Q4 EPS more than doubles to $0.14 as profitability improves significantly year over year
IRVINE, Calif.--(BUSINESS WIRE)--March 27, 2026--
SBC Medical Group Holdings Incorporated (Nasdaq: SBC) ("SBC Medical" or the "Company"), a Management Services Organization operating a wide range of franchise businesses across diverse medical fields, today announced its financial results for the fourth quarter of fiscal year 2025 (three months ended December 31, 2025) and for the full fiscal year 2025 (twelve months ended December 31, 2025).
Fourth Quarter 2025 Highlights
-- Total revenues were $40 million, representing an 11% year-over-year
decrease.
-- Net Income attributable to SBC Medical Group was $14 million,
representing a 117% year-over-year increase.
-- Earnings per share, which is defined as net income attributable to the
Company divided by the weighted average number of outstanding shares, was
$0.14 for the three months ended December 31, 2025, representing 133%
year-over-year increase.
-- EBITDA1, which is calculated by adding depreciation and amortization
expense and impairment loss on intangible assets to income from
operations was $14 million, representing a 35% year-over-year decrease.
EBITDA margin1 was 34% for the fourth quarter of 2025, representing a
year-over-year decrease of 12 percentage points.
-- Return on equity, which is defined as net income attributable to the
Company divided by the average shareholder's equity as of December 31,
2025, was 23% representing a year-over-year increase of 9.8 percentage
points.
-- Number of Franchise Locations2 was 283 as of December 31, 2025,
representing an increase of 34 locations from December 31, 2024.
-- Number of customers3 in the last twelve months ended December 31, 2025,
was 6.6 million, representing a 12% year-over-year increase.
-- Repeat rate for customers4 who visited franchisee's clinics twice or
more was 72%.
(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) The figures take into accounts of the franchising of SBC brand clinics,
Rize Clinic, Gorilla Clinic, AHH, JUN CLINIC
(3) The customer count includes customers of SBC brand clinics, Rize Clinic,
Gorilla Clinic, AHH Clinic, and JUN CLINIC. The applicable periods are from
January 1, 2025, to December 31, 2025.
(4) The figures include franchising of SBC brand clinics, Rize Clinic, and
Gorilla Clinic, but does not take account of customers of AHH clinics and JUN
CLINIC excluding free counseling. The percentage of customers who visited our
franchisee's clinics twice or more.
Full Year 2025 Highlights
-- Total revenues were $174 million, representing a 15% year-over-year
decrease.
-- Net Income attributable to SBC Medical Group was $51 million,
representing a 9% year-over-year increase.
-- Earnings per share, which is defined as net income attributable to the
Company divided by the weighted average number of outstanding shares, was
$0.50 for the year ended December 31, 2025, representing a 4%
year-over-year increase.
-- EBITDA1, which is calculated by adding depreciation and amortization
expense and impairment loss on intangible assets to income from
operations was $70 million, representing a 21% year-over-year decrease.
EBITDA margin was 40% for the full year 2025, representing a
year-over-year decrease of 3 percentage points.
Yoshiyuki Aikawa, Chairman and Chief Executive Officer of SBC Medical, commented: "Our full-year 2025 results reflect a business in transition. Revenue declined 15% to $174 million, primarily due to two structural changes: the business restructuring undertaken in 2024, and the revision of franchise fee arrangements implemented in April 2025. These were deliberate steps to build a more sustainable business foundation, and their financial impact is now largely behind us.
Beneath the revenue decline, our underlying profitability strengthened considerably. Full-year net income attributable to SBC Medical Group grew 9% to $51 million, with earnings per share of $0.50. Our net income margin expanded from 23% to 29%, as the IPO-related stock-based compensation and impairment losses that weighed on our prior-year results did not recur. EBITDA margin normalized modestly from 43% to 40%, which we view as a more sustainable run-rate going forward.
In the fourth quarter specifically, we saw encouraging operational momentum. Average revenue per customer recovered to $316, an 11% increase year over year -- a meaningful inflection after a period of gradual decline, and one that we believe reflects the early impact of our pricing and customer engagement initiatives. We closed the year with 283 clinic locations and 6.63 million annual customer visits.
As we enter 2026, we are focused on three priorities: advancing our multi-brand strategy in the dermatology segment, expanding our non-aesthetic healthcare portfolio, and building a stronger foundation in international markets. With the structural headwinds of the past two years now largely behind us, we are well-positioned to return to sustainable top-line growth."
Conference Call
The Company will hold a conference call on Friday, March 27, 2026 at 8:30 am Eastern Time (or Friday, March 27, 2026 at 10:30 pm Japan Time) to discuss the financial results and take questions live.
Please register in advance of the conference using the link provided below.
https://zoom.us/webinar/register/WN_d1mfdSBSThST4BIiID88aQ
It will automatically direct you to the registration page of "Q4 2025 and Full Year Financial Results". Please follow the steps to enter your registration details, then click "Submit.".
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 Management Services Organization operating a wide range of franchise businesses across diverse medical 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$(R)$ 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/
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 loss, 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
CONSOLIDATED BALANCE SHEETS
December 31, December 31,
2025 2024
------------ ------------
ASSETS
Current assets:
Cash and cash equivalents $163,773,838 $125,044,092
Accounts receivable 2,388,021 1,413,433
Accounts receivable -- related
parties 27,511,730 28,846,680
Inventories 2,792,617 1,494,891
Short-term investments --
related parties 319,193 --
Finance lease receivables,
current -- related parties 12,832,355 5,992,585
Income tax recoverable 1,175,510 --
Customer loans receivable,
current 8,705,999 10,382,537
Prepaid expenses and other
current assets 11,724,852 11,276,802
----------- -----------
Total current assets 231,224,115 184,451,020
----------- -----------
Non-current assets:
Property and equipment, net 7,539,392 8,771,902
Intangible assets, net 47,742,888 1,590,052
Long-term investments, net 1,299,366 3,049,972
Equity method investments 20,312,642 --
Goodwill, net 15,432,061 4,613,784
Finance lease receivables,
non-current -- related parties 13,746,513 8,397,582
Operating lease right-of-use
assets 8,366,569 5,267,056
Finance lease right-of-use
assets 450,874 --
Deferred tax assets 4,014,294 9,798,071
Customer loans receivable,
non-current 4,824,977 5,023,551
Long-term prepayments 393,270 1,745,801
Long-term investments in MCs --
related parties 17,837,293 17,820,910
Other assets 7,263,692 15,553,453
----------- -----------
Total non-current assets 149,223,831 81,632,134
----------- -----------
Total assets $380,447,946 $266,083,154
=========== ===========
LIABILITIES AND STOCKHOLDERS'
EQUITY
Current liabilities:
Accounts payable $ 16,988,384 $ 13,875,179
Accounts payable -- related
parties 651,463 659,044
Bank and other borrowings,
current 9,099,046 96,824
Notes payables, current --
related parties -- 26,255
Advances from customers 1,415,762 820,898
Advances from customers --
related parties 5,357,221 11,739,533
Income tax payable 8,821,853 18,705,851
Operating lease liabilities,
current 4,416,960 4,341,522
Finance lease liabilities,
current 132,946 --
Accrued liabilities and other
current liabilities 11,544,695 8,103,194
Due to related party 2,692,673 2,823,590
----------- -----------
Total current liabilities 61,121,003 61,191,890
----------- -----------
Non-current liabilities:
Bank and other borrowings,
non-current 33,734,438 6,502,682
Notes payables, non-current --
related parties -- 5,334
Deferred tax liabilities 16,374,832 926,023
Operating lease liabilities,
non-current 4,136,257 1,241,526
Finance lease liabilities,
non-current 116,527 --
Other liabilities 1,660,183 1,193,541
----------- -----------
Total non-current liabilities 56,022,237 9,869,106
----------- -----------
Total liabilities 117,143,240 71,060,996
----------- -----------
Stockholders' equity:
Preferred stock ($0.0001 par
value, 20,000,000 shares
authorized; no shares issued and
outstanding as of December 31,
2025 and 2024) -- --
Common stock ($0.0001 par value,
400,000,000 shares authorized,
103,881,251 and 103,020,816
shares issued, 102,576,943 and
102,750,816 shares outstanding
as of December 31, 2025 and
2024, respectively) 10,388 10,302
Additional paid-in capital 72,867,424 62,513,923
Treasury stock (at cost,
1,304,308 and 270,000 shares as
of December 31, 2025 and
December 31, 2024,
respectively) (7,749,997) (2,700,000)
Retained earnings 240,448,620 189,463,007
Accumulated other comprehensive
loss (57,294,239) (54,178,075)
----------- -----------
Total SBC Medical Group Holdings
Incorporated stockholders' equity 248,282,196 195,109,157
Non-controlling interests 15,022,510 (86,999)
----------- -----------
Total stockholders' equity 263,304,706 195,022,158
----------- -----------
Total liabilities and stockholders'
equity $380,447,946 $266,083,154
=========== ===========
SBC MEDICAL GROUP HOLDINGS INCORPORATED
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
For the Three Months Ended For the Years
December 31, (Unaudited) Ended December 31,
---------------------------- ----------------------------
2025 2024 2025 2024
------------ ------------- ------------ -------------
Revenues, net --
related parties $ 35,041,379 $ 42,455,401 $158,860,970 $ 195,173,889
Revenues, net 4,525,327 1,965,136 14,746,519 10,241,653
----------- ------------ ----------- ------------
Total revenues, net 39,566,706 44,420,537 173,607,489 205,415,542
Cost of revenues 10,638,132 10,548,170 46,323,767 49,365,035
----------- ------------ ----------- ------------
Gross profit 28,928,574 33,872,367 127,283,722 156,050,507
Operating expenses:
Selling, general
and
administrative
expenses 16,079,682 13,880,503 59,797,324 57,665,140
Stock-based
compensation -- 215,237 -- 13,022,692
Impairment loss
on intangible
asset _ 15,058,965 -- 15,058,965
----------- ------------ ----------- ------------
Total operating
expenses 16,079,682 29,154,705 59,797,324 85,746,797
----------- ------------ ----------- ------------
Income from
operations 12,848,892 4,717,662 67,486,398 70,303,710
----------- ------------ ----------- ------------
Other income
(expenses):
Interest income (284) (17,340) 198,315 19,943
Interest expense (56,090) (12,402) (160,583) (28,300)
Foreign currency
exchange gain,
net 2,907,364 800,643 2,002,789 895,711
Other income 3,184,379 3,287,471 5,113,637 3,914,297
Other expenses (317,263) (2,716,703) (1,321,064) (5,463,153)
Gain on
redemption of
life insurance
policies -- -- 8,746,138 --
Gain on disposal
of subsidiary -- -- -- 3,813,609
----------- ------------ ----------- ------------
Total other income 5,718,106 1,341,669 14,579,232 3,152,107
----------- ------------ ----------- ------------
Income before income
taxes 18,566,998 6,059,331 82,065,630 73,455,817
Income tax expense
(benefit) 4,287,103 (488,553) 31,020,607 26,765,925
----------- ------------ ----------- ------------
Net income 14,279,895 6,547,884 51,045,023 46,689,892
Less: net income
attributable to
non-controlling
interests 79,604 8,663 59,410 75,617
----------- ------------ ----------- ------------
Net income
attributable to SBC
Medical Group
Holdings
Incorporated $ 14,200,291 $ 6,539,221 $ 50,985,613 $ 46,614,275
=========== ============ =========== ============
Other comprehensive
loss:
Foreign currency
translation
adjustment $(14,589,478) $(18,100,852) $(2,949,843) $(16,557,607)
----------- ------------ ----------- ------------
Total comprehensive
income (loss) (309,583) (11,552,968) 48,095,180 30,132,285
Less:
comprehensive
income
attributable to
non-controlling
interests 67,823 7,737 225,731 117,830
----------- ------------ ----------- ------------
Comprehensive income
(loss) attributable
to SBC Medical
Group Holdings
Incorporated $ (377,406) $(11,560,705) $ 47,869,449 $ 30,014,455
=========== ============ =========== ============
Net income per
share attributable
to SBC Medical
Group Holdings
Incorporated
Basic and diluted $ 0.14 $ 0.06 $ 0.50 $ 0.48
=========== ============ =========== ============
Weighted average
shares outstanding
Basic and diluted 102,576,943 102,750,816 102,997,967 96,561,041
=========== ============ =========== ============
SBC MEDICAL GROUP HOLDINGS INCORPORATED
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Years
Ended December 31,
---------------------------
2025 2024
------------ ------------
CASH FLOWS FROM OPERATING
ACTIVITIES
Net income $ 51,045,023 $ 46,689,892
----------- -----------
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation and amortization
expense 2,684,300 3,799,377
Non-cash lease expense 4,698,731 3,870,198
Provision for (reversal of)
credit losses 302,949 (402,196)
Stock-based compensation _ 13,022,692
Impairment loss on intangible
asset _ 15,058,965
Impairment loss on long-term
investments 133,513 529,596
Fair value change of long-term
investments (247,514) 2,617,435
Gain on disposal of subsidiary _ (3,813,609)
Gain on redemption of life
insurance policies (8,746,138) --
Loss (gain) on disposal of
property and equipment and
intangible assets (3,179,200) 511,947
Gain on previously held equity
interest (815,328) --
Deferred income taxes 5,326,982 (14,417,087)
----------- -----------
Changes in operating assets and
liabilities:
Accounts receivable (160,963) (733,219)
Accounts receivable - related
parties 1,552,477 1,350,413
Inventories (170,174) 1,124,805
Finance lease receivables -
related parties (12,746,857) (5,991,486)
Customer loans receivable 15,821,375 18,477,327
Prepaid expenses and other
current assets 332,264 (2,268,209)
Long-term prepayments 318,470 1,910,274
Other assets (195,846) (1,692,642)
Accounts payable 2,675,066 (9,588,067)
Accounts payable - related
parties (8,571) 682,320
Notes payables - related parties (14,252,502) (34,756,754)
Advances from customers 604,072 (1,476,240)
Advances from customers - related
parties (6,693,127) (9,144,031)
Income tax payable (11,662,531) 11,228,429
Operating lease liabilities (4,927,460) (3,950,587)
Accrued liabilities and other
current liabilities 2,968,513 (12,096,825)
Other liabilities 10,972 40,215
NET CASH PROVIDED BY OPERATING
ACTIVITIES 24,668,496 20,582,933
CASH FLOWS FROM INVESTING
ACTIVITIES
Purchase of property and
equipment (1,401,012) (2,564,643)
Purchase of convertible note -- (1,700,000)
Prepayments for property and
equipment (968,848) (843,740)
Advances to related parties -- (622,804)
Payments made on behalf of
related parties (1,840,801) (5,572,564)
Purchase of short-term
investments - related parties (334,173) --
Purchase of long-term investments (654,070) (331,496)
Purchases of cryptocurrencies (424,250) --
Proceeds from disposal of
cryptocurrencies 457,828 --
Purchase of equity method
investments (20,062,642) --
Cash paid for acquisition of
subsidiaries, net of cash
acquired (22,941,701) (4,236,009)
Long-term loans to others (14,514) (172,411)
Repayments from related parties 1,914,454 6,597,564
Repayment from others 83,677 176,109
Proceeds from redemption of life
insurance policies 17,735,717 --
Disposal of subsidiaries, net of
cash disposed of -- (832,416)
Proceeds from disposal of
property and equipment 7,478,783 --
NET CASH PROVIDED USED IN
INVESTING ACTIVITIES (20,971,552) (10,102,410)
CASH FLOWS FROM FINANCING
ACTIVITIES
Borrowings from bank and others 34,753,946 6,603,253
Borrowings from related parties 15,000 5,481,787
Proceeds from reverse
recapitalization, net of
transaction costs -- 11,707,417
Proceeds from exercise of stock
warrants -- 31,374
Repayments of bank and other
borrowings (1,353,071) (119,017)
Repayments of finance lease
liabilities (331,365) --
Repayments to related parties (145,917) (739,414)
Repurchase of common stock (4,999,997) --
Deemed contribution in
connection with price
modification on disposal of
property and equipment 10,353,587 --
NET CASH PROVIDED BY FINANCING
ACTIVITIES 38,292,183 22,965,400
Effect of exchange rate changes (3,259,381) (11,424,763)
NET CHANGE IN CASH AND CASH
EQUIVALENTS 38,729,746 22,021,160
CASH AND CASH EQUIVALENTS AS OF
THE BEGINNING OF THE YEAR 125,044,092 103,022,932
CASH AND CASH EQUIVALENTS AS OF THE
END OF THE YEAR $163,773,838 $125,044,092
SUPPLEMENTAL DISCLOSURE OF CASH
FLOW INFORMATION
Cash paid for interest expense $ 160,583 $ 28,300
Cash paid for income taxes $ 37,190,188 $ 30,239,002
NON-CASH INVESTING AND FINANCING
ACTIVITIES
Property and equipment transferred
from long-term prepayments $ 1,493,450 $ 597,602
Operating lease right-of-use assets
obtained in exchange for operating
lease liabilities $ 1,322,455 $ --
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 $ 5,302,043 $ 2,908,554
Payables to related parties in
connection with loan services
provided $ 14,219,401 $ 20,524,499
Issuance of common stock as
incentive shares $ 86 $ --
Issuance of common stock from
conversion of convertible note $ -- $ 2,700,000
Deemed contribution in connection
with disposal of subsidiaries $ -- $ 1,473,571
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 For the Years Ended
December 31, December 31,
---------------------------- ------------------------------
2025 2024 2025 2024
----------- ----------- ------------ ------------
Total Revenues,
net $39,566,706 $44,420,537 $173,607,489 $205,415,542
Income from
operations 12,848,892 4,717,662 67,486,398 70,303,710
Depreciation
and
amortization
expense 673,684 931,596 2,684,300 3,799,377
Impairment loss _ 15,058,965 _ 15,058,965
EBITDA 13,522,576 20,708,223 70,170,698 89,162,052
EBITDA margin 34% 47% 40% 43%
---------- ---------- ----------- -----------
Net income
margin 36% 15% 29% 23%
---------- ---------- ----------- -----------
View source version on businesswire.com: https://www.businesswire.com/news/home/20260327875612/en/
CONTACT: SBC Medical Group Holdings Incorporated
Hikaru Fukui / Head of IR Department E-mail: ir@sbc-holdings.com
(END) Dow Jones Newswires
March 27, 2026 06:40 ET (10:40 GMT)