Full Press Release Details
Medical Group Holdings Announces Second Quarter 2025 Financial Results
Calif. - Aug 13, 2025-(BUSINESS WIRE)-SBC Medical Group Holdings Incorporated (NASDAQ: SBC, "SBC Medical"
or the "Company"), a global owner, operator and provider of management services and products to cosmetic treatment centers,
today announced its financial results for the second quarter of fiscal year 2025 (three months ended June 30, 2025) and for the first
half of fiscal year 2025 (six months ended June 30, 2025).
Quarter 2025 Highlights
| Total revenues were $43 million, representing an 18% year-over-year decrease. | ||
| Income from operations was $15 million, representing a 47% year-over-year decrease. | ||
| Net Income attributable to SBC Medical Group was $2.5 million, representing an 87% year-over-year decrease. | ||
| Earnings per share , which is defined as net income attributable to the Company divided by the weighted average number of outstanding shares, was $0.02 for the three months ended June 30, 2025, compared to $0.20 in the same period of 2024. | ||
| EBITDA 1 , which is calculated by adding depreciation and amortization expense and impairment loss to income from operations was $15 million, representing a 46% year-over-year decrease. EBITDA margin 1 was 35% for the second quarter of 2025, compared to 53% for second quarter of 2024. | ||
| Return on equity , which is defined as net income attributable to the Company divided by the average of shareholder's equity as of June 30, 2025, was 4% representing a year-over-year decrease of 44 percentage points. | ||
| Number of Franchise Locations 2 was 259 as of June 30, 2025, representing an increase of 36 locations from June 30, 2024. | ||
| Number of customers 3 in the last twelve months ended June 30, 2025, was 6.31 million, representing a 14% year-over-year increase. | ||
| Repeat rate for customers 4 who visited franchisee's clinics twice or more was 72%. |
EBITDA and EBITDA Margin are non-GAAP financial measures. For more information on non-GAAP
financial measures, please see the section "Use of Non-GAAP Financial Measures"
and the table captioned "Unaudited Reconciliations of GAAP and Non-GAAP Results."
The figures take into accounts of the franchising of SBC brand clinics, Rize Clinic, Gorilla Clinic, AHH, JUN CLINIC
The number of customers takes into account customers of SBC brand clinics, Rize Clinic and Gorilla Clinic, AHH Clinic but
does not take account of customers of JUN CLINIC, but excluding free counseling. The applicable periods are from July
1, 2024, to June 30, 2025
The figures include franchising of SBC brand clinics, Rize Clinic, and Gorilla Clinic, but does not take account of customers of AHH
clinics and JUN CLINIC excluding free counseling. The percentage of customers who visited our franchisee's clinics twice or
Half 2025 Highlights
| Total revenues were $91 million, representing a 16% year-over-year decrease. | ||
| Income from operations was $39 million, representing a 25% year-over-year decrease. | ||
| Net Income attributable to SBC Medical Group was $24 million, representing a 36% year-over-year decrease. | ||
| Earnings per share , which is defined as net income attributable to the Company divided by the weighted average number of outstanding shares, was $0.23 for the six months ended June 30, 2025, compared to $0.40 in the same period of 2024. | ||
| EBITDA 1 , which is calculated by adding depreciation and amortization expense and impairment loss to income from operations was $40 million, representing a 25% year-over-year decrease. EBITDA margin 1 was 44% for the first half of 2025, compared to 50% for first half of 2024. |
Aikawa, Chairman and Chief Executive Officer of SBC Medical, said, " As anticipated and signaled in our prior guidance, Q2 2025
reflected strategic shifts aimed to position SBC Medical for long-term competitiveness and scalability. Total revenue declined
18% year-over-year to $43 million, primarily due to the completed discontinuation of our staffing business, targeted divestitures
to streamline our operations, and revision of fee structure. We are executing our strategic plan with precision, as evidenced by our
network of 259 Franchise Locations as of June 30, 2025 and 6.31 million visits over the last twelve months, demonstrating
a scale that is unmatched in Japan. Our high repeat rate underscores the strength of our Shonan Beauty Clinic brand. Japan's
consumer discretionary market faces challenges, including restrained growth due to trade restrictions and cautious consumer spending.
Despite these headwinds, we are successfully advancing key initiatives, including the acquisition of MB career lounge to enhance our
management support services and the joining of JUN CLINIC to our network, which boasts a high average spend per customer. Looking
ahead, we remain confident in our strategic roadmap, focused on optimizing our franchise model, capturing growth opportunities, transitioning
to higher-margin models, and delivering lasting value to our shareholders."
Quarter 2025 Financial Results
revenues were $43 million, a decrease of 18% year-over-year, primarily due to a revised fee structure for franchising services
implemented starting from April 2025, the discontinuation of staffing services business, and divestiture of SNA and
Kijimadaira, partially offset by growth in procurement, rental services, and other revenue streams.
income attributable to SBC Medical Group for the three months ended June 30, 2025 was $2.5 million, compared to $18.5 million
in the same period of 2024. The decrease was largely attributed to unfavorable changes in other income and expenses, primarily due
to higher foreign exchange losses.
was $15 million, a decrease of 46% year-over-year, primarily due to lower revenue following the termination of the staffing
services business, the deconsolidation of SNA and Kijimadaira, and revision of fee structure.
Company will hold a conference call on Wednesday, August 13, 2025 at 8:30 am Eastern Time (or Wednesday, August 13, 2025 at 9:30 pm Japan
Time) to discuss the financial results and take questions live.
register in advance of the conference using the link provided below.
will automatically direct you to the registration page of "SBC Q2 2025 Financial Results Presentation.". Please follow the
steps to enter your registration details, then click "Submit.". Upon registration, you will be able to access the dedicated
Conference Call viewing site. In addition to viewing the conference call, this site provides access to information about the speakers
as well as past investor relations materials.
10 minutes before the conference call begins, you will be able to view the earnings presentation materials on the site. The materials
will also be available for download.
replay of the conference call will be accessible until August 13, 2026.
the earnings release, accompanying slides, and an archived webcast of this conference call will be available at the Company's Investor
Relations website at https://ir.sbc-holdings.com/
Medical, headquartered in Irvine, California and Tokyo, Japan, owns and provides management services and products to cosmetic treatment
centers. The Company is primarily focused on providing comprehensive management services to franchise clinics, including but not limited
to advertising and marketing needs across various platforms (such as social media networks), staff management (such as recruitment and
training), booking reservations for franchise clinic customers, assistance with franchise employee housing rentals and facility rentals,
construction and design of franchise clinics, medical equipment and medical consumables procurement (resale), the provision of cosmetic
products to franchise clinics for resale to clinic customers, licensure of the use of patent-pending and non-patented medical technologies,
trademark and brand use, IT software solutions (including but not limited to remote medical consultations), management of the franchise
clinic's customer rewards program (customer loyalty point program), and payment tools for the franchise clinics.
more information, visit https://sbc-holdings.com/
of Non-GAAP Financial Measures
Company uses non-GAAP measures, such as EBITDA and EBITDA margin, in evaluating its operating results and for financial and operational
decision-making purposes. The Company believes that the non-GAAP financial measures help identify underlying trends in its business.
The Company believes that the non-GAAP financial measures provide useful information about the Company's results of operations,
enhance the overall understanding of the Company's past performance and future prospects and allow for greater visibility with
respect to key metrics used by the Company's management in its financial and operational decision-making.
non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. The non-GAAP financial
measures have limitations as analytical tools, and when assessing the Company's operating performance, cash flows or liquidity,
investors should not consider them in isolation, or as a substitute for net loss, cash flows provided by operating activities or other
consolidated statements of operations and cash flows data prepared in accordance with U.S. GAAP.
Company mitigates these limitations by reconciling the non-GAAP financial measures to the most comparable U.S. GAAP performance measures,
all of which should be considered when evaluating the Company's performance.
more information on the non-GAAP financial measures, please see the table captioned "Unaudited Reconciliations of GAAP and Non-GAAP
press release contains forward-looking statements. Forward-looking statements are not historical facts or statements of current conditions,
but instead represent only the Company's beliefs regarding future events and performance, many of which, by their nature, are inherently
uncertain and outside of the Company's control. These forward-looking statements reflect the Company's current views with
respect to, among other things, the Company's financial performance; growth in revenue and earnings; business prospects and opportunities;
and capital deployment plans and liquidity. In some cases, forward-looking statements can be identified by the use of words such as "may,"
"should," "expects," "anticipates," "contemplates," "estimates," "believes,"
"plans," "projected," "predicts," "potential," or "hopes" or the negative
of these or similar terms. The Company cautions readers not to place undue reliance upon any forward-looking statements, which are current
only as of the date of this release and are subject to various risks, uncertainties, assumptions, or changes in circumstances that are
difficult to predict or quantify. The forward-looking statements are based on management's current expectations and are not guarantees
of future performance. The Company does not undertake or accept any obligation to release publicly any updates or revisions to any forward-looking
statements to reflect any change in its expectations or any change in events, conditions, or circumstances on which any such statement
is based, except as required by law. Factors that may cause actual results to differ materially from current expectations may emerge
from time to time, and it is not possible for the Company to predict all of them; such factors include, among other things, changes in
global, regional, or local economic, business, competitive, market and regulatory conditions, and those listed under the heading "Risk
Factors" and elsewhere in the Company's filings with the U.S. Securities and Exchange Commission (the "SEC"),
which are accessible on the SEC's website at www.sec.gov.
MEDICAL GROUP HOLDINGS INCORPORATED
CONSOLIDATED BALANCE SHEETS
| June 30, 2025 | December 31, 2024 | |||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 152,740,882 | $ | 125,044,092 | ||||
| Accounts receivable | 2,350,368 | 1,413,433 | ||||||
| Accounts receivable - related parties | 48,920,843 | 28,846,680 | ||||||
| Accounts receivable | 48,920,843 | 28,846,680 | ||||||
| Inventories | 1,705,237 | 1,494,891 | ||||||
| Finance lease receivables, current - related parties | 9,128,931 | 5,992,585 | ||||||
| Customer loans receivable, current | 10,552,623 | 10,382,537 | ||||||
| Prepaid expenses and other current assets | 14,051,746 | 11,276,802 | ||||||
| Other receivables - related parties | 1,891,408 | - | ||||||
| Total current assets | 241,342,038 | 184,451,020 | ||||||
| Non-current assets: | ||||||||
| Property and equipment, net | 8,058,016 | 8,771,902 | ||||||
| Intangible assets, net | 1,584,543 | 1,590,052 | ||||||
| Long-term investments, net | 3,593,087 | 3,049,972 | ||||||
| Goodwill, net | 5,011,511 | 4,613,784 | ||||||
| Cryptocurrencies | 535,882 | - | ||||||
| Finance lease receivables, non-current - related parties | 13,197,979 | 8,397,582 | ||||||
| Operating lease right-of-use assets | 4,583,393 | 5,267,056 | ||||||
| Finance lease right-of-use assets | 516,932 | - | ||||||
| Deferred tax assets | 2,343,302 | 9,798,071 | ||||||
| Customer loans receivable, non-current | 5,934,636 | 5,023,551 | ||||||
| Long-term prepayments | 1,755,292 | 1,745,801 | ||||||
| Long-term investments in MCs - related parties | 19,381,422 | 17,820,910 | ||||||
| Long-term investments | 19,381,422 | 17,820,910 | ||||||
| Other assets | 7,461,224 | 15,553,453 | ||||||
| Total non-current assets | 73,957,219 | 81,632,134 | ||||||
| Total assets | $ | 315,299,257 | $ | 266,083,154 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 16,290,206 | $ | 13,875,179 | ||||
| Accounts payable - related parties | 3,245,989 | 659,044 | ||||||
| Accounts payable | 3,245,989 | 659,044 | ||||||
| Current portion of long-term loans | 69,420 | 96,824 | ||||||
| Notes and other payables, current - related parties | 3,272,048 | 26,255 | ||||||
| Advances from customers | 512,123 | 820,898 | ||||||
| Advances from customers - related parties | 10,333,007 | 11,739,533 | ||||||
| Advances from customers | 10,333,007 | 11,739,533 | ||||||
| Income tax payable | 14,133,163 | 18,705,851 | ||||||
| Operating lease liabilities, current | 3,623,871 | 4,341,522 | ||||||
| Finance lease liabilities, current | 161,340 | - | ||||||
| Accrued liabilities and other current liabilities | 6,229,797 | 8,103,194 | ||||||
| Due to related party | 2,810,647 | 2,823,590 | ||||||
| Total current liabilities | 60,681,611 | 61,191,890 |
MEDICAL GROUP HOLDINGS INCORPORATED
CONSOLIDATED BALANCE SHEETS - (Continued)
| June 30, 2025 | December 31, 2024 | |||||||
| Non-current liabilities: | ||||||||
| Long-term loans | 7,031,506 | 6,502,682 | ||||||
| Notes and other payables, non-current - related parties | - | 5,334 | ||||||
| Deferred tax liabilities | 353,517 | 926,023 | ||||||
| Operating lease liabilities, non-current | 1,208,516 | 1,241,526 | ||||||
| Finance lease liabilities, non-current | 164,721 | - | ||||||
| Other liabilities | 1,206,815 | 1,193,541 | ||||||
| Total non-current liabilities | 9,965,075 | 9,869,106 | ||||||
| Total liabilities | 70,646,686 | 71,060,996 | ||||||
| Stockholders' equity: | ||||||||
| Preferred stock ($ 0.0001 par value, 20,000,000 shares authorized; no shares issued and outstanding as of June 30, 2025 and December 31, 2024) | - | - | ||||||
| Common stock ($ 0.0001 par value, 400,000,000 shares authorized, 103,881,251 and 103,020,816 shares issued, 103,098,442 and 102,750,816 shares outstanding as of June 30, 2025 and December 31, 2024, respectively) | 10,388 | 10,302 | ||||||
| Additional paid-in capital | 72,196,114 | 62,513,923 | ||||||
| Treasury stock (at cost, 782,809 and 270,000 shares as of June 30, 2025 and December 31, 2024, respectively) | (5,115,262 | ) | (2,700,000 | ) | ||||
| Retained earnings | 213,423,693 | 189,463,007 | ||||||
| Accumulated other comprehensive loss | (35,922,942 | ) | (54,178,075 | ) | ||||
| Total SBC Medical Group Holdings Incorporated stockholders' equity | 244,591,991 | 195,109,157 | ||||||
| Non-controlling interests | 60,580 | (86,999 | ) | |||||
| Total stockholders' equity | 244,652,571 | 195,022,158 | ||||||
| Total liabilities and stockholders' equity | $ | 315,299,257 | $ | 266,083,154 |
accompanying notes are an integral part of these unaudited consolidated financial statements.
MEDICAL GROUP HOLDINGS INCORPORATED
CONSOLIDATED STATEMENTS OF OPERATIONS AND
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| For the Three Months Ended June 30, | For the Six Months Ended June 30, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Revenues, net - related parties | $ | 38,944,898 | $ | 51,039,038 | $ | 84,202,043 | $ | 101,509,245 | ||||||||
| Revenues, net | 4,413,949 | 2,063,042 | 6,485,505 | 6,400,877 | ||||||||||||
| Total revenues, net | 43,358,847 | 53,102,080 | 90,687,548 | 107,910,122 | ||||||||||||
| Cost of revenues (including cost of revenues from related parties of $ 4,669,602 and $ 3,616,103 for the three months ended June 30, 2025 and 2024, and $ 8,126,530 and $ 5,413,462 for the six months ended June 30, 2025 and 2024, respectively) | 13,348,270 | 13,682,405 | 22,943,887 | 28,971,072 | ||||||||||||
| Gross profit | 30,010,577 | 39,419,675 | 67,743,661 | 78,939,050 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Selling, general and administrative expenses (including selling, general and administrative expenses from related parties of $ 415,767 and nil for the three months ended June 30, 2025 and 2024, and $ 415,767 and nil for the six months ended June 30, 2025 and 2024, respectively) | 15,456,385 | 12,129,115 | 28,987,395 | 27,187,605 | ||||||||||||
| Total operating expenses | 15,456,385 | 12,129,115 | 28,987,395 | 27,187,605 | ||||||||||||
| Income from operations | 14,554,192 | 27,290,560 | 38,756,266 | 51,751,445 | ||||||||||||
| Other income (expenses): | ||||||||||||||||
| Interest income | 22,882 | 11,644 | 78,215 | 29,333 | ||||||||||||
| Interest expense | (49,651 | ) | (7,424 | ) | (55,858 | ) | (10,432 | ) | ||||||||
| Other income | 33,771 | 306,291 | 185,099 | 655,972 | ||||||||||||
| Other expenses | (1,132,465 | ) | (514,636 | ) | (2,829,724 | ) | (1,951,292 | ) | ||||||||
| Gain on redemption of life insurance policies | - | - | 8,746,138 | - | ||||||||||||
| Change in fair value of cryptocurrencies | 111,632 | - | 111,632 | - | ||||||||||||
| Gain on disposal of subsidiary | - | - | - | 3,813,609 | ||||||||||||
| Total other income (expenses) | (1,013,831 | ) | (204,125 | ) | 6,235,502 | 2,537,190 | ||||||||||
| Income before income taxes | 13,540,361 | 27,086,435 | 44,991,768 | 54,288,635 | ||||||||||||
| Income tax expense | 11,100,509 | 8,529,110 | 21,059,966 | 16,981,094 | ||||||||||||
| Net income | 2,439,852 | 18,557,325 | 23,931,802 | 37,307,541 | ||||||||||||
| Less: net income (loss) attributable to non-controlling interests | (18,388 | ) | 72,917 | (28,884 | ) | 65,381 | ||||||||||
| Net income attributable to SBC Medical Group Holdings Incorporated | $ | 2,458,240 | $ | 18,484,408 | $ | 23,960,686 | $ | 37,242,160 | ||||||||
| Other comprehensive income (loss): | ||||||||||||||||
| Foreign currency translation adjustment | $ | 8,623,269 | $ | (9,046,549 | ) | $ | 18,431,596 | $ | (19,240,401 | ) | ||||||
| Total comprehensive income | 11,063,121 | 9,510,776 | 42,363,398 | 18,067,140 | ||||||||||||
| Less: comprehensive income (loss) attributable to non-controlling interests | 184,411 | 22,000 | 147,579 | (70,000 | ) | |||||||||||
| Comprehensive income attributable to SBC Medical Group Holdings Incorporated | $ | 10,878,710 | $ | 9,488,776 | $ | 42,215,819 | $ | 18,137,140 | ||||||||
| Net income per share attributable to SBC Medical Group Holdings Incorporated* | ||||||||||||||||
| Basic and diluted | $ | 0.02 | $ | 0.20 | $ | 0.23 | $ | 0.40 | ||||||||
| Weighted average shares outstanding* | ||||||||||||||||
| Basic and diluted | 103,507,249 | 94,192,433 | 103,392,580 | 94,192,433 |