Restructuring Complete, Growth Reaccelerates: Q2 Revenue Up 13%, Net Income Attributable to SBC Medical Up 335%, Adjusted EBITDA1 Up 32% Year-over-Year. AI-Enabled Service Enhancements Drive Successful Fee Increases, Positioning the Business for Accelerated Network Expansion
—(BUSINESS WIRE)—
IRVINE, Calif. — SBC Medical Group Holdings Incorporated (Nasdaq: SBC) (“SBC Medical” or the “Company”), a Medical Services Organization (MSO) providing management support across a wide range of healthcare fields to medical institutions in Japan and abroad, today announced its consolidated financial results for the second quarter of fiscal year 2026 (the three months ended June 30, 2026) and the first half of fiscal year 2026 (the six months ended June 30, 2026).
■ Second Quarter 2026 Financial Highlights
- Total revenues were $49 million, an increase of 13% year-over-year.
- Net income attributable to SBC Medical was $11 million, an increase of 335% year-over-year. Net income margin was 22%, an increase of 16 percentage points year-over-year.
- Adjusted EBITDA1 was $20 million, an increase of 32% year-over-year. Adjusted EBITDA margin1 was 41%, an increase of 6 percentage points year-over-year.
- Basic EPS was $0.10 for the three months ended June 30, 2026, an increase of 400% year-over-year.
The Company believes the quarter marked a clear reacceleration in its growth, with net income attributable to SBC Medical growth outpacing revenue growth. Earnings growth was supported by the expansion of the points business following a change in the Company’s operating policy and the expansion of service fees in line with enhanced AI-enabled support capabilities.
The business of the medical corporations the Company supports also continued to expand steadily. As of the end of June 2026, the number of locations2 increased by 34 year-over-year to 287, and last-twelve-month number of visits3 reached 6.9 million (up 10% year-over-year). Average spend per visit was $287, up 9% year-over-year.
■ Comment from SBC Medical’s Chairman and CEO Yoshiyuki Aikawa:
“We believe our results this quarter clearly demonstrate that SBC Medical’s growth story has entered a new phase. Having completed the structural reforms we undertook in 2025, we are now running multiple growth engines simultaneously. I am growing increasingly confident that this reacceleration is not a temporary phenomenon but reflects the strengthening of our underlying growth fundamentals.
What gives me the greatest confidence is that the convergence of healthcare and AI is becoming one of SBC Medical’s next sources of competitive advantage. We are leveraging more than 26 years of accumulated management data to support AI development and implementing mechanisms that enhance clinic operations — including AI-powered call centers, AI-driven marketing, and AI-assisted site selection for new clinic openings.
Strengthening our AI-enabled MSO platform simultaneously drives growth across three dimensions: the number of clinic locations, average fee per clinic (AFPC), and service menu breadth. As the platform’s appeal grows, patient visits and treatment volumes at the clinics we support increase, accelerating clinic growth — which in turn leads to expanded service fees commensurate with the value we provide. We believe this virtuous cycle is the driving force behind sustainable growth in consolidated revenue and EPS, as reflected in our most recent reported historical results and in the future.
Specifically, through fee revisions for our call center services provided to five specific affiliated medical corporations, together with separate fee revisions reflecting expanded support for Rize Clinic and Gorilla Clinic, we expect these initiatives, if their impact is realized for a full year, to increase service fees by approximately $15 million annually (converted at ¥158.1/US$). These initiatives are being pursued in a disciplined manner, premised on a win-win relationship between the Company and our affiliated medical corporations.
Looking ahead, we will deepen our multi-brand strategy in aesthetic dermatology domestically, while expanding our non-aesthetic business, which we position as our “second growth engine.” Internationally, we plan to accelerate our global growth through our collaboration with OrangeTwist in the United States and our ASEAN expansion, anchored in Thailand. We are also preparing to enter the Longevity market, which we see as having enormous potential.
With $184 million in cash and cash equivalents on hand, we will continue to pursue disciplined investment toward our next growth phase. By pursuing sustained EPS growth and achieving fair equity valuation for our shares in the capital markets as two wheels of the same cart, we aim to deliver even greater value to all our stakeholders, including our shareholders. We look forward to what lies ahead for SBC Medical.”
■ Summary of Key Financials
| Unit | 2Q26 | 2Q25 | YoY | 1H26 | 1H25 | YoY | |
| Total revenues | $MM | 49 | 43 | +13% | 92 | 91 | +2% |
| Net Income Attributable to SBC Medical | $MM | 11 | 2 | +335% | 22 | 24 | (8)% |
| Net Income Margin | % | 22 | 6 | +16pt | 24 | 26 | (2)pt |
| Adjusted EBITDA 1 | $MM | 20 | 15 | +32% | 38 | 40 | (4)% |
| Adjusted EBITDA Margin 1 | % | 41 | 35 | +6pt | 42 | 44 | (2)pt |
| ROE (Annualized) 4 | % | 16 | 4 | +12pt | 17 | 22 | (5)pt |
| Basic EPS 5 | $ | 0.10 | 0.02 | +400% | 0.21 | 0.23 | (9)% |
1 Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP financial measures. For more information on non-GAAP financial measures, please refer to “Use of Non-GAAP Financial Measures” and “Reconciliation of GAAP to Non-GAAP Measures (unaudited).”
2 Represents the total number of locations across the Company’s support and partnership network, including franchised locations of SBC-branded clinics, Rize Clinic, Gorilla Clinic, AHH Clinic, JUN CLINIC, and OrangeTwist.
3 Patient visits include patients of SBC-branded clinics, Rize Clinic, Gorilla Clinic, AHH Clinic, and JUN CLINIC. The period covered is from July 1, 2025 to June 30, 2026.
4 Return on equity (ROE) is calculated as net income attributable to SBC Medical divided by average shareholders’ equity (beginning and end of period).
5 Basic EPS is calculated as net income attributable to SBC Medical divided by the weighted average number of shares outstanding.
Conference Call
The Company will hold a conference call on Thursday, August 13th, 2026 at 08:30 a.m. Eastern Time (or Thursday, August 13th, 2026 at 09:30 p.m. Japan Time) to discuss the financial results for the second quarter ended June 30, 2026. A question-and-answer session will follow the prepared remarks.
During the live webcast, participants may submit questions in real-time using the Zoom Q&A button.
All attendees, regardless of their current stock ownership status, are welcome to submit questions. Please note that due to time constraints and the nature of the inquiries, we may not be able to address every question during the call.
Please register in advance of the conference using the link provided below:
https://zoom.us/webinar/register/WN_sEGnJWOyQDejlpnuGnxQgA
Upon registration, you will be able to access the dedicated conference call viewing site.
Additionally, the earnings release, accompanying slides, and a separate link to the archived webcast of this conference call will be available on the Company’s Investor Relations website at https://ir.sbc-holdings.com/.
About SBC Medical
SBC Medical 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 continues to provide safe, trusted, and high-quality medical services while further strengthening its international reputation for quality and trust in medical care.
Company Name: SBC Medical Group Holdings Incorporated | Listed Market: NASDAQ Global Market | Ticker: SBC | Address: 200 Spectrum Center Drive, Suite 300, Irvine, CA 92618 USA | IR Website: https://ir.sbc-holdings.com/ | LinkedIn: https://www.linkedin.com/company/sbc-medical-group-holdings-inc
Use of Non-GAAP Financial Measures
The Company uses non-GAAP measures, such as Adjusted EBITDA, Adjusted 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, 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 presentations of these measures have limitations as analytical tools and should not be considered in isolation or as a substitute for analysis of our results as reported under GAAP. Because not all companies use identical calculations, the presentations of these measures may not be comparable to other similarly titled measures of other companies and can differ significantly from company to company. For reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measures, see the reconciliations included at the end of this press release.
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 plans and strategies for service expansion; growth in revenue and earnings; and business prospects. 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,” “targets,” 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
| June 30, 2026 | December 31, 2025 | |||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 184,311,213 | $ | 163,773,838 | ||||
| Accounts receivable | 2,488,575 | 2,388,021 | ||||||
| Accounts receivable – related parties | 40,748,686 | 27,511,730 | ||||||
| Inventories | 2,979,818 | 2,792,617 | ||||||
| Short-term investments – related parties | 307,922 | 319,193 | ||||||
| Finance lease receivables, current – related parties | 13,725,781 | 12,832,355 | ||||||
| Income tax recoverable | 1,033,646 | 1,175,510 | ||||||
| Customer loans receivable, current | 4,991,848 | 8,705,999 | ||||||
| Prepaid expenses and other current assets | 7,239,514 | 11,724,852 | ||||||
| Other receivables – related parties | 1,560,521 | — | ||||||
| Total current assets | 259,387,524 | 231,224,115 | ||||||
| Non-current assets: | ||||||||
| Property and equipment, net | 7,414,691 | 7,539,392 | ||||||
| Intangible assets, net | 45,686,697 | 47,742,888 | ||||||
| Long-term investments, net | 1,287,477 | 1,299,366 | ||||||
| Equity method investments | 19,743,990 | 20,312,642 | ||||||
| Goodwill, net | 15,179,809 | 15,432,061 | ||||||
| Finance lease receivables, non-current – related parties | 11,673,777 | 13,746,513 | ||||||
| Operating lease right-of-use assets | 10,147,179 | 8,366,569 | ||||||
| Finance lease right-of-use assets | 362,302 | 450,874 | ||||||
| Deferred tax assets | 8,103,446 | 4,014,294 | ||||||
| Customer loans receivable, non-current | 2,887,006 | 4,824,977 | ||||||
| Long-term prepayments | 420,043 | 393,270 | ||||||
| Long-term investments in MCs – related parties | 17,207,414 | 17,837,293 | ||||||
| Other assets | 7,157,667 | 7,263,692 | ||||||
| Total non-current assets | 147,271,498 | 149,223,831 | ||||||
| Total assets | $ | 406,659,022 | $ | 380,447,946 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 22,832,724 | $ | 16,988,384 | ||||
| Accounts payable – related parties | 931,810 | 651,463 | ||||||
| Bank and other borrowings, current | 11,816,235 | 9,099,046 | ||||||
| Advances from customers | 980,889 | 1,415,762 | ||||||
| Advances from customers – related parties | 3,993,850 | 5,357,221 | ||||||
| Income tax payable | 19,313,068 | 8,821,853 | ||||||
| Operating lease liabilities, current | 5,404,269 | 4,416,960 | ||||||
| Finance lease liabilities, current | 99,627 | 132,946 | ||||||
| Accrued liabilities and other current liabilities | 13,087,484 | 11,544,695 | ||||||
| Due to related party | — | 2,692,673 | ||||||
| Total current liabilities | 78,459,956 | 61,121,003 | ||||||
| Non-current liabilities: | ||||||||
| Bank and other borrowings, non-current | 25,938,581 | 33,734,438 | ||||||
| Deferred tax liabilities | 15,777,663 | 16,374,832 | ||||||
| Operating lease liabilities, non-current | 4,897,286 | 4,136,257 | ||||||
| Finance lease liabilities, non-current | 77,080 | 116,527 | ||||||
| Other liabilities | 1,593,314 | 1,660,183 | ||||||
| Total non-current liabilities | 48,283,924 | 56,022,237 | ||||||
| Total liabilities | 126,743,880 | 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 June 30, 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 June 30, 2026 and December 31, 2025) | 10,388 | 10,388 | ||||||
| Additional paid-in capital | 75,715,942 | 72,867,424 | ||||||
| Treasury stock (at cost, 1,304,308 shares as of June 30, 2026 and December 31, 2025) | (7,749,997 | ) | (7,749,997 | ) | ||||
| Retained earnings | 262,449,513 | 240,448,620 | ||||||
| Accumulated other comprehensive loss | (66,589,505 | ) | (57,294,239 | ) | ||||
| Total SBC Medical Group Holdings Incorporated stockholders’ equity | 263,836,341 | 248,282,196 | ||||||
| Non-controlling interests | 16,078,801 | 15,022,510 | ||||||
| Total stockholders’ equity | 279,915,142 | 263,304,706 | ||||||
| Total liabilities and stockholders’ equity | $ | 406,659,022 | $ | 380,447,946 | ||||
SBC MEDICAL GROUP HOLDINGS INCORPORATED
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
| For the Three Months Ended June 30, | For the Six Months Ended June 30, | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Revenues, net – related parties | $ | 43,732,194 | $ | 38,944,898 | $ | 81,687,254 | $ | 84,202,043 | ||||||||
| Revenues, net | 5,455,874 | 4,413,949 | 10,561,376 | 6,485,505 | ||||||||||||
| Total revenues, net | 49,188,068 | 43,358,847 | 92,248,630 | 90,687,548 | ||||||||||||
| Cost of revenues (including cost of revenues from related parties of $138,593 and $4,669,602 for the three months ended June 30, 2026 and 2025, and $262,982 and $8,126,530 for the six months ended June 30, 2026 and 2025, respectively) | 13,210,752 | 13,348,270 | 25,924,580 | 22,943,887 | ||||||||||||
| Gross profit | 35,977,316 | 30,010,577 | 66,324,050 | 67,743,661 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Selling, general and administrative expenses (including selling, general and administrative expenses from related parties of $341,510 and $415,767 for the three months ended June 30, 2026 and 2025, and $684,903 and $415,767 for the six months ended June 30, 2026 and 2025, respectively) | 17,016,766 | 15,456,385 | 29,643,485 | 28,987,395 | ||||||||||||
| Total operating expenses | 17,016,766 | 15,456,385 | 29,643,485 | 28,987,395 | ||||||||||||
| Income from operations | 18,960,550 | 14,554,192 | 36,680,565 | 38,756,266 | ||||||||||||
| Other income (expenses): | ||||||||||||||||
| Interest income | 8,520 | 22,882 | 129,889 | 78,215 | ||||||||||||
| Interest expense | (128,629 | ) | (49,651 | ) | (243,435 | ) | (55,858 | ) | ||||||||
| Foreign currency exchange gain (loss), net | 1,032,259 | (769,720 | ) | 1,893,937 | (1,828,246 | ) | ||||||||||
| Other income | 137,056 | 145,403 | 628,620 | 296,731 | ||||||||||||
| Other expenses | (455,070 | ) | (362,745 | ) | (678,279 | ) | (1,001,478 | ) | ||||||||
| Gain on redemption of life insurance policies | — | — | — | 8,746,138 | ||||||||||||
| Total other income (expenses) | 594,136 | (1,013,831 | ) | 1,730,732 | 6,235,502 | |||||||||||
| Income before income taxes and equity in losses of equity method investees | 19,554,686 | 13,540,361 | 38,411,297 | 44,991,768 | ||||||||||||
| Income tax expense | 7,823,743 | 11,100,509 | 15,351,334 | 21,059,966 | ||||||||||||
| Equity in losses of equity method investees, net of tax | (568,652 | ) | — | (568,652 | ) | — | ||||||||||
| Net income | 11,162,291 | 2,439,852 | 22,491,311 | 23,931,802 | ||||||||||||
| Less: net income (loss) attributable to non-controlling interests | 469,469 | (18,388 | ) | 490,418 | (28,884 | ) | ||||||||||
| Net income attributable to SBC Medical Group Holdings Incorporated | $ | 10,692,822 | $ | 2,458,240 | $ | 22,000,893 | $ | 23,960,686 | ||||||||
| Other comprehensive income (loss): | ||||||||||||||||
| Foreign currency translation adjustment | $ | (5,319,471 | ) | $ | 8,623,269 | $ | (9,569,020 | ) | $ | 18,431,596 | ||||||
| Total comprehensive income | 5,842,820 | 11,063,121 | 12,922,291 | 42,363,398 | ||||||||||||
| Less: comprehensive income attributable to non-controlling interests | 198,369 | 184,411 | 216,664 | 147,579 | ||||||||||||
| Comprehensive income attributable to SBC Medical Group Holdings Incorporated | $ | 5,644,451 | $ | 10,878,710 | $ | 12,705,627 | $ | 42,215,819 | ||||||||
| Net income per share attributable to SBC Medical Group Holdings Incorporated | ||||||||||||||||
| Basic and diluted | $ | 0.10 | $ | 0.02 | $ | 0.21 | $ | 0.23 | ||||||||
| Weighted average shares outstanding | ||||||||||||||||
| Basic and diluted | 102,576,943 | 103,507,249 | 102,576,943 | 103,392,580 | ||||||||||||
SBC MEDICAL GROUP HOLDINGS INCORPORATED
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
| For the Six Months Ended June 30, | ||||||||
| 2026 | 2025 | |||||||
| CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||
| Net income | $ | 22,491,311 | $ | 23,931,802 | ||||
| Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||||||||
| Depreciation and amortization expense | 1,802,958 | 1,264,405 | ||||||
| Non-cash lease expense | 2,861,022 | 2,185,744 | ||||||
| Provision for (reversal of) credit losses | (44,753 | ) | 283,752 | |||||
| Equity in losses of equity method investees | 568,652 | — | ||||||
| Stock-based compensation | 7,854 | — | ||||||
| Fair value change of long-term investments | (34,905 | ) | 384,523 | |||||
| Gain on redemption of life insurance policies | — | (8,746,138 | ) | |||||
| Loss (gain) on disposal of property and equipment | 9,397 | (10,804 | ) | |||||
| Change in fair value of cryptocurrencies | — | (111,632 | ) | |||||
| Deferred income taxes | (4,545,948 | ) | 7,452,983 | |||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable | (184,336 | ) | (789,577 | ) | ||||
| Accounts receivable – related parties | (14,570,601 | ) | (17,039,113 | ) | ||||
| Inventories | (279,190 | ) | (717,972 | ) | ||||
| Finance lease receivables – related parties | 247,191 | (6,482,967 | ) | |||||
| Customer loans receivable | 5,357,608 | 8,081,703 | ||||||
| Other receivables – related parties | (1,602,304 | ) | — | |||||
| Prepaid expenses and other current assets | 4,173,911 | (1,349,225 | ) | |||||
| Long-term prepayments | 59,145 | 211,988 | ||||||
| Other assets | (185,014 | ) | 85,907 | |||||
| Accounts payable | 6,593,276 | 1,165,217 | ||||||
| Accounts payable – related parties | 307,962 | 2,455,865 | ||||||
| Notes payables – related parties | — | (5,031,570 | ) | |||||
| Advances from customers | (395,704 | ) | (369,616 | ) | ||||
| Advances from customers – related parties | (1,205,634 | ) | (2,363,891 | ) | ||||
| Income tax payable | 11,194,897 | (6,030,526 | ) | |||||
| Operating lease liabilities | (2,876,789 | ) | (2,275,398 | ) | ||||
| Accrued liabilities and other current liabilities | 2,008,843 | (2,508,035 | ) | |||||
| Other liabilities | (17,601 | ) | (88,593 | ) | ||||
| NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES | 31,741,248 | (6,411,168 | ) | |||||
| CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||
| Purchase of property and equipment | (209,391 | ) | (560,431 | ) | ||||
| Prepayments for property and equipment | (804,423 | ) | (705,351 | ) | ||||
| Payments made on behalf of related parties | — | (1,836,541 | ) | |||||
| Purchase of long-term investments | — | (652,555 | ) | |||||
| Purchase of cryptocurrencies | — | (424,250 | ) | |||||
| Long-term loans to others | — | (13,134 | ) | |||||
| Repayments from related parties | — | 70,000 | ||||||
| Repayments from others | 31,111 | 56,307 | ||||||
| Proceeds from redemption of life insurance policies | — | 17,735,717 | ||||||
| Deconsolidation of VIE, net of cash disposed of | 1,019,909 | — | ||||||
| Proceeds from disposal of property and equipment | — | 1,728,236 | ||||||
| NET CASH PROVIDED BY INVESTING ACTIVITIES | 37,206 | 15,397,998 | ||||||
| CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||
| Borrowings from related parties | — | 15,000 | ||||||
| Proceeds from exercise of stock acquisition rights in subsidiary by non-controlling interests | 31,866 | — | ||||||
| Repayments of bank and other borrowings | (3,740,739 | ) | (74,256 | ) | ||||
| Repayments of finance lease liabilities | (71,942 | ) | (278,097 | ) | ||||
| Repayments to related parties | (22,657 | ) | (27,943 | ) | ||||
| Repurchase of common stock | — | (2,415,262 | ) | |||||
| Deemed contribution in connection with price modification on disposal of property and equipment | — | 9,682,277 | ||||||
| NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES | (3,803,472 | ) | 6,901,719 | |||||
| Effect of exchange rate changes | (7,437,607 | ) | 11,808,241 | |||||
| NET CHANGE IN CASH AND CASH EQUIVALENTS | 20,537,375 | 27,696,790 | ||||||
| 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 | $ | 184,311,213 | $ | 152,740,882 | ||||
| SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | ||||||||
| Cash paid for interest expense | $ | 243,435 | $ | 55,858 | ||||
| Cash paid for income taxes, net | $ | 8,660,822 | $ | 19,637,454 | ||||
| NON-CASH INVESTING AND FINANCING ACTIVITIES | ||||||||
| Property and equipment transferred from long-term prepayments | $ | 703,529 | $ | 246,188 | ||||
| Operating lease right-of-use assets obtained in exchange for operating lease liabilities | $ | 67,106 | $ | 104,437 | ||||
| Finance lease right-of-use assets obtained in exchange for finance lease liabilities | $ | — | $ | 612,466 | ||||
| Remeasurement of operating lease liabilities and right-of-use assets due to lease modifications | $ | 4,844,803 | $ | 1,160,680 | ||||
| Payables to related parties in connection with loan services provided | $ | — | $ | 8,175,342 | ||||
| Issuance of common stock as incentive shares | $ | — | $ | 86 | ||||
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (UNAUDITED)
SBC MEDICAL GROUP HOLDINGS INCORPORATED
| For the Three Months Ended June 30, | For the Six Months Ended June 30, | |||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||
| Total Revenues, net | $ | 49,188,068 | $ | 43,358,847 | $ | 92,248,630 | $ | 90,687,548 | ||||||||||||||
| Net income attributable to SBC Medical Group Holdings Incorporated | 10,692,822 | 2,458,240 | 22,000,893 | 23,960,686 | ||||||||||||||||||
| Adjusted to exclude the following: | ||||||||||||||||||||||
| Net income (loss) attributable to non-controlling interests | 469,469 | (18,388 | ) | 490,418 | (28,884 | ) | ||||||||||||||||
| Equity in losses of equity method investees, net of tax | 568,652 | — | 568,652 | — | ||||||||||||||||||
| Income tax expense | 7,823,743 | 11,100,509 | 15,351,334 | 21,059,966 | ||||||||||||||||||
| Gain on redemption of life insurance policies | — | — | — | (8,746,138 | ) | |||||||||||||||||
| Other expenses | 455,070 | 362,745 | 678,279 | 1,001,478 | ||||||||||||||||||
| Other income | (137,056 | ) | (145,403 | ) | (628,620 | ) | (296,731 | ) | ||||||||||||||
| Foreign currency exchange gain (loss), net | (1,032,259 | ) | 769,720 | (1,893,937 | ) | 1,828,246 | ||||||||||||||||
| Interest expense | 128,629 | 49,651 | 243,435 | 55,858 | ||||||||||||||||||
| Interest income | (8,520 | ) | (22,882 | ) | (129,889 | ) | (78,215 | ) | ||||||||||||||
| Depreciation and amortization expense | 1,132,524 | 636,101 | 1,802,958 | 1,264,405 | ||||||||||||||||||
| Adjusted EBITDA | 20,093,074 | 15,190,293 | 38,483,523 | 40,020,671 | ||||||||||||||||||
| Net income margin | 22 | % | 6 | % | 24 | % | 26 | % | ||||||||||||||
| Adjusted EBITDA margin | 41 | % | 35 | % | 42 | % | 44 | % | ||||||||||||||
Adjusted EBITDA is a non-GAAP financial measure defined as net income attributable to SBC Medical adjusted for net income (loss) attributable to non-controlling interests, equity in losses of equity method investees, net of tax, income tax expense, gain on redemption of life insurance policies, other expenses, other income, foreign currency exchange gain (loss), net, interest expense, interest income, and depreciation and amortization expense.
Net income margin is defined as net income attributable to SBC Medical divided by total revenues, net. Adjusted EBITDA margin is defined as Adjusted EBITDA divided by total revenues, net.
Contacts
SBC Medical Group Holdings Incorporated — Hikaru Fukui / Head of IR Department; E-mail: [email protected]