SBC Medical Group Reports Strong Q3 Profit Growth and International Expansion Strategy

SBC Medical Group Holdings Inc. reported substantial improvement in net profit for the third quarter as the company returns to a more typical cost structure following the elimination of IPO-related and stock-based compensation expenses. The Japanese cosmetic surgery clinic operator saw profitability boosted by executing its strategic shift, which includes expanding franchise locations, increasing customer visits, optimizing pricing strategies, and targeting higher-value customers.

For the quarter ending September 30, SBC Medical reported net income of $13 million, a significant increase from $3 million during the same period last year. EBITDA reached $17 million, representing a 12% increase, with EBITDA margin improving to 38% compared to 28% in the third quarter of 2024. The company attributed this profitability improvement to reduced operating expenses that offset revenue declines resulting from franchise fee revisions.

Total revenue for the third quarter was $43 million, an 18% decrease from the previous year's third quarter. The company cited revised fee structures for clinic services, reduced procurement revenue from decreased medical material orders, and lower management services revenue due to discontinued clinic operation staff support services as primary factors. However, when compared to the second quarter of 2025, revenue remained essentially unchanged, indicating stabilization from new clinic openings and improved average revenue per patient.

Average revenue per patient visit increased 6% sequentially to $298 and showed an 8.4% improvement from the first quarter of 2025. SBC Medical achieved a 72% customer repeat rate and operates 258 locations, representing a 15% year-over-year increase. The company enters the year-end period with $127 million in cash reserves.

Chairman and CEO Yoshiyuki Aikawa emphasized the company's forward-looking strategy, stating the focus remains on sustainable growth through high-quality solutions, multi-brand initiatives in dermatology, and strengthening business foundations in overseas markets. The company's international expansion strategy includes a significant move into Thailand's aesthetic medicine market through a consulting agreement with BLEZ ASIA Co., Ltd., which operates more than twenty pharmacies and clinics in Thailand.

This partnership represents a crucial component of SBC's broader Asia strategy and marks a significant step toward full-scale entry into Thailand's rapidly growing aesthetic medicine sector. Under the agreement, SBC will provide comprehensive management support for a new dermatology-focused clinic in Bangkok's Asok district, advising on clinical protocol development aligned with SBC's quality standards and assisting in medical device selection optimized for local skin characteristics. The clinic is expected to commence operations by year-end.

Thailand's aesthetic medicine market presents substantial opportunity, valued at approximately $372.2 million in 2024 and projected to grow to around $1.2 billion by 2033. The market's fragmented nature and the presence of more than 60,000 Japanese expatriate families make it particularly attractive for SBC's expansion efforts.

Additionally, SBC Medical announced strategic moves to acquire a majority stake in Waqoo, a Japanese research and development company specializing in blood-derived processing services and skincare brands. This acquisition aims to generate synergies by combining SBC's clinical expertise with Waqoo's R&D foundation, focusing on treatment upgrades for androgenetic alopecia and orthopedics, co-development of proprietary skincare products, and leveraging Waqoo's technology to support international market entry.

The company's strategic restructuring over the past year, including discontinuing staffing services, targeted divestitures, and fee structure revisions, has positioned SBC Medical for improved financial performance and international growth. These developments signal the company's successful transition toward sustainable profitability and expansion in the competitive global aesthetic medicine industry.