1. SDA's Q3 revenue rose 6% to $115.8 million. 2. SDA posted a net income of $1.4 million this quarter. 3. Adjusted EBITDA surged 128% to $4.9 million year-over-year. 4. Major partnerships with Tesla and NIO improved service metrics. 5. Strategic acquisitions are expanding SDA’s market reach and capabilities.
The upward trends in revenue and net income indicate strong financial health, resembling outcomes seen in successful tech firms after reporting positive earnings.
The article details substantial financial improvements and strategic partnerships which are significant indicators of future growth and profitability for SDA.
Growth in partnerships and service expansions is expected to mature and stabilize profits over the coming year, akin to trends seen with rapidly growing tech companies.
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
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
Auto Services Review
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:
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 (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 | $ | - | |||||
