Yoshiyuki Aikawa, Chairman and Chief Executive Officer of SBC Medical, said, "In Q3 2025, SBC Medical’s revenue decreased by 18% year over year. This decline primarily reflects the impact of our past business restructuring initiatives, including the revision of franchise fees and the deconsolidation of certain group entities. Meanwhile, rental revenue remained solid, supported by the renewal of medical equipment, and the consolidation of AHH contributed positively to overall performance.
Profitability improved significantly during the quarter. Income from operations increased by 15% year over year, net profit rose by 353%, and income from operations margin strengthened to 37%. These improvements were mainly driven by the absence of IPO-related and stock-based compensation expenses recorded in the prior year, indicating that our cost structure is normalizing toward a sustainable level.
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.”
Third Quarter 2025 Financial ResultsTotal revenues were $43 million, representing a decrease of 18% year-over-year. The decrease was primarily driven by a revised fee structure for clinic services that reduced franchising revenue, combined with decreased procurement revenue due to reduced orders for medical materials and lower management services revenue due to the discontinuation of clinic operation staff supporting services.
Net income attributable to SBC Medical Group for the three months ended September 30, 2025 was $13 million, compared to $3 million in the same period of 2024. The increase was primarily due to substantially lower operating expenses due to the absence of stock-based compensation costs related to the prior year's listing process and reduced income tax expense from the absence of non-deductible stock-based compensation.
EBITDA
1 was $17 million, an increase of 12% , primarily due to the lower operating expenses offsetting the decrease in revenue from the termination of staffing services, deconsolidation of Kijimadairakanko Inc. and Skynet Academy Co., Ltd., and fee structure revision.
Conference CallThe Company will hold a conference call on Monday, November 17, 2025 at 5 pm Eastern Time (or Monday, November 18, 2025 at 7 am Japan Time) to discuss the financial results and take questions live.
Please register in advance of the conference using the link provided below.
https://edge.media-server.com/mmc/p/e2znwqtx/It will automatically direct you to the registration page of “Q3 2025 Financial Results”. Please follow the steps to enter your registration details, then click “Submit.”. Upon registration, you will be able to access the dedicated Conference Call viewing site. In addition to viewing the conference call, this site provides access to information about the speakers as well as past investor relations materials.
Starting 10 minutes before the conference call begins, you will be able to view the earnings presentation materials on the site. The materials will also be available for download.
A replay of the conference call will be accessible until November 17, 2026.
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 MedicalSBC Medical Group Holdings Incorporated is a comprehensive medical group operating a wide range of franchise businesses across diverse medical fields, including advanced aesthetic medicine, dermatology, orthopedics, fertility treatment, dentistry, AGA (hair restoration), 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 steadily expanding its global network.
For more information, visit
https://sbc-holdings.com/Use of Non-GAAP Financial MeasuresThe Company uses non-GAAP measures, such as EBITDA and EBITDA margin, in evaluating its operating results and for financial and operational decision-making purposes. The Company believes that the non-GAAP financial measures help identify underlying trends in its business. The Company believes that the non-GAAP financial measures provide useful information about the Company’s results of operations, enhance the overall understanding of the Company’s past performance and future prospects and allow for greater visibility with respect to key metrics used by the Company’s management in its financial and operational decision-making.
The non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. The non-GAAP financial measures have limitations as analytical tools, and when assessing the Company’s operating performance, cash flows or liquidity, investors should not consider them in isolation, or as a substitute for net loss, cash flows provided by operating activities or other consolidated statements of operations and cash flows data prepared in accordance with U.S. GAAP.
The Company mitigates these limitations by reconciling the non-GAAP financial measures to the most comparable U.S. GAAP performance measures, all of which should be considered when evaluating the Company’s performance.
For more information on the non-GAAP financial measures, please see the table captioned “Unaudited Reconciliations of GAAP and Non-GAAP Results.”
Forward Looking 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 financial performance; growth in revenue and earnings; business prospects and opportunities; and capital deployment plans and liquidity. In some cases, forward-looking statements can be identified by the use of words such as “may,” “should,” “expects,” “anticipates,” “contemplates,” “estimates,” “believes,” “plans,” “projected,” “predicts,” “potential,” or “hopes” or the negative of these or similar terms. The Company cautions readers not to place undue reliance upon any forward-looking statements, which are current only as of the date of this release and are subject to various risks, uncertainties, assumptions, or changes in circumstances that are difficult to predict or quantify. The forward-looking statements are based on management’s current expectations and are not guarantees of future performance. The Company does not undertake or accept any obligation to release publicly any updates or revisions to any forward-looking statements to reflect any change in its expectations or any change in events, conditions, or circumstances on which any such statement is based, except as required by law. Factors that may cause actual results to differ materially from current expectations may emerge from time to time, and it is not possible for the Company to predict all of them; such factors include, among other things, changes in global, regional, or local economic, business, competitive, market and regulatory conditions, and those listed under the heading “Risk Factors” and elsewhere in the Company’s filings with the U.S. Securities and Exchange Commission (the “SEC”), which are accessible on the SEC’s website at
www.sec.gov.
