SBC Medical Group NASDAQ: SBC said its second-quarter 2026 results reflected a reacceleration in growth following structural reforms undertaken in 2025, with adjusted EBITDA rising faster than revenue despite the effect of a weaker yen on reported results.
The company reported second-quarter revenue of $49 million, up 13% from a year earlier, while adjusted EBITDA increased 32% to $20 million. Adjusted EBITDA margin was 41%. Management said higher management-services revenue, helped by an expanded points business after an operating-policy change in June 2025, was a primary contributor to the results. Revisions to certain service fees also supported growth.
As of the end of June, SBC had 287 locations, an increase of 34 from a year earlier. Customer visits over the trailing 12 months totaled 6.92 million, up 10%. Year-to-date clinic revenue rose 11%, same-clinic revenue increased 6%, and average spending per visit climbed 9% during the quarter.
Management Cites Marketing Changes and Improving Demand
Chairman and CEO Yoshiyuki Aikawa said the company faced a sharply more competitive aesthetic-medicine market in Japan during 2024 and 2025, a period in which growth had become more subdued. In response, SBC reviewed customer-satisfaction data, website content, pricing structures, treatment offerings, social-media marketing and television advertising, he said.
The company also appointed its first chief marketing officer. Aikawa said the changes have begun to produce results and that he expects the momentum to continue.
CFO and COO Yuya Yoshida said SBC is seeing growth in both customer numbers and spending per customer. He said the company’s aesthetic dermatology business is growing faster than the market and attributed that performance to a strengthened platform and marketing revamp.
Management said competition in Japanese aesthetic healthcare may have peaked last year or during the first half of 2026, as the pace of new clinic openings has slowed. Yoshida said SBC’s scale, number of locations, customer volume, brand portfolio and ability to invest in equipment and AI could help it avoid competing primarily on price.
Multi-Brand Expansion and Non-Aesthetic Healthcare
SBC said it is expanding its aesthetic dermatology offerings through multiple brands and new clinic formats. First-half transaction value rose 19% year over year, according to the presentation.
- Shonan Aesthetic Dermatology is being renamed SBC Skin Clinic, with two additional clinics planned.
- The company plans to add three NEO Skin Clinic locations, bringing that format to four locations, and one JUN CLINIC, bringing that total to seven.
- SBC is launching THE LASER, a large-scale hair-removal clinic, and SBC MEN’S FLASH CLINIC, which will focus on high-speed beard-removal services.
- Gorilla Clinic’s first-half transaction value was JPY 62 million, up 19% year over year.
The company also described non-aesthetic healthcare as its second growth engine. Its transaction-value mix is currently about 84% aesthetic and 16% non-aesthetic, management said. In June, SBC created a dedicated non-aesthetic healthcare team led by Naoya Fujimoto, formerly an executive officer at a healthcare and IT talent platform company.
SBC plans to improve utilization and revenue at existing non-aesthetic clinics while using acquisitions to add locations. Aikawa said the company sees potential growth in areas including orthopedics, ophthalmology and fertility treatment. The company’s longer-term target is to reach 1,000 clinics by 2035.
AI Investments, Fee Increases and Profitability
SBC said artificial intelligence is central to its strategy to improve patient experience, support clinic growth and hold down operating costs. The company has released an AI chatbot for customer inquiries and TalkBridge, an AI interpreter supporting English and Chinese. Marketing AI is being rolled out in phases, while an AI call-center product is planned for release during 2026.
Yoshida said SBC also expects to launch an AI preceptor to support nurse and concierge training before year-end. Over the next six to 12 months, the company expects to introduce additional AI products and revamp core systems using AI.
Management said it aims to reach 1,000 clinics by 2035 while maintaining the current scale of headcount in indirect departments, with AI helping to improve operational efficiency. The company also expects AI tools to aid sales through more personalized customer interactions.
SBC said enhanced call-center functions are expected to add about JPY 11 million annually, while increased support for Gorilla Clinic and Rize Clinic is expected to add about JPY 4 million, for a combined JPY 15 million on a full-year basis. Management said the Gorilla Clinic change began in June and the call-center revision began in July. It expects roughly half of the unrealized impact to be reflected in the third and fourth quarters, with full contribution beginning next fiscal year.
Yoshida said most of the gains from these services should contribute directly to profit because they are provided largely through fixed-cost infrastructure. He added that second-quarter selling, general and administrative expense increased only slightly, with much of the increase tied to one-time costs associated with the company’s secondary offering.
International Expansion and Capital Deployment
In the U.S., SBC is working with OrangeTwist, in which it took a minority stake in December 2025. OrangeTwist has 24 locations across six states and derives more than 40% of sales from recurring membership revenue, according to the company.
Yoshida said OrangeTwist has reviewed its management structure, with co-founder Clint Carnell becoming CEO. SBC is sharing procurement, marketing and operating expertise with the business while exploring growth through new locations, potential acquisitions and possibly an increased ownership stake.
In Southeast Asia, SBC is pursuing an asset-light “Powered by SBC” model, under which local partners provide capital and operations while SBC supplies procurement, standardization, training and patient acquisition in exchange for recurring revenue-linked fees. Management identified Vietnam, inbound medical demand in Japan and the U.S. as key international opportunities. Aikawa said inbound demand has increased by several multiples on a monthly basis in recent months, particularly among visitors from Taiwan.
The company said it plans to continue investing its cash balance in organic growth and disciplined acquisitions, including in aesthetic healthcare, orthopedics and ophthalmology. It also plans to increase investor outreach and participation in conferences in New York, Hong Kong and other markets as it seeks to broaden its shareholder base and expand analyst coverage.
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.
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