IRVINE, Calif. –SBC Medical Group Holdings Incorporated (Nasdaq: SBC) (“SBC Medical” or the “Company”), a Medical Services Organization providing management support across a wide range of healthcare fields, today announced its financial results for the three months ended March 31, 2026.
First Quarter 2026 Highlights
- Total revenues were $43 million, representing a 9% year-over-year decrease.
- Net income attributable to SBC Medical Group Holdings Incorporated was $11 million, representing a 47% year-over-year decrease. Net income margin was 26% for the first quarter of 2026, representing a year-over-year decrease of 19 percentage points.
- Earnings per share, which is defined as net income attributable to the Company divided by the weighted average number of outstanding shares, was $0.11 for the three months ended March 31, 2026, representing a 48% year-over-year decrease.
- EBITDA1, which is calculated by adding depreciation and amortization expense to income from operations was $18 million, representing a 26% year-over-year decrease. EBITDA margin1 was 43% for the first quarter of 2026, representing a year-over-year decrease of 10 percentage points.
- Return on equity2, which is defined as net income attributable to the Company divided by the average shareholders’ equity as of March 31, 2026, was 18% representing a year-over-year decrease of 23 percentage points.
- Number of franchise locations3 was 284 as of March 31, 2026, representing an increase of 33 locations from March 31, 2025.
- Number of customers4 in the last twelve months ended March 31, 2026, was 6.76 million, representing a 10% year-over-year increase.
- Repeat rate for customers5 who visited franchisee’s clinics twice or more was 72%.
Yoshiyuki Aikawa, Chairman and Chief Executive Officer of SBC Medical, said, “For the first quarter of fiscal year 2026, SBC Medical reported revenue of $43 million, representing a 9% year-over-year decline. This decrease was primarily attributable to a strategic structural reform implemented in April 2025, involving a revision of the franchise fee structure. Excluding this structural change, the performance of our core business remained solid. In terms of profitability, our net income margin was 26%, and our EBITDA margin remained at a high level of 43%.
Looking ahead, we will continue to promote our multi-brand strategy in the aesthetic dermatology field, expand our non-aesthetic medical business, and strengthen our operational foundation in overseas markets. In addition, we will pursue opportunities in the longevity market and further enhance our services through the utilization of AI, with the goal of building a sustainable and continuously growing healthcare platform.”
1 EBITDA and EBITDA margin are non-GAAP financial measures. For more information on non-GAAP financial measures, please see the section “Use of Non-GAAP Financial Measures” and the table captioned “Unaudited Reconciliations of GAAP and Non-GAAP Results.”
2 Return on equity is presented on an annualized basis.
3 The figure includes locations of the franchising of SBC brand clinics, Rize Clinic, Gorilla Clinic, AHH Clinic, JUN CLINIC, OrangeTwist.
4 The customer count includes customers of SBC brand clinics, Rize Clinic, Gorilla Clinic, AHH Clinic, and JUN CLINIC. The applicable periods are from April 1, 2025 to March 31, 2026.
5 The figures include franchised SBC brand clinics, Rize Clinic, Gorilla Clinic, AHH Clinic, and JUN Clinic, excluding free counseling. The percentages represent customers who visited our franchisees’ clinics twice or more. Please note that the unique counts and repeat rates for AHH clinics and JUN clinics are estimated based on the ratios of SBC brand clinics, Rize clinics, and Gorilla clinics.
Conference Call
The Company will hold a conference call on Thursday, May 14, 2026, at 8:30 a.m. Eastern Time (or Thursday, May 14, 2026, at 9:30 p.m. Japan Time) to discuss the financial results for the first quarter ended March 31, 2026. A question‑and‑answer session with analysts and investors will follow the prepared remarks.
Please register in advance of the conference using the link provided below.
https://zoom.us/webinar/register/WN_6RZgrwsUREiRpAmBBGTikA
It will automatically direct you to the registration page of “ 1Q 2026 Earning Call ”. Please follow the steps to enter your registration details, then click “Submit.”. Upon registration, you will be able to access the dedicated Conference Call viewing site. In addition to viewing the conference call, this site provides access to information about the speakers as well as past investor relations materials.
Additionally, the earnings release, accompanying slides, and an archived webcast of this conference call will be available at the Company’s Investor Relations website at https://demo9.limegoat.com/
About SBC Medical
SBC Medical Group Holdings Incorporated is a Medical Services Organization providing management support across a wide range of healthcare fields, including advanced aesthetic healthcare, dermatology, orthopedics, fertility treatment, gynecology, dentistry, alopecia treatment (AGA), and ophthalmology. The Company manages a diverse portfolio of clinic brands and is actively expanding its global presence, particularly in the United States and Asia, through both direct operations and medical tourism initiatives. In September 2024, the Company was listed on Nasdaq, and in June 2025, it was selected for inclusion in the Russell 3000® Index, a broad benchmark of the U.S. equity market. Guided by its Group Purpose “Contributing to the well-being of people around the world through medical innovation,” SBC Medical Group Holdings Incorporated continues to provide safe, trusted, and high-quality medical services while further strengthening its international reputation for quality and trust in medical care.
For more information, visit https://sbc-holdings.com/en
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Use of Non-GAAP Financial Measures
The Company uses non-GAAP measures, such as EBITDA and EBITDA margin, in evaluating its operating results and for financial and operational decision-making purposes. The Company believes that the non-GAAP financial measures help identify underlying trends in its business. The Company believes that the non-GAAP financial measures provide useful information about the Company’s results of operations, enhance the overall understanding of the Company’s past performance and future prospects and allow for greater visibility with respect to key metrics used by the Company’s management in its financial and operational decision-making.
The non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. The non-GAAP financial measures have limitations as analytical tools, and when assessing the Company’s operating performance, cash flows or liquidity, investors should not consider them in isolation, or as a substitute for net income (loss), net income margin, cash flows provided by operating activities, or other consolidated statements of operations and cash flows data prepared in accordance with U.S. GAAP.
The Company mitigates these limitations by reconciling the non-GAAP financial measures to the most comparable U.S. GAAP performance measures, all of which should be considered when evaluating the Company’s performance.
For more information on the non-GAAP financial measures, please see the table captioned “Unaudited Reconciliations of GAAP and Non-GAAP Results.”
Forward-Looking Statements
This press release contains forward-looking statements. Forward-looking statements are not historical facts or statements of current conditions, but instead represent only the Company’s beliefs regarding future events and performance, many of which, by their nature, are inherently uncertain and outside of the Company’s control. These forward-looking statements reflect the Company’s current views with respect to, among other things, the Company’s financial performance; growth in revenue and earnings; business prospects and opportunities; and capital deployment plans and liquidity. In some cases, forward-looking statements can be identified by the use of words such as “may,” “should,” “expects,” “anticipates,” “contemplates,” “estimates,” “believes,” “plans,” “projected,” “predicts,” “potential,” or “hopes” or the negative of these or similar terms. The Company cautions readers not to place undue reliance upon any forward-looking statements, which are current only as of the date of this release and are subject to various risks, uncertainties, assumptions, or changes in circumstances that are difficult to predict or quantify. The forward-looking statements are based on management’s current expectations and are not guarantees of future performance. The Company does not undertake or accept any obligation to release publicly any updates or revisions to any forward-looking statements to reflect any change in its expectations or any change in events, conditions, or circumstances on which any such statement is based, except as required by law. Factors that may cause actual results to differ materially from current expectations may emerge from time to time, and it is not possible for the Company to predict all of them; such factors include, among other things, changes in global, regional, or local economic, business, competitive, market and regulatory conditions, and those listed under the heading “Risk Factors” and elsewhere in the Company’s filings with the U.S. Securities and Exchange Commission (the “SEC”), which are accessible on the SEC’s website at www.sec.gov.
SBC MEDICAL GROUP HOLDINGS INCORPORATED
UNAUDITED CONSOLIDATED BALANCE SHEETS
| March 31, 2026 |
December 31, 2025 |
|||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 167,305,095 | $ | 163,773,838 | ||||
| Accounts receivable | 2,980,193 | 2,388,021 | ||||||
| Accounts receivable – related parties | 33,784,532 | 27,511,730 | ||||||
| Inventories | 2,323,880 | 2,792,617 | ||||||
| Short-term investments – related parties | 313,865 | 319,193 | ||||||
| Finance lease receivables, current – related parties | 13,326,150 | 12,832,355 | ||||||
| Income tax recoverable | 1,173,913 | 1,175,510 | ||||||
| Customer loans receivable, current | 6,659,837 | 8,705,999 | ||||||
| Prepaid expenses and other current assets | 10,912,717 | 11,724,852 | ||||||
| Total current assets | 238,780,182 | 231,224,115 | ||||||
| Non-current assets: | ||||||||
| Property and equipment, net | 7,287,369 | 7,539,392 | ||||||
| Intangible assets, net | 47,152,285 | 47,742,888 | ||||||
| Long-term investments, net | 1,198,583 | 1,299,366 | ||||||
| Equity method investments | 20,312,642 | 20,312,642 | ||||||
| Goodwill, net | 15,398,049 | 15,432,061 | ||||||
| Finance lease receivables, non-current – related parties | 12,548,800 | 13,746,513 | ||||||
| Operating lease right-of-use assets | 11,084,198 | 8,366,569 | ||||||
| Finance lease right-of-use assets | 392,118 | 450,874 | ||||||
| Deferred tax assets | 4,975,629 | 4,014,294 | ||||||
| Customer loans receivable, non-current | 3,454,969 | 4,824,977 | ||||||
| Long-term prepayments | 705,430 | 393,270 | ||||||
| Long-term investments in MCs – related parties | 17,539,564 | 17,837,293 | ||||||
| Other assets | 7,189,758 | 7,263,692 | ||||||
| Total non-current assets | 149,239,394 | 149,223,831 | ||||||
| Total assets | $ | 388,019,576 | $ | 380,447,946 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 19,168,072 | $ | 16,988,384 | ||||
| Accounts payable – related parties | 527,624 | 651,463 | ||||||
| Bank and other borrowings, current | 8,987,118 | 9,099,046 | ||||||
| Advances from customers | 1,011,249 | 1,415,762 | ||||||
| Advances from customers – related parties | 4,217,057 | 5,357,221 | ||||||
| Income tax payable | 8,450,440 | 8,821,853 | ||||||
| Operating lease liabilities, current | 5,521,371 | 4,416,960 | ||||||
| Finance lease liabilities, current | 118,297 | 132,946 | ||||||
| Accrued liabilities and other current liabilities | 11,896,371 | 11,544,695 | ||||||
| Due to related party | 2,670,016 | 2,692,673 | ||||||
| Total current liabilities | 62,567,615 | 61,121,003 | ||||||
| Non-current liabilities: | ||||||||
| Bank and other borrowings, non-current | 31,447,900 | 33,734,438 | ||||||
| Deferred tax liabilities | 16,215,816 | 16,374,832 | ||||||
| Operating lease liabilities, non-current | 5,731,514 | 4,136,257 | ||||||
| Finance lease liabilities, non-current | 93,600 | 116,527 | ||||||
| Other liabilities | 1,578,954 | 1,660,183 | ||||||
| Total non-current liabilities | 55,067,784 | 56,022,237 | ||||||
| Total liabilities | 117,635,399 | 117,143,240 | ||||||
| Commitments and contingencies (Note 19) | ||||||||
| Stockholders’ equity: | ||||||||
| Preferred stock ($0.0001 par value, 20,000,000 shares authorized; no shares issued and outstanding as of March 31, 2026 and December 31, 2025) | — | — | ||||||
| Common stock ($0.0001 par value, 400,000,000 shares authorized, 103,881,251 shares issued, and 102,576,943 shares outstanding as of March 31, 2026 and December 31, 2025) | 10,388 | 10,388 | ||||||
| Additional paid-in capital | 72,867,424 | 72,867,424 | ||||||
| Treasury stock (at cost, 1,304,308 shares as of March 31, 2026 and December 31, 2025) | (7,749,997 | ) | (7,749,997 | ) | ||||
| Retained earnings | 251,756,691 | 240,448,620 | ||||||
| Accumulated other comprehensive loss | (61,541,134 | ) | (57,294,239 | ) | ||||
| Total SBC Medical Group Holdings Incorporated stockholders’ equity | 255,343,372 | 248,282,196 | ||||||
| Non-controlling interests | 15,040,805 | 15,022,510 | ||||||
| Total stockholders’ equity | 270,384,177 | 263,304,706 | ||||||
| Total liabilities and stockholders’ equity | $ | 388,019,576 | $ | 380,447,946 | ||||
SBC MEDICAL GROUP HOLDINGS INCORPORATED
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
| For the Three Months Ended March 31, |
||||||||
| 2026 | 2025 | |||||||
| Revenues, net – related parties | $ | 37,955,060 | $ | 45,257,145 | ||||
| Revenues, net | 5,105,502 | 2,071,556 | ||||||
| Total revenues, net | 43,060,562 | 47,328,701 | ||||||
| Cost of revenues (including cost of revenues from related parties of $124,389 and $3,456,928 for the three months ended March 31, 2026 and 2025, respectively) | 12,713,828 | 9,595,617 | ||||||
| Gross profit | 30,346,734 | 37,733,084 | ||||||
| Operating expenses: | ||||||||
| Selling, general and administrative expenses (including selling, general and administrative expenses from related parties of $343,393 and nil for the three months ended March 31, 2026 and 2025, respectively) | 12,626,719 | 13,531,010 | ||||||
| Total operating expenses | 12,626,719 | 13,531,010 | ||||||
| Income from operations | 17,720,015 | 24,202,074 | ||||||
| Other income (expenses): | ||||||||
| Interest income | 121,369 | 55,333 | ||||||
| Interest expense | (114,806 | ) | (6,207 | ) | ||||
| Foreign currency exchange gain (loss), net | 861,678 | (1,058,526 | ) | |||||
| Other income | 491,564 | 151,328 | ||||||
| Other expenses | (223,209 | ) | (638,733 | ) | ||||
| Gain on redemption of life insurance policies | — | 8,746,138 | ||||||
| Total other income | 1,136,596 | 7,249,333 | ||||||
| Income before income taxes | 18,856,611 | 31,451,407 | ||||||
| Income tax expense | 7,527,591 | 9,959,457 | ||||||
| Net income | 11,329,020 | 21,491,950 | ||||||
| Less: net income (loss) attributable to non-controlling interests | 20,949 | (10,496 | ) | |||||
| Net income attributable to SBC Medical Group Holdings Incorporated | $ | 11,308,071 | $ | 21,502,446 | ||||
| Other comprehensive income (loss): | ||||||||
| Foreign currency translation adjustment | $ | (4,249,549 | ) | $ | 9,808,327 | |||
| Total comprehensive income | 7,079,471 | 31,300,277 | ||||||
| Less: comprehensive income (loss) attributable to non-controlling interests | 18,295 | (36,832 | ) | |||||
| Comprehensive income attributable to SBC Medical Group Holdings Incorporated | $ | 7,061,176 | $ | 31,337,109 | ||||
| Net income per share attributable to SBC Medical Group Holdings Incorporated | ||||||||
| Basic and diluted | $ | 0.11 | $ | 0.21 | ||||
| Weighted average shares outstanding | ||||||||
| Basic and diluted | 102,576,943 | 103,276,637 | ||||||
SBC MEDICAL GROUP HOLDINGS INCORPORATED
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
| For the Three Months Ended March 31, |
||||||||
| 2026 | 2025 | |||||||
| CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||
| Net income | $ | 11,329,020 | $ | 21,491,950 | ||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
| Depreciation and amortization expense | 670,434 | 628,304 | ||||||
| Non-cash lease expense | 1,420,824 | 985,184 | ||||||
| Provision for (reversal of) credit losses | (31,353 | ) | 25,102 | |||||
| Fair value change of long-term investments | 80,301 | 140,581 | ||||||
| Gain on redemption of life insurance policies | — | (8,746,138 | ) | |||||
| Gain on disposal of property and equipment | — | (12,375 | ) | |||||
| Deferred income taxes | (1,086,473 | ) | 7,016,227 | |||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable | (627,606 | ) | (147,925 | ) | ||||
| Accounts receivable – related parties | (6,821,339 | ) | (295,505 | ) | ||||
| Inventories | 442,643 | (124,279 | ) | |||||
| Finance lease receivables – related parties | 264,252 | (2,779,253 | ) | |||||
| Customer loans receivable | 3,270,347 | 4,501,760 | ||||||
| Prepaid expenses and other current assets | 629,253 | (3,150,243 | ) | |||||
| Long-term prepayments | 31,592 | 98,164 | ||||||
| Other assets | (66,265 | ) | 318,351 | |||||
| Accounts payable | 2,484,437 | 3,235,017 | ||||||
| Accounts payable – related parties | (114,689 | ) | 441,481 | |||||
| Notes payables – related parties | — | (548,077 | ) | |||||
| Advances from customers | (386,997 | ) | (328,791 | ) | ||||
| Advances from customers – related parties | (1,066,776 | ) | (2,114,829 | ) | ||||
| Income tax payable | (245,955 | ) | (17,635,239 | ) | ||||
| Operating lease liabilities | (1,424,716 | ) | (1,036,605 | ) | ||||
| Accrued liabilities and other current liabilities | 543,412 | 63,764 | ||||||
| Other liabilities | (62,408 | ) | (98,005 | ) | ||||
| NET CASH PROVIDED BY OPERATING ACTIVITIES | 9,231,938 | 1,928,621 | ||||||
| CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||
| Purchase of property and equipment | (124,995 | ) | (253,725 | ) | ||||
| Prepayments for property and equipment | (423,870 | ) | (501,253 | ) | ||||
| Purchase of long-term investments | — | (635,145 | ) | |||||
| Long-term loans to others | — | (12,783 | ) | |||||
| Repayments from related parties | — | 70,000 | ||||||
| Repayments from others | 20,840 | 30,680 | ||||||
| Proceeds from disposal of property and equipment | — | 323,419 | ||||||
| NET CASH USED IN INVESTING ACTIVITIES | (528,025 | ) | (978,807 | ) | ||||
| CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||
| Borrowings from related parties | — | 15,000 | ||||||
| Repayments of bank and other borrowings | (1,782,479 | ) | (55,873 | ) | ||||
| Repayments of finance lease liabilities | (37,278 | ) | (223,454 | ) | ||||
| Repayments to related parties | (22,657 | ) | (16,053 | ) | ||||
| NET CASH USED IN FINANCING ACTIVITIES | (1,842,414 | ) | (280,380 | ) | ||||
| Effect of exchange rate changes | (3,330,242 | ) | 6,342,297 | |||||
| NET CHANGE IN CASH AND CASH EQUIVALENTS | 3,531,257 | 7,011,731 | ||||||
| CASH AND CASH EQUIVALENTS AS OF THE BEGINNING OF THE PERIOD | 163,773,838 | 125,044,092 | ||||||
| CASH AND CASH EQUIVALENTS AS OF THE END OF THE PERIOD | $ | 167,305,095 | $ | 132,055,823 | ||||
| SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | ||||||||
| Cash paid for interest expense | $ | 114,806 | $ | 6,207 | ||||
| Cash paid for income taxes, net | $ | 8,848,074 | $ | 20,577,290 | ||||
| NON-CASH INVESTING AND FINANCING ACTIVITIES | ||||||||
| Property and equipment transferred from long-term prepayments | $ | 68,691 | $ | 125,287 | ||||
| Operating lease right-of-use assets obtained in exchange for operating lease liabilities | $ | 19,664 | $ | 102,599 | ||||
| Finance lease right-of-use assets obtained in exchange for finance lease liabilities | $ | — | $ | 581,129 | ||||
| Remeasurement of operating lease liabilities and right-of-use assets due to lease modifications | $ | 4,260,931 | $ | 358,358 | ||||
| Payables to related parties in connection with loan services provided | $ | — | $ | 1,922,224 | ||||
| Issuance of common stock as incentive shares | $ | — | $ | 86 | ||||
| Redemption proceeds receivable on life insurance policies | $ | — | $ | 17,735,717 | ||||
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
SBC MEDICAL GROUP HOLDINGS INCORPORATED
Unaudited Reconciliations of GAAP and Non-GAAP Results
| For the Three Months Ended March 31, |
|||||||||||
| 2026 | 2025 | ||||||||||
| Total Revenues, net | $ | 43,060,562 | $ | 47,328,701 | |||||||
| Net income attributable to SBC Medical Group Holdings Incorporated | 11,308,071 | 21,502,446 | |||||||||
| Net income margin | 26 | % | 45 | % | |||||||
| Income from operations | 17,720,015 | 24,202,074 | |||||||||
| Depreciation and amortization expense | 670,434 | 628,304 | |||||||||
| EBITDA | 18,390,449 | 24,830,378 | |||||||||
| EBITDA margin | 43 | % | 52 | % | |||||||
Net income margin is defined as net income attributable to SBC Medical Group Holdings Incorporated divided by total revenues, net. EBITDA is calculated by adding depreciation and amortization expense to income from operations. EBITDA margin is defined as EBITDA divided by total revenues, net.
Contacts
SBC Medical Group Holdings Incorporated
Hikaru Fukui / Head of IR Department E-mail: [email protected]