SBC Medical Group Holdings Inc. (NASDAQ: SBC), the Japanese owner and operator of a chain of cosmetic surgery clinics, reported a significant improvement in net profit for the third quarter as the company returns to a more typical cost structure in the absence of IPO-related and stock-based compensation expenses. Profitability was also lifted by the company’s execution of its strategy shift, which includes expanding franchise locations, increasing customer visits, optimizing pricing, and acquiring a higher-priced customer base. These efforts position the company for what it says will be a strong 2026.
“Looking ahead, we will continue to pursue sustainable growth toward 2026 by focusing on delivering high-quality solutions, advancing multi-brand initiatives in the dermatology segment, and building a stronger business foundation in overseas markets,” said Yoshiyuki Aikawa, Chairman and Chief Executive Officer of SBC Medical.
For the third quarter, SBC Medical reported total revenue of $43 million, 18% lower than last year’s third quarter, attributed to a revised fee structure, decreased procurement revenue, and lower management services revenue. However, when compared to Q2 2025, revenue was essentially unchanged, with stabilization attributed to new clinic openings and improvement in average revenue per patient on a sequential basis. Average revenue per visit was up 6% sequentially to $298, and up 8.4% from Q1 2025, due to pricing strategy overhaul, promotions, and targeting more affluent customers. The repeat rate stood at 72%, and the company operates 258 locations, up 15% year-over-year.
Net income for the quarter ending September 30 was $13 million, compared to $3 million a year ago, and EBITDA was $17 million, an increase of 12%. EBITDA margin was 38% for Q3 2025, compared to 28% for Q3 2024, credited to a reduction in operating expenses offsetting the decrease in revenue. The company has $127 million in cash heading into year-end.
In addition to domestic improvements, SBC Medical Group has expansion on its mind and has set its sights on Thailand. The company announced a consulting agreement with BLEZ ASIA Co., Ltd., which operates more than twenty pharmacies and clinics in Thailand. SBC will provide comprehensive management support to a new clinic focused on dermatological treatments in Bangkok, expected to commence operations by year-end. Thailand's aesthetic medicine market was valued at about $372.2 million in 2024 and is projected to grow to around $1.2 billion by 2033.
SBC Medical also announced it is acquiring a stake in Waqoo, a Japanese R&D company providing medical support services. The tender offer aims to acquire a majority stake, generating synergies by combining SBC's clinical expertise with Waqoo's R&D foundation, including upgrading treatments and co-developing proprietary skincare products for international market entry.
