SBC Medical Group Reports Strong Profit Growth and International Expansion Strategy

SBC Medical Group Holdings Inc. reported a substantial improvement in net profit for the third quarter as the company returns to a more typical cost structure without IPO-related and stock-based compensation expenses. Profitability was enhanced by the company's execution of its strategy shift, which includes expanding franchise locations, increasing customer visits, optimizing pricing strategy and acquiring a higher-priced customer base. These efforts position the company for what it describes as a strong 2026 performance.

For the third quarter, SBC Medical reported total revenue of $43 million, representing an 18% decrease compared to the same period last year. The company attributed this decline to a revised fee structure for clinic services that reduced franchising revenue, decreased procurement revenue due to reduced orders for medical materials and lower management services revenue from discontinued clinic operation staff supporting services. However, when compared to Q2 2025 revenue, the company's performance remained essentially unchanged, indicating stabilization from new clinic openings and improved average revenue per patient.

The strategic initiatives appear to be yielding positive results. During the third quarter, SBC Medical reported average revenue per visit increased 6% sequentially to $298, and showed an 8.4% improvement from Q1 2025. The company attributes this growth to its pricing strategy overhaul, targeted promotions and efforts to attract more affluent customers. SBC Medical ended the quarter with a strong 72% repeat customer rate and operates 258 locations, representing a 15% year-over-year increase.

Net income for the quarter ending September 30 reached $13 million, a significant improvement from $3 million a year ago, while EBITDA increased 12% to $17 million. The EBITDA margin expanded to 38% for the third quarter of 2025, compared to 28% for the same period in 2024. This improvement resulted from reduced operating expenses that offset revenue decreases primarily from franchise fee revisions. The company enters the year-end with $127 million in cash reserves.

Internationally, SBC Medical Group has targeted Thailand as a key expansion market through a consulting agreement with BLEZ ASIA Co., Ltd., which operates more than twenty pharmacies and clinics in Thailand. This partnership represents a significant step toward full-scale entry into Thailand's rapidly growing aesthetic medicine market, valued at approximately $372.2 million in 2024 and projected to reach around $1.2 billion by 2033 according to company estimates. Under the agreement, SBC will provide comprehensive management support for a new dermatology-focused clinic in Bangkok's Asok district, expected to commence operations by year-end.

Additionally, SBC Medical announced it is acquiring a stake in Waqoo, a Japanese research and development company that provides medical support business including blood-derived processing services and skincare & cosmetic brands. To fully integrate Waqoo's technological assets, SBC Medical initiated a Tender Offer to acquire a majority stake in the company. The acquisition focuses on generating synergies by combining SBC's clinical expertise with Waqoo's R&D foundation, with key initiatives including upgrading treatments for AGA and orthopedics, co-developing proprietary skincare products and utilizing Waqoo's technology to support SBC's international market expansion. The company's strategic positioning suggests continued growth momentum as it executes its international expansion and technology integration plans.