{"success":true,"data":{"pressRelease":{"id":"117783","rtpr_id":"nBw43bHcFa","ticker":"SBC","exchange":"NASDAQ","all_tickers":["SBC"],"title":"SBC Medical Group Holdings Reports Second Quarter 2026 Financial Results","author":"Business Wire","published_at":"2026-08-13T10:30:00.283Z","article_body":"SBC Medical Group Holdings Reports Second Quarter 2026 Financial Results\n\nRestructuring Complete, Growth Reaccelerates: Q2 Revenue Up 13%, Net Income\nAttributable to SBC Medical Up 335%, Adjusted EBITDA(1) Up 32% Year-over-Year.\nAI-Enabled Service Enhancements Drive Successful Fee Increases, Positioning\nthe Business for Accelerated Network Expansion\n\nSBC Medical Group Holdings Incorporated (Nasdaq: SBC) (“SBC Medical” or\nthe “Company”), a Medical Services Organization (MSO) providing management\nsupport across a wide range of healthcare fields to medical institutions in\nJapan and abroad, today announced its consolidated financial results for the\nsecond quarter of fiscal year 2026 (the three months ended June 30, 2026) and\nthe first half of fiscal year 2026 (the six months ended June 30, 2026).\n\nSecond Quarter 2026 Financial Highlights\n\n\n * Total revenues were $49 million, an increase of 13% year-over-year.\n\n * Net income attributable to SBC Medical was $11 million, an increase of 335%\nyear-over-year. Net income margin was 22%, an increase of 16 percentage points\nyear-over-year.\n\n * Adjusted EBITDA(1 )was $20 million, an increase of 32% year-over-year.\nAdjusted EBITDA margin(1) was 41%, an increase of 6 percentage points\nyear-over-year.\n\n * Basic EPS was $0.10 for the three months ended June 30, 2026, an increase of\n400% year-over-year.\n\nThe Company believes the quarter marked a clear reacceleration in its growth,\nwith net income attributable to SBC Medical growth outpacing revenue growth.\nEarnings growth was supported by the expansion of the points business\nfollowing a change in the Company’s operating policy and the expansion of\nservice fees in line with enhanced AI-enabled support capabilities.\n\nThe business of the medical corporations the Company supports also continued\nto expand steadily. As of the end of June 2026, the number of locations(2)\nincreased by 34 year-over-year to 287, and last-twelve-month number of\nvisits(3) reached 6.9 million (up 10% year-over-year). Average spend per visit\nwas $287, up 9% year-over-year.\n\nComment from SBC Medical’s Chairman and CEO Yoshiyuki Aikawa:\n\n“We believe our results this quarter clearly demonstrate that SBC\nMedical’s growth story has entered a new phase. Having completed the\nstructural reforms we undertook in 2025, we are now running multiple growth\nengines simultaneously. I am growing increasingly confident that this\nreacceleration is not a temporary phenomenon but reflects the strengthening of\nour underlying growth fundamentals.\n\nWhat gives me the greatest confidence is that the convergence of healthcare\nand AI is becoming one of SBC Medical’s next sources of competitive\nadvantage. We are leveraging more than 26 years of accumulated management data\nto support AI development and implementing mechanisms that enhance clinic\noperations — including AI-powered call centers, AI-driven marketing, and\nAI-assisted site selection for new clinic openings.\n\nStrengthening our AI-enabled MSO platform simultaneously drives growth across\nthree dimensions: the number of clinic locations, average fee per clinic\n(AFPC), and service menu breadth. As the platform’s appeal grows, patient\nvisits and treatment volumes at the clinics we support increase, accelerating\nclinic growth — which in turn leads to expanded service fees commensurate\nwith the value we provide. We believe this virtuous cycle is the driving force\nbehind sustainable growth in consolidated revenue and EPS, as reflected in our\nmost recent reported historical results and in the future.\n\nSpecifically, through fee revisions for our call center services provided to\nfive specific affiliated medical corporations, together with separate fee\nrevisions reflecting expanded support for Rize Clinic and Gorilla Clinic, we\nexpect these initiatives, if their impact is realized for a full year, to\nincrease service fees by approximately $15 million annually (converted at\n¥158.1/US$). These initiatives are being pursued in a disciplined manner,\npremised on a win-win relationship between the Company and our affiliated\nmedical corporations.\n\nLooking ahead, we will deepen our multi-brand strategy in aesthetic\ndermatology domestically, while expanding our non-aesthetic business, which we\nposition as our “second growth engine.” Internationally, we plan to\naccelerate our global growth through our collaboration with OrangeTwist in the\nUnited States and our ASEAN expansion, anchored in Thailand. We are also\npreparing to enter the Longevity market, which we see as having enormous\npotential.\n\nWith $184 million in cash and cash equivalents on hand, we will continue to\npursue disciplined investment toward our next growth phase. By pursuing\nsustained EPS growth and achieving fair equity valuation for our shares in the\ncapital markets as two wheels of the same cart, we aim to deliver even greater\nvalue to all our stakeholders, including our shareholders. We look forward to\nwhat lies ahead for SBC Medical.”\n\nSummary of Key Financials\n   Unit 2Q26 2Q25 YoY 1H26 1H25 YoY \n Total revenues $MM 49 43 +13% 92 91 +2% \n Net Income Attributable to SBC Medical $MM 11 2 +335% 22 24 (8)% \n Net Income Margin % 22 6 +16pt 24 26 (2)pt \n Adjusted EBITDA (1) $MM 20 15 +32% 38 40 (4)% \n Adjusted EBITDA Margin (1) % 41 35 +6pt 42 44 (2)pt \n ROE (Annualized) (4) % 16 4 +12pt 17 22 (5)pt \n Basic EPS (5) $ 0.10 0.02 +400% 0.21 0.23 (9)% \n\n (1 )Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP financial \n measures. For more information on non-GAAP financial measures, please refer to \n “Use of Non-GAAP Financial Measures” and “Reconciliation of GAAP to \n Non-GAAP Measures (unaudited).” \n (2 )Represents the total number of locations across the Company’s support \n and partnership network, including franchised locations of SBC-branded \n clinics, Rize Clinic, Gorilla Clinic, AHH Clinic, JUN CLINIC, and OrangeTwist. \n (3 )Patient visits include patients of SBC-branded clinics, Rize Clinic, \n Gorilla Clinic, AHH Clinic, and JUN CLINIC. The period covered is from July 1, \n 2025 to June 30, 2026. \n (4 )Return on equity (ROE) is calculated as net income attributable to SBC \n Medical divided by average shareholders’ equity (beginning and end of \n period). \n (5 )Basic EPS is calculated as net income attributable to SBC Medical divided \n by the weighted average number of shares outstanding. \n\n\nConference Call\n\nThe Company will hold a conference call on Thursday, August 13th, 2026 at\n08:30 a.m. Eastern Time (or Thursday, August 13th, 2026 at 09:30 p.m. Japan\nTime) to discuss the financial results for the second quarter ended June 30,\n2026. A question-and-answer session will follow the prepared remarks.\n\nDuring the live webcast, participants may submit questions in real-time using\nthe Zoom Q&A button.\n\nAll attendees, regardless of their current stock ownership status, are welcome\nto submit questions. Please note that due to time constraints and the nature\nof the inquiries, we may not be able to address every question during the\ncall.\n\nPlease register in advance of the conference using the link provided below:\n\nhttps://zoom.us/webinar/register/WN_sEGnJWOyQDejlpnuGnxQgA\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fzoom.us%2Fwebinar%2Fregister%2FWN_sEGnJWOyQDejlpnuGnxQgA&esheet=54588716&newsitemid=20260813064564&lan=en-US&anchor=https%3A%2F%2Fzoom.us%2Fwebinar%2Fregister%2FWN_sEGnJWOyQDejlpnuGnxQgA&index=1&md5=9462eb7026862ea3fc44ee9b57d1a630)\n\nUpon registration, you will be able to access the dedicated conference call\nviewing site.\n\nAdditionally, the earnings release, accompanying slides, and a separate link\nto the archived webcast of this conference call will be available on the\nCompany’s Investor Relations website at https://ir.sbc-holdings.com/\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fir.sbc-holdings.com%2F&esheet=54588716&newsitemid=20260813064564&lan=en-US&anchor=https%3A%2F%2Fir.sbc-holdings.com%2F&index=2&md5=e8dd466a050f8f3c8bd1bc9b1a47a9ae)\n.\n\nAbout SBC Medical\n\nSBC Medical is a Medical Services Organization providing management support\nacross a wide range of healthcare fields, including advanced aesthetic\nhealthcare, dermatology, orthopedics, fertility treatment, gynecology,\ndentistry, alopecia treatment (AGA), and ophthalmology. The Company manages a\ndiverse portfolio of clinic brands and is actively expanding its global\npresence, particularly in the United States and Asia, through both direct\noperations and medical tourism initiatives. In September 2024, the Company was\nlisted on Nasdaq, and in June 2025, it was selected for inclusion in the\nRussell 3000® Index, a broad benchmark of the U.S. equity market. Guided by\nits Group Purpose “Contributing to the well-being of people around the world\nthrough medical innovation,” SBC Medical continues to provide safe, trusted,\nand high-quality medical services while further strengthening its\ninternational reputation for quality and trust in medical care.\n\nCompany Name: SBC Medical Group Holdings Incorporated | Listed Market: NASDAQ\nGlobal Market | Ticker: SBC | Address: 200 Spectrum Center Drive, Suite 300,\nIrvine, CA 92618 USA | IR Website: https://ir.sbc-holdings.com/\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fir.sbc-holdings.com%2F&esheet=54588716&newsitemid=20260813064564&lan=en-US&anchor=https%3A%2F%2Fir.sbc-holdings.com%2F&index=3&md5=95ede86bb4886083d59693c44fe360da)\n| LinkedIn: https://www.linkedin.com/company/sbc-medical-group-holdings-inc\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fwww.linkedin.com%2Fcompany%2Fsbc-medical-group-holdings-inc&esheet=54588716&newsitemid=20260813064564&lan=en-US&anchor=https%3A%2F%2Fwww.linkedin.com%2Fcompany%2Fsbc-medical-group-holdings-inc&index=4&md5=f5624b21075c8cd25c046107fa433283)\n\nUse of Non-GAAP Financial Measures\n\nThe Company uses non-GAAP measures, such as Adjusted EBITDA, Adjusted EBITDA\nmargin, in evaluating its operating results and for financial and operational\ndecision-making purposes. The Company believes that the non-GAAP financial\nmeasures help identify underlying trends in its business, provide useful\ninformation about the Company’s results of operations, enhance the overall\nunderstanding of the Company’s past performance and future prospects, and\nallow for greater visibility with respect to key metrics used by the\nCompany’s management in its financial and operational decision-making.\n\nThe non-GAAP financial measures are not defined under U.S. GAAP and are not\npresented in accordance with U.S. GAAP. The presentations of these measures\nhave limitations as analytical tools and should not be considered in isolation\nor as a substitute for analysis of our results as reported under GAAP. Because\nnot all companies use identical calculations, the presentations of these\nmeasures may not be comparable to other similarly titled measures of other\ncompanies and can differ significantly from company to company. For\nreconciliations of these non-GAAP financial measures to the most directly\ncomparable GAAP measures, see the reconciliations included at the end of this\npress release.\n\nForward-Looking Statements\n\nThis press release contains forward-looking statements. Forward-looking\nstatements are not historical facts or statements of current conditions, but\ninstead represent only the Company’s beliefs regarding future events and\nperformance, many of which, by their nature, are inherently uncertain and\noutside of the Company’s control. These forward-looking statements reflect\nthe Company’s current views with respect to, among other things, the\nCompany’s plans and strategies for service expansion; growth in revenue and\nearnings; and business prospects. In some cases, forward-looking statements\ncan be identified by the use of words such as “may,” “should,”\n“expects,” “anticipates,” “contemplates,” “estimates,”\n“believes,” “plans,” “projected,” “predicts,” “potential,”\n“targets,” or “hopes” or the negative of these or similar terms. The\nCompany cautions readers not to place undue reliance upon any forward-looking\nstatements, which are current only as of the date of this release and are\nsubject to various risks, uncertainties, assumptions, or changes in\ncircumstances that are difficult to predict or quantify. The forward-looking\nstatements are based on management’s current expectations and are not\nguarantees of future performance. The Company does not undertake or accept any\nobligation to release publicly any updates or revisions to any forward-looking\nstatements to reflect any change in its expectations or any change in events,\nconditions, or circumstances on which any such statement is based, except as\nrequired by law. Factors that may cause actual results to differ materially\nfrom current expectations may emerge from time to time, and it is not possible\nfor the Company to predict all of them; such factors include, among other\nthings, changes in global, regional, or local economic, business, competitive,\nmarket and regulatory conditions, and those listed under the heading “Risk\nFactors” and elsewhere in the Company’s filings with the U.S. Securities\nand Exchange Commission (the “SEC”), which are accessible on the SEC’s\nwebsite at www.sec.gov\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.sec.gov&esheet=54588716&newsitemid=20260813064564&lan=en-US&anchor=www.sec.gov&index=5&md5=cd0613cfa2c64a6e36d0cb5bada254ac)\n.\n SBC MEDICAL GROUP HOLDINGS INCORPORATED \n \nUNAUDITED CONSOLIDATED BALANCE SHEETS \n     June 30,     December 31,   \n \n2026 \n2025 \n ASSETS             \n Current assets:             \n Cash and cash equivalents   $ 184,311,213     $ 163,773,838   \n Accounts receivable     2,488,575       2,388,021   \n Accounts receivable – related parties     40,748,686       27,511,730   \n Inventories     2,979,818       2,792,617   \n Short-term investments – related parties     307,922       319,193   \n Finance lease receivables, current – related parties     13,725,781       12,832,355   \n Income tax recoverable     1,033,646       1,175,510   \n Customer loans receivable, current     4,991,848       8,705,999   \n Prepaid expenses and other current assets     7,239,514       11,724,852   \n Other receivables - related parties     1,560,521       —   \n Total current assets     259,387,524       231,224,115   \n               \n Non-current assets:             \n Property and equipment, net     7,414,691       7,539,392   \n Intangible assets, net     45,686,697       47,742,888   \n Long-term investments, net     1,287,477       1,299,366   \n Equity method investments     19,743,990       20,312,642   \n Goodwill, net     15,179,809       15,432,061   \n Finance lease receivables, non-current – related parties     11,673,777       13,746,513   \n Operating lease right-of-use assets     10,147,179       8,366,569   \n Finance lease right-of-use assets     362,302       450,874   \n Deferred tax assets     8,103,446       4,014,294   \n Customer loans receivable, non-current     2,887,006       4,824,977   \n Long-term prepayments     420,043       393,270   \n Long-term investments in MCs – related parties     17,207,414       17,837,293   \n Other assets     7,157,667       7,263,692   \n Total non-current assets     147,271,498       149,223,831   \n Total assets   $ 406,659,022     $ 380,447,946   \n               \n LIABILITIES AND STOCKHOLDERS’ EQUITY             \n               \n Current liabilities:             \n Accounts payable   $ 22,832,724     $ 16,988,384   \n Accounts payable – related parties     931,810       651,463   \n Bank and other borrowings, current     11,816,235       9,099,046   \n Advances from customers     980,889       1,415,762   \n Advances from customers – related parties     3,993,850       5,357,221   \n Income tax payable     19,313,068       8,821,853   \n Operating lease liabilities, current     5,404,269       4,416,960   \n Finance lease liabilities, current     99,627       132,946   \n Accrued liabilities and other current liabilities     13,087,484       11,544,695   \n Due to related party     —       2,692,673   \n Total current liabilities     78,459,956       61,121,003   \n               \n Non-current liabilities:             \n Bank and other borrowings, non-current     25,938,581       33,734,438   \n Deferred tax liabilities     15,777,663       16,374,832   \n Operating lease liabilities, non-current     4,897,286       4,136,257   \n Finance lease liabilities, non-current     77,080       116,527   \n Other liabilities     1,593,314       1,660,183   \n Total non-current liabilities     48,283,924       56,022,237   \n Total liabilities     126,743,880       117,143,240   \n               \n Commitments and contingencies (Note 19)             \n               \n Stockholders’ equity:             \n Preferred stock ($0.0001 par value, 20,000,000 shares authorized; no shares     —       —   \n issued and outstanding as of June 30, 2026 and December 31, 2025) \n Common stock ($0.0001 par value, 400,000,000 shares authorized, 103,881,251     10,388       10,388   \n shares issued, and 102,576,943 shares outstanding as of June 30, 2026 and \n December 31, 2025) \n Additional paid-in capital     75,715,942       72,867,424   \n Treasury stock (at cost, 1,304,308 shares as of June 30, 2026 and December 31,     (7,749,997 )     (7,749,997 ) \n 2025) \n Retained earnings     262,449,513       240,448,620   \n Accumulated other comprehensive loss     (66,589,505 )     (57,294,239 ) \n Total SBC Medical Group Holdings Incorporated stockholders’ equity     263,836,341       248,282,196   \n Non-controlling interests     16,078,801       15,022,510   \n Total stockholders’ equity     279,915,142       263,304,706   \n Total liabilities and stockholders’ equity   $ 406,659,022     $ 380,447,946   \n\n SBC MEDICAL GROUP HOLDINGS INCORPORATED \n \nUNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME \n     For the Three Months     For the Six Months   \n \nEnded June 30, \nEnded June 30, \n     2026     2025     2026     2025   \n Revenues, net – related parties   $ 43,732,194     $ 38,944,898     $ 81,687,254     $ 84,202,043   \n Revenues, net     5,455,874       4,413,949       10,561,376       6,485,505   \n Total revenues, net     49,188,068       43,358,847       92,248,630       90,687,548   \n Cost of revenues (including cost of revenues from related parties of $138,593     13,210,752       13,348,270       25,924,580       22,943,887   \n and $4,669,602 for the three months ended June 30, 2026 and 2025, and $262,982 \n and $8,126,530 for the six months ended June 30, 2026 and 2025, respectively) \n Gross profit     35,977,316       30,010,577       66,324,050       67,743,661   \n                           \n Operating expenses:                         \n Selling, general and administrative expenses (including selling, general and     17,016,766       15,456,385       29,643,485       28,987,395   \n administrative expenses from related parties of $341,510 and $415,767 for the \n three months ended June 30, 2026 and 2025, and $684,903 and $415,767 for the \n six months ended June 30, 2026 and 2025, respectively) \n Total operating expenses     17,016,766       15,456,385       29,643,485       28,987,395   \n                           \n Income from operations     18,960,550       14,554,192       36,680,565       38,756,266   \n                           \n Other income (expenses):                         \n Interest income     8,520       22,882       129,889       78,215   \n Interest expense     (128,629 )     (49,651 )     (243,435 )     (55,858 ) \n Foreign currency exchange gain (loss), net     1,032,259       (769,720 )     1,893,937       (1,828,246 ) \n Other income     137,056       145,403       628,620       296,731   \n Other expenses     (455,070 )     (362,745 )     (678,279 )     (1,001,478 ) \n Gain on redemption of life insurance policies     —       —       —       8,746,138   \n Total other income (expenses)     594,136       (1,013,831 )     1,730,732       6,235,502   \n                           \n Income before income taxes and equity in losses of equity method investees     19,554,686       13,540,361       38,411,297       44,991,768   \n Income tax expense     7,823,743       11,100,509       15,351,334       21,059,966   \n Equity in losses of equity method investees, net of tax     (568,652 )     —       (568,652 )     —   \n Net income     11,162,291       2,439,852       22,491,311       23,931,802   \n Less: net income (loss) attributable to non-controlling interests     469,469       (18,388 )     490,418       (28,884 ) \n Net income attributable to SBC Medical Group Holdings Incorporated   $ 10,692,822     $ 2,458,240     $ 22,000,893     $ 23,960,686   \n                           \n Other comprehensive income (loss):                         \n Foreign currency translation adjustment   $ (5,319,471 )   $ 8,623,269     $ (9,569,020 )   $ 18,431,596   \n Total comprehensive income     5,842,820       11,063,121       12,922,291       42,363,398   \n Less: comprehensive income attributable to non-controlling interests     198,369       184,411       216,664       147,579   \n Comprehensive income attributable to SBC Medical Group Holdings Incorporated   $ 5,644,451     $ 10,878,710     $ 12,705,627     $ 42,215,819   \n                           \n Net income per share attributable to SBC Medical Group Holdings Incorporated                         \n Basic and diluted   $ 0.10     $ 0.02     $ 0.21     $ 0.23   \n Weighted average shares outstanding                         \n Basic and diluted     102,576,943       103,507,249       102,576,943       103,392,580   \n\n SBC MEDICAL GROUP HOLDINGS INCORPORATED \n \nUNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS \n     For the Six Months   \n \nEnded June 30, \n     2026     2025   \n CASH FLOWS FROM OPERATING ACTIVITIES             \n Net income   $ 22,491,311     $ 23,931,802   \n Adjustments to reconcile net income to net cash provided by (used in)             \n operating activities: \n Depreciation and amortization expense     1,802,958       1,264,405   \n Non-cash lease expense     2,861,022       2,185,744   \n Provision for (reversal of) credit losses     (44,753 )     283,752   \n Equity in losses of equity method investees     568,652       —   \n Stock-based compensation     7,854       —   \n Fair value change of long-term investments     (34,905 )     384,523   \n Gain on redemption of life insurance policies     —       (8,746,138 ) \n Loss (gain) on disposal of property and equipment     9,397       (10,804 ) \n Change in fair value of cryptocurrencies     —       (111,632 ) \n Deferred income taxes     (4,545,948 )     7,452,983   \n Changes in operating assets and liabilities:             \n Accounts receivable     (184,336 )     (789,577 ) \n Accounts receivable - related parties     (14,570,601 )     (17,039,113 ) \n Inventories     (279,190 )     (717,972 ) \n Finance lease receivables - related parties     247,191       (6,482,967 ) \n Customer loans receivable     5,357,608       8,081,703   \n Other receivables - related parties     (1,602,304 )     —   \n Prepaid expenses and other current assets     4,173,911       (1,349,225 ) \n Long-term prepayments     59,145       211,988   \n Other assets     (185,014 )     85,907   \n Accounts payable     6,593,276       1,165,217   \n Accounts payable - related parties     307,962       2,455,865   \n Notes payables - related parties     —       (5,031,570 ) \n Advances from customers     (395,704 )     (369,616 ) \n Advances from customers - related parties     (1,205,634 )     (2,363,891 ) \n Income tax payable     11,194,897       (6,030,526 ) \n Operating lease liabilities     (2,876,789 )     (2,275,398 ) \n Accrued liabilities and other current liabilities     2,008,843       (2,508,035 ) \n Other liabilities     (17,601 )     (88,593 ) \n NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES     31,741,248       (6,411,168 ) \n               \n CASH FLOWS FROM INVESTING ACTIVITIES             \n Purchase of property and equipment     (209,391 )     (560,431 ) \n Prepayments for property and equipment     (804,423 )     (705,351 ) \n Payments made on behalf of related parties     —       (1,836,541 ) \n Purchase of long-term investments     —       (652,555 ) \n Purchase of cryptocurrencies     —       (424,250 ) \n Long-term loans to others     —       (13,134 ) \n Repayments from related parties     —       70,000   \n Repayments from others     31,111       56,307   \n Proceeds from redemption of life insurance policies     —       17,735,717   \n Deconsolidation of VIE, net of cash disposed of     1,019,909       —   \n Proceeds from disposal of property and equipment     —       1,728,236   \n NET CASH PROVIDED BY INVESTING ACTIVITIES     37,206       15,397,998   \n               \n CASH FLOWS FROM FINANCING ACTIVITIES             \n Borrowings from related parties     —       15,000   \n Proceeds from exercise of stock acquisition rights in subsidiary by     31,866       —   \n non-controlling interests \n Repayments of bank and other borrowings     (3,740,739 )     (74,256 ) \n Repayments of finance lease liabilities     (71,942 )     (278,097 ) \n Repayments to related parties     (22,657 )     (27,943 ) \n Repurchase of common stock     —       (2,415,262 ) \n Deemed contribution in connection with price modification on disposal of     —       9,682,277   \n property and equipment \n NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES     (3,803,472 )     6,901,719   \n               \n Effect of exchange rate changes     (7,437,607 )     11,808,241   \n               \n NET CHANGE IN CASH AND CASH EQUIVALENTS     20,537,375       27,696,790   \n CASH AND CASH EQUIVALENTS AS OF THE BEGINNING OF THE PERIOD     163,773,838       125,044,092   \n CASH AND CASH EQUIVALENTS AS OF THE END OF THE PERIOD   $ 184,311,213     $ 152,740,882   \n               \n SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION             \n Cash paid for interest expense   $ 243,435     $ 55,858   \n Cash paid for income taxes, net   $ 8,660,822     $ 19,637,454   \n               \n NON-CASH INVESTING AND FINANCING ACTIVITIES             \n Property and equipment transferred from long-term prepayments   $ 703,529     $ 246,188   \n Operating lease right-of-use assets obtained in exchange for operating lease   $ 67,106     $ 104,437   \n liabilities \n Finance lease right-of-use assets obtained in exchange for finance lease   $ —     $ 612,466   \n liabilities \n Remeasurement of operating lease liabilities and right-of-use assets due to   $ 4,844,803     $ 1,160,680   \n lease modifications \n Payables to related parties in connection with loan services provided   $ —     $ 8,175,342   \n Issuance of common stock as incentive shares   $ —     $ 86   \n\n\n \n RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (UNAUDITED) \n \n \n \nSBC MEDICAL GROUP HOLDINGS INCORPORATED \n       For the Three Months Ended         For the Six Months Ended   \n \nJune 30, \nJune 30, \n       2026         2025         2026       2025   \n Total Revenues, net 　   $ 49,188,068   　 　   $ 43,358,847   　 　   $ 92,248,630   　   $ 90,687,548   \n Net income attributable to SBC Medical Group Holdings Incorporated       10,692,822           2,458,240           22,000,893         23,960,686   \n Adjusted to exclude the following:                                     \n Net income (loss) attributable to non-controlling interests       469,469           (18,388 )         490,418         (28,884 ) \n Equity in losses of equity method investees, net of tax       568,652           —           568,652         —   \n Income tax expense       7,823,743           11,100,509           15,351,334         21,059,966   \n Gain on redemption of life insurance policies       —           —           —         (8,746,138 ) \n Other expenses       455,070           362,745           678,279         1,001,478   \n Other income       (137,056 )         (145,403 )         (628,620 )       (296,731 ) \n Foreign currency exchange gain (loss), net       (1,032,259 )         769,720           (1,893,937 )       1,828,246   \n Interest expense       128,629           49,651           243,435         55,858   \n Interest income       (8,520 )         (22,882 )         (129,889 )       (78,215 ) \n Depreciation and amortization expense 　 　   1,132,524           636,101           1,802,958         1,264,405   \n Adjusted EBITDA 　 　   20,093,074           15,190,293           38,483,523         40,020,671   \n Net income margin       22 %         6 %         24 %       26 % \n Adjusted EBITDA margin 　 　   41 %   　 　   35 %   　 　   42 % 　 　   44 % \n      \n Adjusted EBITDA is a non-GAAP financial measure defined as net income \n attributable to SBC Medical adjusted for net income (loss) attributable to \n non-controlling interests, equity in losses of equity method investees, net of \n tax, income tax expense, gain on redemption of life insurance policies, other \n expenses, other income, foreign currency exchange gain (loss), net, interest \n expense, interest income, and depreciation and amortization expense. \n Net income margin is defined as net income attributable to SBC Medical divided \n by total revenues, net. Adjusted EBITDA margin is defined as Adjusted EBITDA \n divided by total revenues, net. \n\n\n \n\n\n\nView source version on businesswire.com:\nhttps://www.businesswire.com/news/home/20260813064564/en/\n(https://www.businesswire.com/news/home/20260813064564/en/)\n\nSBC Medical Group Holdings Incorporated — Hikaru Fukui / Head of IR\nDepartment; E-mail: ir@sbc-holdings.com (mailto:ir@sbc-holdings.com)\n\n\nCopyright Business Wire 2026","article_body_html":"","raw_payload":{"data":{"id":"nBw43bHcFa","title":"SBC Medical Group Holdings Reports Second Quarter 2026 Financial Results","author":"Business Wire","ticker":"SBC","created":"2026-08-13T10:30:00.283Z","tickers":["SBC"],"exchange":"NASDAQ","article_body":"SBC Medical Group Holdings Reports Second Quarter 2026 Financial Results\n\nRestructuring Complete, Growth Reaccelerates: Q2 Revenue Up 13%, Net Income\nAttributable to SBC Medical Up 335%, Adjusted EBITDA(1) Up 32% Year-over-Year.\nAI-Enabled Service Enhancements Drive Successful Fee Increases, Positioning\nthe Business for Accelerated Network Expansion\n\nSBC Medical Group Holdings Incorporated (Nasdaq: SBC) (“SBC Medical” or\nthe “Company”), a Medical Services Organization (MSO) providing management\nsupport across a wide range of healthcare fields to medical institutions in\nJapan and abroad, today announced its consolidated financial results for the\nsecond quarter of fiscal year 2026 (the three months ended June 30, 2026) and\nthe first half of fiscal year 2026 (the six months ended June 30, 2026).\n\nSecond Quarter 2026 Financial Highlights\n\n\n * Total revenues were $49 million, an increase of 13% year-over-year.\n\n * Net income attributable to SBC Medical was $11 million, an increase of 335%\nyear-over-year. Net income margin was 22%, an increase of 16 percentage points\nyear-over-year.\n\n * Adjusted EBITDA(1 )was $20 million, an increase of 32% year-over-year.\nAdjusted EBITDA margin(1) was 41%, an increase of 6 percentage points\nyear-over-year.\n\n * Basic EPS was $0.10 for the three months ended June 30, 2026, an increase of\n400% year-over-year.\n\nThe Company believes the quarter marked a clear reacceleration in its growth,\nwith net income attributable to SBC Medical growth outpacing revenue growth.\nEarnings growth was supported by the expansion of the points business\nfollowing a change in the Company’s operating policy and the expansion of\nservice fees in line with enhanced AI-enabled support capabilities.\n\nThe business of the medical corporations the Company supports also continued\nto expand steadily. As of the end of June 2026, the number of locations(2)\nincreased by 34 year-over-year to 287, and last-twelve-month number of\nvisits(3) reached 6.9 million (up 10% year-over-year). Average spend per visit\nwas $287, up 9% year-over-year.\n\nComment from SBC Medical’s Chairman and CEO Yoshiyuki Aikawa:\n\n“We believe our results this quarter clearly demonstrate that SBC\nMedical’s growth story has entered a new phase. Having completed the\nstructural reforms we undertook in 2025, we are now running multiple growth\nengines simultaneously. I am growing increasingly confident that this\nreacceleration is not a temporary phenomenon but reflects the strengthening of\nour underlying growth fundamentals.\n\nWhat gives me the greatest confidence is that the convergence of healthcare\nand AI is becoming one of SBC Medical’s next sources of competitive\nadvantage. We are leveraging more than 26 years of accumulated management data\nto support AI development and implementing mechanisms that enhance clinic\noperations — including AI-powered call centers, AI-driven marketing, and\nAI-assisted site selection for new clinic openings.\n\nStrengthening our AI-enabled MSO platform simultaneously drives growth across\nthree dimensions: the number of clinic locations, average fee per clinic\n(AFPC), and service menu breadth. As the platform’s appeal grows, patient\nvisits and treatment volumes at the clinics we support increase, accelerating\nclinic growth — which in turn leads to expanded service fees commensurate\nwith the value we provide. We believe this virtuous cycle is the driving force\nbehind sustainable growth in consolidated revenue and EPS, as reflected in our\nmost recent reported historical results and in the future.\n\nSpecifically, through fee revisions for our call center services provided to\nfive specific affiliated medical corporations, together with separate fee\nrevisions reflecting expanded support for Rize Clinic and Gorilla Clinic, we\nexpect these initiatives, if their impact is realized for a full year, to\nincrease service fees by approximately $15 million annually (converted at\n¥158.1/US$). These initiatives are being pursued in a disciplined manner,\npremised on a win-win relationship between the Company and our affiliated\nmedical corporations.\n\nLooking ahead, we will deepen our multi-brand strategy in aesthetic\ndermatology domestically, while expanding our non-aesthetic business, which we\nposition as our “second growth engine.” Internationally, we plan to\naccelerate our global growth through our collaboration with OrangeTwist in the\nUnited States and our ASEAN expansion, anchored in Thailand. We are also\npreparing to enter the Longevity market, which we see as having enormous\npotential.\n\nWith $184 million in cash and cash equivalents on hand, we will continue to\npursue disciplined investment toward our next growth phase. By pursuing\nsustained EPS growth and achieving fair equity valuation for our shares in the\ncapital markets as two wheels of the same cart, we aim to deliver even greater\nvalue to all our stakeholders, including our shareholders. We look forward to\nwhat lies ahead for SBC Medical.”\n\nSummary of Key Financials\n   Unit 2Q26 2Q25 YoY 1H26 1H25 YoY \n Total revenues $MM 49 43 +13% 92 91 +2% \n Net Income Attributable to SBC Medical $MM 11 2 +335% 22 24 (8)% \n Net Income Margin % 22 6 +16pt 24 26 (2)pt \n Adjusted EBITDA (1) $MM 20 15 +32% 38 40 (4)% \n Adjusted EBITDA Margin (1) % 41 35 +6pt 42 44 (2)pt \n ROE (Annualized) (4) % 16 4 +12pt 17 22 (5)pt \n Basic EPS (5) $ 0.10 0.02 +400% 0.21 0.23 (9)% \n\n (1 )Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP financial \n measures. For more information on non-GAAP financial measures, please refer to \n “Use of Non-GAAP Financial Measures” and “Reconciliation of GAAP to \n Non-GAAP Measures (unaudited).” \n (2 )Represents the total number of locations across the Company’s support \n and partnership network, including franchised locations of SBC-branded \n clinics, Rize Clinic, Gorilla Clinic, AHH Clinic, JUN CLINIC, and OrangeTwist. \n (3 )Patient visits include patients of SBC-branded clinics, Rize Clinic, \n Gorilla Clinic, AHH Clinic, and JUN CLINIC. The period covered is from July 1, \n 2025 to June 30, 2026. \n (4 )Return on equity (ROE) is calculated as net income attributable to SBC \n Medical divided by average shareholders’ equity (beginning and end of \n period). \n (5 )Basic EPS is calculated as net income attributable to SBC Medical divided \n by the weighted average number of shares outstanding. \n\n\nConference Call\n\nThe Company will hold a conference call on Thursday, August 13th, 2026 at\n08:30 a.m. Eastern Time (or Thursday, August 13th, 2026 at 09:30 p.m. Japan\nTime) to discuss the financial results for the second quarter ended June 30,\n2026. A question-and-answer session will follow the prepared remarks.\n\nDuring the live webcast, participants may submit questions in real-time using\nthe Zoom Q&A button.\n\nAll attendees, regardless of their current stock ownership status, are welcome\nto submit questions. Please note that due to time constraints and the nature\nof the inquiries, we may not be able to address every question during the\ncall.\n\nPlease register in advance of the conference using the link provided below:\n\nhttps://zoom.us/webinar/register/WN_sEGnJWOyQDejlpnuGnxQgA\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fzoom.us%2Fwebinar%2Fregister%2FWN_sEGnJWOyQDejlpnuGnxQgA&esheet=54588716&newsitemid=20260813064564&lan=en-US&anchor=https%3A%2F%2Fzoom.us%2Fwebinar%2Fregister%2FWN_sEGnJWOyQDejlpnuGnxQgA&index=1&md5=9462eb7026862ea3fc44ee9b57d1a630)\n\nUpon registration, you will be able to access the dedicated conference call\nviewing site.\n\nAdditionally, the earnings release, accompanying slides, and a separate link\nto the archived webcast of this conference call will be available on the\nCompany’s Investor Relations website at https://ir.sbc-holdings.com/\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fir.sbc-holdings.com%2F&esheet=54588716&newsitemid=20260813064564&lan=en-US&anchor=https%3A%2F%2Fir.sbc-holdings.com%2F&index=2&md5=e8dd466a050f8f3c8bd1bc9b1a47a9ae)\n.\n\nAbout SBC Medical\n\nSBC Medical is a Medical Services Organization providing management support\nacross a wide range of healthcare fields, including advanced aesthetic\nhealthcare, dermatology, orthopedics, fertility treatment, gynecology,\ndentistry, alopecia treatment (AGA), and ophthalmology. The Company manages a\ndiverse portfolio of clinic brands and is actively expanding its global\npresence, particularly in the United States and Asia, through both direct\noperations and medical tourism initiatives. In September 2024, the Company was\nlisted on Nasdaq, and in June 2025, it was selected for inclusion in the\nRussell 3000® Index, a broad benchmark of the U.S. equity market. Guided by\nits Group Purpose “Contributing to the well-being of people around the world\nthrough medical innovation,” SBC Medical continues to provide safe, trusted,\nand high-quality medical services while further strengthening its\ninternational reputation for quality and trust in medical care.\n\nCompany Name: SBC Medical Group Holdings Incorporated | Listed Market: NASDAQ\nGlobal Market | Ticker: SBC | Address: 200 Spectrum Center Drive, Suite 300,\nIrvine, CA 92618 USA | IR Website: https://ir.sbc-holdings.com/\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fir.sbc-holdings.com%2F&esheet=54588716&newsitemid=20260813064564&lan=en-US&anchor=https%3A%2F%2Fir.sbc-holdings.com%2F&index=3&md5=95ede86bb4886083d59693c44fe360da)\n| LinkedIn: https://www.linkedin.com/company/sbc-medical-group-holdings-inc\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fwww.linkedin.com%2Fcompany%2Fsbc-medical-group-holdings-inc&esheet=54588716&newsitemid=20260813064564&lan=en-US&anchor=https%3A%2F%2Fwww.linkedin.com%2Fcompany%2Fsbc-medical-group-holdings-inc&index=4&md5=f5624b21075c8cd25c046107fa433283)\n\nUse of Non-GAAP Financial Measures\n\nThe Company uses non-GAAP measures, such as Adjusted EBITDA, Adjusted EBITDA\nmargin, in evaluating its operating results and for financial and operational\ndecision-making purposes. The Company believes that the non-GAAP financial\nmeasures help identify underlying trends in its business, provide useful\ninformation about the Company’s results of operations, enhance the overall\nunderstanding of the Company’s past performance and future prospects, and\nallow for greater visibility with respect to key metrics used by the\nCompany’s management in its financial and operational decision-making.\n\nThe non-GAAP financial measures are not defined under U.S. GAAP and are not\npresented in accordance with U.S. GAAP. The presentations of these measures\nhave limitations as analytical tools and should not be considered in isolation\nor as a substitute for analysis of our results as reported under GAAP. Because\nnot all companies use identical calculations, the presentations of these\nmeasures may not be comparable to other similarly titled measures of other\ncompanies and can differ significantly from company to company. For\nreconciliations of these non-GAAP financial measures to the most directly\ncomparable GAAP measures, see the reconciliations included at the end of this\npress release.\n\nForward-Looking Statements\n\nThis press release contains forward-looking statements. Forward-looking\nstatements are not historical facts or statements of current conditions, but\ninstead represent only the Company’s beliefs regarding future events and\nperformance, many of which, by their nature, are inherently uncertain and\noutside of the Company’s control. These forward-looking statements reflect\nthe Company’s current views with respect to, among other things, the\nCompany’s plans and strategies for service expansion; growth in revenue and\nearnings; and business prospects. In some cases, forward-looking statements\ncan be identified by the use of words such as “may,” “should,”\n“expects,” “anticipates,” “contemplates,” “estimates,”\n“believes,” “plans,” “projected,” “predicts,” “potential,”\n“targets,” or “hopes” or the negative of these or similar terms. The\nCompany cautions readers not to place undue reliance upon any forward-looking\nstatements, which are current only as of the date of this release and are\nsubject to various risks, uncertainties, assumptions, or changes in\ncircumstances that are difficult to predict or quantify. The forward-looking\nstatements are based on management’s current expectations and are not\nguarantees of future performance. The Company does not undertake or accept any\nobligation to release publicly any updates or revisions to any forward-looking\nstatements to reflect any change in its expectations or any change in events,\nconditions, or circumstances on which any such statement is based, except as\nrequired by law. Factors that may cause actual results to differ materially\nfrom current expectations may emerge from time to time, and it is not possible\nfor the Company to predict all of them; such factors include, among other\nthings, changes in global, regional, or local economic, business, competitive,\nmarket and regulatory conditions, and those listed under the heading “Risk\nFactors” and elsewhere in the Company’s filings with the U.S. Securities\nand Exchange Commission (the “SEC”), which are accessible on the SEC’s\nwebsite at www.sec.gov\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.sec.gov&esheet=54588716&newsitemid=20260813064564&lan=en-US&anchor=www.sec.gov&index=5&md5=cd0613cfa2c64a6e36d0cb5bada254ac)\n.\n SBC MEDICAL GROUP HOLDINGS INCORPORATED \n \nUNAUDITED CONSOLIDATED BALANCE SHEETS \n     June 30,     December 31,   \n \n2026 \n2025 \n ASSETS             \n Current assets:             \n Cash and cash equivalents   $ 184,311,213     $ 163,773,838   \n Accounts receivable     2,488,575       2,388,021   \n Accounts receivable – related parties     40,748,686       27,511,730   \n Inventories     2,979,818       2,792,617   \n Short-term investments – related parties     307,922       319,193   \n Finance lease receivables, current – related parties     13,725,781       12,832,355   \n Income tax recoverable     1,033,646       1,175,510   \n Customer loans receivable, current     4,991,848       8,705,999   \n Prepaid expenses and other current assets     7,239,514       11,724,852   \n Other receivables - related parties     1,560,521       —   \n Total current assets     259,387,524       231,224,115   \n               \n Non-current assets:             \n Property and equipment, net     7,414,691       7,539,392   \n Intangible assets, net     45,686,697       47,742,888   \n Long-term investments, net     1,287,477       1,299,366   \n Equity method investments     19,743,990       20,312,642   \n Goodwill, net     15,179,809       15,432,061   \n Finance lease receivables, non-current – related parties     11,673,777       13,746,513   \n Operating lease right-of-use assets     10,147,179       8,366,569   \n Finance lease right-of-use assets     362,302       450,874   \n Deferred tax assets     8,103,446       4,014,294   \n Customer loans receivable, non-current     2,887,006       4,824,977   \n Long-term prepayments     420,043       393,270   \n Long-term investments in MCs – related parties     17,207,414       17,837,293   \n Other assets     7,157,667       7,263,692   \n Total non-current assets     147,271,498       149,223,831   \n Total assets   $ 406,659,022     $ 380,447,946   \n               \n LIABILITIES AND STOCKHOLDERS’ EQUITY             \n               \n Current liabilities:             \n Accounts payable   $ 22,832,724     $ 16,988,384   \n Accounts payable – related parties     931,810       651,463   \n Bank and other borrowings, current     11,816,235       9,099,046   \n Advances from customers     980,889       1,415,762   \n Advances from customers – related parties     3,993,850       5,357,221   \n Income tax payable     19,313,068       8,821,853   \n Operating lease liabilities, current     5,404,269       4,416,960   \n Finance lease liabilities, current     99,627       132,946   \n Accrued liabilities and other current liabilities     13,087,484       11,544,695   \n Due to related party     —       2,692,673   \n Total current liabilities     78,459,956       61,121,003   \n               \n Non-current liabilities:             \n Bank and other borrowings, non-current     25,938,581       33,734,438   \n Deferred tax liabilities     15,777,663       16,374,832   \n Operating lease liabilities, non-current     4,897,286       4,136,257   \n Finance lease liabilities, non-current     77,080       116,527   \n Other liabilities     1,593,314       1,660,183   \n Total non-current liabilities     48,283,924       56,022,237   \n Total liabilities     126,743,880       117,143,240   \n               \n Commitments and contingencies (Note 19)             \n               \n Stockholders’ equity:             \n Preferred stock ($0.0001 par value, 20,000,000 shares authorized; no shares     —       —   \n issued and outstanding as of June 30, 2026 and December 31, 2025) \n Common stock ($0.0001 par value, 400,000,000 shares authorized, 103,881,251     10,388       10,388   \n shares issued, and 102,576,943 shares outstanding as of June 30, 2026 and \n December 31, 2025) \n Additional paid-in capital     75,715,942       72,867,424   \n Treasury stock (at cost, 1,304,308 shares as of June 30, 2026 and December 31,     (7,749,997 )     (7,749,997 ) \n 2025) \n Retained earnings     262,449,513       240,448,620   \n Accumulated other comprehensive loss     (66,589,505 )     (57,294,239 ) \n Total SBC Medical Group Holdings Incorporated stockholders’ equity     263,836,341       248,282,196   \n Non-controlling interests     16,078,801       15,022,510   \n Total stockholders’ equity     279,915,142       263,304,706   \n Total liabilities and stockholders’ equity   $ 406,659,022     $ 380,447,946   \n\n SBC MEDICAL GROUP HOLDINGS INCORPORATED \n \nUNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME \n     For the Three Months     For the Six Months   \n \nEnded June 30, \nEnded June 30, \n     2026     2025     2026     2025   \n Revenues, net – related parties   $ 43,732,194     $ 38,944,898     $ 81,687,254     $ 84,202,043   \n Revenues, net     5,455,874       4,413,949       10,561,376       6,485,505   \n Total revenues, net     49,188,068       43,358,847       92,248,630       90,687,548   \n Cost of revenues (including cost of revenues from related parties of $138,593     13,210,752       13,348,270       25,924,580       22,943,887   \n and $4,669,602 for the three months ended June 30, 2026 and 2025, and $262,982 \n and $8,126,530 for the six months ended June 30, 2026 and 2025, respectively) \n Gross profit     35,977,316       30,010,577       66,324,050       67,743,661   \n                           \n Operating expenses:                         \n Selling, general and administrative expenses (including selling, general and     17,016,766       15,456,385       29,643,485       28,987,395   \n administrative expenses from related parties of $341,510 and $415,767 for the \n three months ended June 30, 2026 and 2025, and $684,903 and $415,767 for the \n six months ended June 30, 2026 and 2025, respectively) \n Total operating expenses     17,016,766       15,456,385       29,643,485       28,987,395   \n                           \n Income from operations     18,960,550       14,554,192       36,680,565       38,756,266   \n                           \n Other income (expenses):                         \n Interest income     8,520       22,882       129,889       78,215   \n Interest expense     (128,629 )     (49,651 )     (243,435 )     (55,858 ) \n Foreign currency exchange gain (loss), net     1,032,259       (769,720 )     1,893,937       (1,828,246 ) \n Other income     137,056       145,403       628,620       296,731   \n Other expenses     (455,070 )     (362,745 )     (678,279 )     (1,001,478 ) \n Gain on redemption of life insurance policies     —       —       —       8,746,138   \n Total other income (expenses)     594,136       (1,013,831 )     1,730,732       6,235,502   \n                           \n Income before income taxes and equity in losses of equity method investees     19,554,686       13,540,361       38,411,297       44,991,768   \n Income tax expense     7,823,743       11,100,509       15,351,334       21,059,966   \n Equity in losses of equity method investees, net of tax     (568,652 )     —       (568,652 )     —   \n Net income     11,162,291       2,439,852       22,491,311       23,931,802   \n Less: net income (loss) attributable to non-controlling interests     469,469       (18,388 )     490,418       (28,884 ) \n Net income attributable to SBC Medical Group Holdings Incorporated   $ 10,692,822     $ 2,458,240     $ 22,000,893     $ 23,960,686   \n                           \n Other comprehensive income (loss):                         \n Foreign currency translation adjustment   $ (5,319,471 )   $ 8,623,269     $ (9,569,020 )   $ 18,431,596   \n Total comprehensive income     5,842,820       11,063,121       12,922,291       42,363,398   \n Less: comprehensive income attributable to non-controlling interests     198,369       184,411       216,664       147,579   \n Comprehensive income attributable to SBC Medical Group Holdings Incorporated   $ 5,644,451     $ 10,878,710     $ 12,705,627     $ 42,215,819   \n                           \n Net income per share attributable to SBC Medical Group Holdings Incorporated                         \n Basic and diluted   $ 0.10     $ 0.02     $ 0.21     $ 0.23   \n Weighted average shares outstanding                         \n Basic and diluted     102,576,943       103,507,249       102,576,943       103,392,580   \n\n SBC MEDICAL GROUP HOLDINGS INCORPORATED \n \nUNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS \n     For the Six Months   \n \nEnded June 30, \n     2026     2025   \n CASH FLOWS FROM OPERATING ACTIVITIES             \n Net income   $ 22,491,311     $ 23,931,802   \n Adjustments to reconcile net income to net cash provided by (used in)             \n operating activities: \n Depreciation and amortization expense     1,802,958       1,264,405   \n Non-cash lease expense     2,861,022       2,185,744   \n Provision for (reversal of) credit losses     (44,753 )     283,752   \n Equity in losses of equity method investees     568,652       —   \n Stock-based compensation     7,854       —   \n Fair value change of long-term investments     (34,905 )     384,523   \n Gain on redemption of life insurance policies     —       (8,746,138 ) \n Loss (gain) on disposal of property and equipment     9,397       (10,804 ) \n Change in fair value of cryptocurrencies     —       (111,632 ) \n Deferred income taxes     (4,545,948 )     7,452,983   \n Changes in operating assets and liabilities:             \n Accounts receivable     (184,336 )     (789,577 ) \n Accounts receivable - related parties     (14,570,601 )     (17,039,113 ) \n Inventories     (279,190 )     (717,972 ) \n Finance lease receivables - related parties     247,191       (6,482,967 ) \n Customer loans receivable     5,357,608       8,081,703   \n Other receivables - related parties     (1,602,304 )     —   \n Prepaid expenses and other current assets     4,173,911       (1,349,225 ) \n Long-term prepayments     59,145       211,988   \n Other assets     (185,014 )     85,907   \n Accounts payable     6,593,276       1,165,217   \n Accounts payable - related parties     307,962       2,455,865   \n Notes payables - related parties     —       (5,031,570 ) \n Advances from customers     (395,704 )     (369,616 ) \n Advances from customers - related parties     (1,205,634 )     (2,363,891 ) \n Income tax payable     11,194,897       (6,030,526 ) \n Operating lease liabilities     (2,876,789 )     (2,275,398 ) \n Accrued liabilities and other current liabilities     2,008,843       (2,508,035 ) \n Other liabilities     (17,601 )     (88,593 ) \n NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES     31,741,248       (6,411,168 ) \n               \n CASH FLOWS FROM INVESTING ACTIVITIES             \n Purchase of property and equipment     (209,391 )     (560,431 ) \n Prepayments for property and equipment     (804,423 )     (705,351 ) \n Payments made on behalf of related parties     —       (1,836,541 ) \n Purchase of long-term investments     —       (652,555 ) \n Purchase of cryptocurrencies     —       (424,250 ) \n Long-term loans to others     —       (13,134 ) \n Repayments from related parties     —       70,000   \n Repayments from others     31,111       56,307   \n Proceeds from redemption of life insurance policies     —       17,735,717   \n Deconsolidation of VIE, net of cash disposed of     1,019,909       —   \n Proceeds from disposal of property and equipment     —       1,728,236   \n NET CASH PROVIDED BY INVESTING ACTIVITIES     37,206       15,397,998   \n               \n CASH FLOWS FROM FINANCING ACTIVITIES             \n Borrowings from related parties     —       15,000   \n Proceeds from exercise of stock acquisition rights in subsidiary by     31,866       —   \n non-controlling interests \n Repayments of bank and other borrowings     (3,740,739 )     (74,256 ) \n Repayments of finance lease liabilities     (71,942 )     (278,097 ) \n Repayments to related parties     (22,657 )     (27,943 ) \n Repurchase of common stock     —       (2,415,262 ) \n Deemed contribution in connection with price modification on disposal of     —       9,682,277   \n property and equipment \n NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES     (3,803,472 )     6,901,719   \n               \n Effect of exchange rate changes     (7,437,607 )     11,808,241   \n               \n NET CHANGE IN CASH AND CASH EQUIVALENTS     20,537,375       27,696,790   \n CASH AND CASH EQUIVALENTS AS OF THE BEGINNING OF THE PERIOD     163,773,838       125,044,092   \n CASH AND CASH EQUIVALENTS AS OF THE END OF THE PERIOD   $ 184,311,213     $ 152,740,882   \n               \n SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION             \n Cash paid for interest expense   $ 243,435     $ 55,858   \n Cash paid for income taxes, net   $ 8,660,822     $ 19,637,454   \n               \n NON-CASH INVESTING AND FINANCING ACTIVITIES             \n Property and equipment transferred from long-term prepayments   $ 703,529     $ 246,188   \n Operating lease right-of-use assets obtained in exchange for operating lease   $ 67,106     $ 104,437   \n liabilities \n Finance lease right-of-use assets obtained in exchange for finance lease   $ —     $ 612,466   \n liabilities \n Remeasurement of operating lease liabilities and right-of-use assets due to   $ 4,844,803     $ 1,160,680   \n lease modifications \n Payables to related parties in connection with loan services provided   $ —     $ 8,175,342   \n Issuance of common stock as incentive shares   $ —     $ 86   \n\n\n \n RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (UNAUDITED) \n \n \n \nSBC MEDICAL GROUP HOLDINGS INCORPORATED \n       For the Three Months Ended         For the Six Months Ended   \n \nJune 30, \nJune 30, \n       2026         2025         2026       2025   \n Total Revenues, net 　   $ 49,188,068   　 　   $ 43,358,847   　 　   $ 92,248,630   　   $ 90,687,548   \n Net income attributable to SBC Medical Group Holdings Incorporated       10,692,822           2,458,240           22,000,893         23,960,686   \n Adjusted to exclude the following:                                     \n Net income (loss) attributable to non-controlling interests       469,469           (18,388 )         490,418         (28,884 ) \n Equity in losses of equity method investees, net of tax       568,652           —           568,652         —   \n Income tax expense       7,823,743           11,100,509           15,351,334         21,059,966   \n Gain on redemption of life insurance policies       —           —           —         (8,746,138 ) \n Other expenses       455,070           362,745           678,279         1,001,478   \n Other income       (137,056 )         (145,403 )         (628,620 )       (296,731 ) \n Foreign currency exchange gain (loss), net       (1,032,259 )         769,720           (1,893,937 )       1,828,246   \n Interest expense       128,629           49,651           243,435         55,858   \n Interest income       (8,520 )         (22,882 )         (129,889 )       (78,215 ) \n Depreciation and amortization expense 　 　   1,132,524           636,101           1,802,958         1,264,405   \n Adjusted EBITDA 　 　   20,093,074           15,190,293           38,483,523         40,020,671   \n Net income margin       22 %         6 %         24 %       26 % \n Adjusted EBITDA margin 　 　   41 %   　 　   35 %   　 　   42 % 　 　   44 % \n      \n Adjusted EBITDA is a non-GAAP financial measure defined as net income \n attributable to SBC Medical adjusted for net income (loss) attributable to \n non-controlling interests, equity in losses of equity method investees, net of \n tax, income tax expense, gain on redemption of life insurance policies, other \n expenses, other income, foreign currency exchange gain (loss), net, interest \n expense, interest income, and depreciation and amortization expense. \n Net income margin is defined as net income attributable to SBC Medical divided \n by total revenues, net. Adjusted EBITDA margin is defined as Adjusted EBITDA \n divided by total revenues, net. \n\n\n \n\n\n\nView source version on businesswire.com:\nhttps://www.businesswire.com/news/home/20260813064564/en/\n(https://www.businesswire.com/news/home/20260813064564/en/)\n\nSBC Medical Group Holdings Incorporated — Hikaru Fukui / Head of IR\nDepartment; E-mail: ir@sbc-holdings.com (mailto:ir@sbc-holdings.com)\n\n\nCopyright Business Wire 2026"},"type":"article","timestamp":"2026-08-13T10:30:00.396927361Z","server_sent_at_ms":1786617000396},"received_at":"2026-08-13T10:30:00.851Z","source_url":"https://www.businesswire.com/news/home/20260813064564/en/"},"analysis":{"id":"106774","press_release_id":"117783","analysis_json":{"industry":{"label":"Health Care Providers & Services","sector":"Health Care"},"redFlags":["Accounts receivable from related parties ($40.7M) represent ~83% of quarterly revenue ($49.2M), indicating a high concentration of revenue dependence on related entities.","Foreign currency translation resulted in a $5.3M loss in Q2 2026 compared to an $8.6M gain in the prior year period."],"eventType":"earnings","narrative":"SBC Medical reported Q2 2026 revenue of $49 million, up 13% year-over-year, while net income attributable to SBC Medical surged 335% to $11 million.\n\nAdjusted EBITDA increased 32% to $20 million with a 41% margin, driven by AI-enabled service enhancements, successful fee increases, and the expansion of the points business.\n\nThe company ended the period with $184 million in cash and 287 clinic locations, supported by the continued growth of affiliated medical corporations and an expanding global presence.","sentiment":"bullish","agentHooks":{"shouldPost":true,"suggestedAngle":"Q2 earnings beat with 335% net income growth and 41% Adjusted EBITDA margin, driven by AI integration and fee increases."},"keyFigures":{"eps":0.1,"revenue":49000000,"revenueYoy":"13%","customDimensions":{"locations":287,"ltm_visits":"6.9 million","net_income":11000000,"net_income_yoy":"335%","adjusted_ebitda":20000000,"net_income_margin":"22%","adjusted_ebitda_yoy":"32%","cash_and_equivalents":184311213,"adjusted_ebitda_margin":"41%","average_spend_per_visit":287}},"quotedText":"We believe our results this quarter clearly demonstrate that SBC Medical’s growth story has entered a new phase.","namedEntities":{"people":[{"name":"Yoshiyuki Aikawa","role":"Chairman and CEO"}],"products":["AI-powered call centers","AI-driven marketing","AI-assisted site selection"],"companies":[{"name":"SBC Medical Group Holdings Incorporated","ticker":"SBC"},{"name":"OrangeTwist","relationship":"partner"},{"name":"Rize Clinic","relationship":"affiliated medical corporation"},{"name":"Gorilla Clinic","relationship":"affiliated medical corporation"}],"dollarAmounts":[{"amount":"$49 million","context":"Q2 2026 total revenues"},{"amount":"$11 million","context":"Q2 2026 net income attributable to SBC Medical"},{"amount":"$20 million","context":"Q2 2026 Adjusted EBITDA"},{"amount":"$15 million","context":"Estimated annual service fee increase from new initiatives"},{"amount":"$184 million","context":"Cash and cash equivalents"},{"amount":"$0.10","context":"Q2 2026 Basic EPS"}]},"materialImpact":{"score":4,"reasoning":"SBC Medical reported strong Q2 results with revenue growing 13% year-over-year to $49 million and net income surging 335% to $11 million. Adjusted EBITDA increased 32% to $20 million with expanding margins. While the company is small-cap, the magnitude of earnings growth and margin expansion is highly material."},"tickerRelevance":{"others":[],"primary":"SBC"},"globalImportance":25,"audienceRelevance":20,"eventTypeSecondary":[],"importanceComponents":{"tickerTier":"small-mid-cap","eventGravity":"strong-earnings-growth","sectorWeight":"healthcare"}},"event_type":"earnings","event_type_secondary":null,"sentiment":"bullish","material_impact_score":4,"narrative":"SBC Medical reported Q2 2026 revenue of $49 million, up 13% year-over-year, while net income attributable to SBC Medical surged 335% to $11 million.\n\nAdjusted EBITDA increased 32% to $20 million with a 41% margin, driven by AI-enabled service enhancements, successful fee increases, and the expansion of the points business.\n\nThe company ended the period with $184 million in cash and 287 clinic locations, supported by the continued growth of affiliated medical corporations and an expanding global presence.","key_figures":{"eps":0.1,"revenue":49000000,"revenueYoy":"13%","customDimensions":{"locations":287,"ltm_visits":"6.9 million","net_income":11000000,"net_income_yoy":"335%","adjusted_ebitda":20000000,"net_income_margin":"22%","adjusted_ebitda_yoy":"32%","cash_and_equivalents":184311213,"adjusted_ebitda_margin":"41%","average_spend_per_visit":287}},"named_entities":{"people":[{"name":"Yoshiyuki Aikawa","role":"Chairman and CEO"}],"products":["AI-powered call centers","AI-driven marketing","AI-assisted site selection"],"companies":[{"name":"SBC Medical Group Holdings Incorporated","ticker":"SBC"},{"name":"OrangeTwist","relationship":"partner"},{"name":"Rize Clinic","relationship":"affiliated medical corporation"},{"name":"Gorilla Clinic","relationship":"affiliated medical corporation"}],"dollarAmounts":[{"amount":"$49 million","context":"Q2 2026 total revenues"},{"amount":"$11 million","context":"Q2 2026 net income attributable to SBC Medical"},{"amount":"$20 million","context":"Q2 2026 Adjusted EBITDA"},{"amount":"$15 million","context":"Estimated annual service fee increase from new initiatives"},{"amount":"$184 million","context":"Cash and cash equivalents"},{"amount":"$0.10","context":"Q2 2026 Basic EPS"}]},"model_name":"glm-4.7","prompt_hash":"sha256:727b4b9429a443af","schema_hash":"sha256:05005c02d9cffac9","created_at":"2026-08-13T10:53:30.414Z","global_importance":25,"audience_relevance":20,"importance_components":{"tickerTier":"small-mid-cap","eventGravity":"strong-earnings-growth","sectorWeight":"healthcare"}},"durationMs":455504,"modelName":"glm-4.7"}}