SBC Medical Group Holdings Announces First Quarter 2025 Financial Results

15.5.2025 13:30:00 CEST | Business Wire | Press release

SBC Medical Group Holdings Incorporated (NASDAQ: SBC, “SBC Medical” or the “Company”), a global owner, operator and provider of management services and products to cosmetic treatment centers, today announced its financial results for the three months ended March 31, 2025.

First Quarter 2025 Highlights

Total revenues were $47 million, representing a 14% year-over-year decrease.
Income from operations was $24 million, representing a 1% year-over-year decrease.
Net Income attributable to SBC Medical Group was $22 million, representing a 15% year-over-year increase.
Earnings per share, which is defined as net income attributable to the Company divided by the weighted average number of outstanding shares, was $0.21 for the three months ended March 31, 2025, representing a year-over-year increase of 5%.
EBITDA¹, which is calculated by adding depreciation and amortization expense and impairment loss to income from operations was $25 million, representing a 3% year-over-year decrease. EBITDA margin¹ was 52% for the first quarter of 2025, compared to 46% for first quarter of 2024.
Return on equity, which is defined as net income attributable to the Company divided by the average of shareholder’s equity as of March 31, 2025, was 41% representing a year-over-year decrease of 10 percentage points.
Number of partner clinics was 251 as of March 31, 2025, representing an increase of 36 clinics from March 31, 2024.
Number of customers² in the last twelve months ended March 31, 2025, was 6.1 million, representing a 14% year-over-year increase.
Repeat rate for customers³ who visited franchisee’s clinics twice or more was 71%.

¹ EBITDA and EBITDA Margin are non-GAAP financial measures. For more information on non-GAAP financial measure, please see the section of “Use of Non-GAAP Financial Measures” and the table captioned “Unaudited Reconciliations of GAAP and Non-GAAP Results.”
² The number of customers takes into account customers of SBC brand clinics, Rize Clinic and Gorilla Clinic, but does not take account customers of AHH Clinics
³ The number of customers takes into account customers of SBC brand clinics, Rize Clinic and Gorilla Clinic, but does not take account customers of AHH Clinics, but excluding free counseling

Yoshiyuki Aikawa, Chairman and Chief Executive Officer of SBC Medical, said, “SBC is actively preparing for strategic expansion by enhancing its platform, optimizing its profitability structure, and stabilizing its business through revised pricing strategies and adapting to changing market dynamics. In the first quarter of 2025, we were pleased to see the expansion of Medical Corporations (MCs) gaining traction in our franchising, procurement and rental business segments as global demand for aesthetic medical services continued to rise; meanwhile, revenue decrease in the quarter primarily reflected the discontinuation of our staffing business and divestures of Sky Net Academy (“SNA”) and SBC Kijimadaira Resort (“Kijimadaira”). In the midst of this transition, operating margin improved from 45% in the first quarter 2024, to 51% in the first quarter 2025. Additionally, net income attributable to SBC Medical Group increased 15% year-over year, further demonstrating the strength of our business model transition and execution. As we move ahead, we remain confident in our ability to build a scalable franchise model while accelerating expansion across domestic and international markets, driving long-term value for shareholders and positioning the Company to capitalize on future opportunities.”

First Quarter 2025 Financial Results

Total revenues were $47 million, a decrease of 14% year-over-year reflecting the negative impact of the discontinuation of the staffing business and the disposal of subsidiaries partially offset by increased demand for medical materials and equipment from the expansion of Medical Corporations.

Net income for the three months ended March 31, 2025 was $22 million, compared to $19 million in the same period of 2024. The increase was largely attributed to the impact of a special gain associated with the maturity of a life insurance policy.　

EBITDA was $25 million, an decrease of 3% year-over-year primarily driven by lower in revenue following the termination of the staffing services business and the deconsolidation of SNA and Kijimadaira.

About SBC Medical

SBC Medical, headquartered in Irvine, California and Tokyo, Japan, owns and provides management services and products to cosmetic treatment centers. The Company is primarily focused on providing comprehensive management services to franchise clinics, including but not limited to advertising and marketing needs across various platforms (such as social media networks), staff management (such as recruitment and training), booking reservations for franchise clinic customers, assistance with franchise employee housing rentals and facility rentals, construction and design of franchise clinics, medical equipment and medical consumables procurement (resale), the provision of cosmetic products to franchise clinics for resale to clinic customers, licensure of the use of patent-pending and non-patented medical technologies, trademark and brand use, IT software solutions (including but not limited to remote medical consultations), management of the franchise clinic’s customer rewards program (customer loyalty point program), and payment tools for the franchise clinics.

For more information, visit https://sbc-holdings.com/

Use of Non-GAAP Financial Measures

The Company uses non-GAAP measures, such as EBITDA, in evaluating its operating results and for financial and operational decision-making purposes. The Company believes that the non-GAAP financial measures help identify underlying trends in its business. The Company believes that the non-GAAP financial measures provide useful information about the Company’s results of operations, enhance the overall understanding of the Company’s past performance and future prospects and allow for greater visibility with respect to key metrics used by the Company’s management in its financial and operational decision-making.

The non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. The non-GAAP financial measures have limitations as analytical tools, and when assessing the Company’s operating performance, cash flows or liquidity, investors should not consider them in isolation, or as a substitute for net loss, cash flows provided by operating activities or other consolidated statements of operations and cash flows data prepared in accordance with U.S. GAAP.

The Company mitigates these limitations by reconciling the non-GAAP financial measures to the most comparable U.S. GAAP performance measures, all of which should be considered when evaluating the Company’s performance.

For more information on the non-GAAP financial measures, please see the table captioned “Unaudited Reconciliations of GAAP and Non-GAAP Results.”

Forward Looking Statements

This press release contains forward-looking statements. Forward-looking statements are not historical facts or statements of current conditions, but instead represent only the Company’s beliefs regarding future events and performance, many of which, by their nature, are inherently uncertain and outside of the Company’s control. These forward-looking statements reflect the Company’s current views with respect to, among other things, the Company’s financial performance; growth in revenue and earnings; business prospects and opportunities; and capital deployment plans and liquidity. In some cases, forward-looking statements can be identified by the use of words such as “may,” “should,” “expects,” “anticipates,” “contemplates,” “estimates,” “believes,” “plans,” “projected,” “predicts,” “potential,” or “hopes” or the negative of these or similar terms. The Company cautions readers not to place undue reliance upon any forward-looking statements, which are current only as of the date of this release and are subject to various risks, uncertainties, assumptions, or changes in circumstances that are difficult to predict or quantify. The forward-looking statements are based on management’s current expectations and are not guarantees of future performance. The Company does not undertake or accept any obligation to release publicly any updates or revisions to any forward-looking statements to reflect any change in its expectations or any change in events, conditions, or circumstances on which any such statement is based, except as required by law. Factors that may cause actual results to differ materially from current expectations may emerge from time to time, and it is not possible for the Company to predict all of them; such factors include, among other things, changes in global, regional, or local economic, business, competitive, market and regulatory conditions, and those listed under the heading “Risk Factors” and elsewhere in the Company’s filings with the U.S. Securities and Exchange Commission (the “SEC”), which are accessible on the SEC’s website at www.sec.gov.

SBC MEDICAL GROUP HOLDINGS INCORPORATED
UNAUDITED CONSOLIDATED BALANCE SHEETS

	March 31, 2025		December 31, 2024
ASSETS
Current assets:
Cash and cash equivalents	$	132,055,823	$	125,044,092
Accounts receivable		1,633,456		1,413,433
Accounts receivable – related parties		30,557,912		28,846,680
Inventories		1,694,765		1,494,891
Finance lease receivables, current – related parties		7,281,088		5,992,585
Customer loans receivable, current		8,903,724		10,382,537
Prepaid expenses and other current assets		32,970,169		11,276,802
Total current assets		215,096,937		184,451,020

Non-current assets:
Property and equipment, net		8,523,351		8,771,902
Intangible assets, net		1,543,779		1,590,052
Long-term investments, net		3,703,699		3,049,972
Goodwill, net		4,780,616		4,613,784
Finance lease receivables, non-current – related parties		10,648,402		8,397,582
Operating lease right-of-use assets		5,152,104		5,267,056
Finance lease right-of-use assets		522,055		—
Deferred tax assets		2,513,653		9,798,071
Customer loans receivable, non-current		4,525,883		5,023,551
Long-term prepayments		1,922,709		1,745,801
Long-term investments in MCs – related parties		18,691,785		17,820,910
Other assets		6,980,816		15,553,453
Total non-current assets		69,508,852		81,632,134
Total assets	$	284,605,789	$	266,083,154

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:
Accounts payable	$	17,854,422	$	13,875,179
Accounts payable – related parties		1,141,762		659,044
Current portion of long-term loans		66,950		96,824
Notes and other payables, current – related parties		1,422,976		26,255
Advances from customers		525,497		820,898
Advances from customers – related parties		10,155,134		11,739,533
Income tax payable		1,624,002		18,705,851
Operating lease liabilities, current		4,131,154		4,341,522
Finance lease liabilities, current		157,532		—
Accrued liabilities and other current liabilities		8,564,250		8,103,194
Due to related party		2,822,537		2,823,590
Total current liabilities		48,466,216		61,191,890

SBC MEDICAL GROUP HOLDINGS INCORPORATED
UNAUDITED CONSOLIDATED BALANCE SHEETS — (Continued)

	March 31, 2025			December 31, 2024
Non-current liabilities:
Long-term loans		6,798,045			6,502,682
Notes and other payables, non-current – related parties		12,413			5,334
Deferred tax liabilities		346,432			926,023
Operating lease liabilities, non-current		1,312,819			1,241,526
Finance lease liabilities, non-current		195,572			—
Other liabilities		1,151,857			1,193,541
Total non-current liabilities		9,817,138			9,869,106
Total liabilities		58,283,354			71,060,996

Stockholders’ equity:
Preferred stock ($0.0001 par value, 20,000,000 shares authorized; no shares issued and outstanding as of March 31, 2025 and December 31, 2024)		—			—
Common stock ($0.0001 par value, 400,000,000 shares authorized, 103,881,251 and 103,020,816 shares issued, 103,611,251 and 102,750,816 shares outstanding as of March 31, 2025 and December 31, 2024, respectively)		10,388			10,302
Additional paid-in capital		62,513,837			62,513,923
Treasury stock (at cost, 270,000 shares as of March 31, 2025 and December 31, 2024)		(2,700,000	)		(2,700,000	)
Retained earnings		210,965,453			189,463,007
Accumulated other comprehensive loss		(44,343,412	)		(54,178,075	)
Total SBC Medical Group Holdings Incorporated stockholders’ equity		226,446,266			195,109,157
Non-controlling interests		(123,831	)		(86,999	)
Total stockholders’ equity		226,322,435			195,022,158
Total liabilities and stockholders’ equity	$	284,605,789		$	266,083,154

The accompanying notes are an integral part of these unaudited consolidated financial statements.

SBC MEDICAL GROUP HOLDINGS INCORPORATED
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS AND
COMPREHENSIVE INCOME

	For the Three Months Ended March 31,
	2025			2024
Revenues, net – related parties	$	45,257,145		$	50,470,207
Revenues, net		2,071,556			4,337,835
Total revenues, net		47,328,701			54,808,042
Cost of revenues (including cost of revenues from related parties of $3,456,928 and $1,797,359 for the three months ended March 31, 2025 and 2024, respectively)		9,595,617			15,288,667
Gross profit		37,733,084			39,519,375

Operating expenses:
Selling, general and administrative expenses		13,531,010			15,058,490
Total operating expenses		13,531,010			15,058,490

Income from operations		24,202,074			24,460,885

Other income (expenses):
Interest income		55,333			17,689
Interest expense		(6,207	)		(3,008	)
Other income		151,328			349,681
Other expenses		(1,697,259	)		(1,436,656	)
Gain on redemption of life insurance policies		8,746,138			—
Gain on disposal of subsidiary		—			3,813,609
Total other income		7,249,333			2,741,315

Income before income taxes		31,451,407			27,202,200

Income tax expense		9,959,457			8,451,984

Net income		21,491,950			18,750,216
Less: net loss attributable to non-controlling interests		(10,496	)		(7,536	)
Net income attributable to SBC Medical Group Holdings Incorporated	$	21,502,446		$	18,757,752

Other comprehensive income (loss):
Foreign currency translation adjustment	$	9,808,327		$	(10,193,852	)
Total comprehensive income		31,300,277			8,556,364
Less: comprehensive loss attributable to non-controlling interests		(36,832	)		(92,000	)
Comprehensive income attributable to SBC Medical Group Holdings Incorporated	$	31,337,109		$	8,648,364

Net income per share attributable to SBC Medical Group Holdings Incorporated*
Basic and diluted	$	0.21		$	0.20
Weighted average shares outstanding*
Basic and diluted		103,276,637			94,192,433

*	Retrospectively restated for effect of reverse recapitalization on September 17, 2024.
	The accompanying notes are an integral part of these unaudited consolidated financial statements.

SBC MEDICAL GROUP HOLDINGS INCORPORATED
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS

	For the Three Months Ended March 31,
	2025			2024
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$	21,491,950		$	18,750,216
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization expense		628,304			1,018,477
Non-cash lease expense		985,184			1,052,123
Provision for credit losses		25,102			152,579
Fair value change of long-term investments		140,581			938,511
Gain on disposal of subsidiary		—			(3,813,609	)
Gain on redemption of life insurance policies		(8,746,138	)		—
Gain on disposal of property and equipment		(12,375	)		—
Deferred income tax expense (benefit)		7,016,227			(360,582	)
Changes in operating assets and liabilities:
Accounts receivable		(147,925	)		(383,254	)
Accounts receivable – related parties		(295,505	)		4,775,935
Inventories		(124,279	)		(34,802	)
Finance lease receivables – related parties		(2,779,253	)		(814,608	)
Customer loans receivable		4,501,760			2,858,633
Prepaid expenses and other current assets		(3,150,243	)		610,059
Long-term prepayments		98,164			138,212
Other assets		318,351			(328,818	)
Accounts payable		3,235,017			(8,937,435	)
Accounts payable – related parties		441,481			—
Notes payable – related parties		(548,077	)		(1,104,968	)
Advances from customers		(328,791	)		(1,451,008	)
Advances from customers – related parties		(2,114,829	)		(161,936	)
Income tax payable		(17,635,239	)		(6,552,783	)
Operating lease liabilities		(1,036,605	)		(1,067,196	)
Accrued liabilities and other current liabilities		63,764			(1,604,603	)
Other liabilities		(98,005	)		3,032
NET CASH PROVIDED BY OPERATING ACTIVITIES		1,928,621			3,682,175

CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property and equipment		(253,725	)		(702,281	)
Purchase of convertible note		—			(1,700,000	)
Prepayments for property and equipment		(501,253	)		—
Advances to related parties		—			(367,579	)
Purchase of long-term investments		(635,145	)		—
Long-term loans to others		(12,783	)		(44,865	)
Repayments from related parties		70,000			215,000
Repayments from others		30,680			21,422
Disposal of subsidiary, net of cash disposed of		—			(815,819	)
Proceeds from disposal of property and equipment		323,419			—
NET CASH USED IN INVESTING ACTIVITIES		(978,807	)		(3,394,122	)

SBC MEDICAL GROUP HOLDINGS INCORPORATED
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS — (Continued)

	For the Three Months Ended March 31,
	2025			2024
CASH FLOWS FROM FINANCING ACTIVITIES
Borrowings from related parties		15,000			—
Repayments of long-term loans		(55,873	)		(30,354	)
Repayments of finance lease liabilities		(223,454	)		—
Repayments to related parties		(16,053	)		(9,873	)
NET CASH USED IN FINANCING ACTIVITIES		(280,380	)		(40,227	)

Effect of exchange rate changes		6,342,297			(7,089,208	)

NET CHANGE IN CASH AND CASH EQUIVALENTS		7,011,731			(6,841,382	)
CASH AND CASH EQUIVALENTS AS OF THE BEGINNING OF THE PERIOD		125,044,092			103,022,932
CASH AND CASH EQUIVALENTS AS OF THE END OF THE PERIOD	$	132,055,823		$	96,181,550

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Cash paid for interest expense	$	6,207		$	3,008
Cash paid for income taxes	$	20,577,290		$	16,172,526

NON-CASH INVESTING AND FINANCING ACTIVITIES
Property and equipment transferred from long-term prepayments	$	125,287		$	—
Operating lease right-of-use assets obtained in exchange for operating lease liabilities	$	102,599		$	—
Finance lease right-of-use assets obtained in exchange for finance lease liabilities	$	581,129		$	—
Remeasurement of operating lease liabilities and right-of-use assets due to lease modifications	$	358,358		$	1,078,611
Payables to related parties in connection with loan services provided	$	1,922,224		$	10,951,451
Issuance of common stock as incentive shares	$	86		$	—
Receivable from redemption of life insurance policies	$	17,735,717		$	—

The accompanying notes are an integral part of these unaudited consolidated financial statements.

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

SBC MEDICAL GROUP HOLDINGS INCORPORATED
Unaudited Reconciliations of GAAP and Non-GAAP Results

	For the Three Months Ended March 31,
	2025			2024
Total revenues, net	$	47,328,701		$	54,808,042
Income from operations		24,202,074			24,460,885
Depreciation and amortization expense		628,304			1,018,477
EBITDA		24,830,378			25,479,362
*EBITDA margin*		52	%		46	%

View source version on businesswire.com: https://www.businesswire.com/news/home/20250515682953/en/

Subscribe to releases from Business Wire

Subscribe to all the latest releases from Business Wire by registering your e-mail address below. You can unsubscribe at any time.

Latest releases from Business Wire

30 Peer-Reviewed Studies Highlight Statistically Significant Health Benefits of Almased16.7.2025 09:15:00 CEST | Press release

Two recent, peer-reviewed clinical studies have found that Almased, a high-protein, low-glycemic meal replacement, delivers significant health benefits ranging from weight loss and improved metabolic health to anti-aging effects and enhanced quality of life. Both reviews synthesize 30 peer-reviewed clinical studies across three decades of scientific research, confirming that Almased is effective and safe for weight reduction, preservation of lean muscle mass, and cardiovascular health. The 2025 review in the American Journal of Biomedical Science & Research highlighted Almased’s efficacy and safety for wide groups of people including individuals seeking weight loss, those with metabolic syndrome or fatty liver, older adults needing to preserve muscle mass, and athletes or healthy-weight individuals who require additional high-quality protein. This review also discusses how Almased’s patented fermentation process produces over 80 bioactive peptides, including 2 times the average daily i

The Future of Connectivity Starts Here: Network X Returns to Paris October 14 - 1616.7.2025 09:00:00 CEST | Press release

Show Reconvenes at Paris Expo Porte de Versailles with Global Representation of Industry Leaders and Telco Experts Network X 2025 - the only event that brings the fixed and mobile markets together - returns to Paris Expo Porte de Versailles October 14 - 16. Built for telecom's top players, this annual show drives business model innovation and monetisation of next-generation fixed, mobile, satellite and transport networks through AI and cloud. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20250716595903/en/ Speaker on Headliners Stage at Network X 2024 New to Network X in 2025 are specialty events designed to deliver expert insights on trending topics including Data Center World and two Expo Stages for Fixed-Line and Mobile. More than 5,500 telco network infrastructure professionals will gather alongside 1,500 telcos to learn from six program tracks highlighting the latest advancements in Fibre, Wi-Fi Networks and Services, IP

Skechers AERO Series Opens New Chapter of Technical Running Innovation16.7.2025 09:00:00 CEST | Press release

New Collection Features an Evolution in Design that Cuts Through the Wind for That Aerodynamic Feel on Every Run Skechers Performance opens a new chapter of running innovation with the arrival of the Skechers AERO series. Named for the aerodynamic feel of the design, Skechers AERO represents the latest evolution of technical running shoes from the brand. The collection is engineered to deliver an exhilarating blend of speed, style and comfort to help runners cut through the wind and push beyond their personal bests while logging miles. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20250716754749/en/ Introducing the Skechers AERO Series of technical running shoes: Skechers AERO Burst, Skechers AERO Spark, and Skechers AERO Tempo (L-R). “Recently launched in North America and Asia, the AERO Series leverages innovative technologies to elevate our signature comfort that’s now available to runners in Europe,” said Ben Stewart, Vic

4Moving Biotech Enrolls First Patient in Phase 2a Trial of 4P004, a Potential First-in-Class GLP-1 Therapy for Knee Osteoarthritis16.7.2025 07:00:00 CEST | Press release

- First patient enrolled in INFLAM MOTION, a global randomized Phase 2a trial including 129 knee osteoarthritis patients - 4P004 to be evaluated over 3 months for dual efficacy: symptom relief and synovial health improvement via contrast-enhanced MRI - Topline results expected in the second half of 2026 4Moving Biotech (4MB), a spin-off of 4P-Pharma dedicated to developing first-in-class treatments that modify the natural course of knee osteoarthritis (OA), today announced that the first patient has been enrolled in Phase 2a clinical trial, INFLAM MOTION. The study will evaluate 4P004, an intra-articular GLP-1 analog, as a potential first-in-class therapeutic candidate for knee osteoarthritis. INFLAM MOTION is a multicenter, randomized, double-blind, placebo-controlled Phase 2a trial planned to be conducted across Europe, the United States, and Canada. A total of 129 patients worldwide diagnosed with knee OA will be enrolled to evaluate, for the first time in humans, the efficacy of 4P

Belkin Achieves Qi2.2 Certification for Its Upcoming Products, Unlocking the Future of 25W Wireless Charging15.7.2025 19:06:00 CEST | Press release

With Qi2.2 certification, Belkin reinforces its commitment to quality, safety, and performance for the next generation of wireless charging Belkin, a leading consumer electronics brand for over 40 years, today announced it has received official Qi2.2 certification from the Wireless Power Consortium (WPC) for its upcoming products. As one of the first accessory brands to deliver Qi2.2-certified devices, Belkin is helping bring the next generation of wireless charging to market – enabling faster wireless charging speeds, broader compatibility, and improved performance for consumers. Belkin’s close partnership with the WPC since 2015 has been instrumental in bringing these advancements to consumers. As an early adopter and long-time contributor to WPC standards, Belkin was selected as one of a small group of trusted manufacturers to test and certify Qi2.2 products ahead of the broader industry rollout. All Belkin products undergo rigorous safety, quality, and performance testing. The comp

In our pressroom you can read all our latest releases, find our press contacts, images, documents and other relevant information about us.

Visit our pressroom