SunCar Technology Group (NASDAQ:SDA) issued a bullish outlook for the coming fiscal year, forecasting a 20% jump in revenue as the digital auto platform leverages artificial intelligence and deepening electric vehicle (EV) partnerships to drive profitability.
The Shanghai-based provider of digital auto insurance and aftermarket services expects 2026 revenue to reach $600 million, up from a forecasted $498 million in 2025.
The company’s preliminary results for the fourth quarter of 2025 showed unaudited revenue of $160 million—a 24% increase over the prior-year period—marking the strongest quarterly performance in its history.
SunCar, which digitalizes the auto insurance supply chain in China, expects to achieve a critical milestone by reporting profitability for the second half of 2025.
This bottom-line improvement is being driven by the strategic integration of ByteDance’s DouBao AI model into its core platform.
According to management, the "AI-agent" technology has begun to significantly lower customer acquisition costs and streamline the dispatch system for its nationwide auto services network.
Growth is also being fueled by SunCar's aggressive expansion into the EV sector.
The company has secured several countrywide service bids and expanded its insurance partnerships with major manufacturers including Tesla, Xiaomi, and Xpeng.
By the end of 2025, SunCar’s platform had successfully scaled its "SaaS + AI" model, allowing for more accurate dynamic risk pricing and higher renewal rates among EV owners.