SBC Medical Group Holdings Announces First Quarter 2026 Financial Results

Released on: Friday, 15 May 2026 10:10AM

IRVINE, Calif., May 15 (Bernama-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
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.
 
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Contact 

SBC Medical Group Holdings Incorporated
Hikaru Fukui / Head of IR Department E-mail: ir@sbc-holdings.com 

Source : SBC Medical Group Holdings Incorporated 

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