SBC Medical Group Holdings Reports Second Quarter 2026 Financial Results

About this update from Sbc Medical Group Holdings Incorporated

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 EBITDA 1 was $20 million, an increase of 32% year-over-year . Adjusted EBITDA margin 1 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 locations 2 increased by 34 year-over-year to 287, and last-twelve-month number of visits 3 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.   View source version on businesswire.com: https://www.businesswire.com/news/home/20260813064564/en/

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