SBC Medical Group Holdings Reports Third Quarter 2026 Financial Results
SBC Medical Group Holdings Inc (SBC) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 SBC Medical Group Holdings Reports Third Quarter 2026 Financial Results Revenue Up 35%, Net Income Attributable to SBC Medical Up 22%, and Adjusted EBITDA 1 Up 66% Year-over-Year; Net Income Margin of 27% and Adjusted EBITDA Margin of 47% — Previously Announced Servi
How this was made
The 30-second read
Why it matters
The earnings release provides fresh quantitative data on revenue, profitability, and cash flow, enabling traders to assess valuation and momentum.
Market read
First-report earnings with strong growth metrics; likely to drive short-term price movement.
What to watch
Potential execution risk in AI initiatives and international expansion could temper upside.
SBC Medical reports Q3 2026 total revenues of $58,581,520, up 35% year-over-year, with income from operations up 66% and Adjusted EBITDA up 66%
Third-quarter revenue, operating income, Adjusted EBITDA and basic EPS all grew year-over-year, and the company reports operating cash flow of $50,247,388 for the nine months. The nine-month revenue growth (+13%) is much lower than the quarter's (+35%), net income margin fell by 3 points in the quarter, and the company reports a foreign currency loss of (947,087) in the quarter.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenues, net (Q3 2026)GAAP | $58,581,520 | – | +35% |
| Total revenues, net (9M 2026)GAAP | $150,830,150 | – | +13% |
| Revenues, net - related parties (Q3 2026)GAAP | $53,518,360 | – | – |
| Revenues, net - related parties (9M 2026)GAAP | $135,205,614 | – | – |
| Revenues, net (Q3 2026)GAAP | $5,063,160 | – | – |
| Revenues, net (9M 2026)GAAP | $15,624,536 | – | – |
| Cost of revenues (Q3 2026)GAAP | $16,402,500 | – | – |
| Cost of revenues (9M 2026)GAAP | $42,327,080 | – | – |
| Gross profit (Q3 2026)GAAP | $42,179,020 | – | – |
| Gross profit (9M 2026)GAAP | $108,503,070 | – | – |
| Selling, general and administrative expenses (Q3 2026)GAAP | $15,761,753 | – | – |
| Selling, general and administrative expenses (9M 2026)GAAP | $45,405,238 | – | – |
| Income from operations (Q3 2026)GAAP | $26,417,267 | – | +66% |
| Income from operations (9M 2026)GAAP | $63,097,832 | – | – |
| Operating margin (Q3 2026)other | 45% | – | – |
| Interest income (Q3 2026)GAAP | $344,937 | – | – |
| Interest expense (Q3 2026)GAAP | $(128,878) | – | – |
| Foreign currency exchange gain (loss), net (Q3 2026)GAAP | $(947,087) | – | – |
| Income before income taxes and equity in losses of equity method investees (Q3 2026)GAAP | $26,381,533 | – | – |
| Income tax expense (Q3 2026)GAAP | $(9,378,075) | – | – |
| Income tax expense (9M 2026)GAAP | $(24,729,409) | – | – |
| Net income (Q3 2026)GAAP | $16,416,759 | – | – |
| Net income (9M 2026)GAAP | $38,908,070 | – | – |
| Net income attributable to SBC Medical Group Holdings Incorporated (Q3 2026)GAAP | $15,692,742 | – | +22% |
| Net income attributable to SBC Medical Group Holdings Incorporated (9M 2026)GAAP | $37,693,635 | – | +2% |
| Net income margin (Q3 2026)other | 27% | – | (3)pt |
| Net income margin (9M 2026)other | 25% | – | (2)pt |
| Adjusted EBITDA (Q3 2026)non-GAAP | $27,594,226 | – | +66% |
| Adjusted EBITDA (9M 2026)non-GAAP | $66,077,749 | – | +17% |
| Adjusted EBITDA margin (Q3 2026)non-GAAP | 47% | – | +9pt |
| Adjusted EBITDA margin (9M 2026)non-GAAP | 44% | – | +2pt |
| Return on equity, annualized (Q3 2026)other | 23% | – | (0)pt |
| Return on equity, annualized (9M 2026)other | 19% | – | (3)pt |
| Basic and diluted EPS (Q3 2026)GAAP | $0.15 | – | +25% |
| Basic and diluted EPS (9M 2026)GAAP | $0.37 | – | +3% |
| Net cash provided by (used in) operating activities (9M 2026)GAAP | $50,247,388 | – | – |
| Cash and cash equivalents (as of September 30, 2026)GAAP | $198,428,275 | – | – |
| Net Cash (as of September 30, 2026)non-GAAP | $154M | – | – |
| Clinic network locations (as of September 30, 2026)other | 293 locations | – | +36 locations |
| Patient visits, trailing twelve months (October 1, 2025 to September 30, 2026)other | 7.06M | – | +9% |
| Average spend per visit (trailing twelve months)other | $290 | – | +4% |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Revenues, net - related parties (Q3 2026)The filing does not separately explain this line. The company attributes total revenue growth to higher management services revenue, including service fee structure revisions announced in August, and to the consolidation of Waqoo. | $53,518,360 | – | – |
| Revenues, net (non-related parties) (Q3 2026)The filing does not separately explain this line. Total revenue growth is attributed by the company to management services revenue, service fee revisions and the Waqoo consolidation. | $5,063,160 | – | – |
Capital returns
- Nine months 2026: no repurchase of common stock is printed in the cash flow statement.
- Nine months 2025: repurchase of common stock of $(4,999,997) is printed in the cash flow statement.
- Treasury stock was 1,304,308 shares at cost of (7,749,997) as of September 30, 2026 and December 31, 2025.
- No dividend payments are printed in the documents.
- The CEO states the company intends to deploy its financial position toward disciplined growth investment, with the goal of sustaining EPS growth over the medium- to long-term.
What drove it
- The company states that third-quarter revenue growth was driven by higher management services revenue, including the impact of service fee structure revisions announced in August, as well as the consolidation of Waqoo.
- The company states that its clinic network grew by 36 locations year-over-year to 293 locations, and that the medical corporations it supports continued to expand.
- The headline attributes revenue growth and operating margin improvement to previously announced service fee revisions and new clinic openings, as the company describes them.
- The CEO states that growth and profitability are improving in tandem following the structural reforms implemented in 2025.
- The company states it is investing in a proprietary local large language model infrastructure and in clinic operating systems through its capital and business alliance with Atomic Software, intended to improve profitability at existing clinics.
Concerns
- Net income margin was 27% in the quarter, a decrease of 3 percentage points year-over-year as stated by the company, while nine-month net income margin was 25%, down 2 percentage points.
- Nine-month total revenues grew 13% year-over-year, compared with 35% in the quarter.
- The company reports a foreign currency exchange loss, net, of (947,087) in the quarter, compared with a gain of 923,671 in the prior-year quarter.
- Income tax expense was (9,378,075) in the quarter, compared with (5,673,538) in the prior-year quarter.
- Equity in losses of equity method investees, net of tax, was (586,699) in the quarter and (1,155,351) for the nine months, as printed in the statement of operations.
- Income tax payable rose to 16,707,822 from 8,821,853 at December 31, 2025, as printed on the balance sheet.
- Basic and diluted EPS growth in the quarter (+25%) is lower than the growth in net income attributable to SBC Medical (+22%) only in rate terms, and nine-month EPS grew 3% while nine-month net income attributable to SBC Medical grew 2%.
What to watch
- Whether the net income margin decline in the quarter reverses as income from operations grows, given the foreign currency and tax lines printed in the statement of operations.
- Whether nine-month revenue growth converges toward the 35% third-quarter growth rate.
- The effect of service fee revisions and clinic network growth on management services revenue in coming quarters, as described by the company.
- The progress of the in-house DNA methylation-based test, the OrangeTwist collaboration and ASEAN expansion, as described by the company.
- Cash deployment toward growth investments, given cash of $198,428,275 and Net Cash of $154 million at September 30, 2026.
Balance sheet and cash flow
- Cash and cash equivalents: $198,428,275 as of September 30, 2026, compared with $163,773,838 as of December 31, 2025.
- Time deposits: 4,000,000 as of September 30, 2026, compared with nil as of December 31, 2025.
- Net Cash: $154 million as of September 30, 2026, calculated by the company as cash and cash equivalents ($198 million), less bank and other borrowings and finance lease liabilities ($34 million), and operating lease liabilities ($10 million).
- Total assets: $424,823,059 as of September 30, 2026, compared with $380,447,946 as of December 31, 2025.
- Bank and other borrowings, current: 8,757,956 as of September 30, 2026, compared with 9,099,046 as of December 31, 2025.
- Bank and other borrowings, non-current: 24,845,177 as of September 30, 2026, compared with 33,734,438 as of December 31, 2025.
- Total liabilities: 121,350,110 as of September 30, 2026, compared with 117,143,240 as of December 31, 2025.
- Total SBC Medical Group Holdings Incorporated stockholders' equity: 286,848,587 as of September 30, 2026, compared with 248,282,196 as of December 31, 2025.
- Total stockholders' equity including non-controlling interests: 303,472,949 as of September 30, 2026, compared with 263,304,706 as of December 31, 2025.
- Income tax payable: 16,707,822 as of September 30, 2026, compared with 8,821,853 as of December 31, 2025.
- Net cash provided by operating activities for the nine months ended September 30, 2026 was 50,247,388, compared with (27,295,426) for the nine months ended September 30, 2025. The filing does not explain the change.
- Net cash used in investing activities for the nine months ended September 30, 2026 was (5,040,845), compared with 3,239,523 provided in the nine months ended September 30, 2025.
- Net cash used in financing activities for the nine months ended September 30, 2026 was (8,940,299), compared with 18,470,001 provided in the nine months ended September 30, 2025.
Analysis
SBC Medical reported third-quarter 2026 total revenues, net of $58,581,520, against $43,353,235 a year earlier, and the company states this is up 35% year-over-year. Income from operations rose to $26,417,267 from $15,881,240, up 66% as the company states, and Adjusted EBITDA rose to $27,594,226 from $16,627,451. Growth in related-party revenues ($53,518,360 against $39,617,548) accounts for most of the quarterly increase in the printed statements. The company attributes the growth to higher management services revenue, including service fee revisions announced in August, and to the consolidation of Waqoo. Clinic count increased by 36 year-over-year to 293, and trailing twelve-month patient visits and average spend per visit rose 9% and 4% respectively.
The nine-month picture is weaker than the quarter. Total revenues for the nine months were $150,830,150, up 13% from $134,040,783, and net income attributable to SBC Medical rose only 2%, to $37,693,635. Basic and diluted EPS was $0.15 in the quarter, up 25%, and $0.37 for the nine months, up 3%. Net income margin in the quarter was 27%, down 3 percentage points as the company states, while the nine-month figure was 25%, down 2 points. Adjusted EBITDA margin expanded to 47% in the quarter, up 9 percentage points, and to 44% for the nine months, up 2 points.
Below operating income, several lines moved against the quarter's headline profit growth. The statement of operations prints a foreign currency exchange loss, net, of (947,087) in the quarter against a gain of 923,671 a year earlier. Income tax expense rose to (9,378,075) from (5,673,538), and equity in losses of equity method investees, net of tax, was (586,699). Net income attributable to non-controlling interests was 724,017 in the quarter. The result is that net income in the quarter, at $15,692,742 attributable to SBC Medical, grew more slowly than operating income.
On the balance sheet, cash and cash equivalents were $198,428,275 at September 30, 2026, up from $163,773,838 at December 31, 2025, and the company reports Net Cash of $154 million. Bank and other borrowings declined in total as printed, with non-current borrowings falling to 24,845,177 from 33,734,438. Net cash provided by operating activities was $50,247,388 for the nine months, after an outflow of (27,295,426) a year earlier, and the filing does not explain that swing. The company did not repurchase common stock in the nine months of 2026, while the prior-year period included a repurchase of $(4,999,997). The company states that it intends to deploy its cash toward disciplined growth investment.
The filing contains no quantitative guidance for the next period and no prior outlook was supplied, so no guidance comparison is made. The key figures for a reader are the sharp quarterly revenue and operating income acceleration against a slower nine-month trend, the lower net income margin, and the non-operating and tax lines printed in the statement of operations.
Management, verbatim
The third quarter of 2026 marked a strong reacceleration in SBC Medical’s growth. Revenue increased 35% year-over-year, income from operations rose 66%, and net income attributable to SBC Medical rose 22%, with a net income margin of 27% and an Adjusted EBITDA margin of 47%.
Yoshiyuki Aikawa, Chairman and CEO
Following the structural reforms implemented in 2025, growth and profitability are improving in tandem, demonstrating the strength of our highly profitable MSO model.
Yoshiyuki Aikawa, Chairman and CEO
Not in the filing
stated, not guessed- Forward guidance for revenue, gross margin, operating expenses or tax rate is not printed in the documents.
- No previous outlook was provided, so no comparison of guidance against actual results is possible.
- Gross margin percentage is not printed; gross profit is printed in dollars only.
- Operating margin prior-year and prior-quarter figures are not printed.
- Year-over-year percentage change for nine-month income from operations is not printed.
- Year-over-year percentage change for nine-month net cash provided by operating activities is not printed.
- Prior-year Net Cash, cash and cash equivalents as of September 30, 2025, and total assets as of September 30, 2025 are not printed; balance sheet comparisons are to December 31, 2025 only.
- Year-over-year percentage changes for related-party revenue and non-related-party revenue lines are not printed.
- Free cash flow is not printed.
- Dividend payments are not printed.
- Consensus estimates and share-price reaction are not in the documents.
- Segment-level revenue beyond the related-party and non-related-party split is not printed.
- Prior-quarter (Q2 2026) comparisons are not printed in the documents.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
SBC Medical Group Holdings (Nasdaq:SBC) is a medical services organization operating clinics in Japan and internationally.
Ticker impact
SBC Medical Group Holdings reported Q3 2026 results with revenue up 35% YoY and adjusted EBITDA up 66%, marking a material earnings disclosure.
likely upward pressure as the market prices in the earnings beat and improved profitability.
Revenue and EBITDA growth exceed expectations, margins expanding, and cash generation strong, supporting a bullish reaction.
Market effects
Positive earnings may lift the broader medical services and MSO sector.
Boosts sentiment for US-listed healthcare providers.
Limited to healthcare sector; no broad macro effect.
Counterpoint
If guidance falls short of market expectations despite growth, the stock could face short-term profit-taking.
Key entities
- ExecutiveYoshiyuki Aikawa
Chairman and CEO of SBC Medical Group Holdings
