SBC Medical Group Holdings Inc. reported significantly improved net profit for the third quarter as the company returns to a more typical cost structure following the elimination of IPO-related and stock-based compensation expenses. The Japanese cosmetic surgery clinic operator saw profitability lifted by its strategic shift, which includes expanding franchise locations, increasing customer visits, optimizing pricing strategies, and targeting higher-value customers.
For the quarter ending September 30, SBC Medical reported net income of $13 million, a substantial increase from $3 million during the same period last year. EBITDA reached $17 million, representing a 12% increase, while EBITDA margin improved to 38% from 28% in the third quarter of 2024. The company attributed this improvement to reduced operating expenses that offset revenue declines, primarily resulting from previously announced franchise fee revisions.
Total revenue for the quarter was $43 million, an 18% decrease compared to the same period last year. The company explained this decline stemmed from revised fee structures for clinic services that reduced franchising revenue, decreased procurement revenue due to reduced medical material orders, and lower management services revenue following the discontinuation of clinic operation staff supporting services. However, when compared to the second quarter of 2025, revenue remained essentially unchanged, indicating stabilization from new clinic openings and improved average revenue per patient.
Average revenue per patient visit increased 6% sequentially to $298 and was up 8.4% from the first quarter of 2025. SBC credited this improvement to its pricing strategy overhaul, targeted promotions, and efforts to attract more affluent customers. The company ended the quarter with a 72% repeat customer rate and operates 258 locations, representing a 15% year-over-year increase.
Chairman and Chief Executive Officer Yoshiyuki Aikawa stated the company will continue pursuing sustainable growth toward 2026 by focusing on high-quality solutions, advancing multi-brand initiatives in dermatology, and building a stronger business foundation in overseas markets. The company maintains $127 million in cash heading into year-end.
Internationally, SBC Medical Group has targeted Thailand as a key expansion market through a consulting agreement with BLEZ ASIA Co., Ltd., which operates more than twenty pharmacies and clinics in Thailand. This partnership represents a significant step toward full-scale entry into Thailand's rapidly growing aesthetic medicine market, valued at approximately $372.2 million in 2024 and projected to reach around $1.2 billion by 2033 according to company estimates.
Under the agreement, SBC will provide comprehensive management support to a new clinic focused primarily on dermatological treatments such as pigmentation and spot removal, which BLEZ is preparing to open in Bangkok's Asok district. SBC will advise on clinical protocol development aligned with its quality standards and assist in selecting medical devices and treatment methods optimized for local skin characteristics and environmental conditions. The clinic is expected to commence operations by year-end.
Additionally, SBC Medical announced it is acquiring a stake in Waqoo, a Japanese research and development company providing medical support services including blood-derived processing and skincare brands. The company has initiated a Tender Offer to acquire a majority stake in Waqoo, focusing on generating synergies by combining SBC's clinical expertise with Waqoo's R&D foundation. Key initiatives include upgrading treatments for AGA and orthopedics, co-developing proprietary skincare products, and utilizing Waqoo's technology to support SBC's international market entry.
