Generated Net Profit of $1.6 Million
Delivered 28% YoY Revenue Growth to $131 Million
EV Insurance Premiums Grew 43% YoY
Third Consecutive Quarter of Profitability
NEW YORK, May 27, 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 quarter ended March 31, 2026.
"SunCar had an excellent quarter delivering its third consecutive quarter of profitability and 28% year over year revenue growth,” said Zaichang Ye, Chairman and CEO of SunCar. “Deeper integration with our EV partners continues to fuel growth in insurance, major enterprise deals are landing in auto services, and our AI partnership with ByteDance Doubao continues to differentiate our platform in the market.”
First Quarter 2026 Financial Results
- Total revenue increased 28% to $131.2 million in the first quarter of 2026 compared to $102.6 million in the first quarter of 2025.
- Net income was $1.6 million in the first quarter of 2026 compared to a net loss of $3.6 million in the prior year period.
- Adjusted EBITDA was $4.5 million in the first quarter of 2026, from a negative $1.3 million in the prior year period.
- Adjusted EBITDA margin improved to 3.4% in the first quarter of 2026 from a negative 1.3% in the prior year period.
- Auto eInsurance revenue increased 36% to $62.3 million, compared to $45.9 million in the prior year period.
- Technology Services revenue increased 43% to $15.3 million, up from $10.7 million in the prior year period.
- Auto Service revenue increased 16% to $53.5 million, compared to $46.0 million for the prior year period.
- Operating costs and expenses increased 21% to $128.2 million, up from $105.6 million in the prior year period.
- Integrated service costs increased 35% to $65.2 million, from $48.4 million in the prior year period.
- Promotional service expenses increased 29% to $57.8 million, from $44.7 million in the prior year period.
- Selling expenses decreased 57% to $2.6 million, compared to $6.1 million in the prior year period.
- General and administrative expenses decreased 76% to $1.3 million, from $5.4 million in the prior year period.
- Research and development expenses increased 26% to $1.2 million, up from $0.9 million in the prior year period.
- Operating income was $3.0 million; a significant improvement compared to a loss of $3.0 million in the prior year period.
First Quarter 2026 Business Highlights
Insurance
- EV Premium Growth: Insurance premiums for EVs increased 42.5% to $514.4 million from US$361.0 million in the prior year period.
- EV insurance Revenue: EV-related insurance revenue increased 37% to $22.6 million from $16.5 million in the prior year period.
- Tesla: Tesla expanded its implementation of SunCar’s integrated insurance + services benefits platform delivering the convenience and safety advantages of SunCar’s integrated services to an increasing number of Tesla drivers.
- Xiaomi: Launched its customer service platform on SunCar’s cloud validating the flexibility and scalability of SunCar’s CRM system, significantly increasing conversion rates, and greatly improving customer satisfaction.
- Leapmotor: Leapmotor has fully digitalized its processes on SunCar’s platform enabling 100% SaaS-based transactions for its employees and customers.
- Zhongwu Putai(Huawei): Zhongwu Putai is a Huawei partner. SunCar won the bid to be the exclusive insurance provider in Zhongwu Putai’s retail stores. At the end of Q1 2026, 20 of Zhongwu Putai’s stores were online with SunCar.
- China Land Insurance: China Land is integrating SunCar’s cloud insurance platform into its ecosystem seeking to enhance customer acquisition, product development, and risk management.
Auto Service
- AgBank: In April, SunCar announced it had signed a $50 million, three-year contract to manage AgBank’s chauffeur business across three business units.
- Minsheng Bank: SunCar was awarded a three-year, $13 million contract to manage Minsheng’s concierge chauffeur and other transportation services.
- ICBC: SunCar has been selected to be an integrated transportation service provider for the bank’s prestigious Airport/High-Speed Rail Travel Project.
- PingAn Insurance: PingAn Insurance signed an enterprise-level agreement with SunCar to offer a number of value-added auto services to PingAn’s insurance customers. These include chauffeur services, airport lounges, and designated driver services.
- China Pacific Insurance: Secured a contract to deliver comprehensive auto services to the insurer’s Zhejiang customers, demonstrating that SunCar’s auto service solutions have gained acceptance from multiple major insurance brands.
- PingAn Bank Credit Card Center: Signed two-year contract to manage the Credit Card Center’s car wash and concierge chauffeur services. The bank has been a customer since 2017.
- Huaxing Bank: As a partner on PingAn Group’s YiQianBao fintech platform, SunCar was selected to be the exclusive VIP transportation provider for Huaxing.
Integrated Insurance and Auto Service
China Continental Insurance: China Continental is implementing SunCar’s cloud in new regions allowing it to offer an integrated auto services and insurance package to customers.
AI Product Update
ByteDance Doubao Partnership: SunCar continues to leverage ByteDance Doubao’s AI technology to create new features such as predictive maintenance, intelligent policy pricing, and outbound policy renewal reminders.
Financial Outlook
SunCar is expecting its full year 2026 revenue to be approximately $600 million.
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.
