By M. Marin
NASDAQ: SBC
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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.
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