Second quarter of fiscal year 2026
Filed Aug 13, 2026Restructuring Complete, Growth Reaccelerates: Q2 Revenue Up 13%, Net Income Attributable to SBC Medical Up 335%, Adjusted EBITDA Up 32% Year-over-Year.
Second-quarter revenue, net income attributable to SBC Medical, basic EPS, Adjusted EBITDA and their reported margins all improved year-over-year, although first-half net income attributable to SBC Medical and Adjusted EBITDA were below the prior-year period.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenues, netGAAP | $49,188,068 | – | +13% |
| Revenues, net – related partiesGAAP | $43,732,194 | – | – |
| Revenues, netGAAP | $5,455,874 | – | – |
| Cost of revenuesGAAP | $13,210,752 | – | – |
| Gross profitGAAP | $35,977,316 | – | – |
| Selling, general and administrative expensesGAAP | $17,016,766 | – | – |
| Total operating expensesGAAP | $17,016,766 | – | – |
| Income from operationsGAAP | $18,960,550 | – | – |
| Income tax expenseGAAP | $7,823,743 | – | – |
| Net incomeGAAP | $11,162,291 | – | – |
| Net income attributable to SBC Medical Group Holdings IncorporatedGAAP | $10,692,822 | – | +335% |
| Net income marginGAAP | 22 % | – | +16pt |
| Adjusted EBITDAnon-GAAP | $20,093,074 | – | +32% |
| Adjusted EBITDA marginnon-GAAP | 41 % | – | +6pt |
| ROE (Annualized)other | 16 | – | +12pt |
| Net income per share attributable to SBC Medical Group Holdings Incorporated Basic and dilutedGAAP | $ 0.10 | – | +400% |
| Weighted average shares outstanding Basic and dilutedGAAP | 102,576,943 | – | – |
| First-half total revenues, netGAAP | $92,248,630 | – | +2% |
| First-half gross profitGAAP | $66,324,050 | – | – |
| First-half income from operationsGAAP | $36,680,565 | – | – |
| First-half net income attributable to SBC Medical Group Holdings IncorporatedGAAP | $22,000,893 | – | (8)% |
| First-half net income marginGAAP | 24 % | – | (2)pt |
| First-half Adjusted EBITDAnon-GAAP | $38,483,523 | – | (4)% |
| First-half Adjusted EBITDA marginnon-GAAP | 42 % | – | (2)pt |
| First-half ROE (Annualized)other | 17 | – | (5)pt |
| First-half net income per share attributable to SBC Medical Group Holdings Incorporated Basic and dilutedGAAP | $ 0.21 | – | (9)% |
| Net cash provided by operating activitiesGAAP | 31,741,248 | – | – |
| Net cash provided by investing activitiesGAAP | 37,206 | – | – |
| Net cash used in financing activitiesGAAP | (3,803,472) | – | – |
| Cash and cash equivalents as of the end of the periodGAAP | $ 184,311,213 | – | – |
| Bank and other borrowings, currentGAAP | 11,816,235 | – | – |
| Bank and other borrowings, non-currentGAAP | 25,938,581 | – | – |
| Number of locationsother | 287 | – | increased by 34 year-over-year |
| Last-twelve-month number of visitsother | 6.9 million | – | up 10% year-over-year |
| Average spend per visitother | $287 | – | up 9% year-over-year |
if their impact is realized for a full year outlook
- Noteincrease service fees by approximately $15 million annually (converted at ¥158.1/US$)
What drove it
- The Company cited expansion of the points business following a change in its operating policy.
- The Company cited expansion of service fees in line with enhanced AI-enabled support capabilities.
- The medical corporations the Company supports continued to expand steadily.
- The Company cited fee revisions for call center services provided to five specific affiliated medical corporations and separate fee revisions reflecting expanded support for Rize Clinic and Gorilla Clinic.
- As of the end of June 2026, the number of locations was 287, last-twelve-month number of visits was 6.9 million, and average spend per visit was $287.
Concerns
- First-half net income attributable to SBC Medical Group Holdings Incorporated was $22,000,893 versus $23,960,686 in the prior-year period.
- First-half Adjusted EBITDA was $38,483,523 versus $40,020,671 in the prior-year period.
- First-half net income margin was 24 % versus 26 %, and first-half Adjusted EBITDA margin was 42 % versus 44 %.
- The full-year impact of the expected approximately $15 million annual increase in service fees is contingent on the initiatives' impact being realized.
What to watch
- Realization of the expected approximately $15 million annual increase in service fees from the identified fee revisions.
- Further expansion in the number of locations, last-twelve-month number of visits, and average spend per visit.
- Expansion of AI-powered call centers, AI-driven marketing, and AI-assisted site selection for new clinic openings.
- Domestic multi-brand aesthetic dermatology, the non-aesthetic business, OrangeTwist collaboration in the United States, ASEAN expansion anchored in Thailand, and planned entry into the Longevity market.
Balance sheet and cash flow
- Cash and cash equivalents as of June 30, 2026 were $ 184,311,213.
- Total assets as of June 30, 2026 were $ 406,659,022.
- Total liabilities as of June 30, 2026 were 126,743,880.
- Total SBC Medical Group Holdings Incorporated stockholders’ equity as of June 30, 2026 was 263,836,341.
- Net cash provided by operating activities for the six months ended June 30, 2026 was 31,741,248.
- Repayments of bank and other borrowings for the six months ended June 30, 2026 were (3,740,739).
- Net change in cash and cash equivalents for the six months ended June 30, 2026 was 20,537,375.
Analysis
SBC Medical reported second-quarter total revenues, net of $49,188,068, compared with $43,358,847 in the prior-year quarter, with the company reporting a +13% year-over-year increase. Net income attributable to SBC Medical Group Holdings Incorporated was $10,692,822 versus $2,458,240, while basic and diluted EPS was $ 0.10 versus $ 0.02. The company characterized the quarter as a reacceleration following structural reforms undertaken in 2025.
Reported operating profitability improved in the quarter. Gross profit was $35,977,316 versus $30,010,577, income from operations was $18,960,550 versus $14,554,192, and net income margin was 22 % versus 6 %. Adjusted EBITDA, a non-GAAP measure, was $20,093,074 versus $15,190,293, while Adjusted EBITDA margin was 41 % versus 35 %. The release attributes earnings growth to expansion of the points business and higher service fees associated with enhanced AI-enabled support capabilities.
Operational measures also indicate network and patient activity expansion. The company reported 287 locations as of the end of June 2026, an increase of 34 year-over-year. Last-twelve-month number of visits reached 6.9 million, up 10% year-over-year, and average spend per visit was $287, up 9% year-over-year. Management identified AI-powered call centers, AI-driven marketing, and AI-assisted site selection as elements of its AI-enabled MSO platform.
The first-half comparison remains less favorable than the second-quarter trend. First-half total revenues, net were $92,248,630 versus $90,687,548, but net income attributable to SBC Medical Group Holdings Incorporated was $22,000,893 versus $23,960,686 and Adjusted EBITDA was $38,483,523 versus $40,020,671. First-half net income margin was 24 % versus 26 %, and Adjusted EBITDA margin was 42 % versus 44 %.
Cash and cash equivalents were $ 184,311,213 at June 30, 2026, compared with $ 163,773,838 at December 31, 2025. Net cash provided by operating activities for the six-month period was 31,741,248, compared with net cash used in operating activities of (6,411,168) in the prior-year period. Management expects fee revisions involving five specific affiliated medical corporations, Rize Clinic and Gorilla Clinic to increase service fees by approximately $15 million annually if their impact is realized for a full year, but did not provide formal revenue, margin, expense, tax-rate, or earnings guidance.
Management, verbatim
We believe our results this quarter clearly demonstrate that SBC Medical’s growth story has entered a new phase.
Yoshiyuki Aikawa, Chairman and CEO
Having completed the structural reforms we undertook in 2025, we are now running multiple growth engines simultaneously.
Yoshiyuki Aikawa, Chairman and CEO
With $184 million in cash and cash equivalents on hand, we will continue to pursue disciplined investment toward our next growth phase.
Yoshiyuki Aikawa, Chairman and CEO
Not in the filing
stated, not guessed- Formal financial guidance for revenue, gross margin, operating expenses, tax rate, net income, EPS, or Adjusted EBITDA
- Previous-quarter figures and quarter-over-quarter changes for reported metrics
- Reportable segment revenue disclosure
- Gross margin
- Free cash flow
- Current-quarter dividend declaration or payment
- Current-quarter share repurchases
- Non-GAAP EPS
- Tax rate
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.