SBC Medical Group (NASDAQ:SBC) used its fiscal 2025 full-year results briefing to outline signs of improving clinic-level economics, discuss the impact of recent restructuring on reported revenue, and detail a strategy centered on longevity-focused healthcare and expanded use of artificial intelligence.
Clinic network update and operating trends
CEO Yoshiyuki Aikawa said the company ended December 2025 with 283 locations and reported 6.63 million customers served over the trailing 12 months. While same-store sales were “slightly below” the prior year, he said total clinic revenue for the full year reached $1,163 million, representing 2% year-over-year growth.
He also pointed to a steady quarterly recovery in average revenue per visit and said total clinic revenue has begun to reflect an upward trajectory. If the trend continues, he said the company believes it could represent an inflection point for long-term growth.
Key FY 2025 developments in Japan and overseas
Management described a range of developments during fiscal 2025, including efforts to deepen the domestic platform and take early steps internationally.
- Domestic initiatives: Aikawa cited recovery in customer spending, continued expansion of the dermatology customer base, establishment of what he described as the largest AGA hair loss treatment network in Japan, and expansion in orthopedics and fertility treatment.
- Platform additions: The company referenced the opening of NEO Skin Clinic and Hadano Aozora Clinic, the joining of JUN CLINIC, and the consolidation of Waqoo through a tender offer.
- International steps: Management said it made a strategic investment in OrangeTwist in the U.S. and formed a partnership with BLEZ ASIA in Thailand.
Financial results: revenue decline alongside higher profit
Aikawa reported full-year revenue of $174 million, down 15% year-over-year. He attributed the decline primarily to business restructuring initiatives undertaken in 2024 and the impact of fee structure changes implemented in April 2025.
Despite lower revenue, the company reported higher profitability. Net income attributable to shareholders increased 9% year-over-year to $51 million, while EPS rose 4% to $0.50. Aikawa said the improvement was driven by the absence of significant one-time costs incurred in the prior year related to the listing process and asset revaluations.
The company reported EBITDA of $70 million and an EBITDA margin of 40.4%. Aikawa described the year’s results as reflecting a “structural transition” in revenue while costs normalized and profitability metrics improved.
Strategy: longevity, AI-driven healthcare, and multi-brand dermatology
Management said its core strategic pillars remain aesthetic dermatology, non-aesthetic healthcare, and global expansion, with two “unifying themes” layered across them: longevity and AI-driven healthcare.
As part of the longevity approach, Aikawa introduced SBC Wellness 2.0, described as an upgraded corporate wellness platform in Japan incorporating biomarker analysis, AI-powered body diagnostics, personalized AI recommendations, and continuous health coaching. Management said the intent is to scale through corporate benefits programs to expand the customer base while reducing marketing costs.
In the Q&A, CFO/COO Yuya Yoshida said SBC Wellness is not expected to be a large revenue driver in fiscal 2026, characterizing it instead as a longer-term initiative focused on customer base expansion. Management also disclosed that the wellness offering currently connects SBC with 160 companies and about 50,000 individuals through corporate relationships. Executives said they are still developing how services will roll out through clinics, and a specialized clinic format in Japan is “one possibility.” They also said longevity market entry is under discussion with OrangeTwist in the U.S.
In dermatology, Aikawa emphasized a multi-brand strategy to address segmented customer needs and enable referrals within the group to maximize lifetime value. He said newer brands are showing traction, including NEO Skin Clinic in a premium segment and JUN CLINIC with “highly beauty-conscious” customers. He added that formats focused on aesthetic dermatology may have relatively low cultural dependency, potentially supporting future international expansion.
For non-aesthetic healthcare, management said it plans to apply capabilities developed in aesthetic medicine—such as marketing and CRM, standardized clinic operations, and models combining private-pay and insurance-based care—across additional fields. Aikawa reiterated focus areas including AGA, orthopedics, fertility treatment, dentistry, and general dermatology, and said the company aims to achieve a number-one position in Japan across additional categories by 2035.
AI initiatives, M&A priorities, and capital allocation
Executives described AI as a foundational enabler for growth and efficiency, citing applications such as automated booking and inquiry handling, AI-assisted counseling, a 24-hour AI concierge, and optimization of headquarters functions. In Q&A, management said the near-term focus is to create internal “success cases,” with a view toward potential external sales of AI technologies in the future. The company also noted it has hired a CTO, Shao, who management said has experience in AI call center automation and mission-critical system updates.
On M&A, management said it intends to pursue deals that support its goal of becoming number one in Japan in targeted fields by 2035, while also remaining open to opportunities in aesthetic medicine and overseas B2B-focused expansion. For fiscal 2026 investment levels, executives did not provide a specific figure, saying the size will depend on opportunities and counterpart scale, and that financing could include cash and borrowings.
On capital allocation, Aikawa said the company’s fundamental approach is to prioritize growth investments domestically and internationally while also addressing liquidity improvements and shareholder returns “with flexibility.” In response to a question about cash holdings and limited interest income, management said it primarily holds yen deposits as safe investments and is maintaining cash to preserve flexibility for M&A.
The company also discussed a previously approved share buyback program. Management said the program is intended to allow flexible repurchases if the market price falls below what the company considers appropriate, but noted it has not used the program yet.
Looking to fiscal 2026, Aikawa identified aesthetic dermatology in Japan as the largest growth driver, noting the market’s rapid growth and saying SBC’s growth rate in the segment is also high.
About SBC Medical Group (NASDAQ:SBC)
SBC Medical Group, Inc is a publicly traded healthcare management services company listed on the Nasdaq under the ticker SBC. The company specializes in supporting in-office ancillary service providers by offering a suite of administrative and operational solutions designed to streamline practice management and enhance revenue performance. Its core mission is to help physician practices, imaging centers and other ancillary service providers focus on patient care while outsourcing complex back-office functions.
The company’s primary offerings include revenue cycle management, medical billing and coding, compliance oversight and transcription services.
