SunCar Technology 2025 Q1 Earnings Revenue Surges 19.9% Amid Improved Net Income

SunCar Technology (SDA) reported its fiscal 2025 Q1 earnings on May 21st, 2025. The total revenue of SunCar Technology increased by 19.9% to $102.59 million in 2025 Q1, up from $85.59 million in 2024 Q1, with specific segment revenue listed as follow: Auto eInsurance service: $45.93 million, Technology service: $10.66 million, Auto service: $46 million and Total revenues: $102.59 million. SunCar Technology narrowed losses to $0.03 per share in 2025 Q1 from a loss of $0.04 per share in 2024 Q1 (25.0% improvement). Meanwhile, the company successfully narrowed its net loss to $-3.65 million in 2025 Q1, reducing losses by 26.9% compared to the $-4.99 million net loss reported in 2024 Q1. Remarkably, in 2025 Q1, the company set a new record high for fiscal Q1 net income, the highest in 2 years. EPS improvement reflects positive earnings momentum.

Revenue

SunCar Technology's total revenue for the first quarter of 2025 reached $102.59 million, marking a 19.9% increase from the previous year. The Auto eInsurance service led this growth with $45.93 million, followed by the Auto service, which contributed $46 million. The Technology service segment generated $10.66 million, collectively driving the company's revenue expansion.

Earnings/Net Income

In the first quarter of 2025, SunCar Technology reduced its losses, achieving a net loss of $0.03 per share, an improvement from the $0.04 loss per share in the same period of 2024. This progress corresponds to a net loss of $-3.65 million, a 26.9% improvement from the $-4.99 million net loss in the first quarter of 2024. EPS improvement reflects positive earnings momentum.

Price Action

The stock price of SunCar Technology has dropped 6.39% during the latest trading day, has tumbled 9.57% during the most recent full trading week, and has climbed 5.02% month-to-date.

Post-Earnings Price Action Review

The post-earnings strategy of buying SunCar Technology shares following a revenue miss and holding for 30 days has not been fruitful, yielding a return of -4.24%. This performance fell significantly short of the benchmark return of 25.81%, resulting in an excess return of -30.05%. The negative Sharpe ratio of -0.03 highlights the unfavorable risk-adjusted return. The strategy endured a maximum drawdown of -55.80% and exhibited high volatility at 42.50%, indicating substantial risk. Overall, this approach failed to capitalize on potential market rebounds, as the negative market perception following the earnings miss led to considerable losses.

CEO Commentary

Zaichang Ye, Chairman and CEO of SunCar, expressed optimism about the company's strong performance in the first quarter, noting a 20% revenue growth driven by expanding relationships with electric vehicle (EV) partners and Fortune 100 customer acquisitions in auto services. He emphasized the success of SunCar's insurance platform and its increasing traction among partners, highlighting a robust partnership with BYD to provide market-leading insurance solutions for dealerships. Ye also mentioned continued investment in AI and product innovation as vital for sustaining growth throughout 2025, reinforcing the company's commitment to enhancing customer experiences and operational efficiencies.

Guidance

SunCar has issued full-year 2025 revenue guidance of $521 million to $539 million, reflecting expected growth of 18% to 22%. This guidance is based on anticipated demand across its business segments and the early-stage development of numerous partnerships. The CEO's remarks indicate a focused strategy on expanding product offerings and enhancing service capabilities to capitalize on market opportunities.

Additional News

SunCar Technology recently announced a share repurchase program, authorized by its board, to buy back up to $30 million of its outstanding Class A ordinary shares. This move reflects the company's confidence in its long-term growth prospects. Additionally, SunCar has expanded its strategic partnership with Ping An Bank, marking a significant step in strengthening its market position. The company also secured a notable contract with China Construction Bank Sichuan, valued at $1.93 million, further enhancing its presence in the financial sector. These developments underscore SunCar's strategic initiatives to bolster its market presence and shareholder value.