Press Release: SunCar Technology Reports Financial Results for Full Year 2025

Dow Jones05:30

Profitable in the Third and Fourth Quarters of 2025

Delivered Record Annual Revenue of $489 million

Q4 revenue increased 17% year-over-year to $151 million

Increased Auto Partners' Premiums by over 190%

Signed Strategic AI Partnership with ByteDance

NEW YORK, April 28, 2026 (GLOBE NEWSWIRE) -- SunCar Technology Group Inc. (the "Company" or "SunCar") $(SDA)$, an innovative leader in AI-powered auto insurance and auto services, today announced financial results for the year ended December 31, 2025.

"SunCar had a transformational year where our products and partnerships with China's leading EV companies became truly AI-centric." Zaichang Ye, Chairman and CEO of SunCar, said. "China's global leadership in open-source AI is now well-established. SunCar, through its partnership with ByteDance, is fully leveraging its partner's valuable AI technology in both new product development and operations."

"ByteDance's world-class multimodal AI is allowing us to create products such as agent-based policy matching and pricing, video inspections, predictive maintenance, accident analysis, and other products we could only imagine several years ago."

"I'm very pleased with our strong 2025 results, record revenue of $489 million, and profitability in the second half of the year. SunCar is building unique, AI-powered technology that enables our auto partners to sell insurance and other downstream services successfully. That is our key differentiator!"

Full Year, Third and Fourth Quarter 2025 Financial Highlights

   -- Generated a profit of $1.4 million in the third quarter of 2025, 
      increasing to a profit of $1.7 million in the fourth quarter of 2025. 
 
   -- Fourth quarter revenue increased 17% to a record $151.2 million 
      year-over-year. 
 
   -- Full year revenue increased 11% to $489.3 million year-over-year. 
 
   -- Full year net loss was $2.4 million compared to a net loss of $64.5 
      million in 2024. The significant reduction in net loss was due to a 
      significant decrease in share-based compensation in 2025 compared to 
      2024. 
 
   -- Full year adjusted EBITDA was $11.0 million, compared to $9.8 million in 
      2024. 
 
   -- SunCar ended the year with cash and short-term investments of $46.6 
      million. 

Full Year 2025 & Recent Business Highlights

   -- Tesla: Launched an integrated "Insurance + Auto Services" module on the 
      Tesla App. SunCar installed its insurance platform at independent service 
      centers in third-tier cities helping Tesla avoid the need to build its 
      own service centers. 
 
   -- Xiaomi: New Xiaomi models featured AI upgrades from SunCar's Anji AI 
      service center to provide owners with more customized auto insurance and 
      services. 
 
   -- NIO: With the launch of NIO's ES8 and ONVO L90 models, SunCar's 
      technology provided NIO owners with "one-click" auto insurance policy 
      shopping. 
 
   -- Leapmotor: SunCar announced that it had taken over management of 
      Leapmotor's digital insurance platform and achieved 60%+ conversion 
      rates. 
 
   -- ByteDance AI Partnership: SunCar announced a partnership with ByteDance 
      AI to develop leading AI-powered products and to optimize SunCar's 
      operations. 
 
   -- Anji AI Development Center: SunCar announced that its Anji AI Center was 
      contributing to 190%+ insurance sales growth for its partners, Xpeng and 
      Tesla. 
 
   -- Agricultural Bank of China: In April 2026, SunCar announced it had won an 
      estimated $50 million, three-year concierge chauffeur contract with the 
      bank. 
 
   -- Ping An Bank: SunCar expanded its partnership with Ping An Bank to 
      include all auto services for the Bank's credit card and consumer finance 
      centers. 

Full Year, Third and Fourth Quarter 2025 Financial Results

Third and Fourth Quarters 2025:

   -- Fourth quarter revenue increased 17% year-over-year to a record $151.2 
      million 
 
   -- Profit of $1.4 million in the third quarter, increasing to $1.7 million 
      in the fourth quarter of 2025 

Full year 2025:

   -- Revenue increased 11% year-over-year to $489.3 million 
 
   -- Net loss was $2.4 million compared to a net loss of $64.5 million in 
      2024. The significant reduction was due to a large decrease in 
      share-based compensation expenses. 
 
   -- Adjusted EBITDA was $11.0 million compared to $9.8 million a year ago. 
 
   -- Auto eInsurance revenue increased 25% to $212.6 million year-over-year. 
      This growth was driven by the increased number of insurance policies 
      sold. 
 
   -- Technology Services revenue increased 19% to $53.6 million from a year 
      ago. 
 
   -- Auto Services revenue decreased 1% to $223.1 million year-over-year. This 
      decrease was due to management's decision not to renew certain 
      less-profitable contracts. 
 
   -- Operating costs and expenses decreased to $485.4 million from $500.3 
      million a year ago. This decrease was due to operating efficiencies and 
      the higher percentage of insurance revenue. 
 
   -- Integrated service costs increased to $241.5 million in 2025, from $226.2 
      million a year ago. This increase was due largely to the growth of 
      Technology Service revenue and its associated costs. 
 
   -- Promotional services expenses increased to $197.0 million for the year 
      ended from $164.3 million a year ago. This increase is in line with the 
      growth of SunCar's insurance segment. 
 
   -- Selling expenses decreased to $18.9 million from $22.6 million a year 
      ago. 
 
   -- General and administrative expenses decreased to $19.0 million from $47.0 
      million a year ago. This decrease was primarily due to the absence of a 
      one-time $62.0 million share-based compensation expense in 2024. 
 
   -- Research and development expenses decreased from $40.2 million in 2024 
      to $9.0 million in 2025. This decrease was primarily due to the absence 
      of a one-time $62.0 million share-based compensation expense in 2024. 
 
   -- Ended the year with $46.6 million in cash and short-term investments 

Insurance Segment Review

   -- Tesla: SunCar's innovative "Insurance plus Services Package" is now 
      available on the Tesla App. SunCar's insurance platform was successfully 
      installed at independent service centers. SunCar became the first partner 
      to enable Tesla to support drivers in third-tier cities without building 
      its own delivery centers. 
 
   -- NIO: NIO's insurance revenue has increased dramatically with SunCar's app 
      streamlining the policy issuance process and expediting application 
      approvals. 
 
   -- Li Auto: Li's online pilot program of SunCar's platform has achieved 
      significant success in multiple cities with a nationwide rollout planned 
      for 2026. 
 
   -- Leapmotor: In September, SunCar announced that it had taken over the 
      management of Leapmotor's digital insurance with conversions exceeding 
      60%. 
 
   -- ZEEKR: SunCar's smart insurance system improved efficiency for ZEEKR 
      stores. Suncar's custom cloud customer service reduced lead times. 
 
   -- XPeng: SunCar has expanded its strategic cooperation with Xpeng to 
      include helping XPeng sell extended warranties and other service products 
      online. 
 
   -- Xiaomi: SunCar's platform manages all lapsed insurance renewals for 
      Xiaomi and has created an industry-leading customer service process. 
 
   -- Huawei: SunCar won the bid to manage insurance for Huawei's (HIMA) 
      alliance. HIMA is Huawei's automotive technology platform and alliance 
      network. 
 
   -- China Post: Signed agreement with China Post to add 174 new partner 
      stores. 
 
   -- Gas Vehicle Market: SunCar's car dealer management system is fully 
      operational, featuring "One-Screen Quoting" and Lead/Task Management. 
 
   -- Jiayi Auto Insurance: Closed acquisition of Jiayi Auto Insurance Agency. 

Auto Services Segment Review

   -- Agricultural Bank of China: In April 2026, SunCar announced it had won an 
      estimated $50 million, three-year concierge chauffeur contract with the 
      bank. This enterprise-wide contract with one of the world's largest banks 
      demonstrates SunCar's ability to meet the auto services needs of the 
      largest corporations. 
 
   -- CITIC Bank Private Banking: SunCar is the exclusive provider of concierge 
      chauffeur solutions for CITIC Private Banking's high-net-worth clients. 
 
   -- China Construction Bank("CCB"): During the year, SunCar launched multiple 
      key projects for CCB, including chauffeur services for VIP card members. 
 
   -- PICC: SunCar won bids for PICC's chauffeur services across 13 provincial 
      offices and signed contracts for auto services in two other provinces. 
 
   -- Ping An Bank: SunCar served as the preferred aftermarket service provider 
      for Ping An Bank's Credit Card Center and Automotive Consumer Finance 
      Center 
 
   -- Ping An Insurance: SunCar expanded auto services to three new provinces 
      and won additional provincial bids for chauffeur services and VIP lounge 
      services. 
 
   -- VISA: In February 2025, SunCar won the bid for the Visa concierge service 
      project, providing airport and high-speed rail pickup/drop-off services 
      across China for Industrial and Commercial Bank of China (ICBC) Platinum 
      and Black Gold cardholders. 
 
   -- Beibu Gulf Port: SunCar signed a corporate chauffeur agreement and 
      long-term strategic partnership through 2027. The contract includes the 
      deep integration of SunCar's transportation platform into Beibu's 
      operations. 
 
   -- China Resources: SunCar managed concierge chauffeur services for the 
      prestigious "Yaji" event series with customers receiving bespoke travel 
      services. 
 
   -- DiDi: Suncar provided an end-to-end vehicle air quality management 
      solution to DiDi with professional air quality monitoring and air 
      purification. 

Financial Outlook

SunCar is maintaining its $600 million revenue forecast for the full year 2026.

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. Forward-looking statements in this release include statements regarding the planned launch of AI-powered services, expected improvements in customer experience, potential cost reductions, and the development of SaaS solutions. These statements involve risks, including technology development challenges, market acceptance, regulatory approval requirements, and the ability to scale AI implementations. 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

SOURCE: SunCar Technology Group Inc.

 
                     SUNCAR TECHNOLOGY GROUP INC 
                     CONSOLIDATED BALANCE SHEETS 
         (In U.S. Dollar thousands, except for share and per 
                    share data, or otherwise noted) 
 
                                               As of December 31, 
                                              --------------------- 
                                                2024        2025 
                                              ---------   --------- 
 
  ASSETS 
  Current assets 
  Cash                                        $  26,865   $  25,019 
  Restricted cash                                 2,647       2,841 
  Short-term investments                         20,985      21,597 
  Accounts receivable, net                       75,605      59,767 
  Prepaid expenses and other current assets, 
   net                                           70,171      74,072 
                                               --------    -------- 
  Total current assets                          196,273     183,296 
                                               --------    -------- 
 
  Non-current assets 
  Long-term investment                              274         286 
  Property, software and equipment, net          27,664      24,195 
  Intangible asset                                    -         408 
  Deferred tax assets, net                       10,453      11,947 
  Other non-current assets                       11,458      30,821 
  Right-of-use assets                               606       2,243 
                                               --------    -------- 
  Total non-current assets                       50,455      69,900 
                                               --------    -------- 
  TOTAL ASSETS                                $ 246,728   $ 253,196 
                                               ========    ======== 
 
  LIABILITIES AND SHAREHOLDERS' EQUITY 
  Current liabilities 
  Short-term borrowings                       $  83,597   $  80,394 
  Long-term borrowing, current                        -          71 
  Accounts payable                               56,812      41,404 
  Contract liabilities                            2,421       5,730 
  Tax payable                                     1,361       1,468 
  Accrued expenses and other current 
   liabilities                                    5,792      10,697 
  Amount due to related parties, current          6,238       6,659 
  Operating lease liabilities, current              544         834 
                                               --------    -------- 
  Total current liabilities                     156,765     147,257 
                                               --------    -------- 
 
  Non-current liabilities 
  Operating lease liabilities, non-current           21       1,333 
  Long-term borrowing, non-current                    -       1,358 
  Amount due to related parties, non-current     22,761      12,516 
  Warrant liabilities                               947          50 
                                               --------    -------- 
  Total non-current liabilities                  23,729      15,257 
                                               --------    -------- 
  Total liabilities                           $ 180,494   $ 162,514 
                                               ========    ======== 
 
  Commitments and contingencies (Note 21) 
 
  Shareholders' equity 
  Class A Ordinary shares (par value of 
   $0.0001 per share; 400,000,000 Class A 
   Ordinary shares authorized as of December 
   31, 2024 and 2025, respectively; 
   51,845,493 and 51,645,493 Class A 
   Ordinary shares issued and outstanding as 
   of December 31, 2024; 59,608,351 and 
   55,969,794 Class A Ordinary shares issued 
   and outstanding as of December 31, 2025)   $       5   $       6 
  Class B Ordinary shares (par value of 
   $0.0001 per share; 100,000,000 Class B 
   Ordinary shares authorized as of December 
   31, 2024 and 2025, respectively; 
   46,659,565 and 46,039,565 Class B 
   Ordinary shares issued and outstanding as 
   of December 31, 2024 and 2025, 
   respectively)                                      5           5 
  Additional paid in capital                    208,701     233,014 
  Accumulated deficit                          (195,387)   (199,329) 
  Accumulated other comprehensive loss           (1,432)     (1,146) 
                                               --------    -------- 
  Total SUNCAR TECHNOLOGY GROUP INC's 
   shareholders' equity                          11,892      32,550 
  Non-controlling interests                      54,342      58,132 
                                               --------    -------- 
  Total shareholders' equity                     66,234      90,682 
                                               --------    -------- 
  TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY  $ 246,728   $ 253,196 
                                               ========    ======== 
 
 
 
                   SUNCAR TECHNOLOGY GROUP INC 
     CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE 
                           (LOSS)/INCOME 
       (In U.S. Dollar thousands, except for share and per 
                  share data, or otherwise noted) 
 
                           For the years ended December 31, 
                       ---------------------------------------- 
                          2023          2024           2025 
                       -----------   -----------   ------------ 
 
  Revenues 
  Auto eInsurance 
   service             $   118,109   $   170,549   $    212,568 
  Technology service        30,658        44,892         53,619 
  Auto service             214,979       226,456        223,104 
                        ----------    ----------    ----------- 
  Total revenues           363,746       441,897        489,291 
 
  Operating cost and 
  expenses 
  Integrated service 
   cost                   (209,553)     (226,172)      (241,510) 
  Promotional service 
   expenses               (112,504)     (164,262)      (197,045) 
  Selling expenses         (20,578)      (22,587)       (18,900) 
  General and 
   administrative 
   expenses                (22,462)      (46,995)       (18,990) 
  Research and 
   development 
   expenses                (14,111)      (40,244)        (8,961) 
                        ----------    ----------    ----------- 
  Total operating 
   costs and 
   expenses               (379,208)     (500,260)      (485,406) 
                        ----------    ----------    ----------- 
  Operating 
   (loss)/income           (15,462)      (58,363)         3,885 
 
  Other 
  income/(expenses) 
  Financial expenses, 
   net                      (4,435)       (4,529)        (4,239) 
  Investment income            518           784            152 
  Change of fair 
   value of warrant 
   liabilities                (629)         (286)           897 
  Other 
   income/(loss), 
   net                       5,001           794         (2,748) 
                        ----------    ----------    ----------- 
  Total other 
   income/(expenses), 
   net                         455        (3,237)        (5,938) 
 
  Loss before income 
   tax expense             (15,007)      (61,600)        (2,053) 
  Income tax expense        (2,572)       (2,853)          (346) 
                        ----------    ----------    ----------- 
  Net loss                 (17,579)      (64,453)        (2,399) 
 
  Less: Net income 
   attributable to 
   non-controlling 
   interests                 9,333         4,210          1,543 
                        ----------    ----------    ----------- 
  Net loss 
   attributable to 
   the Company's 
   ordinary 
   shareholders            (26,912)      (68,663)        (3,942) 
 
  Net loss 
  attributable to the 

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