SBC Medical Reports Strong Q4 Profit Growth Despite Full-Year Revenue Decline in 2025
SBC Medical Group Holdings Incorporated a management services organization supporting a wide network of franchise-based medical businesses, has announced its financial results for the fourth quarter and full year ended December 31, 2025. The company demonstrated strong profitability growth in the final quarter of the year, even as full-year revenue declined due to strategic transitions and structural adjustments.
Fourth Quarter 2025 Performance Highlights
SBC Medical delivered a solid performance in the fourth quarter, reflecting improving operational efficiency and profitability. Total revenue for the quarter reached approximately $40 million, representing an 11% increase compared to the same period in 2024. This growth indicates a recovery in business momentum following earlier restructuring initiatives.
Net income for the quarter rose sharply to $14 million, marking a significant 117% year-over-year increase. This substantial improvement highlights the company’s ability to enhance profitability despite broader challenges during the year.
Earnings per share (EPS) for the fourth quarter stood at $0.14, more than doubling from the prior-year period, with a 133% increase. The strong EPS growth underscores improved financial performance and disciplined cost management.
EBITDA for the quarter totaled $14 million, reflecting a 35% increase compared to the previous year. However, the EBITDA margin came in at 34%, representing a decline of 12 percentage points year-over-year. This reduction suggests that while earnings improved, cost structures and revenue mix changes impacted margins.
Return on equity (ROE) also showed notable improvement, reaching 23%, an increase of 9.8 percentage points compared to the same period last year. This indicates stronger returns generated from shareholder equity.
Operational metrics further supported the company’s positive trajectory. SBC Medical expanded its franchise network to 283 locations as of December 31, 2025, adding 34 new locations over the past year. Customer engagement remained strong, with approximately 6.6 million customer visits recorded over the trailing twelve months, representing a 12% increase year-over-year.
Additionally, the repeat customer rate stood at 72%, reflecting a high level of customer loyalty and satisfaction across its franchise clinics.
Full-Year 2025 Financial Overview
For the full fiscal year 2025, SBC Medical reported total revenue of $174 million, representing a 15% decline compared to 2024. The decrease was primarily attributed to structural changes, including a corporate restructuring completed in 2024 and revisions to the company’s franchise fee model implemented in April 2025.
Despite the decline in revenue, profitability improved. Net income attributable to the company increased by 9% year-over-year to $51 million. Earnings per share for the full year rose to $0.50, up 4% from the previous year, reflecting stable earnings growth.
EBITDA for the year totaled $70 million, a decrease of 21% compared to 2024. The EBITDA margin was 40%, down slightly from 43% in the prior year, indicating a normalization of profitability levels following extraordinary factors in 2024.
Notably, the company’s net income margin improved significantly, rising from 23% to 29%. This improvement was largely driven by the absence of one-time expenses that impacted the prior year, including stock-based compensation related to its initial public offering and impairment losses.
Management Commentary and Strategic Outlook
Yoshiyuki Aikawa, Chairman and Chief Executive Officer of SBC Medical, described 2025 as a transitional year for the company. He emphasized that the decline in revenue was expected and largely due to deliberate strategic decisions aimed at strengthening the company’s long-term position.
According to Aikawa, the restructuring and changes to the franchise fee policy were necessary steps to streamline operations and improve the overall business model. He noted that the financial impact of these changes is now largely behind the company.
Encouragingly, the fourth quarter showed clear signs of recovery and operational momentum. One key indicator was the increase in average revenue per customer, which rose to $316—an 11% increase year-over-year. This marks a turnaround following a period of gradual decline and reflects the effectiveness of pricing strategies and increased customer engagement efforts.
Looking ahead to 2026, SBC Medical plans to focus on three primary growth initiatives:
- Expanding its multi-brand strategy, particularly in the dermatology segment
- Broadening its non-aesthetic healthcare offerings
- Strengthening its presence in international markets, especially in the United States and Asia
With the challenges of the past two years largely resolved, management believes the company is well-positioned to return to sustained high growth.
Business Overview
SBC Medical operates as a management services organization supporting a diverse portfolio of franchise medical businesses. Its offerings span multiple healthcare segments, including aesthetic treatments, dermatology, orthopedics, fertility care, gynecology, dentistry, ophthalmology, and treatments for conditions such as alopecia.
The company manages several clinic brands, including Rize Clinic, Gorilla Clinic, AHH Clinic, and JUN CLINIC. Through both direct operations and franchise partnerships, SBC Medical continues to expand its global footprint, leveraging medical tourism and international demand for advanced healthcare services.
In September 2024, SBC Medical was listed on the Nasdaq, marking a significant milestone in its growth journey. The company was later included in the Russell 3000® Index in June 2025, reflecting its growing presence in the U.S. equity market.
Financial Position and Cash Flow
SBC Medical ended 2025 with a strong balance sheet. Total assets increased to approximately $380 million, up from $266 million in 2024. Cash and cash equivalents rose significantly to $163.8 million, providing ample liquidity for future investments and expansion.
Total liabilities also increased to $117 million, compared to $71 million in the previous year, largely due to higher long-term borrowing and lease obligations. Despite this increase, the company maintained a solid equity position, with total equity reaching $263 million.
Cash flow from operating activities remained healthy, totaling approximately $24.7 million for the year. This reflects the company’s ability to generate consistent cash from its core operations.
Investment activities resulted in a net outflow of about $21 million, driven by acquisitions, investments in affiliated companies, and capital expenditures. Meanwhile, financing activities generated approximately $38.3 million in cash, supported by new borrowings and other financing initiatives.
Use of Non-GAAP Measures
SBC Medical utilizes non-GAAP financial metrics such as EBITDA and EBITDA margin to evaluate operational performance and guide decision-making. These measures help provide additional insight into the company’s underlying profitability and business trends.
However, the company emphasizes that non-GAAP measures should not be considered a substitute for GAAP-based financial metrics. Investors are encouraged to review reconciliations provided in the company’s financial disclosures for a complete understanding of performance.
Conference Call Details
SBC Medical scheduled a conference call on March 27, 2026, to discuss its fourth-quarter and full-year financial results. During the call, management will provide additional insights into performance and address investor questions. Supporting materials and a replay of the call are available on the company’s investor relations website.
About
SBC Medical’s 2025 results reflect a company navigating a period of transformation. While full-year revenue declined due to structural changes, the company demonstrated resilience by improving profitability and delivering strong fourth-quarter performance.
With expanding franchise operations, rising customer engagement, and a clear strategic focus for 2026, SBC Medical appears well-positioned to build on its recent momentum and pursue long-term growth opportunities in the global healthcare market.
