Earnings quality remains poor, evidenced by the 2026Q1 period where the company reported $728.0K in net income but suffered a $7.9M cash outflow, highlighting a persistent inability to convert accounting profits into liquidity.
| Cash from Operations | 7.05M | 5.72M | 11.84M | -27.65M | -16.14M | -25.57M | 18.63M | -28.21K |
| Operating CF Margin % | - | 1.17% | 2.68% | -7.6% | -5.72% | -10.26% | 7.8% | - |
| Operating CF Growth % | 24.84% | -51.72% | 142.82% | -71.28% | 36.86% | -237.22% | 66135.8% | - |
| Net Income | -2.97M | -2.4M | -64.45M | -26.91M | -10.9M | 0 | 6.62M | -34.63K |
| Depreciation & Amortization | 7.17M | 6.93M | 5.28M | 4.87M | 5.7M | 0 | 0 | 0 |
| Stock-Based Compensation | 628K | 998K | 63.53M | 1.52M | 1.6M | 1.67M | 520K | 0 |
| Deferred Taxes | -79K | -1.01M | 1.24M | 701K | -1.95M | -5.72M | -2.33M | 0 |
| Other Non-Cash Items | 16.18M | 6.61M | 2.21M | 15.98M | 25.93M | 25.35M | 8.79M | 0 |
| Working Capital Changes | -14.4M | -5.42M | 4.04M | -23.8M | -36.51M | -46.87M | 5.04M | 6.41K |
| Change in Receivables | 40M | 14.94M | -22.71M | 30.82M | -32.64M | -35.07M | 0 | 0 |
| Change in Inventory | 0 | 0 | 0 | 0 | 32.64M | 0 | 0 | 0 |
| Change in Payables | -30.88M | -17.41M | 31.34M | 3.14M | -5.02M | 0 | 53K | 0 |
| Cash from Investing | -15.53M | -12.9M | -12.15M | -2.39M | -5.92M | -20.68M | -29.16M | 0 |
| Capital Expenditures | -382K | -380K | -588K | -4.93M | -4.35M | -1.28M | -9.49M | 0 |
| CapEx % of Revenue | 0.07% | 0.08% | 0.13% | 1.35% | 1.54% | 0.52% | 3.97% | - |
| Acquisitions | -2.28M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - |
| Other Investing | -9.19M | -8.79M | -11.58M | -1.67M | -1.72M | -19.4M | -9.29M | 0 |
| Cash from Financing | -20.08M | 4.37M | -2.95M | 40.43M | 10.64M | -66K | 43.88M | 104.53K |
| Debt Issued (Net) | -4.98M | -5.25M | 2.88M | 10.54M | 11.15M | 0 | 0 | 0 |
| Equity Issued (Net) | -1.99M | 25.87M | 0 | -2M | 0 | 0 | 59.16M | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -1.99M | -15.76M | 0 | -2M | 0 | 0 | 0 | 0 |
| Other Financing | -13.11M | -16.25M | -5.83M | 31.9M | -510K | -66K | -15.29M | 104.53K |
| Net Change in Cash | -25.27M | -1.65M | -4.08M | 9.68M | -14M | -45.06M | 678.12K | 76.32K |
| Free Cash Flow | 6.66M | 5.34M | 11.25M | -32.58M | -20.5M | -1.3M | 9.14M | -28.21K |
| FCF Margin % | 1.29% | 1.09% | 2.55% | -8.96% | -7.26% | -0.52% | 3.83% | - |
| FCF Growth % | 95.65% | -52.57% | 134.54% | -58.96% | -1472.51% | -114.25% | 32508.29% | - |
| FCF per Share | 0.07 | 0.05 | 0.12 | -0.38 | -0.25 | -0.02 | 0.04 | -0.00 |
| FCF Conversion (FCF/Net Income) | -2.24x | -1.45x | -0.17x | 1.03x | 2.42x | 1.08x | -1.43x | 0.81x |
| Interest Paid | 3.52M | 3.5M | 3.67M | 3.67M | 3.78M | 0 | 0 | 0 |
| Taxes Paid | 1.08M | 1.31M | 1.47M | 2.58M | 2.46M | 0 | 0 | 0 |
Working capital liquidity crunch
Based on quarterly filings, SunCar's operating cash flow frequently diverges from net income, as evidenced by the 2026Q1 period where the company reported $728.0K in net income but suffered a $7.9M cash outflow, highlighting a persistent inability to convert accounting profits into actual liquidity.
The significant gap between net income and operating cash flow suggests that reported earnings may be heavily influenced by non-cash items or aggressive accrual accounting. Investors should monitor whether this disconnect stems from delayed collections from institutional partners, which would imply that the company's profitability is largely theoretical rather than cash-generative.
As reported in financial statements, SunCar's free cash flow trajectory is characterized by extreme swings, ranging from a $16.7M inflow in 2025Q4 to a $9.3M outflow in 2025Q1, indicating that the business model lacks the predictable cash generation required to sustain long-term operational independence.
The erratic nature of free cash flow suggests that the company's cash position is highly sensitive to the timing of large-scale service fulfillment and institutional payment cycles. This instability makes it difficult to rely on internal cash generation for growth, potentially forcing the company to seek external financing.
According to recent SEC filings, working capital changes are the primary determinant of SunCar's cash position, with a massive $15.7M inflow in 2025Q4 followed by a $9.8M outflow in 2026Q1, underscoring the company's extreme vulnerability to fluctuations in accounts receivable and payable management.
The high sensitivity of cash flow to working capital movements suggests that SunCar is effectively acting as a bridge for its institutional partners' payment schedules. This reliance on timing creates a precarious liquidity profile where minor delays in collections could lead to immediate cash shortages.
Based on reported figures, SunCar has engaged in share repurchases, such as the $13.8M outflow in 2025Q1, despite operating with negative cash flows, which warrants further investigation into the strategic rationale for returning capital while the core business remains unable to self-fund its own operations.
The decision to prioritize share repurchases during periods of negative cash flow appears counterintuitive and may signal a management focus on supporting equity valuation over strengthening the balance sheet. This approach risks depleting the company's limited cash reserves, leaving it with less flexibility to navigate potential market downturns.
Data from the last ten quarters reveals that stock-based compensation, including a $31.4M charge in 2024Q2, significantly obscures the true cash cost of operations, suggesting that the company's reported cash flow metrics may be flattered by non-cash equity-based incentives that do not reflect actual operational efficiency.
The heavy reliance on stock-based compensation as a substitute for cash-based operational expenses suggests that the company is attempting to preserve liquidity at the cost of shareholder dilution. Analysts should adjust cash flow models to account for these non-cash charges to better understand the underlying burn rate of the business.
Quick answers to the most common questions about buying SDA stock.
SunCar Technology Group Inc. (SDA) generated $5.7M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
SunCar Technology Group Inc. (SDA) generated $5.3M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
SunCar Technology Group Inc. (SDA) spent $0.4M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, SunCar Technology Group Inc. (SDA) spent $15.8M on share repurchases. This shows the company's commitment to returning capital to its equity investors.