SDA Stock Forecast & Price Target

SunCar Technology Group Inc. demonstrated robust revenue growth, with Auto Service revenue reaching $52.2 million, representing a 13% year-over-year increase, and 3Q25 total revenue of $115.8 million, up 6% from the previous year. The company experienced significant profitability improvements, highlighted by a 230 basis point increase in Adjusted EBITDA margins, resulting in $4.9 million in Adjusted EBITDA, despite challenges from non-profitable dealer eliminations. Furthermore, the eInsurance segment showed impressive growth, with revenues from EV insurance policies accounting for 32.2% of total e-insurance revenue in the first half of 2025, and expectations of continued double-digit growth driven by policy renewals and an enhanced platform.

SunCar Technology Group Inc. faces a negative outlook primarily due to a significant revenue miss in its Auto E-insurance services, which reported $51.4 million against an expected $58.3 million, partially driven by strategic discontinuation of low-margin automotive services. Additionally, nearly half of this revenue shortfall originated from the Automotive Services segment, which resulted in a higher profit of $1.3 million year-over-year, despite a revenue decrease of $8.7 million, indicating underlying operational challenges. The company also contends with various downside risks, including potential regulatory pressures, competitive threats, poor economic performance in China, and a shift away from car ownership that could adversely affect demand for its services.