SunCar Technology Reports First Quarter 2025 Results

SunCar Technology Group Inc. (the “Company” or “SunCar”) (NASDAQ: SDA), an innovative leader in cloud-based, software-focused B2B auto eInsurance and auto services in China, today reported first quarter 2025 financial results for the quarter ended March 31, 2025.

First Quarter 2025 Highlights

— Revenue for first quarter 2025 increased 20% to $102.6 million, compared to $85.6 million in first quarter 2024.

— BYD: Expanding our multi-year BYD partnership, including expanded cooperation with 50 dealerships in East China to create a differentiated insurance solution

— Leapmotor: Completed differentiated SAAS insurance solution for Leapmotor dealers

— Tesla: Extended service platform to include insurance policy benefit features

— Xiaomi and Zeekr: Launched cloud-based customer service systems

— CCB: Landed a landmark designated driver contract with China's 2nd largest bank

— PICC: Signed major Designated Driver contracts across 13 provincial branches

— The Company has initiated full-year 2025 revenue guidance of $521 million to $539 million, reflecting forecasted revenue growth of 18% to 22%.

Management Commentary

“We carried strong momentum into the first quarter, building on a record 2024 and benefitting from growing relationships with our EV partners in the insurance segment and multiple Fortune 100 customer wins in auto services” said Zaichang Ye, Chairman and CEO of SunCar.

Mr. Ye continued, “We delivered revenue growth of 20% from the first quarter of 2024. SunCar's insurance platform is accelerating its traction within our auto partners as we expand our SAAS product suite to add more features. Our continued investment in AI and product innovation positions us well for sustained growth for the remainder of 2025.

Additionally, we are delighted to announce our growing partnership with BYD where we continue to strengthen a multi-year collaboration by providing their dealers with market-leading insurance solutions.”

BYD Partnership

— SunCar has partnered with 50 major BYD dealerships in the East China region to provide comprehensive insurance agency services for BYD's premium EV brands: Yangwang, Tengshi, and Fangchengbao.

— By integrating our dealership platforms, SunCar and BYD provide higher-quality service and one-stop insurance solutions for new vehicle sales.

eInsurance Review

— Partnered with Leapmotor's dealerships to build a SAAS solution that enables dealers to sell auto insurance independently, a new revenue model for dealers

— Integrated Tesla's service packages into the Xuanbei platform, linking policy benefits directly to auto insurance purchases, creating a seamless, closed-loop customer journey.

— Launched cloud-based customer service systems for Xiaomi and Zeekr, significantly improving pre-sales conversion and satisfaction while demonstrating the scalability of SunCar's service model.

— Secured a dealership-model partnership with Zhongyou Putai, expanding SunCar's insurance footprint by adding 20 new stores in the first quarter.

— Established a strategic collaboration with China Continent Insurance, integrating SunCar's capabilities into their broader industrial ecosystem to drive innovation in customer engagement, risk analytics, and digital enablement.

Auto Services Review

— Closed a landmark agreement with China Construction Bank (CCB) in April 2025. This inaugural project is projected to generate RMB 60 million over the next 18 months and marks the entry of SunCar's Designated Driver service into a top-tier financial institution.

— Awarded “Designated Driver service” projects with PICC across 13 provincial branches, including Beijing, Shanghai, Zhejiang, and Fujian, marking a significant nationwide expansion under total corporate agreements.

— Deepened strategic alignment with Ping An across multiple service categories:

— Providing Ping An Sichuan designated-driver services through a new contract

— Formed a national partnership with Ping An HQ to deliver airport lounge services across China, supporting high-end policyholders.

— Secured car care and beauty service contracts with Ping An branches in Beijing,Zhejiang, Xinjiang, and other regions.

— Won a key service project with CPIC Zhejiang, reinforcing SunCar's reputation for standardized and scalable B2B solutions.

— Advanced integrated “auto insurance + vehicle services” offerings through deeper collaboration with China Continent Insurance in Zhejiang, Beijing, and Gansu, leveraging new retail channels.

First Quarter 2025 Financial Results

— Revenue increased by 20% to $102.6 million for the three months ended March 31, 2025, compared to $85.6 million for the same period in 2024.

— Auto eInsurance revenue increased by 37% to $45.9 million, compared to $33.5 million in the prior-year period, driven by a higher volume of insurance policies sold.

— Technology Services revenue increased by 41% to $10.7 million, up from $7.5 million in the first quarter of 2024.

— Auto Services revenue rose 3% to $46.0 million, compared to $44.6 million for the same period last year.

— Operating costs and expenses increased to $105.5 million for the first quarter of 2025, from $90.1 million in the first quarter of 2024.

— Integrated service costs rose to $48.4 million, from $44.5 million in the prior-year quarter.

— Promotional service expenses increased to $44.7 million, from $35.4 million in Q1 2024, reflecting continued investments to drive market expansion.

— Selling expenses rose to $6.1 million, compared to $5.0 million in the prior-year period, primarily due to increased marketing and distribution efforts.

— General and administrative expenses increased to $5.4 million, from $4.6 million in Q1 2024.

— Research and development expenses grew to $0.9 million, up from $0.6 million, reflecting continued investment in product development and technology enhancement.

— Operating loss narrowed to $3.0 million for the first quarter of 2025, compared to a loss of $4.5 million in the prior-year period.

— Adjusted EBITDA, a non-GAAP metric that excludes certain non-recurring and non-cash items, is helpful in evaluating our operational performance alongside GAAP metrics. Adjusted EBITDA for the first quarter of 2025 was negative $1.3 million, compared to negative $3.1 million in the first quarter of 2024.

* Adjusted EBITDA

We believe that Adjusted EBITDA, as defined below, is useful in evaluating our operational performance distinct and apart from certain expenses that may not be indicative of our recurring core business operating results and non-operational expenses. Adjusted EBITDA is defined as Net loss adjusted for depreciation and amortization, financial expenses, net, investment income, other non-recurring income, net, income tax benefit, share-based compensation and non-recurring expenses related to capital raises.

Net loss Margin is defined as net loss divided by total revenues, and Adjusted EBITDA Margin is defined as Adjusted EBITDA divided by total revenues.

The following table reconciles Net loss to Adjusted EBITDA for the three months ended March 31, 2024 and 2025.

For the three months ended March 31, 2024 2025 (In thousands)Net loss $ (4,987) $ (3,647)Depreciation 1,105 1,272Financial expenses, net 1,170 1,029Investment income (192) (122)Other non-recurring income, net (337) (134)Income tax benefit (199) (84)Share-based compensation (1) 374 370Transaction fees (2) – 15Adjusted EBITDA $ (3,066) $ (1,301)Net loss Margin (5.8)% (3.6)%Adjusted EBITDA Margin (3.6)% (1.3)%(1) Non-cash expense related to compensation costs for equity classified awards by the subsidiary.(2) Includes non-recurring transaction related fees and expenses associated with the Company's capital raises.

2025 Outlook

The Company has initiated full year 2025 revenue guidance of $521 million to $539 million, reflecting forecasted revenue growth of 18% to 22%. This growth reflects continued demand across the business as many partnerships are in early stages of development.

About SunCar Technology Group Inc.

Founded in 2007, SunCar is transforming the customer journey for auto services and auto insurance in China, the largest passenger vehicle market in the world. SunCar develops and operates cloud-based platforms that seamlessly connect drivers with a wide range of auto services and insurance coverage options through a nationwide network of sales partners. As a result, SunCar has established itself as the leader in China in the auto eInsurance market for electric vehicles and the B2B auto services market. The Company's intelligent cloud platform empowers its enterprise customers to access, manage, and optimize their auto eInsurance and auto service offerings. Through SunCar, drivers gain access to a wide variety of high-quality services from tens of thousands of independent providers, all from a single application. For more information, please visit: https://suncartech.com.

Forward-Looking Statements

This press release contains information about the Company's view of its future expectations, plans, and prospects that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from historical results or those indicated by these forward-looking statements as a result of a variety of factors including, but not limited to, risks and uncertainties associated with its ability to raise additional funding, its ability to maintain and grow its business, variability of operating results, its ability to maintain and enhance its brand, its development and introduction of new products and services, the successful integration of acquired companies, technologies and assets into its portfolio of products and services, marketing and other business development initiatives, competition in the industry, general government regulation, economic conditions, dependence on key personnel, the ability to attract, hire and retain personnel who possess the technical skills and experience necessary to meet the requirements of its clients, and its ability to protect its intellectual property. For a detailed discussion of these risks, please refer to the Company's Annual Report on Form 20-F and other filings with the Securities and Exchange Commission. Forward-looking statements speak only as of the date of this press release, and the Company undertakes no obligation to update or revise these statements, except as required by law.

Contact Information: SunCar: Investor Relations: Ms. Hui Jiang Email: IR@suncartech.com Legal: Ms. Li Chen Email: chenli@suncartech.com U.S. Investor Relations Tom Cook Managing Director ICR Email: Tom.Cook@icrinc.com

SUNCAR TECHNOLOGY GROUP INC[1]CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)(In U.S. Dollar thousands, except for share and per share data, or otherwise noted) As of As of December 31, March 31, 2024 2025ASSETSCurrent assetsCash $ 26,865 $ 39,222Restricted cash 2,647 2,597Short-term investments 20,985 21,231Accounts receivable, net 75,605 83,689Prepaid expenses and other current assets, net 70,171 80,427Total current assets 196,273 227,166Non-current assetsLong-term investment 274 276Property, software and equipment, net 27,664 26,548Deferred tax assets, net 10,453 10,657Other non-current assets 11,458 11,525Right-of-use assets 606 509Total non-current assets 50,455 49,515TOTAL ASSETS $ 246,728 $ 276,681LIABILITIES AND SHAREHOLDERS' EQUITYCurrent liabilitiesShort-term loan $ 83,597 $ 84,363Accounts payable 56,812 66,933Deferred revenue 2,421 3,534Tax payable 1,361 1,337Accrued expenses and other current liabilities 5,792 5,320Amount due to related parties, current 6,238 6,292Operating lease liability, current 544 427Total current liabilities 156,765 168,206Non-current liabilitiesOperating lease liability-non-current 21 17Amount due to a related party, non-current 22,761 17,897Warrant liabilities 947 947Total non-current liabilities 23,729 18,861Total liabilities $ 180,494 $ 187,067Commitments and contingencies (Note 17)Shareholders' equityClass A Ordinary shares (par value of US$0.0001 per share; 400,000,000 $ 5 $ 6Class A Ordinary shares authorized as of December 31, 2024 and March 31,2025, respectively; 51,845,493 and 51,645,493 Class A Ordinary shares issuedand outstanding as of December 31, 2024, respectively; 58,988,351 and55,983,284 Class A Ordinary shares issued and outstanding as of March 31,2025, respectively)Class B Ordinary shares (par value of US$0.0001 per share; 100,000,000 5 5Class B December 31, 2024 and March 31, 2025, respectively; 46,659,565 and46,659,565 Class B Ordinary shares issued and outstanding as of December 31,2024 and March 31, 2025, respectively)Additional paid in capital 208,701 236,560Accumulated deficit (195,387) (198,789)Accumulated other comprehensive loss (1,432) (2,966)Total SUNCAR TECHNOLOGY GROUP INC's shareholders' equity 11,892 34,816Non-controlling interests 54,342 54,798Total shareholders' equity 66,234 89,614TOTAL LIABILITIES AND SHARESHOLDERS' EQUITY $ 246,728 $ 276,681[1]The financial statements shall be read in connection with the financial statement footnotes that are contained in theCompany's interim report for the first quarter ended March 31, 2025 on Form 6-K to be furnished voluntarily by the Companyon or around the date of this release, which form an integral part of the financial statements.SUNCAR TECHNOLOGY GROUP INCUNAUDITEDCONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS(In U.S. Dollar thousands, except for share and per share data, or otherwise noted) For the three months ended March 31, 2024 2025RevenuesAuto eInsurance service $ 33,473 $ 45,927Technology service 7,538 10,665Auto service 44,576 46,003Total revenues 85,587 102,595Operating cost and expensesIntegrated service cost (44,488) (48,422)Promotional service expenses (35,422) (44,725)Selling expenses (4,983) (6,063)General and administrative expenses (4,633) (5,420)Research and development expenses (606) (923)Total operating costs and expenses (90,132) (105,553)Operating loss (4,545) (2,958)Other expensesFinancial expenses, net (1,170) (1,029)Investment income 192 122Other income, net 337 134Total other expenses, net (641) (773)Loss before income tax expense (5,186) (3,731)Income tax benefit 199 84Net loss (4,987) (3,647)Less: Net loss attributable to non-controlling interests (1,720) (245)Net loss attributable to the Company's ordinary shareholders (3,267) (3,402)Net loss per ordinary shareBasic and diluted $ (0.04) $ (0.03)Weighted average shares outstanding used in calculating basic and diluted lossper shareBasic and diluted 89,505,058 102,432,043Other comprehensive lossForeign currency translation difference (845) (1,203)Total other comprehensive loss (845) (1,203)Total comprehensive loss (5,832) (4,850)Less: total comprehensive (loss) income attributable to non-controlling interest (2,625) 86Total comprehensive loss attributable to the SUNCAR TECHNOLOGY $ (3,207) $ (4,936)GROUP INC's shareholdersSUNCAR TECHNOLOGY GROUP INCUNAUDITEDCONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY(In U.S. Dollar thousands, except for share and per share data, or otherwise noted) Class A Ordinary Shares Class B Ordinary Shares Treasury shares Additional Accumulated Accumulated Total Suncar Non- Total paid-in deficit other Technology Group controlling shareholders' capital comprehensive Inc's shareholders' interests equity loss equity Share Amount Share Amount Share AmountBalance as of December 31, 2023 40,076,493 $ 4 49,628,565 $ 5 (200,000) $ – 144,160 $ (126,724) $ (1,367) $ 16,078 $ 51,912 $ 67,990Net loss – – – – – – – (3,267) – (3,267) (1,720) (4,987)Share-based compensation – – – – – – – – – – 374 374Foreign currency translation – – – – – – – – 60 60 (905) (845)Balance as of March 31, 2024 40,076,493 $ 4 49,628,565 $ 5 (200,000) $ – 144,160 $ (129,991) $ (1,307) $ 12,871 $ 49,661 $ 62,532Balance as of December 31, 2024 51,845,493 5 46,659,565 5 (200,000) – 208,701 (195,387) (1,432) 11,892 54,342 66,234Net loss – – – – – – – (3,402) – (3,402) (245) (3,647)Share-based compensation – – – – – – – – – – 370 370Issuance of ordinary shares, net of 7,142,858 1 – – – – 41,630 – – 41,631 – 41,631offering costsShares repurchase – – – – (2,805,067) – (13,771) (13,771) (13,771)Foreign currency translation – – – – – – – – (1,534) (1,534) 331 (1,203)Balance as of March 31, 2025 58,988,351 $ 6 46,659,565 $ 5 (3,005,067) $ – 236,560 $ (198,789) $ (2,966) $ 34,816 $ 54,798 $ 89,614SUNCAR TECHNOLOGY GROUP INCUNAUDITEDCONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(In U.S. Dollar thousands, except for share and per share data, or otherwise noted) For the three months ended March 31, 2024 2025CASH FLOWS FROM OPERATING ACTIVITIES:Net loss $ (4,987) $ (3,647)Adjustments to reconcile net loss to net cash used in operating activities:Provision for credit losses 1,291 1,130Depreciation 1,105 1,272Amortization of right-of-use assets 200 231Share-based compensation of subsidiary 374 370Loss on disposal of property, software and equipment – 3Deferred income tax benefit (312) (142)Financing expense related to issuance of GEM Warrants 151 149Changes in operating assets and liabilities:Accounts receivable 115 (8,754)Prepaid expenses and other current assets (27,437) (9,980)Accounts payable 21,823 9,766Deferred revenue 4,906 1,097Accrued expenses and other current liabilities (1,385) (504)Tax payable – (33)Operating lease liabilities (217) (157)Amount due to related parties 73 (66)Total net cash used in operating activities (4,300) (9,265)CASH FLOWS FROM INVESTING ACTIVITIESPurchase of property, software and equipment (168) (17)Proceeds from disposal of property, software and equipment – 1Purchase of short-term investment (21,059) (122)Proceeds from the redemption of short-term investment 21,362 -Purchase of other non-current assets (4,211) -Total net cash used in investing activities (4,076) (138)CASH FLOWS FROM FINANCING ACTIVITIESProceeds from short-term loan 26,417 29,535Repayments of short-term loan (27,127) (29,260)Repayments of payables to a related party – (4,998)Shares repurchase – (13,771)Proceeds from issuance of ordinary shares, net of issuance cost – 41,631Total net cash (used in) provided by financing activities (710) 23,137Effect of exchange rate changes (464) (1,427)Net change in cash and restricted cash (9,550) 12,307Cash and restricted cash, beginning of the period $ 33,595 $ 29,512Cash and restricted cash, end of the period $ 24,045 $ 41,819Reconciliation of cash and restricted cash to the unauditedcondensed consolidated balance sheets:Cash $ 21,396 $ 39,222Restricted cash $ 2,649 $ 2,597Total cash and restricted cash $ 24,045 $ 41,819Supplemental disclosures of cash flow information:Income tax paid $ 112 $ 91Interest expense paid $ 953 $ 869Supplemental disclosures of non-cash flow information:Obtaining right-of-use assets in exchange for operating lease liabilities $ 63 $ 33Prepaid financing expense related to issuance of GEM Warrants $ 1,291 $ 685

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