SunCar Technology Reports First Quarter 2025 Results

Rhea-AI Summary

SunCar Technology Group (NASDAQ: SDA) reported its Q1 2025 results with revenue increasing 20% to $102.6 million compared to Q1 2024. The company's auto eInsurance segment grew 37% to $45.9 million, while Technology Services revenue rose 41% to $10.7 million. Despite revenue growth, SunCar posted an operating loss of $3.0 million, though improved from $4.5 million loss in Q1 2024. Notable partnerships include expanded cooperation with BYD across 50 dealerships in East China, new SAAS solutions for Leapmotor, and service platform extensions for Tesla. The company secured significant contracts with China Construction Bank and PICC across 13 provincial branches. SunCar provided full-year 2025 revenue guidance of $521-539 million, projecting 18-22% growth.

Positive

• Revenue growth of 20% YoY to $102.6 million in Q1 2025
• Strong segment growth: eInsurance up 37%, Technology Services up 41%
• Operating loss improved to $3.0 million from $4.5 million YoY
• Expanded partnerships with major EV makers (BYD, Tesla, Leapmotor)
• Secured significant contracts with CCB and PICC across 13 provinces
• Projected 18-22% revenue growth for full-year 2025

Negative

• Operating loss of $3.0 million in Q1 2025
• Negative Adjusted EBITDA of $1.3 million
• Operating costs increased to $105.5 million from $90.1 million YoY
• Promotional service expenses rose significantly to $44.7 million from $35.4 million

Insights

Financial Analyst

SunCar delivers 20% revenue growth with improving margins despite ongoing losses; partnerships with major EV brands signal promising growth trajectory.

SunCar Technology's Q1 2025 results demonstrate strong top-line growth with revenue increasing 20% year-over-year to $102.6 million. This growth was primarily driven by their auto eInsurance segment, which surged 37% to $45.9 million, and technology services revenue jumping 41% to $10.7 million. Their auto services segment showed more modest growth of 3%, reaching $46 million.

The company's operating loss narrowed to $3 million from $4.5 million in the prior year period, indicating improving operational efficiency despite continued investments in growth. Notably, Adjusted EBITDA, while still negative at $1.3 million, improved significantly from negative $3.1 million in Q1 2024. The Adjusted EBITDA margin improved to negative 1.3% from negative 3.6%, showing a path toward potential profitability.

SunCar's strategic partnerships are particularly noteworthy. The expanded cooperation with BYD, China's largest EV manufacturer, across 50 dealerships in East China creates a potentially lucrative revenue stream. New deals with Leapmotor, Tesla, Xiaomi, and Zeekr position SunCar at the center of China's booming EV ecosystem. The landmark deal with China Construction Bank (CCB), projected to generate RMB 60 million over 18 months, represents a significant entry into the financial institution sector.

The full-year 2025 revenue guidance of $521-539 million implies 18-22% annual growth, suggesting management's confidence in sustaining momentum. However, investors should note that despite improving metrics, the company continues to operate at a loss with substantial promotional expenses ($44.7 million, up from $35.4 million). The 26% increase in promotional spending outpaced revenue growth, indicating aggressive customer acquisition strategies that may pressure margins in the near term.

The company's strategic positioning at the intersection of insurance, automotive services, and technology creates a differentiated business model with multiple growth vectors in China's massive auto market. The continued investment in AI and product innovation, coupled with expanding relationships with major automotive and financial partners, positions SunCar favorably for sustained growth, though profitability remains a key challenge to monitor.

NEW YORK, May 19, 2025 /PRNewswire/ -- SunCar Technology Group Inc. (the "Company" or "SunCar") (NASDAQ: SDA), an innovative leader in cloud-based, software-focused B2B auto eInsurance and auto services in China, today reported first quarter 2025 financial results for the quarter ended March 31, 2025.

First Quarter 2025 Highlights

• Revenue for first quarter 2025 increased 20% to $102.6 million, compared to $85.6 million in first quarter 2024.
• BYD: Expanding our multi-year BYD partnership, including expanded cooperation with 50 dealerships in East China to create a differentiated insurance solution
• Leapmotor: Completed differentiated SAAS insurance solution for Leapmotor dealers
• Tesla: Extended service platform to include insurance policy benefit features
• Xiaomi and Zeekr: Launched cloud-based customer service systems
• CCB: Landed a landmark designated driver contract with China's 2^nd largest bank
• PICC: Signed major Designated Driver contracts across 13 provincial branches
• The Company has initiated full-year 2025 revenue guidance of $521 million to $539 million, reflecting forecasted revenue growth of 18% to 22%.

Management Commentary

"We carried strong momentum into the first quarter, building on a record 2024 and benefitting from growing relationships with our EV partners in the insurance segment and multiple Fortune 100 customer wins in auto services" said Zaichang Ye, Chairman and CEO of SunCar.

Mr. Ye continued, "We delivered revenue growth of 20% from the first quarter of 2024. SunCar's insurance platform is accelerating its traction within our auto partners as we expand our SAAS product suite to add more features. Our continued investment in AI and product innovation positions us well for sustained growth for the remainder of 2025.

Additionally, we are delighted to announce our growing partnership with BYD where we continue to strengthen a multi-year collaboration by providing their dealers with market-leading insurance solutions."

BYD Partnership

• SunCar has partnered with 50 major BYD dealerships in the East China region to provide comprehensive insurance agency services for BYD's premium EV brands: Yangwang, Tengshi, and Fangchengbao.
• By integrating our dealership platforms, SunCar and BYD provide higher-quality service and one-stop insurance solutions for new vehicle sales.

eInsurance Review

• Partnered with Leapmotor's dealerships to build a SAAS solution that enables dealers to sell auto insurance independently, a new revenue model for dealers
• Integrated Tesla's service packages into the Xuanbei platform, linking policy benefits directly to auto insurance purchases, creating a seamless, closed-loop customer journey.
• Launched cloud-based customer service systems for Xiaomi and Zeekr, significantly improving pre-sales conversion and satisfaction while demonstrating the scalability of SunCar's service model.
• Secured a dealership-model partnership with Zhongyou Putai, expanding SunCar's insurance footprint by adding 20 new stores in the first quarter.
• Established a strategic collaboration with China Continent Insurance, integrating SunCar's capabilities into their broader industrial ecosystem to drive innovation in customer engagement, risk analytics, and digital enablement.

Auto Services Review

• Closed a landmark agreement with China Construction Bank (CCB) in April 2025. This inaugural project is projected to generate RMB 60 million over the next 18 months and marks the entry of SunCar's Designated Driver service into a top-tier financial institution.
• Awarded "Designated Driver service" projects with PICC across 13 provincial branches, including Beijing, Shanghai, Zhejiang, and Fujian, marking a significant nationwide expansion under total corporate agreements.
• Deepened strategic alignment with Ping An across multiple service categories:
  • Providing Ping An Sichuan designated-driver services through a new contract
  • Formed a national partnership with Ping An HQ to deliver airport lounge services across China, supporting high-end policyholders.
  • Secured car care and beauty service contracts with Ping An branches in Beijing, Zhejiang, Xinjiang, and other regions.
• Won a key service project with CPIC Zhejiang, reinforcing SunCar's reputation for standardized and scalable B2B solutions.
• Advanced integrated "auto insurance + vehicle services" offerings through deeper collaboration with China Continent Insurance in Zhejiang, Beijing, and Gansu, leveraging new retail channels.

First Quarter 2025 Financial Results

• Revenue increased by 20% to $102.6 million for the three months ended March 31, 2025, compared to $85.6 million for the same period in 2024.
• Auto eInsurance revenue increased by 37% to $45.9 million, compared to $33.5 million in the prior-year period, driven by a higher volume of insurance policies sold.
• Technology Services revenue increased by 41% to $10.7 million, up from $7.5 million in the first quarter of 2024.
• Auto Services revenue rose 3% to $46.0 million, compared to $44.6 million for the same period last year.
• Operating costs and expenses increased to $105.5 million for the first quarter of 2025, from $90.1 million in the first quarter of 2024.
• Integrated service costs rose to $48.4 million, from $44.5 million in the prior-year quarter.
• Promotional service expenses increased to $44.7 million, from $35.4 million in Q1 2024, reflecting continued investments to drive market expansion.
• Selling expenses rose to $6.1 million, compared to $5.0 million in the prior-year period, primarily due to increased marketing and distribution efforts.
• General and administrative expenses increased to $5.4 million, from $4.6 million in Q1 2024.
• Research and development expenses grew to $0.9 million, up from $0.6 million, reflecting continued investment in product development and technology enhancement.
• Operating loss narrowed to $3.0 million for the first quarter of 2025, compared to a loss of $4.5 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 first quarter of 2025 was negative $1.3 million, compared to negative $3.1 million in the first quarter of 2024.

* Adjusted EBITDA

We believe 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 table reconciles Net loss to Adjusted EBITDA for the three months ended March 31, 2024 and 2025.

		For the three months ended March 31,
			2024			2025
		(In thousands)
Net loss		$	(4,987)		$	(3,647)
Depreciation			1,105			1,272
Financial expenses, net			1,170			1,029
Investment income			(192)			(122)
Other non-recurring income, net			(337)			(134)
Income tax benefit			(199)			(84)
Share-based compensation (1)			374			370
Transaction fees (2)			-			15
Adjusted EBITDA		$	(3,066)		$	(1,301)
Net loss Margin			(5.8) %			(3.6) %
Adjusted EBITDA Margin			(3.6) %			(1.3) %

 

(1)	Non-cash expense related to compensation costs for equity classified awards by the subsidiary.
(2)	Includes non-recurring transaction related fees and expenses associated with the Company's capital raises.

2025 Outlook 

The Company has initiated full year 2025 revenue guidance of $521 million to $539 million, reflecting forecasted revenue growth of 18% to 22%. This growth reflects continued demand across the business as many partnerships are in early stages of development.

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 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: Ms. Hui Jiang
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 

 

SUNCAR TECHNOLOGY GROUP INC[1]
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 March 31,
			2024			2025
ASSETS
Current assets
Cash		$	26,865		$	39,222
Restricted cash			2,647			2,597
Short-term investments			20,985			21,231
Accounts receivable, net			75,605			83,689
Prepaid expenses and other current assets, net			70,171			80,427
Total current assets			196,273			227,166
Non-current assets
Long-term investment			274			276
Property, software and equipment, net			27,664			26,548
Deferred tax assets, net			10,453			10,657
Other non-current assets			11,458			11,525
Right-of-use assets			606			509
Total non-current assets			50,455			49,515
TOTAL ASSETS		$	246,728		$	276,681
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Short-term loan		$	83,597		$	84,363
Accounts payable			56,812			66,933
Deferred revenue			2,421			3,534
Tax payable			1,361			1,337
Accrued expenses and other current liabilities			5,792			5,320
Amount due to related parties, current			6,238			6,292
Operating lease liability, current			544			427
Total current liabilities			156,765			168,206
Non-current liabilities
Operating lease liability-non-current			21			17
Amount due to a related party, non-current			22,761			17,897
Warrant liabilities			947			947
Total non-current liabilities			23,729			18,861
Total liabilities		$	180,494		$	187,067
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 March 31, 2025, respectively; 51,845,493 and 51,645,493 Class A Ordinary shares issued and outstanding as of December 31, 2024, respectively; 58,988,351 and 55,983,284 Class A Ordinary shares issued and outstanding as of March 31, 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 March 31, 2025, respectively; 46,659,565 and 46,659,565 Class B Ordinary shares issued and outstanding as of December 31, 2024 and March 31, 2025, respectively)			5			5
Additional paid in capital			208,701			236,560
Accumulated deficit			(195,387)			(198,789)
Accumulated other comprehensive loss			(1,432)			(2,966)
Total SUNCAR TECHNOLOGY GROUP INC's shareholders' equity			11,892			34,816
Non-controlling interests			54,342			54,798
Total shareholders' equity			66,234			89,614
TOTAL LIABILITIES AND SHARESHOLDERS' EQUITY		$	246,728		$	276,681

 

[1] The financial statements shall be read in connection with the financial statement footnotes that are contained in the Company's interim report for the first quarter ended March 31, 2025 on Form 6-K to be furnished voluntarily by the Company on or around the date of this release, which form an integral part of the financial statements.

 

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 three months ended March 31,
			2024			2025
Revenues
Auto eInsurance service		$	33,473		$	45,927
Technology service			7,538			10,665
Auto service			44,576			46,003
Total revenues			85,587			102,595
Operating cost and expenses
Integrated service cost			(44,488)			(48,422)
Promotional service expenses			(35,422)			(44,725)
Selling expenses			(4,983)			(6,063)
General and administrative expenses			(4,633)			(5,420)
Research and development expenses			(606)			(923)
Total operating costs and expenses			(90,132)			(105,553)
Operating loss			(4,545)			(2,958)
Other expenses
Financial expenses, net			(1,170)			(1,029)
Investment income			192			122
Other income, net			337			134
Total other expenses, net			(641)			(773)
Loss before income tax expense			(5,186)			(3,731)
Income tax benefit			199			84
Net loss			(4,987)			(3,647)
Less: Net loss attributable to non-controlling interests			(1,720)			(245)
Net loss attributable to the Company's ordinary shareholders			(3,267)			(3,402)
Net loss per ordinary share
Basic and diluted		$	(0.04)		$	(0.03)
Weighted average shares outstanding used in calculating basic and diluted loss per share
Basic and diluted			89,505,058			102,432,043
Other comprehensive loss
Foreign currency translation difference			(845)			(1,203)
Total other comprehensive loss			(845)			(1,203)
Total comprehensive loss			(5,832)			(4,850)
Less: total comprehensive (loss) income attributable to non-controlling interest			(2,625)			86
Total comprehensive loss attributable to the SUNCAR TECHNOLOGY GROUP INC's shareholders		$	(3,207)		$	(4,936)

 

SUNCAR TECHNOLOGY GROUP INC
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
(In U.S. Dollar thousands, except for share and per share data, or otherwise noted)
		Class A Ordinary Shares				Class B Ordinary Shares				Treasury shares			Additional paid-in capital		Accumulated deficit		Accumulated other comprehensive loss		Total Suncar Technology Group Inc's shareholders' equity		Non- controlling interests		Total shareholders' equity
		Share		Amount		Share		Amount		Share		Amount
Balance as of December 31, 2023		40,076,493	$	4		49,628,565	$	5		(200,000)	$	-	144,160	$	(126,724)	$	(1,367)	$	16,078	$	51,912	$	67,990
Net loss		-		-		-		-		-		-	-		(3,267)		-		(3,267)		(1,720)		(4,987)
Share-based compensation		-		-		-		-		-		-	-		-		-		-		374		374
Foreign currency translation		-		-		-		-		-		-	-		-		60		60		(905)		(845)
Balance as of March 31, 2024		40,076,493	$	4		49,628,565	$	5		(200,000)	$	-	144,160	$	(129,991)	$	(1,307)	$	12,871	$	49,661	$	62,532
Balance as of December 31, 2024		51,845,493		5		46,659,565		5		(200,000)		-	208,701		(195,387)		(1,432)		11,892		54,342		66,234
Net loss		-		-		-		-		-		-	-		(3,402)		-		(3,402)		(245)		(3,647)
Share-based compensation		-		-		-		-		-		-	-		-		-		-		370		370
Issuance of ordinary shares, net of offering costs		7,142,858		1		-		-		-		-	41,630		-		-		41,631		-		41,631
Shares repurchase		-		-		-		-		(2,805,067)		-	(13,771)						(13,771)				(13,771)
Foreign currency translation		-		-		-		-		-		-	-		-		(1,534)		(1,534)		331		(1,203)
Balance as of March 31, 2025		58,988,351	$	6		46,659,565	$	5		(3,005,067)	$	-	236,560	$	(198,789)	$	(2,966)	$	34,816	$	54,798	$	89,614

 

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 three months ended March 31,
			2024			2025
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss		$	(4,987)		$	(3,647)
Adjustments to reconcile net loss to net cash used in operating activities:
Provision for credit losses			1,291			1,130
Depreciation			1,105			1,272
Amortization of right-of-use assets			200			231
Share-based compensation of subsidiary			374			370
Loss on disposal of property, software and equipment			-			3
Deferred income tax benefit			(312)			(142)
Financing expense related to issuance of GEM Warrants			151			149
Changes in operating assets and liabilities:
Accounts receivable			115			(8,754)
Prepaid expenses and other current assets			(27,437)			(9,980)
Accounts payable			21,823			9,766
Deferred revenue			4,906			1,097
Accrued expenses and other current liabilities			(1,385)			(504)
Tax payable			-			(33)
Operating lease liabilities			(217)			(157)
Amount due to related parties			73			(66)
Total net cash used in operating activities			(4,300)			(9,265)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property, software and equipment			(168)			(17)
Proceeds from disposal of property, software and equipment			-			1
Purchase of short-term investment			(21,059)			(122)
Proceeds from the redemption of short-term investment			21,362			-
Purchase of other non-current assets			(4,211)			-
Total net cash used in investing activities			(4,076)			(138)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from short-term loan			26,417			29,535
Repayments of short-term loan			(27,127)			(29,260)
Repayments of payables to a related party			-			(4,998)
Shares repurchase			-			(13,771)
Proceeds from issuance of ordinary shares, net of issuance cost			-			41,631
Total net cash (used in) provided by financing activities			(710)			23,137
Effect of exchange rate changes			(464)			(1,427)
Net change in cash and restricted cash			(9,550)			12,307
Cash and restricted cash, beginning of the period		$	33,595		$	29,512
Cash and restricted cash, end of the period		$	24,045		$	41,819
Reconciliation of cash and restricted cash to the unaudited condensed consolidated balance sheets:
Cash		$	21,396		$	39,222
Restricted cash		$	2,649		$	2,597
Total cash and restricted cash		$	24,045		$	41,819
Supplemental disclosures of cash flow information:
Income tax paid		$	112		$	91
Interest expense paid		$	953		$	869
Supplemental disclosures of non-cash flow information:
Obtaining right-of-use assets in exchange for operating lease liabilities		$	63		$	33
Prepaid financing expense related to issuance of GEM Warrants		$	1,291		$	685

 

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SOURCE SunCar Technology Group Inc.

FAQ

What was SunCar Technology's (SDA) revenue growth in Q1 2025?

SunCar Technology reported a 20% year-over-year revenue growth to $102.6 million in Q1 2025, compared to $85.6 million in Q1 2024.

What is SunCar Technology's (SDA) revenue guidance for 2025?

SunCar Technology provided full-year 2025 revenue guidance of $521-539 million, representing projected growth of 18-22%.

How did SunCar's (SDA) different business segments perform in Q1 2025?

Auto eInsurance revenue grew 37% to $45.9 million, Technology Services increased 41% to $10.7 million, and Auto Services rose 3% to $46.0 million.

What major partnerships did SunCar Technology (SDA) announce in Q1 2025?

SunCar expanded partnerships with BYD across 50 dealerships in East China, developed SAAS solutions for Leapmotor, extended Tesla's service platform, and secured contracts with China Construction Bank and PICC across 13 provinces.

What was SunCar Technology's (SDA) operating loss in Q1 2025?

SunCar reported an operating loss of $3.0 million in Q1 2025, improved from a loss of $4.5 million in Q1 2024.