SBC Medical Group Reports Strong Profit Growth Amid Strategic Shifts and International Expansion

SBC Medical Group Holdings Inc. reported a significant improvement in net profit for the third quarter as the company returns to a more typical cost structure in the absence of IPO-related and stock-based compensation expenses. Profitability was lifted by the company's execution of its strategy shift, which includes expanding franchise locations, increasing customer visits, optimizing pricing strategy and acquiring a higher-priced customer base.

For the third quarter, SBC Medical reported total revenue of $43 million, which was 18% lower than last year's third quarter. The company attributed that to a revised fee structure for clinic services that reduced franchising revenue, decreased procurement revenue due to reduced orders for medical materials and lower management services revenue due to the discontinuation of clinic operation staff supporting services. While the company reported lower Q3 2025 revenue, when compared to Q2 2025 revenue, it was essentially unchanged.

Net income for the quarter ending September 30 was $13 million, compared to $3 million a year ago, and EBITDA was $17 million, an increase of 12%. EBITDA margin was 38% for the third quarter of 2025, compared to 28% for the third quarter of 2024. The company credited this improvement to a reduction in operating expenses, offsetting the decrease in revenue primarily as a result of its previously announced franchise fee revisions.

During the third quarter, SBC Medical reported average revenue per visit was up 6% sequentially to $298, and up 8.4% from Q1 2025. SBC said the higher revenue per visit is due to the overhaul in its pricing strategy, promotions and its efforts to go after more affluent customers. SBC Medical ended the quarter with a repeat rate of 72%. As of the third quarter, the company operates 258 locations, which is up 15% year-over-year.

In addition to overhauling its pricing and going after well-heeled consumers, SBC Medical Group has set its sights on Thailand as one of the markets it's pursuing next. The company announced it has inked a consulting agreement with BLEZ ASIA Co., Ltd., which operates more than twenty pharmacies and clinics in Thailand. The partnership represents a significant step toward full-scale entry into the rapidly growing Thai aesthetic medicine market.

Under the agreement, SBC will provide comprehensive management support to a new clinic focused primarily on dermatological treatments such as pigmentation and spot removal, which BLEZ is preparing to open in Bangkok. The clinic is expected to commence operations by year-end in the Asok district of Bangkok. Thailand's aesthetic medicine market was valued at about $372.2 million in 2024 and is projected to grow to around $1.2 billion by 2033.

SBC Medical also announced it is acquiring a stake in Waqoo, the Japanese research and development company which provides medical support business such as promoting blood-derived processing services and skincare & cosmetic brands. To fully integrate Waqoo's technological assets, SBC Medical announced a Tender Offer (TOB) to acquire a majority stake in the company. The acquisition focuses on generating synergies by combining SBC's clinical expertise with Waqoo's R&D foundation.