SBC Medical Group Holdings Inc. (NASDAQ: SBC) implemented a year of strategic growth in 2025, expanding its franchise network, entering new international markets, and making key acquisitions to strengthen its position in the aesthetic and specialized medical care industry. The Japanese owner and operator of aesthetic medical clinics pursued a dual strategy of increasing accessibility while differentiating itself through advanced treatments and competitive pricing, resulting in measurable financial and operational gains.
The company expanded its franchise locations to 258 as of September 30, 2025, representing a 15% year-over-year increase. Revised pricing strategies contributed to a 5% sequential increase in average revenue per customer during the third quarter of 2025, reaching $298 per visit. This optimization, combined with efforts to attract higher revenue-generating customers through a multi-brand approach, helped maintain a 72% customer repeat rate. The company's return to a more typical cost structure, following the absence of IPO-related expenses, led to significant improvement in net profit.
Beyond domestic expansion, SBC Medical pursued international growth, entering Singapore and Thailand markets while announcing its first expansion into the United States for early 2026. In Singapore, the company expanded its collaboration with Aesthetic Healthcare Holdings Pte. Ltd., which operates multiple brands in medical aesthetics. In Thailand, SBC inked an e-consulting agreement with BLEZ ASIA Co. Ltd., which operates more than 20 pharmacies and clinics, to provide management support for a new dermatology clinic in Bangkok.
The company also made strategic acquisitions to enhance its service offerings and management capabilities. SBC acquired MB Career Lounge Co. Ltd., a provider of management support services for medical institutions specializing in consulting, training, and human resources solutions. Additionally, the company acquired a related subsidiary, Waqoo, to accelerate research and development in clinical areas such as AGA and orthopedics, while jointly developing skincare products.
Brand diversification played a key role in SBC's growth strategy with the launch of "Neo Skin Clinic" and "Hada no Aozora Clinic" in Tokyo. The latter employs a hybrid dermatology model integrating insurance-covered general dermatology with private-pay aesthetic treatments. The company also joined JUN CLINIC, a network of medical and aesthetic clinics with high average customer spending, to its network to offer more customized, premium treatments.
A significant milestone came with SBC Medical's inclusion in the Russell 3000 Index, which automatically placed it in either the Russell 1000 or Russell 2000 Index. This inclusion increases visibility among institutional and individual investors who utilize index funds and ETFs tracking Russell indexes, with approximately $18.1 trillion in assets benchmarked against these indexes globally. The company further demonstrated confidence in its growth trajectory by announcing a stock buyback program of up to $5 million worth of shares, citing that its stock price undervalued its business performance and growth potential within the global cosmetic surgery and procedure market, which was valued at $122.08 billion in 2022 and is projected to grow at a compound annual growth rate of 14.7% from 2023 to 2030.
SBC Medical is actively targeting Chinese consumers who increasingly visit Japan for cosmetic procedures, drawn by Japan's reputation for advanced techniques and qualified medical staff. The company has enhanced its Chinese-speaking customer service staff, disseminated information on Chinese social media platforms, developed a dedicated app, and held events in Shanghai to attract this demographic. With $125 million in cash at the beginning of the year, SBC Medical has positioned itself to capitalize on cosmetic tourism and the fragmented aesthetics market in Japan, leveraging its network of over 500 licensed doctors performing advanced regenerative therapies throughout the country.
