Business Context and Reporting Period
SunCar Technology Group Inc. is a Cayman Islands holding company operating primarily in China through businesses providing auto eInsurance services, technology services and auto services. This Form 6-K, filed September 22, 2026, furnishes unaudited condensed consolidated financial statements for the six months ended June 30, 2026, with comparison to the six months ended June 30, 2025. Balance sheet comparisons are to December 31, 2025. Amounts are in U.S. dollars thousands unless otherwise stated.
Key Financial Metrics
| Metric | Six months ended June 30, 2025 | Six months ended June 30, 2026 | Change |
|---|---|---|---|
| Total revenue | $222.3 million | $276.5 million | +24% |
| Auto eInsurance revenue | $97.8 million | $126.2 million | +29% |
| Technology service revenue | $24.3 million | $28.0 million | +15% |
| Auto service revenue | $100.1 million | $122.3 million | +22% |
| Operating income/(loss) | $(1.2) million | $6.3 million | Improved by $7.5 million |
| Net income/(loss) | $(5.5) million | $3.4 million | Improved by $8.9 million |
| Net income/(loss) attributable to Company shareholders | $(7.4) million | $(0.2) million | Near breakeven |
| Adjusted EBITDA | $2.5 million | $9.4 million | +269% |
| Net income margin | (2.5%) | 1.2% | Improved |
| Adjusted EBITDA margin | 1.1% | 3.4% | Improved |
| Net cash from operating activities | $(9.3) million | $0.7 million | Improved by $10.0 million |
Operating costs and expenses increased 21% to $270.2 million. Integrated service costs rose 39% to $141.3 million and promotional service expenses rose 21% to $114.0 million, partly offset by 49% and 56% reductions in selling and general and administrative expenses, respectively. Research and development expense increased 44% to $2.5 million.
At June 30, 2026, total assets were $266.5 million, total liabilities were $170.3 million and total shareholders’ equity was $96.2 million. Cash was $16.8 million, restricted cash was $3.1 million and short-term investments were $22.1 million. Accounts receivable, net, was $56.3 million, supported by an allowance for credit losses of $26.9 million.
Total borrowings were approximately $81.9 million, consisting primarily of $80.5 million of short-term borrowings and $1.4 million of long-term borrowings. Short-term borrowings largely mature between September 2026 and June 2027 and carry stated annual interest rates generally ranging from approximately 2.5% to 4.9%. Related-party amounts payable totaled $20.4 million, including $12.9 million classified as non-current.
Net cash used in investing activities was $5.6 million, primarily for cloud infrastructure and artificial intelligence platform development. Net cash used in financing activities was $4.0 million, reflecting $53.5 million of loan repayments, $51.1 million of new short-term borrowings and $1.6 million of GEM litigation payments. Cash and restricted cash declined $8.0 million to $19.9 million during the first half of 2026.
Material Changes Versus the Prior Comparable Period
- Revenue growth was led by auto eInsurance, reflecting increased EV insurance policy sales and renewals and additional non-auto insurance policies. EV insurance premiums facilitated increased 31.3% to $915.9 million, while related EV insurance service revenue increased 22.7% to $38.6 million.
- The Company moved from a $1.2 million operating loss to $6.3 million of operating income and from a $5.5 million consolidated net loss to $3.4 million of net income.
- Net loss attributable to Company ordinary shareholders narrowed to $0.2 million from $7.4 million, although the Company remained slightly loss-making on an attributable basis.
- Operating cash flow turned positive, primarily due to higher accounts payable and improved accounts receivable collections, partially offset by a $17.8 million increase in prepaid expenses and other current assets, including supplier advances.
- Construction in progress increased to $27.7 million from zero, reflecting reclassification of cloud infrastructure and artificial intelligence platform development costs from other non-current assets. The reclassification did not affect total assets, income or equity.
- The Company repurchased no shares in the first half of 2026, compared with $15.8 million of share repurchases in the first half of 2025.
- The $2.8 million GEM litigation accrual recorded in the first half of 2025 was absent in 2026; the related $1.6 million payment was made in 2026 and the liability was fully paid by June 30, 2026.
Guidance, Outlook, Risks and Unusual Items
Management provided no formal numerical revenue or earnings guidance. Management expects operating efficiency and economies of scale to improve as the business expands, plans continued investment in cloud, AI, big data and robotic process automation capabilities, and expects research and development spending to remain significant. Management believes cash on hand, short-term investments and operating cash resources will satisfy current anticipated needs for at least the next 12 months, but notes that additional equity or debt financing may be required for investments, acquisitions or capital expenditures.
- Capital commitments for cloud infrastructure and AI platforms totaled $29.3 million as of June 30, 2026 and were expected to be paid within one year. The MD&A includes an apparent unit inconsistency describing this amount as “$29,295 million”; the notes and contractual-obligations table indicate approximately $29.3 million.
- Subsequent to June 30, 2026, the Group entered into new short-term borrowings with aggregate principal of RMB135 million, bearing annual interest rates of 2.85% to 4.00% and maturing in 2027.
- The Company’s board approved an additional 5 million Class A shares for its equity incentive plan, increasing the reserve from 8.8 million to 13.8 million shares. A related Form S-8 was filed September 1, 2026, creating potential dilution.
- The Yongyuan dispute remains unresolved. The Company reported that its direct interest in SunCar Online may have been reduced to approximately 47.83%, but concerted-action arrangements allegedly preserve effective control through aggregate ownership of approximately 50.88%. The judgment had not been enforced as of the financial statement issuance date.
- In the Lianchuang dispute, a court ruled on August 17, 2026 that Shanghai Zanxing and Jiachen were jointly and severally liable for obligations related to Shengda Group, involving approximately RMB36.9 million plus interest. A challenge to enforcement remained pending as of the issuance date. Management does not expect a material financial statement impact, but the outcome remains uncertain.
- Revenue concentration increased: two customers represented 26% and 17% of first-half 2026 revenue. The Company also relies on major suppliers and service providers, and accounts receivable and collections remain material risks.
- The auto eInsurance business is subject to extensive PRC regulation, including commission rates, insurance premiums and agency operations. Changes in regulation could reduce revenue or profitability.
- Substantially all future revenue is expected to be denominated in RMB, creating foreign exchange and PRC currency-conversion risks. Cash is primarily held in RMB at banks in China.
- The Company had 9.6 million warrants outstanding as of June 30, 2026, exercisable for approximately 6.7 million Class A ordinary shares at a weighted-average exercise price of $10.49 per share, with a weighted-average remaining contractual life of 2.06 years.
Most Important Facts for Investors to Verify
- Whether the first-half profitability and Adjusted EBITDA improvement are sustainable after excluding cost reductions, credit-loss movements and other non-recurring items.
- The repayment, refinancing and guarantee status of approximately $80.5 million of short-term borrowings, including maturities beginning in September 2026.
- The recoverability and timing of $89.7 million of supplier advances and the $29.3 million of committed cloud and AI investment expenditures.
- The potential financial, ownership and control consequences of the Yongyuan and Lianchuang disputes.
- The collectability of $56.3 million of net accounts receivable and the adequacy of the $26.9 million credit-loss allowance.
- The extent of dilution from outstanding warrants and the additional 5 million shares reserved under the amended equity incentive plan.
- The basis for management’s liquidity assessment given the $8.0 million first-half decline in cash and restricted cash, substantial near-term debt maturities and planned capital commitments.