SunCar Technology Group Inc. (NASDAQ:SDA) shares surged Friday after the company forecast 26% nine-month revenue growth, a return to profitability, and announced a $10 million share repurchase program.
SunCar expects preliminary unaudited revenue of about $426.4 million for the first nine months of 2026, up 26% year over year.
SunCar forecasts net income of $5.8 million, compared with a $4.1 million loss in the prior-year period.
Core Businesses Drive Growth
SunCar forecasts Auto Services revenue of $185.4 million, up 22% year over year, driven by increased synergies with Auto eInsurance.
The company expects Auto eInsurance revenue to rise 32% to $197.4 million and forecasts Technology Services revenue of $43.6 million, up 19%.
SunCar said the expected result would extend its profitability streak to five consecutive quarters beginning in the third quarter of 2025.
The company maintained its full-year 2026 revenue forecast of $600 million.
CEO and Chairman Zaichang Ye said, “The Company is seeing strong growth in its core segments of Auto Services and Auto eInsurance due to the intense focus of our auto and enterprise partners on increasing the long-term value of their customers. As we’ve noted in prior quarters, we also see increasing synergies between our auto services and insurance segments.”
Buyback And Management Changes
SunCar’s board authorized a share repurchase program of up to $10 million of Class A ordinary shares. The program is expected to run for three months and will be funded with cash on hand and cash generated from operations.
The company also appointed Eric H. Zhang as chief financial officer during the third quarter. Zhang is founder and chairman of First Pacific Technology Group and previously served as manager of Oracle’s North China region.
SDA Technical Picture
SunCar Technology is showing a sharp short-term rebound within a broader bearish trend.
The stock is trading 29.9% above its 20-day simple moving average, signaling strong near-term momentum. However, the 50-day SMA remains below the 200-day SMA, keeping the longer-term trend bearish.
The RSI stands at 18.66, placing the stock in oversold territory, while MACD remains below its signal line, indicating that broader momentum has yet to turn positive.
Over the past 12 months, SunCar shares have fallen 79.94% and are positioned at just 10.6% of their 52-week range, underscoring how far the stock remains from its longer-term highs despite the latest move.
SDA Price Action: SunCar Tech shares were up 153.64% at $0.39 at the time of publication on Friday, according to Benzinga Pro data.
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