SBC Medical Group Holdings Inc. (NASDAQ: SBC), the Japanese owner and operator of a chain of cosmetic surgery clinics, reported a significant improvement in net profit for the third quarter as the company returns to a more typical cost structure in the absence of IPO-related and stock-based compensation expenses. Profitability was also lifted by the company’s execution of its strategy shift, which includes expanding the number of franchise locations, increasing visits among customers, optimizing its pricing strategy and acquiring a higher-priced customer base. All of these efforts position the company for what it says will be a strong 2026.
For the third quarter, SBC Medical reported total revenue of $43 million, which was 18% lower than last year’s third quarter. The company attributed that 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 due to the discontinuation of clinic operation staff supporting services. While the company reported lower Q3 2025 revenue, when compared to Q2 2025 revenue, it was essentially unchanged. SBC attributes this stabilizing of revenues to the opening of new clinics and the improvement in average revenue per patient on a sequential basis.
Net income for the quarter ending September 30 was $13 million, compared to $3 million a year ago, and EBITDA was $17 million, an increase of 12%. EBITDA margin was 38% for the third quarter of 2025, compared to 28% for the third quarter of 2024. The company credited this improvement to a reduction in operating expenses, offsetting the decrease in revenue primarily as a result of its previously announced franchise fee revisions. The company has $127 million in cash heading into the end of the year.
During the third quarter, SBC Medical reported average revenue per visit was up 6% sequentially to $298, and up 8.4% from Q1 2025. SBC said the higher revenue per visit is due to the overhaul in its pricing strategy, promotions and its efforts to go after more affluent customers. SBC Medical ended the quarter with a repeat rate of 72%. As of the third quarter, the company operates 258 locations, which is up 15% year-over-year.
In addition to overhauling its pricing and going after well-heeled consumers, SBC Medical Group also has expansion on its mind and has set its sights on Thailand as one of the markets it's going after next. To meet that goal, the company just announced that it has inked a consulting agreement with BLEZ ASIA Co., Ltd., which operates more than twenty pharmacies and clinics in Thailand. SBC Medical said it is widely trusted by both Japanese expatriates and local patients. The partnership is a key component of SBC’s broader Asia strategy and represents a significant step toward full-scale entry into the rapidly growing Thai aesthetic medicine market. Under the agreement, SBC will provide comprehensive management support to a new clinic focused primarily on dermatological treatments such as pigmentation and spot removal, which BLEZ is preparing to open in Bangkok.
SBC Medical also announced it is acquiring a stake in Waqoo, the Japanese research and development company which provides medical support business such as promoting blood-derived processing services and skincare & cosmetic brands. To fully integrate Waqoo's technological assets, SBC Medical announced a Tender Offer (TOB) 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.
About a year ago, SBC Medical Group laid the groundwork to get where it is today – profit is improving, the company is keeping customers and is expanding internationally. With more to come in the fourth quarter and beyond, things could be looking good for a company on a quest to make everyone beautiful.
