SBC Medical Group Holdings Announces First Quarter 2026 Financial Results

About this update from Sbc Medical Group Holdings Incorporated

IRVINE, Calif. --(BUSINESS WIRE)-- 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://ir.sbc-holdings.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 For more insights and updates from SBC Medical, follow us on LinkedIn . 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, 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 SBC MEDICAL GROUP HOLDINGS INCORPORATED UNAUDITED CONSOLIDATED BALANCE SHEETS — (Continued) March 31 , 2026 December 31 , 2025 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 SBC MEDICAL GROUP HOLDINGS INCORPORATED UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS — (Continued) For the Three Months Ended March 31 , 2026 2025 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. View source version on businesswire.com : https://www.businesswire.com/news/home/20260514401130/en/ SBC Medical Group Holdings Incorporated Hikaru Fukui / Head of IR Department E-mail: [email protected] Source: SBC Medical Group Holdings Incorporated

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