Suncar Technology Group Inc. (SDA.US), a leader in AI-driven automotive insurance and services in China, has released its financial results for the first quarter ended March 31, 2026. The report demonstrates sustained profitability for the third consecutive quarter, with robust growth across key metrics including revenue, new energy vehicle insurance, and technical services. The company's cost structure continues to optimize. Suncar Technology has reaffirmed its full-year revenue guidance of $600 million, signaling strong momentum for high-quality growth.
The company's core financial performance was notably strong in Q1 2026, with a significant improvement in profitability. Total revenue reached $131.2 million, a 28% increase year-over-year. Net income was $1.6 million, a reversal from a net loss of $3.6 million in the same period last year. Adjusted EBITDA stood at $4.5 million, compared to -$1.3 million a year ago. The adjusted EBITDA margin improved substantially to 3.4% from -1.3%, indicating enhanced operational efficiency.
All business segments exhibited balanced and vigorous growth. Auto e-insurance revenue grew 36% YoY to $62.3 million. Technical service revenue surged 43% YoY to $15.3 million, reflecting accelerating AI commercialization. Automotive service revenue increased 16% YoY to $53.5 million, driven by continued expansion in government and enterprise premium mobility services. Effective cost control led to significant reductions in sales and administrative expenses, while R&D investment rose steadily to $1.2 million, strengthening the foundation for technological innovation.
The New Energy Vehicle business, a core growth engine, delivered outstanding performance. In Q1 2026, new energy vehicle insurance premiums reached $514.4 million, a substantial 43% increase year-over-year. Related insurance revenue for NEVs grew 37% YoY to $22.6 million, indicating an expanding market share. The company is deepening its collaboration with Tesla to implement an integrated "insurance + service" rights platform. Furthermore, the successful launch of a customer service system on the Xiaomi cloud platform validated the flexibility of its CRM system. The company has completed a full-process digital transformation for Leapmotor, achieving 100% SaaS-based transactions. Suncar Technology was also selected as the exclusive insurance service provider for Huawei's retail stores, with 20 stores connected in Q1. A partnership with Dadi Insurance aims to enhance customer acquisition and product development capabilities.
The automotive service business achieved multiple breakthroughs, securing numerous contracts with major government and corporate clients. Notably, the company signed a three-year, $50 million dedicated car service contract with Agricultural Bank of China and a three-year, $13 million contract with China Minsheng Bank. It was selected as a comprehensive transportation service provider for Industrial and Commercial Bank of China's airport/high-speed rail travel project and became the exclusive provider for Huaxing Bank. Partnerships with financial institutions like Ping An Insurance and Pacific Insurance provide value-added services, enhancing brand recognition.
Suncar Technology continues to deepen its AI strategic partnership with ByteDance's Doubao, integrating technology across its business chain. Leveraging Doubao's large model, the company has launched core functions such as predictive maintenance and intelligent policy pricing. AI technology optimizes insurance risk control and service dispatch efficiency. The 43% growth in technical service revenue underscores the successful commercialization of AI, building a differentiated competitive barrier.
The company reaffirmed its full-year 2026 revenue guidance of $600 million, expressing confidence in the expansion of new energy vehicle insurance, the scaling of government/enterprise services, and AI product commercialization. Ye Zaichang, Chairman and CEO of Suncar Technology, stated, "Achieving profitability for three consecutive quarters and 28% year-over-year revenue growth in Q1 2026 is the result of strategic focus, technological innovation, and ecosystem collaboration. The rapid growth of new energy vehicle insurance, continuous landing of major corporate clients, and deep AI empowerment lay a solid foundation for our high-quality development. We will continue to deepen our presence in automotive insurance and premium mobility services, strengthen ecosystem partnerships, and enhance our technological moat to create long-term value for partners and shareholders."