SBC Medical Group Holdings Announces First Quarter 2026 Financial Results

Published: 2026-05-14 06:31:05 ET SBC

Published on 05/14/2026 at 06:31 am EDT

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.”

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

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

Additional paid-in capital

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

—

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

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

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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