SunCar Technology Reports First Half 2026 Financial Results
Revenue and adjusted EBITDA grew sharply as SunCar’s EV-focused insurance and auto services platform scaled, despite higher service-related costs.
Rhea-AI Summary
SunCar Technology Group (SDA) reported first-half 2026 results with $276.5 million in revenue and a return to net profitability.
Total revenue rose 24% year over year from $222.3 million, driven by 29% growth in auto eInsurance services, 22% in auto services, and 15% in technology services. Net income reached $3.4 million versus a $5.5 million loss a year earlier, while adjusted EBITDA increased to $9.4 million from $2.5 million, up 276%. EV insurance premiums grew 31% to $915.9 million. Operating costs and expenses increased 21% to $270.2 million, including a 39% rise in integrated service costs, partly offset by selling and G&A expense reductions of 49% and 56%.
Cash declined to $16.8 million from $25.0 million at year-end 2025, and the company reiterated its full-year 2026 revenue outlook of about $600 million.
Positive
- Total revenue $276.5M, up 24% YoY for 1H 2026
- Net income $3.4M vs. $5.5M net loss in 1H 2025
- Adjusted EBITDA $9.4M, up 276% from $2.5M YoY
- EV premiums $915.9M, up 31% YoY
- Auto eInsurance/auto service/tech revenue up 29%/22%/15% YoY
- Selling and G&A expenses down 49% and 56% YoY, respectively
Negative
- Total operating costs and expenses $270.2M, up 21% YoY
- Integrated service costs $141.3M, up 39% YoY
- Promotional service expenses $114.0M, up 21% YoY
- Cash balance fell to $16.8M from $25.0M at Dec. 31, 2025
- Net loss attributable to ordinary shareholders $0.2M for 1H 2026
- Short-term borrowings remained high at about $80.5M
News Explained
Positive first-half operating cash flow did not prevent cash and restricted cash from falling to $19,903 thousand by June 30, 2026.
SunCar reported results for the six months ended
The cash-flow statement attributes the period's outflows to
The balance sheet lists
Details
Market move: SDA +30.61% vs previous close. 1H26 earnings report
On Sep 22, the day this news came out, the latest delayed price for SDA is 30.61% above the previous close. Argus tracked a peak move of +51.3% during the session. Argus tracked a trough of -6.2% from its starting point during tracking. Our momentum scanner has recorded 59 alerts for this stock so far that day. The latest delayed price is $0.64. Relative volume is elevated at 2.1x the average.
Data tracked by StockTitan Argus (15 min delayed). Upgrade to Gold for real-time data.
Key Figures
- Total Revenue
- $276.5 million
- 1H 2026, up 24% year over year from $222.3 million
- Net Income
- $3.4 million
- 1H 2026, versus a $5.5 million net loss in 1H 2025
- Adjusted EBITDA
- $9.4 million
- 1H 2026, up 276% from $2.5 million in the prior-year period
- EV Premiums
- $915.9 million
- 1H 2026, up 31% from $697.6 million
- Auto eInsurance Service Revenue
- $126.2 million
- 1H 2026, up 29% from $97.8 million
- Technology Service Revenue
- $28.0 million
- 1H 2026, up 15% from $24.3 million
- Auto Service Revenue
- $122.3 million
- 1H 2026, up 22% from $100.1 million
- Operating Costs and Expenses
- $270.2 million
- 1H 2026, up 21% from $223.5 million
Previous Earnings Reports
-
Revenue growth and reported net income supported the quarterly profitability progression.
-
Preliminary forecast projected profitability and approximately 25% year-over-year revenue growth.
-
Full-year results reported record revenue and maintained the 2026 revenue forecast.
-
Forecast included second-half profitability and 2026 revenue growth expectations.
-
Quarterly profit and adjusted EBITDA growth followed higher insurance and service revenue.
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Key Terms
adjusted ebitda financial
contract liabilities financial
non-controlling interests financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
Net Income of
Adjusted EBITDA increased to
Delivered 1H Revenue of
EV Premiums increased
NEW YORK, Sept. 22, 2026 (GLOBE NEWSWIRE) -- SunCar Technology Group Inc. (the "Company" or "SunCar") (NASDAQ: SDA), an innovative leader in AI-powered auto insurance and auto services, today announced financial results for the six months ended June 30, 2026.
"SunCar had an excellent first half generating
“I’m particularly pleased with the revenue growth in auto services, which grew
“As always, SunCar’s partners and customers are critical to our growth. Our partnerships with leading companies such as Tesla, Xiaomi, NIO, Xpeng, Huawei, Zeekr, PICC, and Ping An differentiate SunCar and validate the unique product offering we have in the market.
”In terms of technology innovation, SunCar is leading the charge in the next phase of AI which will be vertical industry AI. We have integrated AI into most of our operations and, in cooperation with our partners, are now creating customer-specific AI-powered products. This next phase of AI will be led by companies with deep industry expertise that are leveraging AI to create AI-powered ecosystems just as SunCar is doing for auto insurance and services.”
First Half 2026 Financial Results
- Total revenue increased
24% to$276.5 million in the first half of 2026 compared to$222.3 million in the prior year period driven by continued consistent growth in auto insurance and strong new growth in auto services. - Net income was
$3.4 million in the first half of 2026, an improvement of$8.9 million compared to a net loss of$5.5 million in the prior year period reflecting revenue growth in EV insurance and technology services along with disciplined expense management. - Adjusted EBITDA was
$9.4 million in the first half of 2026, up276% from$2.5 million in the prior year period reflecting improved operating performance and cost efficiency. - EV Premium Growth: Insurance premiums for EVs increased
31% to$915.9 million from US$697.6 million in the prior year period - Auto eInsurance service revenue increased
29% to$126.2 million , compared to$97.8 million in the prior year period. The insurance segment maintains its consistent growth with policy renewal revenue as an increasingly significant contributor. - Technology Service revenue increased
15% to$28.0 million , up from$24.3 million in the prior year period. - Auto Service revenue increased
22% to$122.3 million , compared to$100.1 million for the prior year period. This segment experienced its strongest growth in any period since the Company began reporting. - Operating costs and expenses increased
21% to$270.2 million , up from$223.5 million in the prior year period. - Integrated service costs increased
39% to$141.3 million , from$101.5 million in the prior year period. - Promotional service expenses increased
21% to$114.0 million , from$94.1 million in the prior year period. - Selling expenses decreased
49% to$5.6 million , compared to$11.0 million in the prior year period - General and administrative expenses decreased
56% to$6.7 million , from$15.2 million in the prior year period - Research and development expenses increased
44% to$2.5 million , up from$1.8 million in the prior year period
First Half 2026 Business Highlights
Auto Insurance
- Tesla: Tesla and SunCar continued to develop innovative insurance products giving drivers the ability to buy insurance online without physically going to a dealer, greatly enhancing the purchasing, renewal, and service experiences.
- Xiaomi: Xiaomi used SunCar across China for new and renewal policy operations, marketing, and other AI-powered services like inspections.
- NIO: Nio leveraged SunCar’s app for convenient policy issuance, helping its brands significantly expedite policy issuance and greatly reduce delivery times.
- Li Auto: Li launched SunCar’s insurance customer service model across China driving more efficient online policy issuance, lead distribution, and renewals.
- Leapmotor: SunCar’s SaaS solution was implemented in third party and dealer stores. Policy issuance increased
80% online and over95% in stores YoY. - Zeekr: SunCar’s system helped Zeekr stores improve policy issuance efficiency. Customized customer service streamlined new and renewal policy issuance.
- Huawei: Created a unique service experience with the Qiankun intelligent driving system and HarmonyOS APP; enhancing renewals and service processes.
- Seres: Seres utilized SunCar’s platform for more efficient settlement operations, providing higher quality service support to both dealers and insurers.
- GAC Qijing: Won bid for Qijing's auto insurance business, further extending cooperation with Huawei, combining the intelligence of Qijing’s vehicles and the digital capabilities of Huawei's Qiankun system.
- China Post: Expanded China Post’s partner network adding 102 new stores. The total number of partner stores exceeded 300 with continued expansion.
Auto Services
- PICC: PICC chose SunCar to deliver services such as car wash, parking, maintenance, inspections, and charging vouchers for 7 provincial branches.
- Ping An Insurance: Ping An selected SunCar for multiple service projects at 9 branches and for airport lounges, and chauffeur services at its headquarters.
- Ping An Bank: Delivered an innovative combined finance and auto services offering for Ping An Bank; won two-year car wash and chauffeur contracts.
- CPIC: Success of SunCar’s auto services at 9 CPIC branches led to signing airport concierge VIP lounges service contracts with additional branches.
- China Continental Insurance: Won new inspection, chauffeur service contracts with new retail branches and added chauffeur services at the headquarters.
- Agricultural Bank of China: ABC selected SunCar for a major roadside assistance contract and renewed a concierge chauffeur service contract.
- Bank Customer Chauffeur Deals: SunCar secured additional chauffeur contracts with ICBC, Huaxia Bank, Minsheng, and GRCB banks.
- China UnionPay: China UnionPay, China’s primary bankcard association, is now using SunCar for carwash services across 14 provinces and major cities.
- Chauffeur Service Contract Wins: SunCar is expanding its chauffeur business to other sectors by winning non-bank customers such as China Duty Free.
AI Technology Update
SunCar completed AI feature testing for several OEM partners, all with excellent results. The Company completed AI testing for 8 OEM projects with automated testing coverage reaching
Financial Outlook
SunCar continues to forecast its full year 2026 revenue to be approximately
About SunCar Technology Group Inc.
Founded in 2007, SunCar is transforming the customer journey for auto insurance and services in China, the largest 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://ir.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. 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 UNAUDITED CONDENSED 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 six months ended June 30, | ||||||||
| 2025 | 2026 | |||||||
| (Unaudited) | (Unaudited) | |||||||
| Revenues | ||||||||
| Auto eInsurance service | $ | 97,833 | $ | 126,159 | ||||
| Technology service | 24,345 | 28,007 | ||||||
| Auto service | 100,131 | 122,344 | ||||||
| Total revenues | 222,309 | 276,510 | ||||||
| Operating cost and expenses | ||||||||
| Integrated service cost | (101,464 | ) | (141,312 | ) | ||||
| Promotional service expenses | (94,072 | ) | (114,047 | ) | ||||
| Selling expenses | (11,012 | ) | (5,569 | ) | ||||
| General and administrative expenses | (15,188 | ) | (6,745 | ) | ||||
| Research and development expenses | (1,766 | ) | (2,537 | ) | ||||
| Total operating costs and expenses | (223,502 | ) | (270,210 | ) | ||||
| Operating (loss)/income | (1,193 | ) | 6,300 | |||||
| Other expenses | ||||||||
| Financial expenses, net | (2,077 | ) | (2,168 | ) | ||||
| Investment income | 246 | 221 | ||||||
| Gain on expiration of warrant liabilities | - | 18 | ||||||
| Other loss, net | (2,220 | ) | (51 | ) | ||||
| Total other expenses, net | (4,051 | ) | (1,980 | ) | ||||
| (Loss)/income before income tax expense | (5,244 | ) | 4,320 | |||||
| Income tax expense | (291 | ) | (943 | ) | ||||
| Net (loss)/income | (5,535 | ) | 3,377 | |||||
| Less: Net income attributable to non-controlling interests | 1,859 | 3,585 | ||||||
| Net loss attributable to the Company’s ordinary shareholders | (7,394 | ) | (208 | ) | ||||
| Net loss attributable to the Company’s ordinary shareholders per ordinary share | ||||||||
| Basic and diluted | $ | (0.07 | ) | - | ||||
| Weighted average shares outstanding used in calculating basic and diluted loss per share | ||||||||
| Basic and diluted | 102,155,588 | 102,009,359 | ||||||
| Other comprehensive income | ||||||||
| Foreign currency translation difference | 1,048 | 2,180 | ||||||
| Total other comprehensive income | 1,048 | 2,180 | ||||||
| Total comprehensive (loss)/income | (4,487 | ) | 5,557 | |||||
| Less: total comprehensive income attributable to non-controlling interest | 3,004 | 5,695 | ||||||
| Total comprehensive loss attributable to the SUNCAR TECHNOLOGY GROUP INC’s shareholders | $ | (7,491 | ) | $ | (138 | ) | ||
| 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 June 30, | |||||||
| 2025 | 2026 | |||||||
| (Audited) | (Unaudited) | |||||||
| ASSETS | ||||||||
| Current assets | ||||||||
| Cash | $ | 25,019 | $ | 16,834 | ||||
| Restricted cash | 2,841 | 3,069 | ||||||
| Short-term investments | 21,597 | 22,122 | ||||||
| Accounts receivable, net | 59,767 | 56,319 | ||||||
| Prepaid expenses and other current assets, net | 74,072 | 99,548 | ||||||
| Total current assets | 183,296 | 197,892 | ||||||
| Non-current assets | ||||||||
| Long-term investment | 286 | 295 | ||||||
| Property, software and equipment, net | 24,195 | 22,787 | ||||||
| Construction in progress | - | 27,696 | ||||||
| Intangible asset | 408 | 420 | ||||||
| Deferred tax assets, net | 11,947 | 12,148 | ||||||
| Other non-current assets | 30,821 | 3,344 | ||||||
| Right-of-use assets | 2,243 | 1,889 | ||||||
| Total non-current assets | 69,900 | 68,579 | ||||||
| TOTAL ASSETS | $ | 253,196 | $ | 266,471 | ||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
| Current liabilities | ||||||||
| Short-term borrowings | $ | 80,394 | $ | 80,456 | ||||
| Long-term borrowing, current | 71 | 74 | ||||||
| Accounts payable | 41,404 | 57,187 | ||||||
| Contract liabilities | 5,730 | 3,982 | ||||||
| Tax payable | 1,468 | 1,235 | ||||||
| Accrued expenses and other current liabilities | 10,697 | 3,737 | ||||||
| Amount due to related parties, current | 6,659 | 7,493 | ||||||
| Operating lease liabilities, current | 834 | 848 | ||||||
| Total current liabilities | 147,257 | 155,012 | ||||||
| Non-current liabilities | ||||||||
| Operating lease liabilities, non-current | 1,333 | 989 | ||||||
| Long-term borrowing, non-current | 1,358 | 1,363 | ||||||
| Amount due to related parties, non-current | 12,516 | 12,899 | ||||||
| Warrant liabilities | 50 | 32 | ||||||
| Total non-current liabilities | 15,257 | 15,283 | ||||||
| Total liabilities | $ | 162,514 | $ | 170,295 | ||||
| Commitments and contingencies (Note 18) | ||||||||
| Shareholders’ equity | ||||||||
| Class A Ordinary shares (par value of | $ | 6 | $ | 6 | ||||
| Class B Ordinary shares (par value of | 5 | 5 | ||||||
| Additional paid in capital | 233,014 | 232,989 | ||||||
| Accumulated deficit | (199,329 | ) | (199,537 | ) | ||||
| Accumulated other comprehensive loss | (1,146 | ) | (1,076 | ) | ||||
| Total SUNCAR TECHNOLOGY GROUP INC’s shareholders’ equity | 32,550 | 32,387 | ||||||
| Non-controlling interests | 58,132 | 63,789 | ||||||
| Total shareholders’ equity | 90,682 | 96,176 | ||||||
| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 253,196 | $ | 266,471 | ||||
| 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, | ||||||||
| 2025 | 2026 | |||||||
| (Unaudited) | (Unaudited) | |||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
| Net (loss)/income | $ | (5,535 | ) | $ | 3,377 | |||
| Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | - | |||||||
| Provision/(reversal) for credit losses | 6,278 | (576 | ) | |||||
| Depreciation | 2,978 | 3,050 | ||||||
| Amortization of right-of-use assets | 430 | 468 | ||||||
| Share-based compensation of subsidiary | 742 | - | ||||||
| Loss on disposal of property, software and equipment | 3 | 1 | ||||||
| Fair value income from short-term investments | - | (6 | ) | |||||
| Gain on expiration of warrant liabilities | - | (18 | ) | |||||
| Deferred income tax (benefit)/expense | (599 | ) | 163 | |||||
| Financing expense related to issuance of GEM Warrants | 300 | 229 | ||||||
| Accrued liability for GEM litigation | 2,811 | - | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable | (26,603 | ) | 5,796 | |||||
| Prepaid expenses and other current assets | (6,121 | ) | (17,829 | ) | ||||
| Accounts payable | 18,389 | 14,350 | ||||||
| Contract liabilities | (320 | ) | (1,903 | ) | ||||
| Accrued expenses and other current liabilities | (2,050 | ) | (5,656 | ) | ||||
| Tax payable | 519 | (275 | ) | |||||
| Operating lease liabilities | (369 | ) | (443 | ) | ||||
| Amount due to related parties | (109 | ) | - | |||||
| Total net cash (used in) provided by operating activities | (9,256 | ) | 728 | |||||
| CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||
| Purchase of property, software and equipment | (23 | ) | (58 | ) | ||||
| Proceeds from disposal of property, software and equipment | 1 | - | ||||||
| Proceeds from short term investment | 233 | 357 | ||||||
| Repurchase of non-controlling interests | (2,214 | ) | (63 | ) | ||||
| Purchase of other non-current assets | (5,362 | ) | (5,669 | ) | ||||
| Purchase of short-term investment | (246 | ) | (216 | ) | ||||
| Total net cash used in investing activities | (7,611 | ) | (5,649 | ) | ||||
| CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||
| Proceeds from short-term loan | 52,119 | 51,134 | ||||||
| Repayments of loan | (54,215 | ) | (53,545 | ) | ||||
| Repayments of payables to a related party | (9,798 | ) | (27 | ) | ||||
| Shares repurchase | (15,760 | ) | - | |||||
| Payments for GEM litigation | - | (1,550 | ) | |||||
| Proceeds from issuance of ordinary shares, net of issuance cost | 41,631 | - | ||||||
| Total net cash provided by (used in) financing activities | 13,977 | (3,988 | ) | |||||
| Effect of exchange rate changes | 380 | 952 | ||||||
| Net change in cash and restricted cash | (2,510 | ) | (7,957 | ) | ||||
| Cash and restricted cash, beginning of the period | $ | 29,512 | $ | 27,860 | ||||
| Cash and restricted cash, end of the period | $ | 27,002 | $ | 19,903 | ||||
| Reconciliation of cash and restricted cash to the consolidated balance sheets: | ||||||||
| Cash | $ | 24,305 | $ | 16,834 | ||||
| Restricted cash | $ | 2,697 | $ | 3,069 | ||||
| Total cash and restricted cash | $ | 27,002 | $ | 19,903 | ||||
| Supplemental disclosures of cash flow information: | ||||||||
| Income tax paid | $ | 371 | $ | 1,055 | ||||
| Interest expense paid | $ | 1,757 | $ | 1,753 | ||||
| Supplemental disclosures of non-cash flow information: | ||||||||
| Obtaining right-of-use assets in exchange for operating lease liabilities | $ | 87 | $ | 50 | ||||
| Prepaid financing expense related to issuance of GEM Warrants | $ | 534 | $ | - | ||||
| SUNCAR TECHNOLOGY GROUP INC RECONCILIATION OF NET LOSS / INCOME TO ADJUSTED EBITDA | ||||||||
| For the six months ended June 30, | ||||||||
| 2025 | 2026 | |||||||
| (In thousands) | ||||||||
| Net (loss)/income | $ | (5,535 | ) | $ | 3,377 | |||
| Depreciation | 2,978 | 3,050 | ||||||
| Financial expenses, net | 2,077 | 2,168 | ||||||
| Investment loss | (246 | ) | (221 | ) | ||||
| Other non-recurring income, net | 2,220 | 51 | ||||||
| Income tax expense | 291 | 943 | ||||||
| Share-based compensation (1) | 742 | - | ||||||
| Transaction fees (2) | 15 | - | ||||||
| Adjusted EBITDA | $ | 2,542 | $ | 9,368 | ||||
| Net (Loss)/income Margin | -2.5 | % | 1.2 | % | ||||
| Adjusted EBITDA Margin | 1.1 | % | 3.4 | % | ||||
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
How did each of SunCar’s main business segments perform in the first half of 2026?
Auto eInsurance service revenue increased 29% year over year to $126.2 million, technology service revenue grew 15% to $28.0 million, and auto service revenue rose 22% to $122.3 million. Management highlighted auto services as having its strongest growth in any period since the company began reporting.
What is SunCar’s financial outlook for full-year 2026?
SunCar continues to forecast full-year 2026 revenue of approximately $600 million, reflecting management’s expectation of ongoing growth across its auto eInsurance, auto services, and technology service businesses.
Which major partners and customers did SunCar highlight in auto insurance and services?
In auto insurance, partners include Tesla, Xiaomi, NIO, Li Auto, Leapmotor, Zeekr, Huawei, Seres, GAC Qijing, and China Post. In auto services, SunCar cited work with PICC, Ping An Insurance, Ping An Bank, CPIC, China Continental Insurance, Agricultural Bank of China, ICBC, Huaxia Bank, Minsheng, GRCB, China UnionPay, and new non-bank customers such as China Duty Free.