability to attract, hire and retain personnel who possess the technical skills and experience necessary to meet the requirements of its clients, and its ability to protect its intellectual property. -For a detailed discussion of these risks, please refer to the Company's Annual Report on Form 20-F and other filings with the Securities and Exchange Commission. Forward-looking statements speak only as of the date of this press release, and the Company undertakes no obligation to update or revise these statements, except as required by law.
Contact Information:
SunCar:
Investor Relations: Mr. Breaux Walker
Email: IR@suncartech.com
Legal: Ms. Li Chen
Email: chenli@suncartech.com
U.S. Investor Relations
Tom Cook
Managing Director
ICR
Email: Tom.Cook@icrinc.com
SOURCE SunCar Tech
SUNCAR TECHNOLOGY GROUP INC([1])
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(In U.S. Dollar thousands, except for share and per
share data, or otherwise noted)
As of December 31, As of June 30,
2024 2025
ASSETS
Current assets
Cash $ 26,865 $ 24,305
Restricted cash 2,647 2,697
Short-term investments 20,985 21,396
Accounts receivable, net 75,605 97,616
Prepaid expenses and other
current assets, net 70,171 77,363
Total current assets 196,273 223,377
--------------- -----------
Non-current assets
Long-term investment 274 279
Property, software and
equipment, net 27,664 25,604
Deferred tax assets, net 10,453 11,258
Other non-current assets 11,458 16,652
Right-of-use assets 606 359
Total non-current assets 50,455 54,152
--------------- -----------
TOTAL ASSETS $ 246,728 $ 277,529
=============== ===========
LIABILITIES AND SHAREHOLDERS'
EQUITY
Current liabilities
Short-term loan $ 83,597 $ 83,059
Accounts payable 56,812 76,506
Deferred revenue 2,421 2,142
Tax payable 1,361 1,913
Accrued expenses and other
current liabilities 5,792 6,672
Amount due to related parties,
current 6,238 6,524
Operating lease liability,
current 544 258
Total current liabilities 156,765 177,074
--------------- -----------
Non-current liabilities
Operating lease liability,
non-current 21 32
Amount due to a related party,
non-current 22,761 13,330
Warrant liabilities 947 947
Total non-current liabilities 23,729 14,309
--------------- -----------
Total liabilities $ 180,494 $ 191,383
Commitments and contingencies
(Note 17)
Shareholders' equity
Class A Ordinary shares (par
value of US$0.0001 per share;
400,000,000 Class A Ordinary
shares authorized as of
December 31, 2024 and June 30,
2025, respectively; 51,845,493
and 51,645,493 Class A Ordinary
shares issued and outstanding
as of December 31, 2024,
respectively; 59,208,351 and
55,569,794 Class A Ordinary
shares issued and outstanding
as of June 30, 2025,
respectively) $ 5 $ 6
Class B Ordinary shares (par
value of US$0.0001 per share;
100,000,000 Class B December
31, 2024 and June 30, 2025,
respectively; 46,659,565 and
46,439,565 Class B Ordinary
shares issued and outstanding
as of December 31, 2024 and
June 30, 2025, respectively) 5 5
Additional paid in capital 208,701 233,650
Accumulated deficit (195,387) (202,781)
Accumulated other comprehensive
loss (1,432) (1,529)
Total SUNCAR TECHNOLOGY GROUP
INC's shareholders' equity 11,892 29,351
Non-controlling interests 54,342 56,795
Total shareholders' equity 66,234 86,146
--------------- -----------
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $ 246,728 $ 277,529
([1]) The financial statements shall be read in connection
with the financial statement footnotes that are contained
in the Company's First Half 2025 report to be furnished
voluntarily by the Company on or around the date of
this release, which form an integral part of the financial
statements.
SUNCAR TECHNOLOGY GROUP INC
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
AND COMPREHENSIVE LOSS
(In U.S. Dollar thousands, except for share and per
share data, or otherwise noted)
For the six months ended June 30,
---------------------------------------
2024 2025
------------------- ------------------
Revenues
Auto eInsurance service $ 73,747 $ 97,833
Technology service 21,888 24,345
Auto service 107,451 100,131
-------------- --------------
Total revenues 203,086 222,309
Operating cost and expenses
Integrated service cost (107,621) (101,464)
Promotional service expenses (71,135) (94,072)
Selling expenses (10,199) (11,012)
General and administrative
expenses (40,537) (15,188)
Research and development
expenses (32,205) (1,766)
-------------- --------------
Total operating costs and
expenses (261,697) (223,502)
Operating loss (58,611) (1,193)
Other expenses
Financial expenses, net (2,302) (2,077)
Investment income 306 246
Other income/(expense), net 734 (2,220)
-------------- --------------
Total other expenses, net (1,262) (4,051)
Loss before income tax expense (59,873) (5,244)
Income tax expense (267) (291)
-------------- --------------
Net loss (60,140) (5,535)
Less: Net income attributable
to non-controlling interests 2,443 1,859
Net loss attributable to the
Company's ordinary
shareholders (62,583) (7,394)
============== ==============
Net loss per ordinary share
Basic and diluted $ (0.67) $ (0.07)
============== ==============
Weighted average shares
outstanding used in calculating
basic and diluted loss per
share
Basic and diluted 93,663,300 102,155,588
============== ==============
Other comprehensive loss
Foreign currency translation
difference (1,195) 1,048
============== ==============
Total other comprehensive loss
(income) (1,195) 1,048
Total comprehensive loss (61,335) (4,487)
Less: total comprehensive
income attributable to
non-controlling interest 1,164 3,004
-------------- --------------
Total comprehensive loss
attributable to the SUNCAR
TECHNOLOGY GROUP INC's
shareholders $ (62,499) $ (7,491)
============== ==============
SUNCAR TECHNOLOGY GROUP INC
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS
(In U.S. Dollar thousands, except for share and per
share data, or otherwise noted)
For the six months ended June 30,
-------------------------------------------
2024 2025
--------------------- --------------------
CASH FLOWS FROM OPERATING
ACTIVITIES:
Net loss $ (60,140) $ (5,535)
Adjustments to reconcile net
loss to net cash used in
operating activities:
Provision for credit losses 2,654 6,278
Depreciation and amortization 1,813 2,978
Amortization of right-of-use
assets 392 430
Loss on disposal of property,
software and equipment 12 3
Deferred income tax benefit (750) (599)
Financing expense related to
issuance of GEM Warrants 303 300
Accrued liability for GEM
litigation - 2,811
Share-based compensation of
subsidiary 745 742
Share-based compensation of the
Group 62,040 -
Fair value income from
short-term investments (493) -
Interest expense 146 -
Changes in operating assets and
liabilities:
Accounts receivable (24,689) (26,603)
Prepaid expenses and other
current assets (7,492) (6,121)
Accounts payable 26,277 18,389
Deferred revenue (1,029) (320)
Accrued expenses and other
current liabilities (2,458) (2,050)
Tax payable 365 519
Operating lease liabilities (321) (369)
Amount due to related parties - (109)
Total net cash used in
operating activities (2,625) (9,256)
------------- -------------
CASH FLOWS FROM INVESTING
ACTIVITIES
Purchase of property, software
and equipment (245) (23)
Proceeds from disposal of
property, software and
equipment - 1
Purchase of short-term
investment (20,603) (246)
Proceeds from the redemption of
short-term investment 21,283 233
Repurchase of non-controlling
interests - (2,214)
Purchase of other non-current
assets (7,725) (5,362)
Total net cash used in
investing activities (7,290) (7,611)
------------- -------------
CASH FLOWS FROM FINANCING
ACTIVITIES
Proceeds from short-term loan 56,979 52,119
Repayments of short-term loan (56,771) (54,215)
Repayments of payables to a
related party - (9,798)
Shares repurchase - (15,760)
Proceeds from issuance of
ordinary shares, net of
issuance cost - 41,631
Total net cash provided by
financing activities 208 13,977
------------- -------------
Effect of exchange rate changes (159) 380
Net change in cash and
restricted cash (9,866) (2,510)
Cash and restricted cash,
beginning of the year $ 33,595 $ 29,512
------------- -------------
Cash and restricted cash, end
of the year $ 23,729 $ 27,002
============= =============
Reconciliation of cash and
restricted cash to the
unaudited condensed
consolidated balance sheets:
Cash $ 20,886 $ 24,305
Restricted cash $ 2,843 $ 2,697
------------- -------------
Total cash and restricted cash $ 23,729 $ 27,002
============= =============
Supplemental disclosures of
cash flow information:
Income tax paid $ 535 $ 371
Interest expense paid $ 1,872 $ 1,757
Supplemental disclosures of
non-cash flow information:
Obtaining right-of-use assets
in exchange for operating
lease liabilities $ 88 $ 87
Prepaid financing expense
related to issuance of GEM
Warrants $ 1,138 $ 534
(END) Dow Jones Newswires
October 27, 2025 16:05 ET (20:05 GMT)
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