The Zhitong Finance App learned that SunCar Technology Group Inc. (“Shengda Technology” or the “Company”, NASDAQ: SDA.US), a Chinese auto insurance and auto service digitalization company, today released an unaudited preliminary performance forecast for the first nine months of 2026. The company expects to achieve operating income of about US$426.4 million, an increase of 26% over the same period in 2025; realized net profit of approximately US$5.78 million, with a net loss of US$4.1 million for the same period last year. Among them, the net profit for a single quarter in the third quarter was US$2.405 million, and the company has been profitable for five consecutive quarters. The company expects revenue for the full year of 2026 to reach 600 million US dollars, maintaining the previous guidelines.
Overview of results for the first nine months of 2026
Judging from this performance forecast, the company's revenue continued to grow, net profit reversed losses compared to the same period last year, and the two major business segments of auto insurance and auto service achieved year-on-year growth.
Revenue: Approximately US$426.4 million, a year-on-year increase of 26%. The annual guideline of US$600 million remained unchanged.
Net profit: Approximately US$5.78 million, with a net loss of US$4.1 million in the same period last year, an improvement of approximately US$9.88 million over the same period last year.
Quarterly profit: Net profit for the third quarter (July-September) was US$2.405 million. The company has been profitable for five consecutive quarters since the third quarter of 2025.
Growth rate by business: Insurance business increased 32% year over year, car management business increased 22% year over year, technology service revenue increased 19% year over year.
Management comments
In the third quarter of 2026, SunCar announced the appointment of Eric H. Zhang (Eric H. Zhang) as Chief Financial Officer. Zhang Haidong has entrepreneurial and investment experience in the field of artificial intelligence. He is the founder and chairman of First Pacific Technology Group, which focuses on the development and investment of artificial intelligence-related technologies.
Prior to founding First Pacific, Zhang Haidong was the manager of Oracle (Oracle) in North China. He has a bachelor's degree in computer science from Harvard University and studied graduate degrees in computer science and engineering at the Massachusetts Institute of Technology (MIT).
Zhang Haidong, Chief Financial Officer of SunCar, said, “As SunCar's director and current CFO, I have seen the company continue to grow under the leadership of Mr. Ye Zaichang, thanks to the continued focus on the Chinese automotive aftermarket. By using artificial intelligence technology to power everyday operations, SunCar has accelerated transaction processing and reduced internal management costs, driving revenue and profit growth.”
“Looking ahead, the company will continue to take advantage of China's huge automotive service market, the ongoing digitalization process, and the rapidly developing electric vehicle (EV) market to seek new partners and expand new business areas.”
Regarding SunCar's performance forecast for the first nine months of 2026, Ye Zaichang, CEO and Chairman of the company, said, “As our automotive and corporate partners are highly focused on increasing the long-term value of customers, the company's core business segment (automotive service and automotive electronic insurance) has achieved strong growth. As we indicated in previous quarters, we are also seeing growing synergy between the automotive services and insurance sectors.”
“Suncar has an AI technology platform that connects partners to long-term after-sales revenue streams associated with car ownership. With 371 million cars, China is the largest automobile market in the world.”
“SunCar's platform enhances the car owner experience and reduces the cost of car ownership. At the same time, the platform enables partners to tap into a large source of long-term after-sales revenue.”
AI technology platform and business collaboration
The company said that AI cloud platform capabilities and NEV enterprise cooperation networks are an important part of its business layout. Relying on the accumulation of tens of millions of vehicle data, the company collaborated with ByteDance Doubao Big Model to build a dynamic risk assessment system to support vehicle underwriting and personalized non-car insurance product matching.
The company's self-developed intelligent car insurance pricing engine and AI insurance renewal intelligent outbound call system have been launched in Huawei-Qiancun ecological cooperative brands such as Hongmeng Zhixing and GAC Qijing. According to the company, the relevant system helps improve the efficiency of renewal conversion and customer experience in car companies' stores. In addition, the company's renewal center has provided AI outbound calling services for car companies such as Tesla, Xiaopeng, and Xiaomi. The company claims that related applications can save 70% of labor costs.
On the service fulfillment side, the company relies on more than 48,000 automobile service outlets across the country to establish a service system covering insurance, underwriting, claims, road rescue, maintenance and predictive maintenance, etc., extending car insurance services to the full life cycle management of vehicles.
The company also applies the AI image quality inspection module to service scenarios such as shuttle cars and beauty washing, and performs quality inspection on service vehicle photos by combining large models. According to the company, related applications have increased quality inspection efficiency by 400%. Furthermore, by analyzing call recordings between customers and customer service personnel, the company uses models to identify semantics, tone, and communication content to assist in evaluating the quality of customer service.
Up to now, the company's auto insurance service ecosystem has covered more than 20 new energy vehicle brands, including Tesla, Xiaomi, NIO, Xiaopeng, Ideal, Hongmeng Zhixing, Extreme Krypton, Zero Run, Avita, and GAC Qijing. According to the company, it has formed a certain business scale in the field of electric vehicle insurance and B2B car services.
Full year results guide
The company maintained its forecast of annual revenue of 600 million US dollars for the full year 2026. The company said that with the expansion of the scale of cooperation among NEV companies, the increase in the share of renewal business, and the implementation of AI technology platforms at more partners, it is expected that business conditions will continue to improve in the second half of the year.