NEW YORK, Dec. 18, 2025 (GLOBE NEWSWIRE) -- SunCar Technology Group Inc. (the "Company" or "SunCar") $(SDA)$, an innovative leader in AI cloud-based B2B auto eInsurance and auto services in China, today reported third quarter 2025 financial results for the quarter ended September 30, 2025.
Third Quarter 2025 Highlights
-- Revenue for third quarter 2025 increased 6% to $115.8 million, compared
to $109.6 million in third quarter 2024
-- Net Income of $1.4 million, a $2.8 million increase compared to a net
loss of $1.4 million in the third quarter of 2024
-- Adjusted EBITDA for the third quarter 2025 increased 128% to $4.9 million
compared to $2.2 million for the third quarter of 2024
-- Tesla: Successfully launched insurance business at authorized Tesla body
repair centers. SunCar is partnering with Tesla to help the automaker
penetrate third- and fourth-tier cities, offering better service without
the need for delivery centers
-- NIO: NIO leveraged the advantages of SunCar's order processing platform
to reduce delivery times by 50% and lower the cost of vehicle deliveries
-- XPeng: Collaborated with XPeng's branded stores on insurance renewals,
helping to improve renewal rates at these stores
-- Li Auto: Launched a successful online pilot program in Shanghai,
Chongqing, Xinjiang, Qingdao, Inner Mongolia, and Anhui. Nationwide
rollout of the program is planned for 2026
Management Commentary
"I'm proud of the team for achieving positive net income this quarter, a key milestone that underscores SunCar is growing profitably. Alongside our leadership in AI-powered auto insurance and services, this performance reflects a strong and scalable profit model. Our deep EV partner relationships--particularly our expanding AI co-development efforts with leaders like Tesla and Xpeng--continue to drive both growth and value creation," said Zaichang Ye, Chairman and CEO of SunCar.
Insurance Review
-- Tesla: Successfully launched insurance business at authorized Tesla body
repair centers. SunCar is partnering with Tesla to help the automaker
penetrate third- and fourth-tier cities, offering better service without
the need for delivery centers in those cities
-- NIO: Leveraged the SunCar platform's innovative order processing
technology to reduce delivery times by 50% and lower the cost of vehicle
deliveries
-- XPeng: Collaborated with XPeng's branded stores on insurance renewals,
dramatically improving the renewal rates at these stores
-- Li Auto: Launched successful online insurance pilot programs in Shanghai,
Chongqing, Xinjiang, Qingdao, Inner Mongolia, and Anhui with nationwide
rollout planned for 2026
-- Leapmotor: SunCar's system usage increased as Leapmotor expanded its
rollout of SunCar's solution from directly operated stores to dealer
partner stores.
-- Xiaomi: Collaborated with Xiaomi to create a new insurance/renewal
customer service process, jointly setting an industry benchmark for EV
customer service
-- Huawei: HIMA has completed internal testing and successfully completed
testing of SunCar's platform on the HarmonyOS app. The next phase will be
full-scale commercial deployment.
-- Strengthened Property & Casualty ("P&C") Relationships: Continued to
strengthen P&C partnerships, signing strategic cooperation agreements
with Huatai P&C Insurance and Bohai P&C Insurance
-- Insurance Agency Acquisitions: Completed the acquisition of Jiayi Auto
Insurance and initiated the acquisition of Dalian Jinhainiu Insurance,
expanding the Company's regional coverage and business development
efforts.
Auto Services Review
-- Strawberry Music Festival: SunCar was contracted to provide VIP transport
services for artists at the Strawberry Music Festival, the largest music
festival in China. This contract marks the beginning of a strategic
partnership with Strawberry. It highlights SunCar's nationwide service
capabilities and expertise working with event management customers. The
customer will hold 25 events across China in 2026. The contract is
estimated to be worth approximately $3 million per year for the next 3
years.
-- China Resources Group: SunCar managed concierge chauffeur services for
the first nationwide event launched by China Resources Group. The Company
received praise from both partners and clients, successfully supporting
the first roll-out of the customer's high-end concierge services.
-- CAR Inc("CAR"): SunCar signed a strategic partnership with CAR to jointly
develop the SMB market
-- Zheshang Bank: SunCar was selected to provide global business travel
privileges for VIP clients of the Bank, with the project officially
launching in December.
Integrated Services
SunCar is gradually realizing synergies between its Auto Insurance and Auto Services segments. Below are examples of two projects awarded because the Company offers integrated Auto Insurance and Auto Services:
-- China Life P&C: Auto Services won its first bid for the non-accident
roadside assistance service project at China Life's headquarters, with
the opportunity to sign additional cooperation agreements with provincial
branches of China Life P&C for in-policy roadside assistance services.
-- PICC and Ping An: The Company initiated the technical integration process
for chauffeur services with the headquarters of PICC and Ping An. PICC's
chauffeur service went live in July 2025 and Ping An P&C's service will
go live by the end of 2025. These agreements may expand into future
cooperation with the provincial branches of PICC and Ping An.
AI Product Development
SunCar continues to integrate ByteDance's Doubao LLM into its database of 60 million vehicles, creating new AI-powered applications for its partners. These applications include dynamic policy pricing, claims risk assessment, predictive maintenance, service provider ratings, image and video analytics, and driver data analytics.
Third Quarter 2025 Financial Results
-- Net Income of $1.4 million for the three months ended September 30, 2025,
a $2.8 million increase compared to a net loss of $1.4 million for the
same period in 2024.
-- Revenue increased by 6% to $115.8 million for the three months ended
September 30, 2025, compared to $109.6 million for the same period in
2024. Revenue for the first nine months of September 2025 increased 8% to
$338.1 million, compared to $312.7 million for the first nine months of
2024
-- Auto Insurance revenue increased by 13% to $51.4 million for the three
months ended September 30, 2025, compared to $45.4 million in the
prior-year period, driven by a higher volume of insurance policies sold
through SunCar's platform
-- Technology Services revenue increased by 0.4% to $12.2 million for the
three months ended September 30, 2025, compared to $12.2 million in the
third quarter of 2024.
-- Auto Services revenue increased slightly to $52.2 million for the three
months ended September 30, 2025, compared to $52.1 million for the same
period last year.
-- Operating costs and expenses increased to $112.9 million in the third
quarter of 2025, from $109.4 million in the third quarter of 2024.
-- Integrated service costs rose to $52.8 million for the third quarter of
2025, from $51.2 million in the prior-year quarter.
-- Promotional service expenses increased to $51.0 million for the third
quarter of 2025, from $42.7 million in the third quarter of 2024,
reflecting continued investments to drive market expansion.
-- Selling expenses decreased to $4.9 million for the three months ended
September 30, 2025, compared to $10.5 million in the prior-year period,
primarily due to a decrease in marketing and distribution expenses.
-- General and administrative expenses decreased to $2.5 million, from $3.5
million in the third quarter of 2024.
-- Research and development expenses grew to $1.7 million, up from $1.4
million in the third quarter of 2024, reflecting continued investment in
product development and technology enhancement.
-- Operating profit increased to $2.9 million in the third quarter of 2025,
compared to $0.2 million in the prior-year period.
-- Adjusted EBITDA, a non-GAAP metric that excludes certain non-recurring
and non-cash items, is helpful in evaluating our operational performance
alongside GAAP metrics. Adjusted EBITDA for the third quarter of 2025
increased 128% to $4.9 million, compared to $2.2 million in the third
quarter of 2024.
Net Income (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 tables reconcile Net loss to Adjusted EBITDA for the nine months ended September 30, 2024 and 2025.
For the nine months ended September 30,
-------------------------------------------------
2024 2025
-------------------------- ---------------------
(In thousands)
Net loss $ (61,573) $ (4,126)
Depreciation and
amortization 3,320 4,622
Financial expenses, net 3,463 3,143
Investment income (418) (358)
Other non-recurring
(income)/loss, net (769) 2,208
Income tax expense 931 840
Share-based
compensation (1) 63,161 1,117
Transaction fees (2) 79 15
Adjusted EBITDA $ 8,194 $ 7,461
=== ================= =============
Net loss Margin -19.7% -1.2%
Adjusted EBITDA Margin 2.6% 2.2%
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 AI 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
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 September 30,
2024 2025
ASSETS
Current assets
Cash $ 26,865 $ 23,704
Restricted cash 2,647 2,789
Short-term investments 20,985 21,643
Accounts receivable, net 75,605 75,338
Prepaid expenses and
other current assets,
net 70,171 96,572
Total current assets 196,273 220,046
--------------- ----------------
Non-current assets
Long-term investment 274 281
Property, software and
equipment, net 27,664 24,768
Deferred tax assets, net 10,453 11,355
Other non-current assets 11,458 17,289
Right-of-use assets 606 237
Total non-current assets 50,455 53,930
--------------- ----------------
TOTAL ASSETS $ 246,728 $ 273,976
=============== ================
LIABILITIES AND
SHAREHOLDERS' EQUITY
Current liabilities
Short-term loan $ 83,597 $ 87,540
Accounts payable 56,812 65,977
Deferred revenue 2,421 2,285
Tax payable 1,361 2,195
Accrued expenses and
other current
liabilities 5,792 7,609
Amount due to related
parties, current 6,238 6,671
Operating lease
liability, current 544 137
Total current liabilities 156,765 172,414
--------------- ----------------
Non-current liabilities
Operating lease
liability, non-current 21 32
Amount due to a related
party, non-current 22,761 11,813
Warrant liabilities 947 947
Total non-current
liabilities 23,729 12,792
--------------- ----------------
Total liabilities $ 180,494 $ 185,206
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
September 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
September 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 September 30,
2025, respectively;
46,659,565 and
46,439,565 Class B
Ordinary shares issued
and outstanding as of
December 31, 2024 and
September 30, 2025,
respectively) 5 5
Additional paid in
capital 208,701 233,369
Accumulated deficit (195,387) (202,872)
Accumulated other
comprehensive loss (1,432) (1,376)
Total SUNCAR TECHNOLOGY
GROUP INC's
shareholders' equity 11,892 29,132
Non-controlling interests 54,342 59,638
Total shareholders'
equity 66,234 88,770
TOTAL LIABILITIES AND
SHARESHOLDERS' EQUITY $ 246,728 $ 273,976
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 nine months ended September 30,
2024 2025
Revenues
Auto eInsurance
service $ 119,108 $ 149,243
Technology service 34,046 36,549
Auto service 159,555 152,292
Total revenues 312,709 338,084
Operating cost and
expenses
Integrated service
cost (158,843) (154,286)
Promotional service
expenses (113,845) (145,109)
Selling expenses (20,683) (15,867)
General and
administrative
expenses (44,079) (17,678)
Research and
development
expenses (33,625) (3,437)
Total operating costs
and expenses (371,075) (336,377)
Operating
(loss)/income (58,366) 1,707
Other expenses
Financial expenses,
net (3,463) (3,143)
Investment income 418 358
Other
income/(expense),
net 769 (2,208)
Total other expenses,
net (2,276) (4,993)
Loss before income
tax expense (60,642) (3,286)
Income tax expense (931) (840)
Net loss (61,573) (4,126)
Less: Net income
attributable to
non-controlling
interests 3,174 3,359
Net loss attributable
to the Company's
ordinary
shareholders (64,747) (7,485)
================ =================
Net loss per
ordinary share
Basic and diluted $ (0.68) $ (0.07)
Weighted average
shares outstanding
used in calculating
basic and diluted
loss per share
Basic and diluted 95,221,846 102,106,309
Other comprehensive
loss
Foreign currency
translation
difference 813 1,577
Total other
comprehensive loss
(income) 813 1,577
Total comprehensive
loss (60,760) (2,549)
Less: total
comprehensive income
attributable to
non-controlling
interest 3,900 4,880
Total comprehensive
loss attributable to
the SUNCAR
TECHNOLOGY GROUP
INC's shareholders $ (64,660) $ (7,429)
================ =================
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)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property, software and
equipment (564) (256)
Proceeds from disposal of property,
software and equipment 43 1
Purchase of short-term investment (21,265) (358)
Proceeds from the redemption of short-term
investment 21,335 234
Repurchase of non-controlling interests - (2,214)
Purchase of other non-current assets (9,341) (6,420)
Total net cash used in investing
activities (9,792) (9,013)
------- -------
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from short-term loan 79,943 86,633
Repayments of short-term loan (80,569) (84,833)
Repayments of payables to a related party (1,699) (11,398)
Shares repurchase - (15,760)
Proceeds from issuance of ordinary shares,
net of issuance cost - 41,631
Total net cash provided by financing
activities (2,325) 16,273
------- -------
Effect of exchange rate changes 329 793
Net change in cash and restricted cash (10,606) (3,019)
Cash and restricted cash, beginning of the
year $ 33,595 $ 29,512
------- -------
Cash and restricted cash, end of the year $ 22,989 $ 26,493
======= =======
Reconciliation of cash and restricted
cash to the unaudited condensed
consolidated balance sheets:
Cash $ 20,239 $ 23,704
Restricted cash $ 2,750 $ 2,789
-------
Total cash and restricted cash $ 22,989 $ 26,493
======= =======
Supplemental disclosures of cash flow
information:
Income tax paid $ 778 $ 679
Interest expense paid $ 2,816 $ 2,636
Supplemental disclosures of non-cash flow
information:
Obtaining right-of-use assets in exchange
for operating lease liabilities $ 93 $ 156
Prepaid financing expense related to
issuance of GEM Warrants $ 987 $ 382
Decrease of accrued expenses and other
current liabilities due to vest of
restricted shares $ 311 $ 311
Repayments of payables to a related party $ 4,503 $ -
(END) Dow Jones Newswires
December 18, 2025 09:21 ET (14:21 GMT)
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