NEW YORK, Dec. 18, 2025 (GLOBE NEWSWIRE) — SunCar Technology Group Inc. (the “Company” or “SunCar”) (NASDAQ: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 | $ | |||||||