Revenue Up 35%, Net Income Attributable to SBC Medical Up 22%, and Adjusted EBITDA1 Up 66% Year-over-Year; Net Income Margin of 27% and Adjusted EBITDA Margin of 47% — Previously Announced Service Fee Revisions and New Clinic Openings Contribute to Revenue Growth and Operating Margin Improvement
IRVINE, Calif. — SBC Medical Group Holdings Incorporated (Nasdaq: SBC) (“SBC Medical” or the “Company”), a Medical Services Organization (MSO) providing management support across a wide range of healthcare fields to medical institutions in Japan and abroad, today announced its consolidated financial results for the third quarter of fiscal year 2026 (the three months ended September 30, 2026) and the three cumulative quarters of fiscal year 2026 (the nine months ended September 30, 2026).
■ Third Quarter 2026 Financial Highlights
- Total revenues were $59 million, up 35% year-over-year.
- Income from operations was $26 million, up 66% year-over-year, with an operating margin of 45%.
- Net income attributable to SBC Medical was $16 million, up 22% year-over-year. Net income margin was 27%, a decrease of 3 percentage points year-over-year.
- Adjusted EBITDA1 was $28 million, up 66% year-over-year. Adjusted EBITDA margin1 expanded 9 percentage points year-over-year to 47%.
- Basic earnings per share (EPS) was $0.15, up 25% year-over-year.
- Net cash provided by operating activities totaled $50 million for the nine months ended September 30, 2026.
Third-quarter results reflected both growth and improved profitability in the core MSO business. Revenue growth was driven by higher management services revenue, including the impact of service fee structure revisions announced in August, as well as the consolidation of Waqoo.
The medical corporations supported by SBC Medical continued to expand. As of September 30, 2026, the clinic network had increased by 36 locations year-over-year to 293 locations2. Patient visits3 over the trailing twelve months totaled 7.06 million, up 9% year-over-year. Average spend per visit was $290, up 4% year-over-year.
■ Comment from SBC Medical’s Chairman and CEO Yoshiyuki Aikawa:
“The third quarter of 2026 marked a strong reacceleration in SBC Medical’s growth. Revenue increased 35% year-over-year, income from operations rose 66%, and net income attributable to SBC Medical rose 22%, with a net income margin of 27% and an Adjusted EBITDA1 margin of 47%. Following the structural reforms implemented in 2025, growth and profitability are improving in tandem, demonstrating the strength of our highly profitable MSO model.
Our MSO revenue growth is supported by two key levers: expanding our clinic network and increasing service fees per clinic. Our goal is not simply to add locations. We aim to raise productivity and profitability at the clinics we support while expanding the network efficiently. This quarter’s growth in management services revenue, including the effect of service fee revisions, demonstrates progress in this model.
To strengthen this model further, we are investing in AI and technology. Specifically, we are developing a proprietary local large language model (LLM) infrastructure designed to enable the secure use of medical data while optimizing AI costs, while also advancing our clinic operating systems through our capital and business alliance with Atomic Software. Together, these initiatives are intended to improve profitability at existing clinics and make new clinic openings more efficient, enabling our scalable MSO platform to generate greater earnings power as the business expands.
Our Longevity business, which we view as our next growth opportunity, is also making tangible progress. As a first step, we are developing an in-house DNA methylation-based test to estimate biological age, drawing on the Waqoo Group’s research and technology capabilities. By adding diagnostics to our existing medical network and combining AI with physicians’ expertise, we aim to build an integrated platform spanning testing, personalized treatment and evaluation of outcomes.
In Japan, we will continue expanding our multi-brand presence in aesthetic dermatology and broadening our non-aesthetic medical services. Internationally, we are pursuing collaboration with OrangeTwist in the United States and expansion across ASEAN markets. These initiatives are designed to unlock further growth in our existing business while pursuing opportunities in new markets.
For the first nine months of 2026, net cash provided by operating activities totaled $50 million. As of September 30, 2026, we held $198 million in cash and cash equivalents and $154 million in Net Cash4. We intend to deploy this strong financial position toward disciplined growth investment, with the goal of sustaining EPS growth over the medium- to long-term and enhancing corporate value.”
■ Summary of Key Financials
| Unit | 3Q26 | 3Q25 | YoY | 9M26 | 9M25 | YoY | |
| Total Revenues | $MM | 59 | 43 | +35% | 151 | 134 | +13% |
| Net Income Attributable to SBC Medical | $MM | 16 | 13 | +22% | 38 | 37 | +2% |
| Net Income Margin | % | 27 | 30 | (3)pt | 25 | 27 | (2)pt |
| Adjusted EBITDA 1 | $MM | 28 | 17 | +66% | 66 | 57 | +17% |
| Adjusted EBITDA Margin 1 | % | 47 | 38 | +9pt | 44 | 42 | +2pt |
| ROE (Annualized) 5 | % | 23 | 23 | (0)pt | 19 | 22 | (3)pt |
| Basic EPS 6 | $ | 0.15 | 0.12 | +25% | 0.37 | 0.36 | +3% |
1 Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP financial measures. For more information on non-GAAP financial measures, please refer to “Use of Non-GAAP Financial Measures” and “Reconciliation of GAAP to Non-GAAP Measures (unaudited).”
2 Represents the total number of locations across the Company’s support and partnership network, including franchised locations of SBC-branded clinics, Rize Clinic, Gorilla Clinic, AHH Clinic and JUN CLINIC, as well as locations operated by OrangeTwist, in which the Company holds a minority equity interest through its equity method investment in OT Midco Holdings, LLC.
3 Patient visits include patients of SBC-branded clinics, Rize Clinic, Gorilla Clinic, AHH Clinic, and JUN CLINIC. The period covered is from October 1, 2025 to September 30, 2026.
4 Net Cash is a non-GAAP financial measure, calculated as cash and cash equivalents ($198 million), less bank and other borrowings and finance lease liabilities, current and non-current ($34 million), and operating lease liabilities, current and non-current ($10 million), each as presented in the unaudited consolidated balance sheet as of September 30, 2026, resulting in Net Cash of $154 million.
5 Return on equity (ROE) is calculated as net income attributable to SBC Medical divided by average shareholders’ equity (beginning and end of period).
6 Basic EPS is calculated as net income attributable to SBC Medical divided by the weighted average number of shares outstanding.
Conference Call
The Company will hold a conference call on Friday, November 13th, 2026 at 08:30 a.m. Eastern Time (or Friday, November 13th, 2026 at 10:30 p.m. Japan Time) to discuss the financial results for the third quarter ended September 30, 2026. A question-and-answer session will follow the prepared remarks.
During the live webcast, participants may submit questions in real-time using the Zoom Q&A button.
All attendees, regardless of their current stock ownership status, are welcome to submit questions. Please note that due to time constraints and the nature of the inquiries, we may not be able to address every question during the call.
Please register in advance of the conference using the link provided below:
https://zoom.us/webinar/register/WN_CLFqOL3XTourhX2qjAJnxw#/registration
Upon registration, you will be able to access the dedicated conference call viewing site.
Additionally, the earnings release, accompanying slides, and a separate link to the archived webcast of this conference call will be available on the Company’s Investor Relations website at https://ir.sbc-holdings.com/.
About SBC Medical
SBC Medical is a Medical Services Organization providing management support across a wide range of healthcare fields, including advanced aesthetic healthcare, dermatology, orthopedics, fertility treatment, gynecology, dentistry, alopecia treatment (AGA), and ophthalmology. The Company manages a diverse portfolio of clinic brands and is actively expanding its global presence, particularly in the United States and Asia, through both direct operations and medical tourism initiatives. In September 2024, the Company was listed on Nasdaq, and in June 2025, it was selected for inclusion in the Russell 3000® Index, a broad benchmark of the U.S. equity market. Guided by its Group Purpose “Contributing to the well-being of people around the world through medical innovation,” SBC Medical continues to provide safe, trusted, and high-quality medical services while further strengthening its international reputation for quality and trust in medical care.
Company Name: SBC Medical Group Holdings Incorporated | Listed Market: NASDAQ Global Market | Ticker: SBC | Address: 200 Spectrum Center Drive, Suite 300, Irvine, CA 92618 USA | IR Website: https://ir.sbc-holdings.com/ | LinkedIn: https://www.linkedin.com/company/sbc-medical-group-holdings-inc
Use of Non-GAAP Financial Measures
The Company uses non-GAAP measures, such as Adjusted EBITDA, Adjusted EBITDA margin and Net Cash, in evaluating its operating results and financial position and for financial and operational decision-making purposes. The Company believes that the non-GAAP financial measures help identify underlying trends in its business, 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. In particular, the Company believes Net Cash is useful to investors in evaluating the Company’s liquidity and financial position, including its capacity to fund growth investments.
The non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. The presentations of these measures have limitations as analytical tools and should not be considered in isolation or as a substitute for analysis of our results as reported under GAAP. Because not all companies use identical calculations, the presentations of these measures may not be comparable to other similarly titled measures of other companies and can differ significantly from company to company. For reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measures, see the reconciliations included at the end of this press release and, for Net Cash, footnote 4 to the “Summary of Key Financials.”
Forward-Looking Statements
This 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 plans and strategies for service expansion; growth in revenue and earnings; and business prospects. 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,” “targets,” 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.
SBC MEDICAL GROUP HOLDINGS INCORPORATED
UNAUDITED CONSOLIDATED BALANCE SHEETS
| September 30, 2026 | December 31, 2025 | |||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 198,428,275 | $ | 163,773,838 | ||||
| Time deposits | 4,000,000 | — | ||||||
| Accounts receivable | 2,540,219 | 2,388,021 | ||||||
| Accounts receivable – related parties | 30,931,517 | 27,511,730 | ||||||
| Inventories | 2,949,218 | 2,792,617 | ||||||
| Short-term investments – related parties | 318,297 | 319,193 | ||||||
| Finance lease receivables, current – related parties | 16,143,695 | 12,832,355 | ||||||
| Income tax recoverable | 1,292,660 | 1,175,510 | ||||||
| Customer loans receivable, current | 3,966,531 | 8,705,999 | ||||||
| Prepaid expenses and other current assets | 10,762,659 | 11,724,852 | ||||||
| Prepaid expenses and other receivables – related parties | 2,522,970 | — | ||||||
| Total current assets | 273,856,041 | 231,224,115 | ||||||
| Non-current assets: | ||||||||
| Property and equipment, net | 8,527,530 | 7,539,392 | ||||||
| Intangible assets, net | 45,226,994 | 47,742,888 | ||||||
| Long-term investments, net | 1,880,112 | 1,299,366 | ||||||
| Equity method investments | 19,157,291 | 20,312,642 | ||||||
| Goodwill, net | 15,075,256 | 15,432,061 | ||||||
| Finance lease receivables, non-current – related parties | 14,448,126 | 13,746,513 | ||||||
| Operating lease right-of-use assets | 10,150,912 | 8,366,569 | ||||||
| Finance lease right-of-use assets | 277,827 | 450,874 | ||||||
| Deferred tax assets | 8,000,383 | 4,014,294 | ||||||
| Customer loans receivable, non-current | 2,325,289 | 4,824,977 | ||||||
| Long-term prepayments | 522,473 | 393,270 | ||||||
| Long-term investments in MCs – related parties | 17,787,217 | 17,837,293 | ||||||
| Other assets | 7,587,608 | 7,263,692 | ||||||
| Total non-current assets | 150,967,018 | 149,223,831 | ||||||
| Total assets | $ | 424,823,059 | $ | 380,447,946 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 23,408,185 | $ | 16,988,384 | ||||
| Accounts payable – related parties | 918,135 | 651,463 | ||||||
| Bank and other borrowings, current | 8,757,956 | 9,099,046 | ||||||
| Advances from customers | 877,664 | 1,415,762 | ||||||
| Advances from customers – related parties | 3,600,523 | 5,357,221 | ||||||
| Income tax payable | 16,707,822 | 8,821,853 | ||||||
| Operating lease liabilities, current | 5,754,161 | 4,416,960 | ||||||
| Finance lease liabilities, current | 88,091 | 132,946 | ||||||
| Accrued liabilities and other current liabilities | 14,552,613 | 11,544,695 | ||||||
| Due to related party | — | 2,692,673 | ||||||
| Total current liabilities | 74,665,150 | 61,121,003 | ||||||
| Non-current liabilities: | ||||||||
| Bank and other borrowings, non-current | 24,845,177 | 33,734,438 | ||||||
| Deferred tax liabilities | 15,614,455 | 16,374,832 | ||||||
| Operating lease liabilities, non-current | 4,541,685 | 4,136,257 | ||||||
| Finance lease liabilities, non-current | 62,857 | 116,527 | ||||||
| Other liabilities | 1,620,786 | 1,660,183 | ||||||
| Total non-current liabilities | 46,684,960 | 56,022,237 | ||||||
| Total liabilities | 121,350,110 | 117,143,240 | ||||||
| Stockholders’ equity: | ||||||||
| Preferred stock ($0.0001 par value, 20,000,000 shares authorized; no shares issued and outstanding as of September 30, 2026 and December 31, 2025) | — | — | ||||||
| Common stock ($0.0001 par value, 400,000,000 shares authorized, 103,881,251 shares issued, and 102,576,943 shares outstanding as of September 30, 2026 and December 31, 2025) | 10,388 | 10,388 | ||||||
| Additional paid-in capital | 75,660,743 | 72,867,424 | ||||||
| Treasury stock (at cost, 1,304,308 shares as of September 30, 2026 and December 31, 2025) | (7,749,997 | ) | (7,749,997 | ) | ||||
| Retained earnings | 278,142,255 | 240,448,620 | ||||||
| Accumulated other comprehensive loss | (59,214,802 | ) | (57,294,239 | ) | ||||
| Total SBC Medical Group Holdings Incorporated stockholders’ equity | 286,848,587 | 248,282,196 | ||||||
| Non-controlling interests | 16,624,362 | 15,022,510 | ||||||
| Total stockholders’ equity | 303,472,949 | 263,304,706 | ||||||
| Total liabilities and stockholders’ equity | $ | 424,823,059 | $ | 380,447,946 | ||||
SBC MEDICAL GROUP HOLDINGS INCORPORATED
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
| For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Revenues, net – related parties | $ | 53,518,360 | $ | 39,617,548 | $ | 135,205,614 | $ | 123,819,591 | ||||||||
| Revenues, net | 5,063,160 | 3,735,687 | 15,624,536 | 10,221,192 | ||||||||||||
| Total revenues, net | 58,581,520 | 43,353,235 | 150,830,150 | 134,040,783 | ||||||||||||
| Cost of revenues (including cost of revenues from related parties of $1,749,587 and $4,018,377 for the three months ended September 30, 2026 and 2025, and $2,012,569 and $12,144,907 for the nine months ended September 30, 2026 and 2025, respectively) | 16,402,500 | 12,741,748 | 42,327,080 | 35,685,635 | ||||||||||||
| Gross profit | 42,179,020 | 30,611,487 | 108,503,070 | 98,355,148 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Selling, general and administrative expenses (including selling, general and administrative expenses from related parties of $877,328 and $154,063 for the three months ended September 30, 2026 and 2025, and $1,562,231 and $569,830 for the nine months ended September 30, 2026 and 2025, respectively) | 15,761,753 | 14,730,247 | 45,405,238 | 43,717,642 | ||||||||||||
| Total operating expenses | 15,761,753 | 14,730,247 | 45,405,238 | 43,717,642 | ||||||||||||
| Income from operations | 26,417,267 | 15,881,240 | 63,097,832 | 54,637,506 | ||||||||||||
| Other income (expenses): | ||||||||||||||||
| Interest income (including interest income from related parties of $1,582 and nil for the three months ended September 30, 2026 and 2025, and $5,047 and nil for the nine months ended September 30, 2026 and 2025, respectively) | 344,937 | 120,384 | 474,826 | 198,599 | ||||||||||||
| Interest expense | (128,878 | ) | (48,635 | ) | (372,313 | ) | (104,493 | ) | ||||||||
| Foreign currency exchange gain (loss), net | (947,087 | ) | 923,671 | 946,850 | (904,575 | ) | ||||||||||
| Other income (including other income from related parties of nil and $3,069 for the three months ended September 30, 2026 and 2025, and nil and $3,069 for the nine months ended September 30, 2026 and 2025, respectively) | 695,294 | 1,632,527 | 1,323,914 | 1,929,258 | ||||||||||||
| Other expenses | — | (2,323 | ) | (678,279 | ) | (1,003,801 | ) | |||||||||
| Gain on redemption of life insurance policies | — | — | — | 8,746,138 | ||||||||||||
| Total other income (expenses) | (35,734 | ) | 2,625,624 | 1,694,998 | 8,861,126 | |||||||||||
| Income before income taxes and equity in losses of equity method investees | 26,381,533 | 18,506,864 | 64,792,830 | 63,498,632 | ||||||||||||
| Income tax expense | (9,378,075 | ) | (5,673,538 | ) | (24,729,409 | ) | (26,733,504 | ) | ||||||||
| Equity in losses of equity method investees, net of tax | (586,699 | ) | — | (1,155,351 | ) | — | ||||||||||
| Net income | 16,416,759 | 12,833,326 | 38,908,070 | 36,765,128 | ||||||||||||
| Less: net income (loss) attributable to non-controlling interests | 724,017 | 8,690 | 1,214,435 | (20,194 | ) | |||||||||||
| Net income attributable to SBC Medical Group Holdings Incorporated | $ | 15,692,742 | $ | 12,824,636 | $ | 37,693,635 | $ | 36,785,322 | ||||||||
| Other comprehensive income (loss): | ||||||||||||||||
| Foreign currency translation adjustment | $ | 7,066,384 | $ | (6,791,961 | ) | $ | (2,502,636 | ) | $ | 11,639,635 | ||||||
| Total comprehensive income | 23,483,143 | 6,041,365 | 36,405,434 | 48,404,763 | ||||||||||||
| Less: comprehensive income attributable to non-controlling interests | 415,698 | 10,329 | 632,362 | 157,908 | ||||||||||||
| Comprehensive income attributable to SBC Medical Group Holdings Incorporated | $ | 23,067,445 | $ | 6,031,036 | $ | 35,773,072 | $ | 48,246,855 | ||||||||
| Net income per share attributable to SBC Medical Group Holdings Incorporated | ||||||||||||||||
| Basic and diluted | $ | 0.15 | $ | 0.12 | $ | 0.37 | $ | 0.36 | ||||||||
| Weighted average shares outstanding | ||||||||||||||||
| Basic and diluted | 102,576,943 | 102,642,634 | 102,576,943 | 103,139,851 | ||||||||||||
SBC MEDICAL GROUP HOLDINGS INCORPORATED
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
| For the Nine Months Ended September 30, | ||||||||
| 2026 | 2025 | |||||||
| CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||
| Net income | $ | 38,908,070 | $ | 36,765,128 | ||||
| Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||||||||
| Depreciation and amortization expense | 2,979,917 | 2,010,616 | ||||||
| Non-cash lease expense | 4,239,772 | 3,436,789 | ||||||
| Provision for (reversal of) credit losses | (22,236 | ) | 305,963 | |||||
| Equity in losses of equity method investees | 1,155,351 | — | ||||||
| Stock-based compensation | 19,541 | — | ||||||
| Fair value change of long-term investments | (579,154 | ) | (724,476 | ) | ||||
| Gain on redemption of life insurance policies | — | (8,746,138 | ) | |||||
| Loss (gain) on disposal of property and equipment | 9,375 | (414,167 | ) | |||||
| Change in fair value of cryptocurrencies | — | (146,036 | ) | |||||
| Deferred income taxes | (4,386,410 | ) | 9,104,235 | |||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable | (197,484 | ) | (1,084,316 | ) | ||||
| Accounts receivable – related parties | (3,502,443 | ) | (28,031,690 | ) | ||||
| Inventories | (191,314 | ) | 265,052 | |||||
| Finance lease receivables – related parties | (4,050,925 | ) | (9,227,612 | ) | ||||
| Customer loans receivable | 7,158,848 | 12,153,263 | ||||||
| Prepaid expenses and other current assets | 923,442 | (2,180,695 | ) | |||||
| Prepaid expenses and other receivables – related parties | (2,500,352 | ) | — | |||||
| Long-term prepayments | (375,662 | ) | 281,666 | |||||
| Other assets | (390,302 | ) | 77,609 | |||||
| Accounts payable | 6,551,564 | 2,549,938 | ||||||
| Accounts payable – related parties | 280,593 | 2,144,314 | ||||||
| Notes payable – related parties | — | (12,759,536 | ) | |||||
| Advances from customers | (528,982 | ) | 161,165 | |||||
| Advances from customers – related parties | (1,726,044 | ) | (5,470,844 | ) | ||||
| Income tax payable | 7,711,189 | (19,936,155 | ) | |||||
| Operating lease liabilities | (4,279,802 | ) | (3,639,887 | ) | ||||
| Accrued liabilities and other current liabilities | 3,059,724 | (4,096,471 | ) | |||||
| Other liabilities | (18,888 | ) | (93,141 | ) | ||||
| NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES | 50,247,388 | (27,295,426 | ) | |||||
| CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||
| Purchase of property and equipment | (1,214,421 | ) | (603,484 | ) | ||||
| Prepayments for property and equipment | (888,098 | ) | (838,568 | ) | ||||
| Payments made on behalf of related parties | — | (1,840,801 | ) | |||||
| Purchase of long-term investments | — | (654,070 | ) | |||||
| Placement of time deposits | (4,000,000 | ) | — | |||||
| Purchase of cryptocurrencies | — | (424,250 | ) | |||||
| Cash paid for acquisition of subsidiaries, net of cash acquired | — | (14,861,858 | ) | |||||
| Long-term loans to others | — | (14,514 | ) | |||||
| Repayments from related parties | — | 1,911,440 | ||||||
| Repayments from others | 41,765 | 73,928 | ||||||
| Proceeds from redemption of life insurance policies | — | 17,735,717 | ||||||
| Deconsolidation of VIE, net of cash disposed of | 1,019,909 | — | ||||||
| Proceeds from disposal of property and equipment | — | 2,755,983 | ||||||
| NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES | (5,040,845 | ) | 3,239,523 | |||||
| CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||
| Borrowings from bank and others | — | 14,851,980 | ||||||
| Borrowings from related parties | — | 15,000 | ||||||
| Proceeds from exercise of stock acquisition rights in subsidiary by non-controlling interests | 94,843 | — | ||||||
| Repayments of bank and other borrowings | (8,912,553 | ) | (721,874 | ) | ||||
| Repayments of finance lease liabilities | (99,932 | ) | (310,603 | ) | ||||
| Repayments to related parties | (22,657 | ) | (46,782 | ) | ||||
| Repurchase of common stock | — | (4,999,997 | ) | |||||
| Deemed contribution in connection with price modification on disposal of property and equipment | — | 9,682,277 | ||||||
| NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES | (8,940,299 | ) | 18,470,001 | |||||
| Effect of exchange rate changes | (1,611,807 | ) | 7,973,128 | |||||
| NET CHANGE IN CASH AND CASH EQUIVALENTS | 34,654,437 | 2,387,226 | ||||||
| CASH AND CASH EQUIVALENTS AS OF THE BEGINNING OF THE PERIOD | 163,773,838 | 125,044,092 | ||||||
| CASH AND CASH EQUIVALENTS AS OF THE END OF THE PERIOD | $ | 198,428,275 | $ | 127,431,318 | ||||
| SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | ||||||||
| Cash paid for interest expense | $ | 372,313 | $ | 104,493 | ||||
| Cash paid for income taxes, net | $ | 21,135,092 | $ | 37,555,740 | ||||
| NON-CASH INVESTING AND FINANCING ACTIVITIES | ||||||||
| Property and equipment transferred from prepaid expenses | $ | 57,013 | $ | — | ||||
| Property and equipment transferred from long-term prepayments | $ | 1,050,946 | $ | 1,428,254 | ||||
| Operating lease right-of-use assets obtained in exchange for operating lease liabilities | $ | 221,443 | $ | 105,556 | ||||
| Finance lease right-of-use assets obtained in exchange for finance lease liabilities | $ | — | $ | 612,466 | ||||
| Remeasurement of operating lease liabilities and right-of-use assets due to lease modifications | $ | 5,845,817 | $ | 2,646,028 | ||||
| Payables to related parties in connection with loan services provided | $ | — | $ | 14,362,902 | ||||
| Issuance of common stock as incentive shares | $ | — | $ | 86 | ||||
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (UNAUDITED)
SBC MEDICAL GROUP HOLDINGS INCORPORATED
| For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||
| Total revenues, net | $ | 58,581,520 | $ | 43,353,235 | $ | 150,830,150 | $ | 134,040,783 | ||||||||||||||
| Net income attributable to SBC Medical Group Holdings Incorporated | 15,692,742 | 12,824,636 | 37,693,635 | 36,785,322 | ||||||||||||||||||
| Adjusted to add (deduct) the following: | ||||||||||||||||||||||
| Net income (loss) attributable to non-controlling interests | 724,017 | 8,690 | 1,214,435 | (20,194 | ) | |||||||||||||||||
| Equity in losses of equity method investees, net of tax | 586,699 | — | 1,155,351 | — | ||||||||||||||||||
| Income tax expense | 9,378,075 | 5,673,538 | 24,729,409 | 26,733,504 | ||||||||||||||||||
| Gain on redemption of life insurance policies | — | — | — | (8,746,138 | ) | |||||||||||||||||
| Other expenses | — | 2,323 | 678,279 | 1,003,801 | ||||||||||||||||||
| Other income | (695,294 | ) | (1,632,527 | ) | (1,323,914 | ) | (1,929,258 | ) | ||||||||||||||
| Foreign currency exchange loss (gain), net | 947,087 | (923,671 | ) | (946,850 | ) | 904,575 | ||||||||||||||||
| Interest expense | 128,878 | 48,635 | 372,313 | 104,493 | ||||||||||||||||||
| Interest income | (344,937 | ) | (120,384 | ) | (474,826 | ) | (198,599 | ) | ||||||||||||||
| Depreciation and amortization expense | 1,176,959 | 746,211 | 2,979,917 | 2,010,616 | ||||||||||||||||||
| Adjusted EBITDA | $ | 27,594,226 | $ | 16,627,451 | $ | 66,077,749 | $ | 56,648,122 | ||||||||||||||
| Net income margin | 27 | % | 30 | % | 25 | % | 27 | % | ||||||||||||||
| Adjusted EBITDA margin | 47 | % | 38 | % | 44 | % | 42 | % | ||||||||||||||
Adjusted EBITDA is a non-GAAP financial measure defined as net income attributable to SBC Medical adjusted for net income (loss) attributable to non-controlling interests, equity in losses of equity method investees, net of tax, income tax expense, gain on redemption of life insurance policies, other expenses, other income, foreign currency exchange loss (gain), net, interest expense, interest income, and depreciation and amortization expense.
Net income margin is defined as net income attributable to SBC Medical divided by total revenues, net. Adjusted EBITDA margin is defined as Adjusted EBITDA divided by total revenues, net.
Contacts
SBC Medical Group Holdings Incorporated — Hikaru Fukui / Head of IR Department; E-mail: [email protected]