Healthcare management services firm SBC Medical Group Holdings Incorporated released its financial results for the first quarter of 2026 on May 14th. While both revenue and earnings per share slightly exceeded market expectations, key metrics showed significant year-over-year declines due to a structural reform of franchise fees implemented last year.

Key Financial Data The report indicates the company's first-quarter revenue was $43.06 million, slightly above the market expectation of $41.65 million. GAAP earnings per share were $0.11, surpassing the expected $0.10. However, impacted by the franchise fee structure adjustment in April 2025, revenue declined 9% year-over-year. Net income was $11.31 million, a substantial 47% decrease compared to the same period last year. The net profit margin contracted from 45% to 26%. EBITDA fell 26% to $18.39 million, with the EBITDA margin dropping from 52% to 43%.

Operational Metrics Continue to Expand Despite pressure on the financial figures, operational performance remained solid. As of March 31st, the number of franchise clinics increased to 284, a net addition of 33 compared to the previous year. The total number of customers over the past 12 months reached 6.76 million, representing a 10% year-over-year increase. The customer repeat visit rate remained high at 72%. Cash flow from operating activities improved significantly to $9.23 million from $1.93 million in the same period last year. Cash and cash equivalents at the end of the period stood at $167 million.

Management Outlook The company's Chairman and CEO, Yoshiyuki Aikawa, stated that core business performance remains solid when excluding the impact of the structural reform, with net profit and EBITDA margins maintaining high levels of 26% and 43%, respectively. The company will continue to advance its multi-brand strategy in aesthetic dermatology, expand its non-aesthetic medical services and overseas markets, and develop its presence in longevity medicine and AI healthcare fields.