Cash flow generation remains highly inconsistent, highlighted by an operating cash flow to net income ratio that reached a low of -3.39 in 2025Q2.
| Cash from Operations | 46.22M | 38.92M | 20.58M | 50.64M | -47.37K |
| Operating CF Margin % | - | 22.42% | 10.02% | 26.17% | -0.03% |
| Operating CF Growth % | 725.16% | 89.09% | -59.36% | 107012.84% | - |
| Net Income | 40.79M | 50.99M | 46.61M | 39.37M | 5.55M |
| Depreciation & Amortization | 2.7M | 2.68M | 3.8M | 12.25M | 5.93M |
| Stock-Based Compensation | 0 | 0 | 13.02M | 0 | 0 |
| Deferred Taxes | -4.43M | 5.33M | -14.42M | 4.11M | -3.9M |
| Other Non-Cash Items | 3M | -7.79M | -16.31M | 2.59M | 2.96M |
| Working Capital Changes | 4.17M | -12.28M | -12.13M | -7.68M | -10.59M |
| Change in Receivables | -727.39K | 4.47M | 13.1M | -6.01M | -9.6M |
| Change in Inventory | 396.75K | -170.17K | 1.12M | -1.83M | -666.64K |
| Change in Payables | 1.36M | 2.67M | -8.91M | 12.2M | 172.61K |
| Cash from Investing | -20.52M | -20.97M | -10.1M | 1.82M | -32.65M |
| Capital Expenditures | -2.59M | -2.79M | -3.41M | -9.52M | -24.95M |
| CapEx % of Revenue | 1.53% | 1.61% | 1.66% | 4.92% | 14.32% |
| Acquisitions | -16.81M | -15.46M | -5.07M | 722.55K | -6.49M |
| Investments | - | - | - | - | - |
| Other Investing | 19.3M | 18.34M | -1.29M | 8.6M | 1.43M |
| Cash from Financing | 22.48M | 24.04M | 22.97M | 6.14M | -7.98M |
| Debt Issued (Net) | 17.04M | 18.83M | 6.48M | 3.58M | -5.08M |
| Equity Issued (Net) | -5M | -5M | 31.37K | 10 | 118.82M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -5M | -5M | 0 | 0 | 0 |
| Other Financing | 10.44M | 10.21M | 16.45M | 2.56M | -121.72M |
| Net Change in Cash | 35.25M | 38.73M | 22.02M | 51.28M | -52.77M |
| Free Cash Flow | 44.06M | 36.55M | 17.17M | 39.44M | -24.99M |
| FCF Margin % | 26.02% | 21.05% | 8.36% | 20.38% | -14.35% |
| FCF Growth % | 186.7% | 112.82% | -56.45% | 257.79% | - |
| FCF per Share | 0.43 | 0.35 | 0.18 | 0.42 | -1.66 |
| FCF Conversion (FCF/Net Income) | 1.08x | 0.76x | 0.44x | 1.29x | -0.01x |
| Interest Paid | 98.29K | 0 | 28.3K | 45.29K | 31.44K |
| Taxes Paid | 16.98M | 0 | 30.24M | 17.84M | 30.82M |
Erratic Cash Conversion Cycles
As reported in recent financial statements, SBC's operating cash flow to net income ratio has fluctuated wildly, reaching a low of -3.39 in 2025Q2, which indicates that reported accounting profits are frequently decoupled from the actual cash generated by the company's core aesthetic management operations.
The significant divergence between net income and operating cash flow suggests that accruals or non-cash adjustments are heavily influencing the bottom line. Investors should monitor whether these discrepancies stem from aggressive revenue recognition on procurement contracts or timing differences in management fee collections.
Based on the provided quarterly data, SBC's free cash flow trajectory remains highly inconsistent, with margins swinging from a peak of 165.0% in 2025Q4 to a negative 48.6% in 2025Q3, reflecting a lack of predictable cash generation despite the company's high-margin service-based business model.
This extreme volatility in free cash flow suggests that the company's operational cash requirements are not yet stabilized. The inability to maintain a consistent positive FCF margin may indicate that the business model is more capital-intensive than the 'consulting' classification implies.
According to historical cash flow filings, SBC experienced a massive $56.6 million working capital inflow in 2025Q4 followed by a $35.8 million outflow in 2025Q3, highlighting that the company's cash position is highly sensitive to the timing of franchisee payments and inventory procurement cycles.
These large, erratic swings in working capital suggest that the company may be managing significant pass-through costs or prepayments that distort the underlying cash flow reality. Such fluctuations warrant further investigation into the credit terms extended to franchisees and the inventory turnover efficiency.
As indicated by the latest financial disclosures, SBC has maintained a conservative capital deployment strategy, with minimal dividend payments and sporadic share repurchases, despite holding a cash balance that frequently approaches the scale of its annual revenue, suggesting a lack of immediate high-return reinvestment opportunities.
The company's decision to hoard cash rather than aggressively reinvest in its platform or return capital to shareholders may reflect management's caution regarding the current revenue contraction. This approach appears to prioritize liquidity over growth, which may limit the company's ability to pivot during market downturns.
Quick answers to the most common questions about buying SBC stock.
SBC Medical Group Holdings Incorporated (SBC) generated $38.9M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
SBC Medical Group Holdings Incorporated (SBC) generated $36.6M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
SBC Medical Group Holdings Incorporated (SBC) spent $2.8M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, SBC Medical Group Holdings Incorporated (SBC) spent $5.0M on share repurchases. This shows the company's commitment to returning capital to its equity investors.