SBC Medical Group Holdings Incorporated (SBC) Q1 2026 Earnings Call

Investor webinar replay

Replay transcript excerpt

Thank you very much for joining the SBC Medical Group Holdings First Quarter Earnings Briefings today. Today's session will be led by Yue Yoshida, Director, CFO, COO, and AI Evangelist, together with myself, Hikaru Sukui, Head of IR Department, who will serve as the moderator. Thank you for being with us. We will begin with a presentation delivered by AI Avatar, The content has been reviewed and uploaded by management in advance. After the presentation, we will move on to the Q&A session. To submit a question, please click the Q&A icon at the bottom of your screen. Type in your question and send it to us. Now, let us begin the presentation. I am Yoshida, CFO of SBC Medical Group Holdings. Thank you very much for joining our conference call today. Despite your busy schedules, I will now present our financial results for the first quarter of 2026. First, let me cover the clinic highlights. Both the number of customers and average revenue per visit increased year over year, and total revenue rose accordingly, including same clinic revenue. We will continue to enhance service levels through our multi-brand strategy, which enables us to address diverse customer needs with precision, as well as through the development of new services. Next, the consolidated income statement. Total revenues for the first quarter of 2026 were $43 million. While this represents a 9% year over year decline, the primary driver was the fee structure revisions that took effect in April of last year, which had a negative impact of $6.2 million on franchising revenue and $2.4 million on management services revenue, totaling an $8.7 million decrease. In addition, procurement revenue and rental services revenue declined year over year. On the other hand, Management services revenue was offset by an i...