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SunCar Technology Group (SDA)
NASDAQ:SDA
US Market
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SunCar Technology Group (SDA) AI Stock Analysis

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SDA

SunCar Technology Group

(NASDAQ:SDA)

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Neutral 45 (OpenAI - Gpt-5.6Sol)
Rating:45Neutral
Price Target:
$0.44
▼(-39.58% Downside)
Action:Reiterated
Date:09/24/26
The score is held down mainly by weak technicals (price below all major moving averages and negative MACD) and a still-stressed balance sheet with high leverage. Offsetting these, financial results show a recovery with positive TTM earnings and improved free cash flow, while valuation appears moderate based on the P/E.
Positive Factors
Revenue growth
Revenue has continued to scale, reaching 543.5M on a trailing-twelve-month basis from 489.3M in 2025. This growth indicates expanding business activity and provides a broader base from which SunCar can improve operating efficiency and build more durable earnings power.
Negative Factors
Compressed gross margin
The sharp reduction in gross margin shows that revenue growth is currently converting into only limited gross profit. Unless margins recover, SunCar has less capacity to absorb operating costs, invest in expansion and translate higher sales into durable shareholder returns.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue growth
Revenue has continued to scale, reaching 543.5M on a trailing-twelve-month basis from 489.3M in 2025. This growth indicates expanding business activity and provides a broader base from which SunCar can improve operating efficiency and build more durable earnings power.
Read all positive factors

SunCar Technology Group (SDA) vs. SPDR S&P 500 ETF (SPY)

SunCar Technology Group Business Overview & Revenue Model

Company Description
SunCar Technology Group Inc. (SDA) is a Chinese enterprise that, through its subsidiaries, delivers integrated digital solutions for automotive after-sales support and online insurance brokerage. Its comprehensive operations are divided into three...
How the Company Makes Money
SunCar Technology Group makes money primarily through (1) distributing automotive insurance and earning commissions and service fees from insurers and customers when policies are sold/renewed, and (2) providing related vehicle ownership services a...

SunCar Technology Group Earnings Call Summary

Earnings Call Date:Apr 28, 2025
(Q4-2024)
|
% Change Since: |
Next Earnings Date:Dec 17, 2026
Earnings Call Sentiment Positive
The earnings call highlighted significant revenue growth and strategic partnerships, particularly in the auto insurance and technology services segments, driven by strong market demand and product innovation. However, the increase in operating costs, particularly due to share-based compensation, presents a challenge. Overall, the achievements in revenue and partnerships outweigh the cost challenges.
Positive Updates
Record Revenue and Growth
SunCar reported a total revenue of $441.9 million for the full year 2024, marking a 21.5% increase from 2023. Adjusted EBITDA increased by 492% to $9.8 million from $1.6 million in 2023.
Negative Updates
Increased Operating Costs and Expenses
Operating costs rose to $500.3 million from $379.2 million in 2023, with significant increases in general and administrative expenses and R&D expenses.
Read all updates
Q4-2024 Updates
Negative
Record Revenue and Growth
SunCar reported a total revenue of $441.9 million for the full year 2024, marking a 21.5% increase from 2023. Adjusted EBITDA increased by 492% to $9.8 million from $1.6 million in 2023.
Read all positive updates
Company Guidance
During SunCar Technologies' full year 2024 earnings call, the company highlighted several key metrics demonstrating its robust performance and strategic direction. SunCar reported a total revenue of $441.9 million for 2024, marking a 21.5% increase from $363.7 million in 2023, with a notable 44.4% rise in auto insurance revenue to $170.5 million. The company's technology services revenue surged by 46.4% to $44.9 million, and auto services revenue grew by 5.3% to $226.5 million. Despite increased operating costs and expenses totaling $500.3 million, SunCar achieved an impressive 492% growth in adjusted EBITDA to $9.8 million. This growth underscores the effectiveness of SunCar's partnerships and its strategic focus on digitalization in China's automotive market. Looking ahead, SunCar plans to issue guidance with its first-quarter 2025 earnings release, contingent on market conditions and board approval.

SunCar Technology Group Financial Statement Overview

Summary
Operations are improving (TTM revenue up and net income turned positive; operating cash flow and free cash flow are positive), but profitability remains thin and unstable with a materially compressed gross margin (~2.5% TTM vs ~10–18% historically). The balance sheet is a key constraint, with elevated leverage (debt-to-equity ~2.6x) and a relatively small equity base.
Income Statement
46
Neutral
Balance Sheet
34
Negative
Cash Flow
63
Positive
BreakdownTTMMar 2026Dec 2024Mar 2024Mar 2023Dec 2021
Income Statement
Total Revenue543.49M489.29M441.90M363.75M282.41M249.24M
Gross Profit65.09M50.74M51.46M41.69M50.12M37.16M
EBITDA18.67M9.12M-51.79M-5.70M-1.32M14.41M
Net Income3.24M-3.94M-68.66M-26.91M-6.67M-23.72M
Balance Sheet
Total Assets281.65M253.20M246.73M223.24M191.97M58.87M
Cash, Cash Equivalents and Short-Term Investments42.02M46.62M47.85M52.45M47.74M110.64K
Total Debt83.73M83.99M84.16M84.28M74.97M575.00K
Total Liabilities185.47M162.51M180.49M155.25M155.19M3.52M
Stockholders Equity32.39M32.55M11.89M16.08M-5.28M55.35M
Cash Flow
Free Cash Flow15.29M5.34M11.25M-32.58M-20.50M-1.30M
Operating Cash Flow15.70M5.72M11.84M-27.65M-16.14M-19.33K
Investing Cash Flow-10.93M-12.90M-12.15M-2.39M-5.92M-20.68M
Financing Cash Flow-13.59M4.37M-2.95M40.43M10.64M-66.00K

SunCar Technology Group Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.72
Price Trends
50DMA
0.68
Negative
100DMA
0.78
Negative
200DMA
1.34
Negative
Market Momentum
MACD
-0.06
Negative
RSI
41.82
Neutral
STOCH
35.38
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SDA, the sentiment is Negative. The current price of 0.72 is above the 20-day moving average (MA) of 0.56, above the 50-day MA of 0.68, and below the 200-day MA of 1.34, indicating a bearish trend. The MACD of -0.06 indicates Negative momentum. The RSI at 41.82 is Neutral, neither overbought nor oversold. The STOCH value of 35.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SDA.

SunCar Technology Group Risk Analysis

SunCar Technology Group disclosed 29 risk factors in its most recent earnings report. SunCar Technology Group reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

SunCar Technology Group Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
49
Neutral
$50.56M-0.87-51.30%―100.60%69.18%
47
Neutral
$236.41M-36.00-5.06%―-1.27%92.69%
45
Neutral
$53.45M16.0710.20%―17.86%―
45
Neutral
$288.17M-5.8673.63%―97.00%-42.04%
44
Neutral
$8.84M-0.04-42.60%―-21.59%-1589.52%
39
Underperform
$64.30M>-0.01-237.27%―637.89%98.96%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SDA
SunCar Technology Group
0.52
-1.95
-78.79%
CRMT
America's Car-Mart
1.06
-28.33
-96.39%
RDNW
RideNow Group
6.06
1.50
32.89%
KXIN
Kaixin Auto Holdings
1.42
-319.93
-99.56%
UXIN
Uxin
1.31
-2.17
-62.36%
VRM
Vroom, Inc.
9.66
-16.99
-63.75%

SunCar Technology Group Corporate Events

SunCar Technology Group Revamps Financial Leadership and Board Independence in September 2026
Sep 22, 2026
SunCar Technology Group Inc., a Cayman Islands–registered company based in Shanghai, operates in the automotive technology and services space, offering digital platforms that support car-related and mobility services. Its structure as a fore...
SunCar Technology Group Files Unaudited Mid‑2026 Financials Showing Higher Assets and Elevated Leverage
Sep 22, 2026
SunCar Technology Group Inc. has filed its unaudited condensed consolidated financial statements for the six months ended June 30, 2026, with the U.S. Securities and Exchange Commission under Form 6-K for September 2026. The filing shows total ass...
SunCar Technology Group Warned by Nasdaq Over Minimum Bid Price Non-Compliance
Jul 30, 2026
On July 27, 2026, SunCar Technology Group received a notification from Nasdaq that its Class A ordinary shares had failed to meet the $1.00 minimum bid price requirement from June 10 through July 24, 2026, triggering a compliance deficiency. The n...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Sep 24, 2026