SunCar Technology Group Inc. (NASDAQ: SDA) reported a net income of $1.4 million for the third quarter ended September 30 2025, the first profitable quarter for the company since its pivot to a profitability‑centric strategy. Revenue rose 6% year‑over‑year to $115.8 million, while adjusted EBITDA jumped 128% to $4.9 million, reflecting a sharp improvement in operating leverage.
The earnings were driven by a 13% increase in the auto‑insurance segment, the core of SunCar’s AI‑powered platform, and a 8% rise in technology services revenue. The company’s ongoing integration of ByteDance’s Doubao large‑language model has sharpened underwriting accuracy and customer service, while expanding partnerships with Tesla, NIO, XPeng and Li Auto have broadened the customer base and increased cross‑sell opportunities.
Margin expansion was largely a result of disciplined cost control and the scalability of the AI platform. The company’s focus on high‑margin insurance contracts and the efficient deployment of the Doubao LLM have reduced per‑policy acquisition costs, allowing the firm to convert revenue growth into a substantial EBITDA lift.
CEO Zaichang Ye highlighted the milestone, noting that the results “underscore a scalable profit model” and that the deepening relationships with EV manufacturers “continue to drive both growth and value creation.” He emphasized that the company’s AI‑co‑development efforts with leading EV makers are a key differentiator in China’s competitive digital auto‑services market.
SunCar’s first profitable quarter signals a successful transition from a growth‑at‑all‑costs approach to a sustainable, cash‑generating model. While the company faces ongoing headwinds from intense competition in the Chinese digital auto‑services space, the tailwinds of rapid EV adoption and growing demand for AI‑driven insurance solutions position SunCar to maintain momentum. Investors will likely view the earnings as a positive indicator of the company’s strategic execution and its ability to scale profitability.
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