SBC Medical Group (NASDAQ:SBC) said its growth re-accelerated in the second quarter of 2026 following structural reforms undertaken in 2025, with profit growth exceeding revenue growth as the company expanded management services revenue and increased service fees.
The medical services organization, which provides centralized marketing, procurement, technology, hiring and training support to clinics in Japan’s largest aesthetic medical group, reported second-quarter revenue of $49 million, up 13% year over year. Adjusted EBITDA rose 32% to $20 million, producing an adjusted EBITDA margin of 41%.
Clinic network and domestic growth
As of June 30, SBC had 287 locations, an increase of 34 from a year earlier. Trailing 12-month customer visits totaled 6.92 million, up 10%. Year-to-date clinic revenue increased 11%, while same-clinic revenue rose 6%. Average spending per visit increased 9% during the quarter, with both customer volume and spending rising.
During the question-and-answer session, the company said it had reassessed marketing, pricing, services and customer communications amid a more competitive market over the past two years. It said it had also strengthened multi-branding and made marketing more data-driven, adding that it was seeing growth in both visits and customer spending.
In aesthetic dermatology, SBC said first-half transaction value increased 19% year over year. The company is renaming Shonan Aesthetic Dermatology as SBC Skin Clinic, a move intended to appeal to customers seeking basic dermatological treatments. It plans to open two additional clinics under that name.
The company also said it would add three SBC Skin Clinic locations, bringing that format to four locations, and add one JUN CLINIC, bringing that brand to seven locations. In men’s aesthetics, SBC is launching THE LASER, a large-scale hair-removal clinic format, and SBC MEN’S FLASH, a high-speed men’s hair-removal format.
Gorilla Clinic generated first-half transaction value of $62 million, up 19% year over year, according to SBC. The company said hair removal and oral AGA treatments have served as entry points for customers who later receive dermatological and higher-value treatments.
Non-aesthetic healthcare, AI and service fees
SBC identified non-aesthetic healthcare as its second growth engine. Approximately 84% of transaction value currently comes from aesthetic services and 16% from non-aesthetic healthcare, the company said. In June 2026, it established a dedicated team for the business led by Naoya Fujimoto, formerly an executive officer at a major healthcare and IT talent platform company.
The company plans first to improve utilization and revenue at existing non-aesthetic clinics, while also pursuing mergers and acquisitions to add locations. SBC said it has not set a target transaction-value mix for the segment, but expects non-aesthetic healthcare to become a larger part of the business over time.
Artificial intelligence is intended to support growth as well as operating efficiency, SBC said. The company is using more than 26 years of management data to develop AI capabilities, including tools for call centers, customer support, personalized services and clinic-location selection.
SBC said enhanced call-center functions are expected to generate roughly $11 million in annual service-fee increases, while stronger support for Gorilla and Rize clinics is expected to add about $4 million. Together, the company expects approximately $15 million in full-year annual service-fee increases with limited additional cost, allowing a large portion of the revenue to contribute to profit and earnings per share.
International expansion and longevity plans
In the U.S., SBC is advancing its collaboration with OrangeTwist, in which it acquired a minority stake in December 2025. OrangeTwist operates 24 locations across six states and has a membership base that generates recurring revenue exceeding 40% of sales, according to SBC. The companies are sharing operating knowledge and expanding the service menu, while also exploring longevity-related initiatives.
In Southeast Asia, SBC is testing an asset-light “Powered by SBC” model through its first Thai clinic, BLEZ CLINIC. Under the arrangement, local partners provide capital and operations, while SBC supplies procurement, standardization, training and patient acquisition in exchange for revenue-linked recurring fees. The company said it intends to expand the model across ASEAN after establishing market-specific operating models.
SBC also plans to open a longevity center in Japan and build an online platform in 2027. The company described longevity as combining appearance-based aesthetic medicine with functional healthcare services, including areas such as orthopedics and dental care.
With $184 million in cash, SBC said its priority is to invest in organic growth and disciplined M&A while pursuing steady EPS growth. The company added that its shareholder base had expanded roughly 4.7 times year over year as of July 2026, and said it would continue investor outreach and participation in conferences in New York, Hong Kong and other locations.
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.
