SBC Medical Group Holdings Inc., the Japanese owner and operator of aesthetic medical clinics, implemented aggressive growth strategies throughout 2025 that have positioned the company for continued expansion in 2026. The company pursued two primary approaches: making aesthetic medicine more accessible to expand its market reach while differentiating itself through advanced treatments and competitive pricing. These initiatives resulted in tangible growth metrics, including a 15% year-over-year increase in franchise locations to 258 clinics as of September 30, 2025, and a 5% increase in average revenue per customer during the third quarter.
The company's expansion extended beyond Japan's borders with international moves into Singapore and Thailand, and an early 2026 announcement of its first expansion into the United States. In Singapore, SBC expanded its collaboration with Aesthetic Healthcare Holdings Pte. Ltd., which operates multiple brands in medical aesthetics, beauty, and anti-aging services. The company's Thailand entry came through an e-consulting agreement with BLEZ ASIA Co. Ltd., which operates more than 20 pharmacies and clinics in Thailand and serves both Japanese expatriates and local patients.
Strategic acquisitions played a crucial role in SBC's growth strategy. The company acquired MB Career Lounge Co. Ltd., a provider of management support services for medical institutions specializing in consulting, training, and human resources solutions. Additionally, SBC acquired a related subsidiary, Waqoo, to accelerate research and development and integrate technologies to enhance offerings in clinical areas such as AGA and orthopedics. The company also joined JUN CLINIC, a network of medical and aesthetic clinics with high average customer spending, to its network.
Financial performance showed marked improvement, with SBC Medical reporting a significant increase in net profit during the third quarter as the company returned to a more typical cost structure. Average revenue per visit increased 5% sequentially to $298 and was up 8.4% from the first quarter of 2025. The company attributed this growth to pricing strategy overhauls, promotional efforts, and targeting more affluent customers. SBC Medical ended the quarter with a 72% customer repeat rate, indicating strong customer loyalty.
Wall Street recognition came when SBC Medical was added to the Russell 3000 Index, which automatically included it in either the large-cap Russell 1000 Index or small-cap Russell 2000 Index, as well as appropriate growth and value style indexes. This inclusion increases the company's visibility and opens it to a broader base of investors, particularly institutional and individual investors who invest in index funds and ETFs tracking Russell indexes. The company also announced plans to buy up to $5 million worth of shares, underscoring confidence in its growth plan and belief that the stock price undervalued its business performance and market position.
The company is actively targeting Chinese consumers who increasingly visit Japan for cosmetic procedures, drawn by Japan's reputation for advanced techniques, qualified medical staff, and high-end customer experiences. To accommodate this market, SBC has increased its staff of Chinese-speaking customer service representatives and interpreters, disseminated information on Chinese social media platforms, developed a dedicated app, and held events and seminars in Shanghai to court new customers.
This expansion comes as the global cosmetic surgery and procedure market, valued at $122.08 billion in 2022, is expected to grow at a compound annual growth rate of 14.7% from 2023 to 2030. SBC Medical's strategic positioning allows it to capitalize on this growing demand while leveraging Japan's reputation for quality aesthetic medicine among international consumers, particularly from China and other Asian markets.
