SBCWW · SBC Medical Group Holdings Incorporated

SBC Medical Group Holdings reported a challenging first quarter for fiscal 2026, with total revenues declining 9% year-over-year to $43.1 million. The decrease was primarily attributed to a strategic structural reform implemented in April 2025, which involved a revision of the franchise fee structure. Excluding this change, management indicated that core business performance remained solid. Net income attributable to the company fell 47% to $11.3 million, resulting in a net income margin of 26%, down 19 percentage points from the prior year. EBITDA decreased 26% to $18 million, with EBITDA margin contracting to 43% from 53%. Earnings per share dropped 48% to $0.11. Despite the top-line pressure, the company continued to expand its franchise network, adding 33 locations year-over-year to reach 284. Customer count increased 10% to 6.76 million, with a repeat rate of 72%. Management highlighted ongoing strategic initiatives including multi-brand expansion in aesthetic dermatology, growth in non-aesthetic medical services, and strengthening of overseas operations. The company also noted opportunities in the longevity market and AI-driven service enhancements. No forward guidance was provided in the release.