SBC Medical Expands Franchise Network and Customer Loyalty Amid Strategic Restructuring

SBC Medical Group Holdings Inc. (NASDAQ: SBC), a Japanese cosmetic surgery clinic operator, reported substantial progress in its strategic transformation during the first six months of 2025, marked by franchise expansion and increased customer loyalty metrics. The company grew its franchise network to 259 locations as of June 30, 2025, representing a 16% year-over-year increase, while recording 6.31 million patient visits over the trailing twelve-month period.

Chairman and CEO Yoshiyuki Aikawa stated that the company's second-quarter performance reflected deliberate strategic shifts designed to enhance long-term competitiveness and scalability. Despite a 16% year-over-year decline in total revenue to $91 million for the first half—primarily attributed to restructuring efforts—the company demonstrated operational strength through a 72% customer retention rate at its Shonan Beauty clinics. Repeat customer visits increased by 14%, while unique customer visits grew by 10%, indicating both loyalty expansion and new client acquisition.

The company's strategic repositioning includes two core approaches: expanding market accessibility for aesthetic medicine and differentiating through advanced treatments and competitive pricing. This dual strategy supports SBC Medical's international expansion into the United States and Singapore markets. The average revenue per visit reached $279, a 13% year-over-year improvement, reflecting the company's successful transition toward higher-value services.

In July 2025, SBC Medical completed the acquisition of MB Career Lounge Co. Ltd., a privately-held provider of management support services for medical institutions specializing in consulting, training, and human resources solutions. This acquisition, detailed in the original release on https://www.newmediawire.com, enhances the company's management support capabilities for its growing franchise network. Additionally, the company plans to integrate JUN CLINIC, a network known for high customer spending, into its operations.

Financial stability remains a cornerstone of SBC Medical's growth strategy. The company ended the second quarter with $153 million in cash and cash equivalents, providing substantial resources for future initiatives. In a demonstration of management confidence, SBC Medical completed a $5 million share buyback program on July 22, 2025, which the company believes addressed stock undervaluation relative to its business performance and market position.

The company's inclusion in the Russell 3000® Index at the end of June 2025 potentially increases investor visibility and access to broader capital markets. This development, combined with the company's operational metrics, suggests strengthening institutional recognition despite short-term revenue challenges. The strategic discontinuation of its staffing business and targeted divestitures have streamlined operations toward higher-margin franchise models and direct clinical services.

Industry observers note that SBC Medical's performance during a period of reduced discretionary spending in Japan underscores the resilience of premium aesthetic services. The company's ability to grow repeat business amid economic pressures indicates strong brand loyalty and effective service delivery. As global demand for cosmetic procedures continues to rise, SBC Medical's strategic positioning and expansion initiatives may establish stronger competitive advantages in international markets.