SunCar Technology Group Inc., a leading provider of AI-powered auto insurance and auto services, has reported strong financial results for the first quarter ended March 31, 2026, marking its third consecutive profitable quarter.
The company generated net profit of $1.6 million during the quarter, while revenue surged 28% year-on-year to reach $131 million. SunCar also recorded significant momentum in the electric vehicle segment, with EV insurance premiums growing 43% compared to the same period last year.
Commenting on the performance, Zaichang Ye, Chairman and CEO of SunCar, said the company delivered an excellent quarter driven by deeper integration with EV partners, expanding enterprise deals in auto services, and continued market differentiation through its AI partnership with ByteDance Doubao.
The results highlight SunCar’s growing presence in the AI-driven mobility and insurance ecosystem as it continues to strengthen its partnerships and technology capabilities.
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.
SunCar Technology Group is expanding its integrated insurance and auto services business through a deeper collaboration with China Continental Insurance, which is deploying SunCar’s cloud platform in additional regions to offer bundled insurance and vehicle services.
The company is also enhancing its AI capabilities through its partnership with ByteDance Doubao, introducing features such as predictive maintenance, intelligent insurance pricing, and automated policy renewal reminders.
Looking ahead, SunCar expects full-year 2026 revenue to reach approximately $600 million.
