SunCar Technology revenue rises 28% on Chinese EV insurance surge

SunCar Technology Group (NASDAQ:SDA) reported an expansion in first-quarter revenue and sustained bottom-line profitability, driven by accelerating consumer demand for electric vehicle insurance and broader commercial partnerships with major digital and automotive brands across China.

Revenue for the first quarter of 2026 advanced 28% to $131.2 million compared to the same period a year earlier.

The Shanghai-based automotive service and digital insurance provider generated net income of $1.6 million, marking its third consecutive profitable quarter and representing a turnaround from historical baseline losses.

Adjusted EBITDA for the period reached $4.5 million, reflecting an adjusted operating margin of 3.4%.

Growth was recorded across all primary operational business lines.

The company’s core auto e-insurance segment posted a 36% revenue increase, while technology services expanded 43% year-over-year.

The downstream integrated auto services business also registered solid top-line performance, with revenues rising 16% during the three-month period.

The underlying growth trajectory was heavily supported by the company's electric vehicle platform intermediation business, where total insurance premiums processed jumped 42.5% to $514.4 million.

This expansion was anchored by deeper software-embedding and distribution agreements with top-tier electric vehicle manufacturers and smart-car development networks, including Tesla, Xiaomi, Leapmotor, and Huawei-partner Zhongwu Putai, alongside several large-scale Chinese commercial banks and national property and casualty insurers.

SunCar is currently focused on enhancing its digital underwriting and customer advisory capabilities via its ongoing technology partnership with ByteDance, utilizing the technology giant’s Doubao artificial intelligence platform to optimize risk pricing and policy discovery.

Looking forward, management maintained its full-year 2026 revenue outlook, projecting total annual sales of approximately $600 million.