SBC Medical Group Reports Strong Profit Growth Amid Strategic Expansion into Thailand

SBC Medical Group Holdings Inc. reported significantly improved net profit for the third quarter as the Japanese cosmetic surgery chain operator returns to a more typical cost structure following the elimination of IPO-related and stock-based compensation expenses. The company's strategic shift toward expanding franchise locations, increasing customer visits, optimizing pricing, and targeting affluent customers is positioning SBC for what executives describe as a strong 2026 performance.

For the quarter ending September 30, SBC Medical reported net income of $13 million, a substantial increase from $3 million during the same period last year. EBITDA reached $17 million, representing a 12% improvement, while EBITDA margin expanded to 38% from 28% in the third quarter of 2024. This profitability improvement occurred despite total revenue declining 18% year-over-year to $43 million, which the company attributed to revised franchise fee structures, reduced medical material orders, and discontinued clinic operation staff support services.

Chairman and CEO Yoshiyuki Aikawa stated the revenue decline primarily reflects the impact of past business restructuring initiatives. The company is streamlining operations by discontinuing its staffing business, engaging in targeted divestitures, and revising fee structures to attract more repeat customers. These strategic moves appear effective, with average revenue per patient visit increasing 6% sequentially to $298 and up 8.4% from the first quarter of 2025. The company ended the quarter with a 72% customer repeat rate and operates 258 locations, representing 15% year-over-year growth.

Internationally, SBC Medical Group has set its sights on Thailand as a key expansion market, announcing a consulting agreement with BLEZ ASIA Co., Ltd., which operates more than twenty pharmacies and clinics in Thailand. This partnership represents a significant step toward full-scale entry into Thailand's aesthetic medicine market, valued at approximately $372.2 million in 2024 and projected to grow to around $1.2 billion by 2033. Under the agreement, SBC will provide comprehensive management support for a new dermatology-focused clinic in Bangkok's Asok district, expected to commence operations by year-end.

Additionally, SBC Medical announced it is acquiring a stake in Waqoo, a Japanese research and development company, through a tender offer to obtain majority ownership. The acquisition aims to generate synergies by combining SBC's clinical expertise with Waqoo's R&D foundation, focusing on upgrading treatments for androgenetic alopecia and orthopedics, co-developing proprietary skincare products, and utilizing Waqoo's technology to support international market entry. The company enters the final quarter of 2025 with $127 million in cash, providing financial flexibility for continued expansion and strategic initiatives.