SBC

NEW YORK CITY, NY / ACCESS Newswire / August 24, 2026 / Emerging Growth Research today announced the release of its Q2:26 Quarterly Update Report on SBC Medical Group Holdings (NASDAQ:SBC), reiterating its Buy rating and increasing its 12-month price target to $11.00 from $10.00. The Quarterly Update highlights SBC Medical Group's return to revenue growth in 2026 following the completion of pricing-related headwinds experienced during 2025, while emphasizing the Company's strong cash position, expanding clinic footprint, continued international expansion, and new AI-driven growth initiatives. Emerging Growth Research believes the Company is positioned for renewed growth following the 2025 revenue decline and remains significantly undervalued relative to its long-term earnings potential. Key Highlights from the Q2:26 Quarterly Update: Revenue Growth Returns: Q2:26 revenue increased approximately 13% year-over-year to $49.2 million, compared with $43.4 million in Q2:25, reflecting recovery from the 2025 franchise fee reduction and the addition of acquired Waqoo operations. Sequential revenue increased approximately 14%, suggesting the 2025 revenue decline has completed. Income from Operations and Earnings Improve: Q2:26 income from operations increased approximately 30% year-over-year to $19.0 million, compared with $14.6 million in Q2:25. Net income from continuing operations increased to $10.7 million from $2.4 million, while Adjusted EBITDA increased to $19.7 million from $15.3 million. AI Provides Additional Growth Potential: Management expects AI initiatives implemented at the clinic level to generate up to $15 million in additional revenue annually. Emerging Growth Research incorporates only one-third of this potential contribution into its estimates, reflecting a conservative approach. Continued Clinic Expansion: SBC's clinic network increased by 34 locations year-over-year, or approximately 13%, to 287 clinics at the end of Q2:26. Customer numbers increased approximately 10% year-over-year to 6.9 million annual visits, with a 73% repeat rate. Management's long-term objective remains to expand the network to 1,000 clinics by 2035. Strong Cash Position: SBC ended Q2:26 with approximately $185 million in cash and only $38 million of short- and long-term commercial bank loans. Emerging Growth Research calculates net cash of approximately $147 million, representing a significant portion of the Company's current market capitalization. International Expansion and New Growth Initiatives: SBC continues to pursue opportunities in Japan, Southeast Asia, and the United States, while developing AI-driven operational initiatives and its Wellness 2.0/Longevity strategy. The Company has also expanded internationally through acquisitions, partnerships, and investments. Improved Trading Liquidity: Emerging Growth Research notes that SBC has taken steps to increase its public float, including becoming a Russell 3000 company and partially reducing the founder's ownership position, which management believes should improve trading liquidity over time. Attractive Valuation: At the August 21, 2026 closing price of $4.00, SBC trades at a significant discount to Emerging Growth Research's valuation. The research firm's DCF analysis produces a value of approximately $10.66 per share, which is rounded to an $11.00 price target. Sensitivity analysis indicates a valuation range of approximately $8.80 to $14.78 per share. Buy Rating Reiterated: Emerging Growth Research remains bullish on SBC Medical Group and believes the Company's renewed revenue growth, strong operating margins, substantial net cash position, clinic expansion, AI initiatives, and potential international M&A provide significant long-term upside. The research firm therefore reiterates its Buy rating and increases its 12-month price target to $11.00. For a copy of the full Q2:26 Quarterly Update Report, please visit: https://storage.googleapis.com/accesswire/media/1211337/sbcq226quarterly-update-082426.pdf or https://www.emerginggrowth.com/profile/sbc/ (on the right side of the page as you scroll down) About SBC Medical Group Holdings Incorporated: SBC Medical 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, Hair Loss 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. About Emerging Growth Research Emerging Growth Research is an independent equity research firm providing institutional-quality analysis on emerging and growth-stage companies. The firm delivers ongoing coverage, including quarterly updates and flash reports on material developments, designed to enhance transparency and broaden investor awareness for companies participating in the Emerging Growth Conference platform. Contact: Emerging Growth [email protected] Forward-Looking Statements This press release contains forward-looking statements concerning business operations, financial performance, growth initiatives, and future expectations of SBC Medical Group Holdings, Inc. These statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected. SOURCE: SBC Medical Group Holdings Incorporated View the original press release on ACCESS Newswire

This article first appeared on GuruFocus. Release Date: August 13, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Profit growth outpaced revenue growth, with adjusted EBITDA up 32% year-over-year and margin at 41%. Clinic network expanded to 287 locations, up 34 year-over-year, with annual customer visits up 10%. Same-clinic revenue grew 6% and average spend per visit rose 9%, indicating strong organic growth. AI-driven initiatives are enhancing operational efficiency and customer experience, with expected annual fee increases of about $15 million. Global expansion is progressing, including a minority stake in OrangeTwist in the U.S. and a new asset-light model in Thailand. A weaker yen negatively impacted reported results, as most business is conducted in yen. Non-aesthetic business remains a small portion of the mix (16%), limiting near-term diversification. The company's recognition in U.S. capital markets is still limited, potentially affecting valuation. Dependence on M&A for growth in non-aesthetic and global segments carries execution risks. Raising service fees in stages may face resistance from medical corporations, impacting future revenue growth. Warning! GuruFocus has detected 2 Warning Sign with SBC. Is SBC fairly valued? Test your thesis with our free DCF calculator. Q: What were the key financial highlights for the second quarter of 2026, and how did the company perform despite currency headwinds?A: Yoshiyuki Aikawa, Chairman and CEO, reported that Q2 revenue reached $49 million, up 13% year-over-year, while adjusted EBITDA grew 32% to $20 million, with a margin of 41%. He emphasized that profit growth outpaced revenue growth despite the headwind of a weaker yen, driven primarily by higher management services revenue from the expanded points business and revised service fees. Q: Can you provide an update on the clinic network expansion and customer traffic metrics?A: The CEO stated that as of the end of June 2026, the company operated 287 locations, an increase of 34 year-over-year. The annual number of customer visits over the trailing 12 months reached 6.92 million, up 10%. Year-to-date clinic revenue rose 11%, with same-clinic revenue up 6% and average spend per visit increasing 9% in the quarter. Q: What is the company's strategy for accelerating growth in its aesthetic dermatology business?A: Mr. Aikawa detailed a multi-brand strategy to capture diverse customer needs. This includes renaming Shonan Aesthetic Dermatology to SBC Skin Clinic to lower the barrier for basic treatments, adding locations for high-value brands like NEO Skin Clinic and JUN CLINIC, and launching two new formats: THE LASER for large-scale hair removal and SBC MEN'S FLASH for men's beard removal. First-half transaction value grew 19% year-over-year. Q: How is the company progressing with its expansion into non-aesthetic health care?A: The CEO identified non-aesthetic health care as the second growth engine, noting that the transaction value mix is still roughly 84% aesthetic and 16% non-aesthetic, indicating significant upside. To drive this, a dedicated team was established in June 2026, led by Naoya Fujimoto, to sharpen clinic operations and use M&A to expand the number of locations. Q: What are the key elements of the company's global expansion strategy, particularly in the United States and Southeast Asia?A: In the U.S., SBC is advancing its collaboration with OrangeTwist, a minority stake investment, sharing operating know-how and expanding the service menu. In Southeast Asia, the company is exporting an asset-light "powered by SBC" model, starting with BLEZ CLINIC in Thailand, where local partners provide capital and operations while SBC supplies procurement, standardization, and training for recurring fees, aiming for high ROIC expansion. Q: How is AI being leveraged to strengthen the company's competitive advantage and support growth?A: Mr. Aikawa explained that AI is a foundational strategy supporting growth and efficiency. Deployed AI tools include a chatbot for round-the-clock inquiries, an AI interpreter called Talk Bridge, and a marketing AI. Future releases include a call center AI. Additionally, a site candidate recommendation AI and a knowledge-sharing AI are being used to speed up network expansion and improve the repeatability of new openings. Q: Can you elaborate on the expected financial impact of the enhanced support functions and service fee revisions?A: The CEO stated that enhanced call center functions are expected to add roughly $11 million per year, and stronger support for the Gorilla and Rize Clinic is expected to add roughly $4 million, totaling about $15 million per year on a full-year basis. These enhancements are part of a win-win strategy to sustainably raise the average fee per clinic (AFPC) at limited additional cost. Q: What is the company's capital and IR strategy moving forward?A: The basic policy is to pursue EPS growth and a normalization of valuation in parallel. The company is investing in organic growth and disciplined M&A, backed by ample cash. Recognizing limited recognition in U.S. capital markets, SBC is actively participating in IR conferences, increasing investor engagement, and expanding analyst coverage. The shareholder base has grown roughly 4.7 times year-over-year as of July 2026. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Image source: The Motley Fool. Thursday, Aug. 13, 2026 at 8:30 a.m. ET Head of IR Department - Hikaru Fukui Chief Executive Officer - Yoshiyuki Aikawa Chief Financial Officer, Chief Operating Officer, and AI Evangelist - Yuya Yoshida Hikaru Fukui: Welcome to SBC Medical Holdings Second Quarter 2026 Earnings Conference Call. Joining me on the call today are Yoshiyuki Aikawa, CEO; and Yuya Yoshida, CFO, COO and AI Evangelist. I am Fukui, Head of IR Department, and I will be your moderator today. Presentation materials for today are posted on our Investor Relations website. Minutes of the call will also be posted as soon as they are prepared. Today's discussion contains forward-looking statements. These forward-looking statements do not guarantee the future performance. Actual results may change due to various factors. For details, please refer to our filings with the SEC. Today's discussion may also refer to non-GAAP financial indicators. A reconciliation of GAAP to non-GAAP financial measures can be found on our presentation material for today. Let me introduce the program today. First, around 10 minutes of presentation will be delivered using AI. Please rest assured since the content has been reviewed beforehand. Then there will be a message from Dr. Aikawa before we move on to the Q&A session. [Operator Instructions] We will now start the presentation. Unknown Attendee: [AI Agent] Thank you for taking the time to join the Second Quarter 2026 Conference Call of SBC Medical Group Holdings Incorporated. I will now walk you through our results for the second quarter of 2026, and update on our business strategies and our capital and IR strategy. If I had to sum up this quarter in a single sentence, it is the quarter in which we completed the structural reforms we undertook in 2025, and SBC's growth entered a phase of reacceleration. On the back of an expanding business base and more sophisticated support functions, including AI, we delivered profit growth that outpaced revenue growth. Let me begin with the clinic highlights. As of the end of June 2026, our number of locations reached 287, up 34 year-on-year. And the annual number of customer visits over the trailing 12 months was 6.92 million, up 10%. Year-to-date clinic revenue rose 11%. Same-clinic revenue was up 6% and average spend per visit in the quarter increased 9%. With both customer volume and unit price rising together, our clinic business is showing renewed strength. Next, our financial highlights. Second quarter revenue was $49 million, up 13% year-on-year. Adjusted EBITDA was $20 million, up 32% and our adjusted EBITDA margin was 41%. Profit growth outpaced revenue growth with profitability improving. In the second quarter, we grew both revenue and profit despite a weaker yen. Because most of our business is conducted in yen, a weaker yen is a headwind for our reported results. Even so, we absorbed it and still delivered strong revenue and operating income. The main driver was higher management services revenue, reflecting the expansion of the points business following the change in our operating policy in June 2025. A revision of certain service fees also contributed. Now to our strategy update. Our strategy is unchanged. We aim to be a health care platform that supports longevity, people living young and vigorous lives from 2 sides: aesthetic medicine, an appearance-based approach; and non-aesthetic or general medicine, a function-based approach. Our goal is to become the name that comes to mind when people in Japan think of longevity. We believe 4 growth strategies will get us there: accelerating our multi-brand strategy in aesthetic dermatology; expanding our non-aesthetic business; expanding globally; and strengthening our competitiveness and reforming our cost structure through AI. I will briefly comment on each of these 4 growth strategies. We believe that AI is developing into a source of SBC's next competitive advantage. In aesthetic dermatology, we are accelerating our multi-brand strategy to capture increasingly diverse needs and raise lifetime value. First half transaction value grew a strong 19% year-on-year. To reach the customer segment that prefers basic dermatological treatments, which is driving market expansion, we are renaming Shonan Aesthetic Dermatology to SBC Skin Clinic. The Skin Clinic name lowers the barrier to aesthetic medicine and broadens our appeal, and we will open 2 additional clinics. Next are our high-value brands for beauty-conscious customers who choose based on the expertise of doctors and equipment. We will add 3 NEO Skin Clinic locations for a total of 4 and 1 JUN CLINIC for a total of 7. And to meet solid demand in men's aesthetics and hair removal, we are launching 2 new formats, THE LASER, a large-scale hair removal clinic; and SBC MEN'S FLASH, which specializes in men's beard removal with high-speed operations. Gorilla Clinic's first half transaction value was $62 million, up 19% year-on-year. Using hair removal and oral AGA treatments as entry points, we guide customers step-by-step towards dermatological and higher-value treatments, and this deeper penetration of our existing customer base drove the growth. Aiming for a Japan where longevity means SBC, we position non-aesthetic health care as our second growth engine. Our transaction value mix is still roughly 84% aesthetic and 16% non-aesthetic, which means the potential upside is significant. To drive this, we established a dedicated team in June 2026, led by Naoya Fujimoto, formerly an Executive Officer at a major health care and IT talent platform company. We will strengthen both customer acquisition and medical management. First, sharpening the acquisition and operations of existing clinics to raise utilization and revenue per clinic and in parallel, using M&A to expand the number of locations. The premise of our global expansion is a stable earnings base in Japan. On that foundation, we grow overseas with discipline. In the United States, we are advancing our collaboration with OrangeTwist, in which we took a minority stake in December 2025. OrangeTwist has 24 locations across 6 states and a membership base where recurring revenue exceeds 40% of sales. We are currently sharing operating know-how and expanding the service menu. And over the medium to long term, we aim to export the model we established in the United States to Japan and Asia. In Southeast Asia, we are exporting asset-light, the operating system honed in Japan, affordable, reliable and standardized. We are proving this out at our first Thai clinic, BLEZ CLINIC. Under our powered by SBC model, the local partner provides capital and operations, while SBC supplies procurement, standardization, training and patient acquisition, earning recurring fees linked to revenue in return. This expands our footprint at a high return on invested capital, or ROIC, while holding down capital expenditure. Starting from Thailand, we will expand the model across ASEAN. AI is a foundational strategy supporting both growth and efficiency. We are leveraging more than 26 years of accumulated management data to support AI development, building a barrier that is hard to replicate. Strengthening our MSO platform through AI lifts growth in 3 directions at once, the number of locations, the fee per clinic and the range of service menus. A more attractive platform draws in new clinics, more active transactions raise service fee levels, and the service menu expands, a virtuous cycle that we believe drives recurring consolidated revenue and EPS growth. We are progressively deploying AI that directly supports clinic management. Our AI chatbot for round-the-clock inquiries and our AI interpreter, Talk Bridge, which gives on-the-spot English and Chinese interpretation to capture inbound demand are already released. Our marketing AI is rolling out in phases and a call center AI to raise answer rates and prevent missed calls is scheduled for release during 2026. Together, these enhance the customer experience and our marketing, contributing to higher clinic revenue. We are also deploying AI that supports network expansion itself, a site candidate recommendation AI that gathers population, foot traffic and competitor data to speed up site selection. And a knowledge sharing AI that turns 26 years of on-the-ground know-how into a company-wide asset, improving the repeatability of new openings and helping staff ramp up quickly. This lets us expand the network with both precision and speed while maintaining high quality and strengthens our appeal as a franchise. More sophisticated support functions, AI foremost among them, translate directly into greater value for clinics, and we are raising service fee levels in stages accordingly. Enhanced call center functions are expected to add roughly $11 million per year and stronger support for the Gorilla and Rize Clinic is expected to add roughly $4 million, together, about $15 million per year on a full year basis. On a win-win basis with the medical corporations, we aim to sustainably raise our average fee per clinic, or AFPC, at limited additional cost, which further supports profitability. Since our NASDAQ listing, we have reinforced our core platform and laid strategic groundwork overseas and in new domains. From here, we enter a phase of multifaceted acceleration, expanding and rebranding domestic aesthetic dermatology, launching new formats, strengthening non-aesthetic health care, moving the United States into Phase 2, expanding B2B and joint ventures in Southeast Asia, applying AI and planning a longevity center for 2027. Through disciplined investment, we will pursue differentiated earnings and sustained EPS growth. Finally, our capital and IR strategy. Our basic policy is to pursue EPS growth and a normalization of our valuation in parallel, enhancing shareholder value over the medium to long term. Backed by ample cash, we are investing in both organic growth and disciplined M&A. At the same time, we recognize that SBC's recognition in the capital markets, particularly in the United States, is still limited. That said, our investor base is broadening rapidly. Our shareholder base has grown roughly 4.7x year-on-year as of July 2026. Building on this momentum, in 2026, we have and will continue to actively participate in IR conferences in New York, Hong Kong and elsewhere and step up our year-round investor engagement, including NDRs, one-on-ones and outreach to retail investors. We will also keep working to expand analyst coverage. Through all of this, with continuous EPS growth and the pursuit of an appropriate valuation in the capital markets as our 2 wheels, we expect to deliver even greater value to all our stakeholders, beginning with you, our shareholders. We hope you will look forward to what lies ahead for SBC. That concludes my remarks. Thank you very much for your attention. Hikaru Fukui: Thank you for watching. I will now turn the call over to Dr. Aikawa, CEO, to deliver a short speech. Yoshiyuki Aikawa: Good evening. I am Aikawa, CEO of SBC Medical Group Holdings. Just as you have seen in the presentation, the second quarter numbers were very strong numbers. In 2024 and in 2025, in these 2 years, we saw a dramatic change in aesthetic medicine environment in Japan, where competition became very fierce. It is now the 26th year after we started our business. And the growth was somewhat stagnant. But in the last 2 years, in the much changed environment, how to reaccelerate our growth was what we put our focus on and put our efforts on. Marketing methods and fees, the treatment, these were all renewed. And in such an environment, we were able to demonstrate that we can achieve strong growth. We are determined to continue this strong growth. Continuing from this second quarter, amongst Japanese medical institutions, we are going to be the organization that makes the most use of AI. Our COO is taking a leadership on that. AI-based chat to respond to patients automatically is one example, or AI telephone response appointment system, recommendation functions, we are able to use AI for various functions to improve convenience for our customers and improve customer experience. And at the same time, we will be able to improve the efficiency of our management. We will have more efficient management, and I'm sure that, that will contribute to profitability. That is how we foresee. We aim to be longevity company. That is the company-wide objective. The growth was primarily driven in aesthetic health care, but including orthopedic and ophthalmology, fertility treatment. In these categories, we expect to see growth, and we intend to achieve growth in these categories. Right now, the majority of our business is aesthetic health care. But in 10 years' time, the proportion of aesthetic health care is expected to be smaller, while other categories will be much larger in proportion in terms of financial performance and profitability. That is the future that we are envisioning and targeting. As for the number of clinics, it is now close to 300. And in 2035, our target is to have 1,000 clinics. And we would like to be able to achieve that target as soon as possible. And therefore, we would like to achieve growth in categories other than aesthetic health care. And as for international business, we have clinics in Thailand, Singapore and Vietnam. And gradually, business is expanding. And when we have one winning pattern, we will be able to roll that out in the all of the ASEAN region. This second quarter was a very strong quarter, and I believe that we were able to meet the expectations of the investors and we will work to improve upon the results in the third and the fourth quarters to meet your expectations. Thank you. Hikaru Fukui: That was CEO, Aikawa. Thank you very much. Now we would like to open the floor for Q&A session. [Operator Instructions] Now the first question, reaccelerating the growth that was presented. Domestic, the aesthetic clinics performance is improving compared to the first half of 2024 and '25, what structural changes have been brought about? Can we expect to see further improvement going forward? Yoshiyuki Aikawa: I would like to respond to that question. Competitive landscape has become more fiercely competitive. And what I have done is to look at the results of customer satisfaction survey and to see where we have competitive edge or where we are weaker competitively, we have conducted such analysis. And we are sending out information from our website using various media, including photographs, fee structure and expressions, all of these were reviewed and renewed. The first CMO, the Chief of Marketing, was newly appointed. That was also a major change. And in marketing, social media marketing, TV commercials, we have reviewed all of these thoroughly so that we are able to win in this very competitive environment. And now we are seeing good results. And I believe this momentum will continue, and I expect strong growth to continue. Yuya Yoshida: I would like to add to that. As Dr. Aikawa explained, we are seeing results in terms of number of customers and unit price, both are growing. And that is the difference between the past 2 years. And in aesthetic dermatology, our growth is outpacing the market growth. So it is not merely because the market itself is growing, but our SBC platform is stronger as a result of revamping, including of marketing. And as a result, we have become stronger, and we are becoming more confident. Hikaru Fukui: Moving on to the next question. A question on Japan. What is the competitive environment in Japanese aesthetic health care market? Yoshiyuki Aikawa: Well, in terms of the competitive landscape, at maximum, last year or in the first half of this year, right now, has probably seen the peak of competition. And recently, or earlier, there were a lot of new aesthetic clinics being opened increasing their numbers. But recently, we have seen slowing down of the increase. So the players -- the number of players is going to be reduced going forward. But in the Japan's aesthetic medicine market, I believe that the market itself is going to expand going forward with the expansion of the market, but slightly reduced number of players in the market, that is what we are expecting to see. And going forward, we believe that the environment will come where we will be able to exhibit our strength. Yuya Yoshida: If I may add, as Dr. Aikawa mentioned, regarding the competitive landscape, I believe that there has been a complete change of the current, where SBC's position has been further strengthened. That means that we are currently in a favorable position for SBC in terms of the number of locations and the customer volume, and we are positioned as #1 overwhelmingly with a very overwhelmingly stronger brand power and also business base and the scale of the business. In each of our brands, we are able to provide value as well as the balanced pricing and values. Therefore, that will prevent us from being falling into the competition in pricing. While we are able to maintain our competitiveness, we will be able to maintain profitability. And it is something that cannot be done by any other peers who are running single brand. And given the current environment where the environment for business running for other peers are getting difficult and considering the current longevity trend, we are going to grow further. In that landscape, we believe that SBC will be able to increase our share of market. If I may be more specific, for example, aesthetic dermatology area, utilizing our financial capability, we are able to buy the cutting-edge medical equipment at scale faster than any other players. And also furthermore, we are going to optimize our operation utilizing our AI capability. CapEx or whatever which will require investment can be done. Including these strategies, we believe that this is something that cannot be reproduced by any other peers. And when it comes to the data foundation being improved, as Dr. Aikawa mentioned, the management reform is based upon the data-driven model. Based upon the specific analysis of the data, we are trying to enhance our business base. And I believe that we have been able to strengthen our business base further. We are increasingly confident. Thank you very much. Hikaru Fukui: Next question is about financials. The second quarter was a very great quarter. However, SG&A was higher than expected. Will you please detail? Yuya Yoshida: I would like to respond to that question. Thank you very much for commending us for having a great quarter. As for SG&A, it increased slightly. But what is important first is that it was only a slight increase. There are some reasons. One of the reasons is one-time cost as a result of the secondary offering that accounted for much of the increase. It is not that overall trend is that of increasing SG&A. Hikaru Fukui: Thank you. We have another question on finance. About $15 million of upside in fee was highlighted. What is the timing of those increases? And how much of this is already reflected in Q2? And what is the incremental margin contributions? Yuya Yoshida: Let me respond to this question again. Regarding the time line, it will depend on each item, but there are specifically 2 items, Gorilla Clinic starting from July and call center revision starting from June -- sorry, call center starting from July, Gorilla, Rize Clinic starting from June. So regarding the results under review for the second quarter, which did not include this impact, some of which may have been included in the results for June. Part of the impact has been included slightly in the results under review. So full contribution will be seen starting from next fiscal year. But in Q3 and Q4 for this fiscal year, about half of the unrealized gains will be included. These 2 items that we are explaining have been already determined. But other than this, high value-added services will contribute to the further increase in the unit price. Revenue per clinic will be further enhanced by other factors than what is described here. Regarding the contribution to the profitability, in principle, these are the services which are provided based upon the fixed cost. Therefore, most of the gains can be directly contributing to the profits. So what has been determined is the basis for the upside in the amount of $15 million. We are increasingly confident in achieving this. Thank you very much. Hikaru Fukui: Next is about global strategy. OrangeTwist, what is the current status of the OrangeTwist? Could you please give us your update? Since you made investment, what learnings did you get? Or in the coming 12 months, what kind of important milestone are you planning to have? Yuya Yoshida: Since I'm responsible for international business, I would like to respond to this question. As for major learning in the past 6 months or so, the management structure was reviewed and one of the co-founder became the CEO. He is Clint Carnell, and we have learned much from him. MedSpa business in the U.S., how it will be expanded in the United States, we are learning that under his leadership. For example, SBCs procurement can be utilized to reduce cost of purchase, comprehensive marketing strategy is also being revisited. In actual clinics, customer proposition, protocol is being reviewed and events to attract customers will be organized. This is related to branding. We have not done these before. But in a very short period of time, these are implemented one after another. The speed of implementation is much quicker after Clint joined. In the growth area, longevity, longevity products will be enhanced in conjunction with SBC. In the next 12 months, what we can expect over the next 12 months? Well, SBC is working together with OrangeTwist. And under SBC brand, we would also like to do business in the United States under our own brand. And we believe that there is a synergy between OrangeTwist and SBC. Yoshiyuki Aikawa: I would also like to add to that. I agree fully with what Yoshida-san said. After the leadership change, there has been a rapid reform of OrangeTwist, which is reflected in the performance. And we have much to learn from his leadership, and he visited Japan, Clint visited Japan, and he also observed our clinics here in Japan. We were able to provide information from our side, and we had a lot to learn from the U.S. It may take time, but we would like to make sure that we make the full use of these opportunities and learn and to build a strong business model in the United States. Hikaru Fukui: Thank you. We have another question on the United States. In expanding U.S. business, what are you thinking of doing? Will you explain OrangeTwist locations or buy other companies or increase your ownership of OrangeTwist? Yoshiyuki Aikawa: Well, expanding OrangeTwist itself, yes, this is something that we are sure will be done and increasing our stake in the OrangeTwist is also being considered. And members of the OrangeTwist will be cooperating with us so that our unique model, winning model in the United States market, together with them, we would like to scale across regions or increasing the number of locations. Yuya Yoshida: If I may add, as he mentioned, in principle, there will be a mixture of different measures. As SBC, we may be deploying our locations as well. In principle, OrangeTwist's roll-up strategy, M&A being utilized in order to increase the clinics. And last year, we did one and increasing the number of locations reaching 24 now. Other than this, there may be opportunities for M&A. There has been approach to OrangeTwist. Therefore, we are currently considering all of these as the opportunities for growth. Thank you very much for your question. Hikaru Fukui: Thank you. Next question is about Southeast Asia. Your strategy in this region, what is the traction of the strategy being implemented? What are going to be the future steps? Yoshiyuki Aikawa: In Vietnam, in Thailand and in Singapore, we have clinics. In Singapore, last year, we acquired AHH. We would like to expand AHH Clinics in Singapore. As for Vietnam, it has been already 10 years after we have started operating clinics. And for the first time, we are seeing increase in the number of Vietnese patients, customers, and it has started to grow rapidly. Once we have a strong model here, then in Vietnam alone, population is 100 million. So I'm sure we will be able to open other locations. In Thailand, in Hong Kong, these are countries where there are people who like Japanese culture, and I believe it will be easier to open clinics in these countries. In relation to international business, as for inbound on a single month basis, in the past few months, we have seen growth by several folds. And in particular, we have seen increase in customers from Taiwan. The measures that we have implemented in the past 1 or 2 years are leading to the actual results in our business in Asia and also our business with inbound customers. Hikaru Fukui: Thank you very much. We have a related question. Outside of Japan, in the second half of 2026 and in 2027, in that time span, what territories represent the greatest growth opportunity? Yoshiyuki Aikawa: Well, as we mentioned earlier, Vietnam may have the opportunities and also inbound market, foreign visitors coming to Japan. This market is growing for sure. And business in the U.S. with the leadership change, it is showing a speedy growth. So these 3 areas are those opportunities that we will be growing for sure. Hikaru Fukui: Thank you very much. Next question is about AI strategy. Service fee is going to be enhanced due to the development of AI technologies. And other than this, what kind of impacts can be seen from the implementation of AI technologies? If you have any time scale for that, could you please share it with us? Yuya Yoshida: I'm happy to address that question. We are releasing various AI products one after another. As Dr. Aikawa explained, chatbot has been released in August. And before the end of the year, we expect to open AI call center and AI preceptor to support the training of nurse concierge will also be launched. So in the next 6 months to 12 months, we will be introducing more AI products and core system will be revamped using AI. What we are basically aiming to achieve is that in 2035, we would like to have 1,000 clinics, at least in the indirect department, we would like to maintain the scale at the current scale in terms of headcount, and we would like to achieve 1,000 clinics without increasing fixed cost. To improve operational efficiency, we are using AI and that effort is moving ahead of other areas, but we would like to improve customer experience. For example, AI chatbot released on the web sites may be converted to apps so that treatment history and simulation using customers' own photographs may be used in more personalized fashion to improve UX. Through such efforts, we would like to improve customers' convenience and improve our sales. We not only aim to improve efficiency, but increase sales through the use of AI. That is what we are hoping to achieve, and we expect to achieve. Hikaru Fukui: Thank you. We have a question on longevity about longevity efforts. How does SBC see longevity as an opportunity? And how does SBC plan to make it a business? Yoshiyuki Aikawa: Yes, longevity in Japan. Japan is actually the country where people live longest with the aging population in this country. And the number of elderly people is very large. So compared to other countries, in this sense, we are more advanced. We would like to turn this into a major pillar for profitability and revenue for health care. Logically speaking, and simply put, for people to live healthy and vibrant lives for long so that they are able to enjoy their lives, we would like to help that through implementation of our medical technologies. So in that sense, aesthetic medicine or health care is helpful for -- even for those elderly people in order to better their appearance. By doing so, they will be able to stay vibrant and they will be able to continue working. So that we really -- we believe that we will be able to help people living that way. And for example, regenerative medicine and orthopedics that we are engaged in, in these areas, if you have a painful knee or joint, you are not able to enjoy playing sports or you're not able to travel. So in these senses, in order to prevent such restriction of activities for such people, we would like to help them. And in dentistry, chewing, utilizing your own teeth to eat, is very important for human activity. So we'd like to grow that area as well. And the gene screening that is conducted in the United States in order to see the ages of organs can be investigated, for which peptides or hormone endocrinology and supplements, any kinds of therapies can be proposed to address such aging of organs, kind of subscription recurring services based upon the investigation of the cell age on a regular basis and also providing the health checkup and whatever necessary for that particular person through supplemental provision, that kind of business model is being considered by us. Yuya Yoshida: If I may add, there are 2 major points, SBC's positioning related to what he mentioned earlier. In medical areas, we are able to provide layers of intervention. We are not just showing the numbers. We are able to provide improvement through therapies. We are able to provide such medical things or services. That is the differentiator from others. And the second point is the healthy longevity for people to live lively and vibrant lives, which will lead to the expansion of the aesthetic market. And in this area, which is the area where SBC is able to grow further. So for longevity trend to continue for medium to longer term, will provide the tailwind for us strongly. And next year, we are going to establish the longevity center and online platform will be built next year. So we'd like to make the branding where people will associate longevity always with SBC in Japan. Thank you very much. Hikaru Fukui: Regarding the next question about the capital, net cash is almost 45% of market cap. Net cash is increasing as such. So with such ample cash on hand, what plans do you have in order to enhance shareholder values? For investors, why do we need to pay attention to SBC now? Yuya Yoshida: First of all, before we became public under our group, we have Rize Clinics and Gorilla Clinics. In the beginning, when we acquired these clinics, total turnover was about JPY 25 billion. But in the last 3 to 4 years, it has increased to JPY 33 billion or to over JPY 30 billion level. So growth was achieved. Going forward, orthopedics, ophthalmology and also aesthetic health care in these categories, we would like to implement M&A so that we can achieve 1,000 clinics in 2035. We want to realize this and not end up just having a pie in the sky. We aim to achieve this number by 2035. Hikaru Fukui: Thank you very much. Are there any other questions? Then with this, we would like to conclude the Q&A session. Lastly, we would like to invite CFO, Yoshida, to say a few words to close. CFO, Yoshida, please have the floor. Yuya Yoshida: Thank you very much for participating in our conference call -- earnings call out of your busy schedule. As you have seen today, we are glad as, CFO AI, to be able to deliver and report this strong results for the quarter under review. We are confident in accelerating our growth. And as we have been making over the past several years, we have been able to strengthen further this positioning of SBC. As a result of this, the service unit price or fee has been enhanced for clinics. And by developing the new business format, we'll be able to increase the clinic network. And for the further growth in the medium to longer term, we'll be able to implement AI and longevity trend, which will all further strengthen positioning of SBC. Please stay tuned in what we are able to bring. Thank you very much for your gathering. Before you buy stock in Sbc Medical Group, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Sbc Medical Group wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $419,408!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,348,694!* That performance is why people listen. With a track record of beating the S&P 500 by nearly 5x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. See the 10 stocks » *Stock Advisor returns as of August 20, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. SBC Medical (SBC) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

By M. Marin NASDAQ: SBC READ THE FULL SBC RESEARCH REPORT Revenue grew 13% year-over-year; as expected, margins have improved SBC Medical Group Holdings (NASDAQ: SBC) provides end-to-end solutions enabling aesthetics clinics to launch, expand and/or operate their businesses. SBC reported 2Q26 results last week. After implementing measures such as revising the franchise fee structure and a multi-brand strategy to counter intensified competition in certain areas of its business, SBC’s core operations appear to have normalized, and growth resumed. SBC reported total 2Q26 revenue of $49 million, up 13% year-over-year. Net income attributable to SBC of $11 million advanced 335% year-over-year to $11 million or $0.10 per share, compared to $2 million and $0.02, respectively, in 2Q25. Adjusted EBITDAof $20 million advanced 32% year-over-year. As the company expected, margins have improved, in part reflecting the benefits of AI initiatives that are expected to improve the customer experience and boost efficiencies, and cost optimizations. The adjusted EBITDA margin was 41% compared to 35% in 2Q25. The net income margin was 22%, an increase of 16 percentage points year-over-year. Clinic revenue grew 11% year-over-year, and same-clinic sales advanced 6% year-over-year. There were 287 franchise locations as of June 30, 2026, 34 more locations compared to June 30, 2025. Some 6.92 million customers visited SBC locations in the 12-months ended June 30, 2026, representing a 10% year-over-year increase. The repeat rate for customers who visited a franchisee clinic at least two times was 73, up from 72% in the prior quarter. As noted, SBC implemented a number of measures in 2025 that appear to be lifting operating results. For example, in April 2025 the company revised its franchise fee structure, as noted, to make it easier financially for franchisees to join its network and, as they ramp services and customer bases, pay fees based on a tiered fee system that aligns with the scale. As SBC expected, this contributed to improving cost efficiencies. SBC also launched a multi-brand strategy in aesthetic dermatology and other areas to address the increasingly diverse needs of its growing customer base, customize services across multiple brands, segment the market, develop new services, and garner more market share overall. For example, the company launched NEO Skin Clinic, targeting relatively frequent-visit customers who might otherwise travel outside Japan for the most current treatments. With that brand, the company introduced up-to-date medical devices, including advanced laser devices, and has successfully attracted high-literacy customers. SBC Men’s Flash Clinic is focused on providing a men-only setting. SBC has also complemented organic growth with strategic M&A. For example, SBC acquired JUN CLINIC, a medical clinic group that focuses on customers who are relatively new to aesthetic medicine. The company intends to continue to promote its multi-brand strategy in the aesthetic dermatology field, expand its non-aesthetic medical business, and strengthen its international footprint. The company also believes the competitive environment of the Japanese and global aesthetic medical market is easing to an extent. Increased focus on many non-aesthetic specialties, emphasis on male demographic, wellness & longevity To enhance its growth prospects, SBC has also increased its focus on many non-aesthetic specialties where it believes it has substantial opportunities to grow and gain more market share, including categories such as AGA and dentistry, which are experiencing momentum. Reflecting these and other changes and improved product mix, average revenue per customer visit has begun to recover and improve. The company expects efforts will continue to diversify revenue sources. SBC also sees international expansion, focused on the U.S. and Southeast Asia, as integral to creating long-term value. By 2027, the company expects to operate a significantly larger global footprint offering diversified medical services, with an emphasis on aesthetic medicine. SBC has increased its focus on wellness and longevity. SBC recently announced its new wellness and longevity platform, SBC Wellness 2.0, which combines aesthetic healthcare, preventative care, and data-driven health management. The company believes its multiple initiatives position it to benefit from rapid anticipated growth in the wellness and longevity areas. Moreover, with demand for aesthetic healthcare within the male demographic expanding globally -- according to the International Society of Aesthetic Plastic Surgery (ISAPS) Global Survey 2024, the total number of aesthetic procedures performed on men increased 6.3% in 2024 -- the company has increased its focus on this market and launched SBC Men’s Flash Clinic, Japan’s first specialized men’s beard hair removal clinic. Hair removal ranks among the top three non-surgical procedures globally and among men, according to SBC. SUBSCRIBE TO ZACKS SMALL CAP RESEARCH to receive our articles and reports emailed directly to you. Please visit our website for additional information on Zacks SCR. DISCLOSURE: Zacks SCR has received compensation from the issuer directly, from an investment manager, or from an investor relations consulting firm, engaged by the issuer, for providing research coverage for a period of no less than one year. 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Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management declared the completion of 2025 structural reforms, transitioning the company into a phase of reacceleration where profit growth is now outpacing revenue growth. Performance was driven by a dual increase in customer volume (up 10%) and average spend per visit (up 9%), reflecting renewed strength in the core clinic business. The company successfully absorbed currency headwinds from a weaker yen, as most business is yen-denominated, primarily through higher management services revenue and revised service fees. A strategic rebranding of 'Shonan Aesthetic Dermatology' to 'SBC Skin Clinic' was initiated to lower barriers to entry for customers seeking basic dermatological treatments. The 'Powered by SBC' model in Southeast Asia utilizes an asset-light approach where local partners provide capital while SBC earns recurring fees for procurement, training, and standardization. Management is leveraging 26 years of proprietary data to build AI-driven barriers to entry, focusing on automated patient inquiries, site selection, and knowledge sharing to improve new clinic repeatability. The company aims to expand its network from nearly 300 locations to 1,000 clinics by 2035, with a significant portion of growth expected from non-aesthetic medical categories. A dedicated longevity center and online platform are planned for 2027, positioning the brand as the primary name for healthy aging in Japan's aging demographic. Management expects to maintain current indirect department headcount levels even as the clinic count triples, relying on AI to prevent fixed-cost scaling. Future revenue growth is expected to be supported by a determined $15 million annual upside in service fees from enhanced call center and clinic support functions. Global expansion strategy involves exporting the U.S. MedSpa model to Japan and Asia while scaling the 'winning pattern' across the ASEAN region. A one-time cost related to a secondary offering contributed to a slight increase in SG&A expenses during the second quarter. The competitive landscape in Japanese aesthetic medicine is characterized as having reached 'peak competition,' with management expecting a reduction in the number of players going forward. The transaction value mix remains heavily weighted toward aesthetics (84%), with management noting that the current 84% aesthetic and 16% non-aesthetic transaction value mix offers significant potential upside but also a perceived upside for the 16% non-aesthetic segment. Management noted that while the yen remains a headwind, the expansion of the points business following a June 2025 policy change has provided a structural buffer. Management attributed the recovery to a thorough review of marketing methods, fee structures, and the appointment of the first Chief Marketing Officer. The company is now using data-driven analysis of customer satisfaction surveys to address competitive weaknesses and optimize social media and TV advertising. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. The fee revisions for Gorilla and Rize Clinics began in June/July 2026, with full contribution expected in the next fiscal year. Because these services are provided based on existing fixed costs, management expects most of these gains to flow directly to the bottom line. Following a leadership change, OrangeTwist is implementing SBC's procurement and marketing strategies to reduce costs and enhance branding. SBC is considering increasing its stake in OrangeTwist and potentially deploying its own branded locations in the U.S. market. A chatbot was released in August, with an AI call center and 'AI preceptor' for staff training scheduled for launch by the end of 2026. The goal is to move beyond efficiency to sales enhancement through personalized apps that use customer photos for treatment simulations. With net cash at 45% of market cap, the company plans to prioritize disciplined M&A in orthopedics and ophthalmology to reach its 1,000-clinic target. Management emphasized that cash will be used to transform the business from a 'pie in the sky' vision into a realized 2035 infrastructure.

Interested in SBC Medical Group Holdings Incorporated? Here are five stocks we like better. Strong Q2 performance: Revenue rose 13% year over year to $49 million, while adjusted EBITDA increased 32% to $20 million, producing a 41% margin. Growth was supported by higher management-services revenue, fee revisions and an expanded points business. Clinic and brand expansion: SBC reached 287 locations, with customer visits up 10% and same-clinic revenue up 6%. The company is adding multiple aesthetic brands and formats while developing non-aesthetic healthcare through improved clinic utilization and acquisitions, targeting 1,000 clinics by 2035. AI and international growth initiatives: SBC is rolling out AI tools for customer service, interpretation, marketing and staff training to improve efficiency and profitability. It is also expanding through its OrangeTwist investment in the U.S. and an asset-light “Powered by SBC” model in Southeast Asia. SBC Medical Group (NASDAQ:SBC) said its second-quarter 2026 results reflected a reacceleration in growth following structural reforms undertaken in 2025, with adjusted EBITDA rising faster than revenue despite the effect of a weaker yen on reported results. The company reported second-quarter revenue of $49 million, up 13% from a year earlier, while adjusted EBITDA increased 32% to $20 million. Adjusted EBITDA margin was 41%. Management said higher management-services revenue, helped by an expanded points business after an operating-policy change in June 2025, was a primary contributor to the results. Revisions to certain service fees also supported growth. → AST SpaceMobile Earnings Just Reminded Investors How Risky Space Can Be As of the end of June, SBC had 287 locations, an increase of 34 from a year earlier. Customer visits over the trailing 12 months totaled 6.92 million, up 10%. Year-to-date clinic revenue rose 11%, same-clinic revenue increased 6%, and average spending per visit climbed 9% during the quarter. Chairman and CEO Yoshiyuki Aikawa said the company faced a sharply more competitive aesthetic-medicine market in Japan during 2024 and 2025, a period in which growth had become more subdued. In response, SBC reviewed customer-satisfaction data, website content, pricing structures, treatment offerings, social-media marketing and television advertising, he said. → Nebius’ Q2 Beat Shows the AI Bottleneck Is Capacity, Not Demand The company also appointed its first chief marketing officer. Aikawa said the changes have begun to produce results and that he expects the momentum to continue. CFO and COO Yuya Yoshida said SBC is seeing growth in both customer numbers and spending per customer. He said the company’s aesthetic dermatology business is growing faster than the market and attributed that performance to a strengthened platform and marketing revamp. → On Holding's Price Stumble May Be an Opening for a Company Built to Run Management said competition in Japanese aesthetic healthcare may have peaked last year or during the first half of 2026, as the pace of new clinic openings has slowed. Yoshida said SBC’s scale, number of locations, customer volume, brand portfolio and ability to invest in equipment and AI could help it avoid competing primarily on price. SBC said it is expanding its aesthetic dermatology offerings through multiple brands and new clinic formats. First-half transaction value rose 19% year over year, according to the presentation. Shonan Aesthetic Dermatology is being renamed SBC Skin Clinic, with two additional clinics planned. The company plans to add three NEO Skin Clinic locations, bringing that format to four locations, and one JUN CLINIC, bringing that total to seven. SBC is launching THE LASER, a large-scale hair-removal clinic, and SBC MEN’S FLASH CLINIC, which will focus on high-speed beard-removal services. Gorilla Clinic’s first-half transaction value was JPY 62 million, up 19% year over year. The company also described non-aesthetic healthcare as its second growth engine. Its transaction-value mix is currently about 84% aesthetic and 16% non-aesthetic, management said. In June, SBC created a dedicated non-aesthetic healthcare team led by Naoya Fujimoto, formerly an executive officer at a healthcare and IT talent platform company. SBC plans to improve utilization and revenue at existing non-aesthetic clinics while using acquisitions to add locations. Aikawa said the company sees potential growth in areas including orthopedics, ophthalmology and fertility treatment. The company’s longer-term target is to reach 1,000 clinics by 2035. SBC said artificial intelligence is central to its strategy to improve patient experience, support clinic growth and hold down operating costs. The company has released an AI chatbot for customer inquiries and TalkBridge, an AI interpreter supporting English and Chinese. Marketing AI is being rolled out in phases, while an AI call-center product is planned for release during 2026. Yoshida said SBC also expects to launch an AI preceptor to support nurse and concierge training before year-end. Over the next six to 12 months, the company expects to introduce additional AI products and revamp core systems using AI. Management said it aims to reach 1,000 clinics by 2035 while maintaining the current scale of headcount in indirect departments, with AI helping to improve operational efficiency. The company also expects AI tools to aid sales through more personalized customer interactions. SBC said enhanced call-center functions are expected to add about JPY 11 million annually, while increased support for Gorilla Clinic and Rize Clinic is expected to add about JPY 4 million, for a combined JPY 15 million on a full-year basis. Management said the Gorilla Clinic change began in June and the call-center revision began in July. It expects roughly half of the unrealized impact to be reflected in the third and fourth quarters, with full contribution beginning next fiscal year. Yoshida said most of the gains from these services should contribute directly to profit because they are provided largely through fixed-cost infrastructure. He added that second-quarter selling, general and administrative expense increased only slightly, with much of the increase tied to one-time costs associated with the company’s secondary offering. In the U.S., SBC is working with OrangeTwist, in which it took a minority stake in December 2025. OrangeTwist has 24 locations across six states and derives more than 40% of sales from recurring membership revenue, according to the company. Yoshida said OrangeTwist has reviewed its management structure, with co-founder Clint Carnell becoming CEO. SBC is sharing procurement, marketing and operating expertise with the business while exploring growth through new locations, potential acquisitions and possibly an increased ownership stake. In Southeast Asia, SBC is pursuing an asset-light “Powered by SBC” model, under which local partners provide capital and operations while SBC supplies procurement, standardization, training and patient acquisition in exchange for recurring revenue-linked fees. Management identified Vietnam, inbound medical demand in Japan and the U.S. as key international opportunities. Aikawa said inbound demand has increased by several multiples on a monthly basis in recent months, particularly among visitors from Taiwan. The company said it plans to continue investing its cash balance in organic growth and disciplined acquisitions, including in aesthetic healthcare, orthopedics and ophthalmology. It also plans to increase investor outreach and participation in conferences in New York, Hong Kong and other markets as it seeks to broaden its shareholder base and expand analyst coverage. SBC Medical Group, Inc is a publicly traded healthcare management services company listed on the Nasdaq under the ticker SBC. The company specializes in supporting in-office ancillary service providers by offering a suite of administrative and operational solutions designed to streamline practice management and enhance revenue performance. Its core mission is to help physician practices, imaging centers and other ancillary service providers focus on patient care while outsourcing complex back-office functions. The company's primary offerings include revenue cycle management, medical billing and coding, compliance oversight and transcription services. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "SBC Medical Group Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Restructuring Complete, Growth Reaccelerates: Q2 Revenue Up 13%, Net Income Attributable to SBC Medical Up 335%, Adjusted EBITDA1 Up 32% Year-over-Year. AI-Enabled Service Enhancements Drive Successful Fee Increases, Positioning the Business for Accelerated Network Expansion IRVINE, Calif., August 13, 2026--(BUSINESS WIRE)--SBC Medical Group Holdings Incorporated (Nasdaq: SBC) ("SBC Medical" or the "Company"), a Medical Services Organization (MSO) providing management support across a wide range of healthcare fields to medical institutions in Japan and abroad, today announced its consolidated financial results for the second quarter of fiscal year 2026 (the three months ended June 30, 2026) and the first half of fiscal year 2026 (the six months ended June 30, 2026). Second Quarter 2026 Financial Highlights Total revenues were $49 million, an increase of 13% year-over-year. Net income attributable to SBC Medical was $11 million, an increase of 335% year-over-year. Net income margin was 22%, an increase of 16 percentage points year-over-year. Adjusted EBITDA1 was $20 million, an increase of 32% year-over-year. Adjusted EBITDA margin1 was 41%, an increase of 6 percentage points year-over-year. Basic EPS was $0.10 for the three months ended June 30, 2026, an increase of 400% year-over-year. The Company believes the quarter marked a clear reacceleration in its growth, with net income attributable to SBC Medical growth outpacing revenue growth. Earnings growth was supported by the expansion of the points business following a change in the Company’s operating policy and the expansion of service fees in line with enhanced AI-enabled support capabilities. The business of the medical corporations the Company supports also continued to expand steadily. As of the end of June 2026, the number of locations2 increased by 34 year-over-year to 287, and last-twelve-month number of visits3 reached 6.9 million (up 10% year-over-year). Average spend per visit was $287, up 9% year-over-year. Comment from SBC Medical’s Chairman and CEO Yoshiyuki Aikawa: "We believe our results this quarter clearly demonstrate that SBC Medical’s growth story has entered a new phase. Having completed the structural reforms we undertook in 2025, we are now running multiple growth engines simultaneously. I am growing increasingly confident that this reacceleration is not a temporary phenomenon but reflects the strengthening of our underlying growth fundamentals. What gives me the greatest confidence is that the convergence of healthcare and AI is becoming one of SBC Medical’s next sources of competitive advantage. We are leveraging more than 26 years of accumulated management data to support AI development and implementing mechanisms that enhance clinic operations — including AI-powered call centers, AI-driven marketing, and AI-assisted site selection for new clinic openings. Strengthening our AI-enabled MSO platform simultaneously drives growth across three dimensions: the number of clinic locations, average fee per clinic (AFPC), and service menu breadth. As the platform’s appeal grows, patient visits and treatment volumes at the clinics we support increase, accelerating clinic growth — which in turn leads to expanded service fees commensurate with the value we provide. We believe this virtuous cycle is the driving force behind sustainable growth in consolidated revenue and EPS, as reflected in our most recent reported historical results and in the future. Specifically, through fee revisions for our call center services provided to five specific affiliated medical corporations, together with separate fee revisions reflecting expanded support for Rize Clinic and Gorilla Clinic, we expect these initiatives, if their impact is realized for a full year, to increase service fees by approximately $15 million annually (converted at ¥158.1/US$). These initiatives are being pursued in a disciplined manner, premised on a win-win relationship between the Company and our affiliated medical corporations. Looking ahead, we will deepen our multi-brand strategy in aesthetic dermatology domestically, while expanding our non-aesthetic business, which we position as our "second growth engine." Internationally, we plan to accelerate our global growth through our collaboration with OrangeTwist in the United States and our ASEAN expansion, anchored in Thailand. We are also preparing to enter the Longevity market, which we see as having enormous potential. With $184 million in cash and cash equivalents on hand, we will continue to pursue disciplined investment toward our next growth phase. By pursuing sustained EPS growth and achieving fair equity valuation for our shares in the capital markets as two wheels of the same cart, we aim to deliver even greater value to all our stakeholders, including our shareholders. We look forward to what lies ahead for SBC Medical." Summary of Key Financials Conference Call The Company will hold a conference call on Thursday, August 13th, 2026 at 08:30 a.m. Eastern Time (or Thursday, August 13th, 2026 at 09:30 p.m. Japan Time) to discuss the financial results for the second quarter ended June 30, 2026. A question-and-answer session will follow the prepared remarks. During the live webcast, participants may submit questions in real-time using the Zoom Q&A button. All attendees, regardless of their current stock ownership status, are welcome to submit questions. Please note that due to time constraints and the nature of the inquiries, we may not be able to address every question during the call. Please register in advance of the conference using the link provided below: https://zoom.us/webinar/register/WN_sEGnJWOyQDejlpnuGnxQgA Upon registration, you will be able to access the dedicated conference call viewing site. Additionally, the earnings release, accompanying slides, and a separate link to the archived webcast of this conference call will be available on the Company’s Investor Relations website at https://ir.sbc-holdings.com/. About SBC Medical SBC Medical 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 continues to provide safe, trusted, and high-quality medical services while further strengthening its international reputation for quality and trust in medical care. Company Name: SBC Medical Group Holdings Incorporated | Listed Market: NASDAQ Global Market | Ticker: SBC | Address: 200 Spectrum Center Drive, Suite 300, Irvine, CA 92618 USA | IR Website: https://ir.sbc-holdings.com/ | LinkedIn: https://www.linkedin.com/company/sbc-medical-group-holdings-inc Use of Non-GAAP Financial Measures The Company uses non-GAAP measures, such as Adjusted EBITDA, Adjusted 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, 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 presentations of these measures have limitations as analytical tools and should not be considered in isolation or as a substitute for analysis of our results as reported under GAAP. Because not all companies use identical calculations, the presentations of these measures may not be comparable to other similarly titled measures of other companies and can differ significantly from company to company. For reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measures, see the reconciliations included at the end of this press release. 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 plans and strategies for service expansion; growth in revenue and earnings; and business prospects. 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," "targets," 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. View source version on businesswire.com: https://www.businesswire.com/news/home/20260813064564/en/ Contacts SBC Medical Group Holdings Incorporated — Hikaru Fukui / Head of IR Department; E-mail: [email protected]

IRVINE, Calif., Aug. 03, 2026 (GLOBE NEWSWIRE) -- 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 it will release its financial results for the second quarter ended June 30, 2026, before U.S. market open on August 13, 2026. Management will host an earnings conference call on August 13, 2026, at 8:30 a.m. Eastern Time. A question‑and‑answer session with analysts and investors will follow the prepared remarks. Please register in advance for the conference using the link provided below.https://zoom.us/webinar/register/WN_sEGnJWOyQDejlpnuGnxQgA 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 Group Holdings IncorporatedSBC 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.comFor more insights and updates from SBC Medical, follow us on LinkedIn. Forward-Looking StatementsThis 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 product launch plans and strategies; growth in revenue and earnings; and business prospects. 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,” “targets” 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. ContactsHikaru Fukui / Head of IR Department; E-mail: [email protected]

NEW YORK CITY, NY / ACCESS Newswire / May 20, 2026 / Emerging Growth Research today announced the release of its Q1:26 Quarterly Update Report on SBC Medical Group Holdings, Inc. (NASDAQ:SBC), upgrading the Company to a Buy rating and increasing its 12-month price target to $10.00 from $9.00, representing significant potential upside from the Company's recent share price of $2.89 as of May 19, 2026. The Quarterly Update highlights SBC's expectation for a return to revenue growth in 2026 following the completion of pricing-related headwinds experienced during 2025, while emphasizing the Company's strong cash position, expanding clinic footprint, and long-term global growth strategy. Key Highlights from the Q1:26 Quarterly Update: Return to Growth Expected in 2026: Emerging Growth Research believes the impact of SBC's early-2025 franchise fee restructuring is now largely absorbed, positioning the Company for renewed revenue growth beginning in 2026. Underlying Business Trends Remain Strong: Q1:26 same-clinic sales increased +6% year-over-year, while customer growth rose +10% year-over-year to approximately 6.7 million annual visits with a 72% repeat rate. Sequential Improvement in Financial Results: While Q1:26 revenue declined 9% year-over-year to $43.1 million, revenue increased +9% sequentially from Q4:25. Operating profit also increased +38% sequentially. Significant Cash Position Supports Expansion: SBC ended Q1:26 with approximately $167 million in cash and only modest debt levels, leaving the Company with a strong net cash position relative to its market capitalization. Continued Clinic Expansion: SBC expanded its clinic network to 284 locations, up +13% year-over-year, as management continues to pursue its long-term objective of reaching 1,000 clinics globally over the next nine years. International Expansion and New Growth Initiatives: The Company continues to pursue strategic M&A opportunities in Japan, Southeast Asia, and the United States while also investing in AI-driven operational initiatives and longevity-focused wellness services. Improved Trading Liquidity: Emerging Growth Research noted that the founder's recent partial share sale increased public float and trading liquidity while maintaining strong founder alignment with shareholders. Attractive Valuation: Emerging Growth Research believes SBC shares remain materially undervalued relative to the Company's long-term earnings potential, strong operating margins, and substantial net cash position. For a copy of the full Q1:26 Quarterly Update Report, please visit: https://storage.googleapis.com/accesswire/media/1168563/sbcq126-quarterly-update-052026.pdf or https://www.emerginggrowth.com/profile/sbc/ (on the right side of the page as you scroll down) About SBC Medical Group Holdings, Inc. SBC Medical Group Holdings, Inc. provides management services to cosmetic treatment centers through a franchise model operating across Japan, Southeast Asia, and the United States. The Company operates a diversified portfolio of cosmetic, dermatology, and wellness-focused brands and continues to expand through both organic growth and strategic acquisitions. About Emerging Growth Research Emerging Growth Research is an independent equity research firm providing institutional-quality analysis on emerging growth companies. Contact: Emerging Growth [email protected]://www.emerginggrowth.com Forward-Looking Statements This press release contains forward-looking statements concerning business operations, financial performance, growth initiatives, and future expectations of SBC Medical Group Holdings, Inc. These statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected. SOURCE: SBC Medical Group Holdings Incorporated Related Documents: SBC_Q1.26 Quarterly Update 05.20.26 View the original press release on ACCESS Newswire

By M. Marin NASDAQ: SBC READ THE FULL SBC RESEARCH REPORT Pro forma revenue grew 11% year-over-year SBC Medical Group Holdings (NASDAQ: SBC) provides end-to-end solutions enabling aesthetics clinics to launch, expand, and/or operate their businesses. SBC reported 1Q26 results last week. Total revenue of $43 million declined 9% year-over-year, primarily reflecting the revised franchise fee structure implemented in April 2025. Given the 2Q26 anniversary of this change, the company believes the impact of the fee structure changes will ease. Moreover, excluding the impact of fee revisions, pro forma revenue grew 11% year-over-year and pro forma EBITDA grew 17%. The company expects its margins to improve over time, in part reflecting the benefits of AI initiatives that are expected to improve the customer experience and boost efficiencies and cost optimization. Clinic revenue grew 10% year-over-year, and same-clinic sales advanced 6% year-over-year. Net income attributable to SBC Medical Group was $11.3 million, or EPS of $0.11, versus $21.5 million and $0.21, respectively, in 1Q25. The prior year quarter included a one-time gain of $8.7 million related to life insurance surrender. There were 284 franchise locations as of March 31, 2026, 33 more locations compared to March 31, 2025. Some 6.76 million customers visited SBC locations in the 12-months ended March 31, 2026, representing a 10% year-over-year increase. The repeat rate for customers who visited a franchisee clinic at least two times was 72%. SBC implemented a number of measures in 2025 that appear to be lifting operating results and mirror organic growth, complemented by strategic M&A. For example, in April 2025, the company revised its franchise fee structure, as noted, to make it easier financially for franchisees to join its network and, as they ramp services and customer bases, pay fees based on a tiered fee system that aligns with the scale. In addition, SBC launched a multi-brand strategy in aesthetic dermatology and other areas to address the increasingly diverse needs of its growing customer base to customize services across multiple brands, segment the market, develop new services, and garner more market share overall. For example, the company launched NEO Skin Clinic, targeting relatively frequent-visit customers who might otherwise travel outside Japan for the most current treatments. With that brand, the company introduced up-to-date medical devices, including advanced laser devices, and has successfully attracted high-literacy customers. SBC also acquired JUN CLINIC, a medical clinic group that focuses on customers who are relatively new to aesthetic medicine. The company intends to continue to promote its multi-brand strategy in the aesthetic dermatology field, expand its non-aesthetic medical business, and strengthen its international footprint. The company also believes the competitive environment of the Japanese and global aesthetic medical market is easing to an extent. Increased focus on many non-aesthetic specialties SBC has also increased its focus on many non-aesthetic specialties where it believes it has substantial opportunities to grow and gain more market share, including categories such as AGA and dentistry, which are experiencing momentum. Reflecting these and other changes and improved product mix, average revenue per customer visit has begun to recover and improve. The company expects efforts will continue to diversify revenue sources. SBC also sees international expansion, focused on the U.S. and Southeast Asia, as integral to creating long-term value. By 2027, the company expects to operate a significantly larger global footprint offering diversified medical services, with an emphasis on aesthetic medicine. SUBSCRIBE TO ZACKS SMALL CAP RESEARCH to receive our articles and reports emailed directly to you each morning. Please visit our website for additional information on Zacks SCR. DISCLOSURE: Zacks SCR has received compensation from the issuer directly, from an investment manager, or from an investor relations consulting firm, engaged by the issuer, for providing research coverage for a period of no less than one year. Research articles, as seen here, are part of the service Zacks SCR provides and Zacks SCR receives payments totaling a maximum fee of up to $50,000 annually for these services provided to or regarding the issuer. Full Disclaimer HERE.