Revenue growth remains in a contractionary phase with a 9.0% year-over-year decline in 2026Q1, while operating margins have fluctuated significantly between 10.6% and 51.4% over the past two years.
| Sales/Revenue | 169.34M | 173.61M | 205.42M | 193.54M | 174.16M |
| Revenue Growth % | -14.45% | -15.48% | 6.13% | 11.13% | - |
| Cost of Goods Sold | 50.46M | 46.32M | 49.37M | 56.24M | 59.33M |
| COGS % of Revenue | - | 26.68% | 24.03% | 29.06% | 34.06% |
| Gross Profit | 118.88M | 127.28M | 156.05M | 137.3M | 114.83M |
| Gross Margin % | 70.2% | 73.32% | 75.97% | 70.94% | 65.94% |
| Gross Profit Growth % | - | -18.43% | 13.65% | 19.57% | - |
| Operating Expenses | 57.87M | 59.8M | 85.75M | 66.64M | 94.72M |
| OpEx % of Revenue | - | 34.44% | 41.74% | 34.43% | 54.38% |
| Selling, General & Admin | 59.29M | 59.8M | 70.09M | 66.23M | 93.48M |
| SG&A % of Revenue | - | 34.44% | 34.12% | 34.22% | 53.68% |
| Research & Development | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - |
| Other Operating Expenses | 70.77K | 0 | 15.66M | 409.03K | 1.23M |
| Operating Income | 61M | 67.49M | 70.3M | 70.66M | 20.12M |
| Operating Margin % | 36.02% | 38.87% | 34.23% | 36.51% | 11.55% |
| Operating Income Growth % | - | -4.01% | -0.5% | 251.24% | - |
| EBITDA | 63.7M | 70.17M | 74.1M | 82.91M | 26.05M |
| EBITDA Margin % | 37.62% | 40.42% | 36.07% | 42.84% | 14.96% |
| EBITDA Growth % | -13.28% | -5.31% | -10.62% | 218.27% | - |
| D&A (Non-Cash Add-back) | 2.69M | 2.68M | 3.8M | 12.25M | 5.93M |
| EBIT | 68.49M | 82.23M | 73.48M | 73.62M | 23.71M |
| Net Interest Income | -4.55K | 37.73K | -8.36K | 41.46K | 440.94K |
| Interest Income | 264.63K | 198.31K | 19.94K | 86.75K | 472.38K |
| Interest Expense | 269.18K | 160.58K | 28.3K | 45.29K | 31.44K |
| Other Income/Expense | 8.47M | 14.58M | 3.15M | 2.92M | 3.56M |
| Pretax Income | 69.47M | 82.07M | 73.46M | 73.58M | 23.68M |
| Pretax Margin % | 41.02% | 47.27% | 35.76% | 38.02% | 13.59% |
| Income Tax | 28.59M | 31.02M | 26.77M | 35.02M | 18.12M |
| Effective Tax Rate % | 41.15% | 37.8% | 36.44% | 47.59% | 76.55% |
| Net Income | 40.79M | 50.99M | 46.61M | 39.37M | 6.32M |
| Net Margin % | 24.09% | 29.37% | 22.69% | 20.34% | 3.63% |
| Net Income Growth % | -17.36% | 9.38% | 18.4% | 523.44% | - |
| Net Income (Continuing) | 40.88M | 51.05M | 46.69M | 38.56M | 5.55M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 15.04M | 15.02M | -87K | 1.65M | 2.6M |
| EPS (Diluted) | 0.40 | 0.50 | 0.48 | 0.42 | 0.06 |
| EPS Growth % | -21.77% | 4.17% | 14.29% | 569.86% | - |
| EPS (Basic) | - | 0.50 | 0.48 | 0.42 | 0.06 |
| Diluted Shares Outstanding | 102.58M | 103M | 96.56M | 94.19M | 15.07M |
| Basic Shares Outstanding | 102.58M | 103M | 96.56M | 94.19M | 15.07M |
| Dividend Payout Ratio | - | - | - | - | - |
Persistent Revenue Contraction
As indicated by the most recent quarterly filings, SBC has experienced a sustained revenue decline, with the latest period showing a 9.0% year-over-year contraction, following a series of double-digit drops that suggest significant headwinds in the company's core aesthetic medicine management and procurement service model.
The consistent negative growth trajectory across the last several quarters implies that the company's value proposition to franchisees may be losing traction or that the underlying demand for aesthetic procedures in Japan is softening. Investors should monitor whether this trend reflects a structural loss of clinic partners or a cyclical downturn in discretionary consumer spending that limits the volume of managed services.
Based on the reported financial statements, SBC's gross margins have exhibited notable volatility, fluctuating from a high of 81.5% in 2024Q3 down to 69.8% in 2026Q1, which suggests that the company's pricing power or cost of service delivery is currently subject to significant operational instability.
While the high gross margin profile generally points to a software-like service model, the recent compression warrants investigation into whether the company is absorbing higher procurement costs or shifting its service mix toward lower-margin offerings. This margin instability complicates the assessment of the company's long-term profitability potential and suggests that the business model may be more sensitive to input costs than previously assumed.
According to the income statement data, SBC's operating margins have swung wildly between 10.6% and 51.4% over the past two years, demonstrating that the company has yet to achieve a stable level of operating leverage despite its high-margin service-based revenue structure.
The lack of consistent operating margin expansion suggests that SG&A expenses are not scaling efficiently with revenue, potentially due to the fixed costs associated with maintaining a centralized administrative platform. This inconsistency implies that the company's profitability is highly sensitive to fluctuations in top-line performance, making it difficult to forecast future earnings stability.
As reported in recent financial disclosures, net income has experienced extreme quarterly variance, including a sharp drop to $2.5 million in 2025Q2, which highlights the impact of non-operating items and potential accounting adjustments on the company's bottom-line performance for shareholders.
The significant discrepancy between operating income and net income in certain periods suggests that investors should look closely at non-operating expenses or tax anomalies that may be distorting the true economic earnings of the firm. The presence of stock-based compensation in prior periods further complicates the quality of reported earnings, necessitating a cautious approach to evaluating the company's core profitability.
Based on the provided figures, the persistent revenue decline combined with erratic operating margins raises serious questions about the long-term sustainability of the current business model, as the company appears unable to leverage its centralized platform to drive consistent growth in the competitive Japanese aesthetic market.
Short-term observers might argue that the current contraction is merely a cyclical adjustment, but the failure to stabilize revenue suggests deeper structural issues in franchisee retention or service demand. If the company cannot demonstrate a return to growth, the market may increasingly view the high cash reserves as a sign of limited reinvestment opportunities rather than a strategic buffer.
Quick answers to the most common questions about buying SBC stock.
For fiscal year 2025, SBC Medical Group Holdings Incorporated (SBC) reported total revenue of $173.6M. This represents a 0.3% decline compared to $174.2M in 2022.
SBC Medical Group Holdings Incorporated (SBC) is profitable, generating $51.0M in net income for the fiscal year ending 2025 with a net profit margin of 29.4%.
SBC Medical Group Holdings Incorporated (SBC) reported an operating income of $67.5M, resulting in an operating profit margin of 38.9%. This margin reflects the operational efficiency of the business before interest and taxes.
SBC Medical Group Holdings Incorporated (SBC) generated $127.3M in gross profit for the year, representing a gross profit margin of 73.3%. This demonstrates the company's core pricing power and production efficiency.