SBC Medical Group Holdings (SBC) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue was $43–$43.1 million, down 9% year-over-year, mainly due to franchise fee structure revisions in April 2025; net income attributable to shareholders was $11–$11.3 million, a 47% decrease, impacted by the absence of a prior-year one-time gain.

• Total and same-clinic revenues increased year-over-year, driven by growth in customer numbers and average revenue per visit; unique customers rose 10% to 2.14 million, and franchise locations increased to 284.

• Underlying business performance was strong, with underlying revenue and EBITDA up 11% and 17% year-over-year when adjusted for fee structure and consolidation differences.

• Multi-brand strategy, new service development, and international expansion are enhancing service levels and addressing diverse customer needs.

• Gross profit margin declined to 70.5% from 79.7% year-over-year, reflecting a shift in revenue mix and higher costs.

Financial highlights

• EBITDA for Q1 2026 was $18–$19 million, down 26% year-over-year, with an EBITDA margin of 43% (down 10 percentage points year-over-year).

• Gross profit was $30–$30.3 million, down 20% year-over-year; operating income was $17.7–$18 million, a 27% decrease.

• Basic EPS was $0.11, a 48% year-over-year decline; return on equity was 18%, down 23 points.

• Net cash provided by operating activities was $9–$9.2 million, up from $1.9–$2 million year-over-year.

• Cash and cash equivalents increased to $167–$167.3 million as of March 31, 2026.

Outlook and guidance

• Management expects no further fee structure adjustments from Q2 onward, stabilizing revenue comparisons and supporting a positive revenue trend.

• Margins are expected to remain stable and improve over time, supported by AI initiatives and operational efficiencies.

• Focus remains on multi-brand strategy, non-aesthetic medical business expansion, and strengthening overseas operations.

• Current cash and cash flows are expected to be sufficient for the next 12 months.