SBC Medical Revenue Growth Accelerates After Fee Reforms

The Tip Desk · November 13, 2026 · 2 min read

Third-quarter revenue reached $59 million, up 35% year-over-year, as Adjusted EBITDA margin expanded to 47%.

SBC Medical Group Holdings Incorporated (SBC), a Medical Services Organization providing management support to medical institutions in Japan and abroad, reported third-quarter revenue of $59 million, up 35% year-over-year, after a 13% year-over-year increase in the prior quarter.

The company said the acceleration reflected higher management services revenue, including service-fee structure revisions announced in August, and the consolidation of Waqoo. Chairman and Chief Executive Officer Yoshiyuki Aikawa described the quarter as a “strong reacceleration” in growth following structural reforms implemented in 2025.

Income from operations was $26 million, up 66% year-over-year, with an operating margin of 45%. Adjusted EBITDA was $28 million, up 66% year-over-year, and the Adjusted EBITDA margin expanded 9 percentage points year-over-year to 47%.

Net income attributable to SBC Medical was $16 million, up 22% year-over-year. The net income margin was 27%, a decrease of 3 percentage points year-over-year. Basic earnings were $0.15 a share, up 25% year-over-year.

The clinic network had increased by 36 locations year-over-year to 293 as of September 30, 2026. Patient visits over the trailing twelve months totaled 7.06 million, up 9% year-over-year. Average spend per visit was $290, up 4% year-over-year.

Aikawa said MSO revenue growth is supported by expanding the clinic network and increasing service fees per clinic, and that the company is developing a proprietary local large language model and advancing clinic operating systems through an alliance with Atomic Software. He said the company is also developing an in-house DNA methylation-based test to estimate biological age using Waqoo Group research.

For the nine months ended September 30, 2026, total revenues were $151 million, up 13% year-over-year. Net income attributable to SBC Medical was $38 million, up 2% year-over-year. Adjusted EBITDA was $66 million, up 17% year-over-year, and the Adjusted EBITDA margin was 44%. Basic EPS was $0.37.

Net cash provided by operating activities totaled $50 million for those nine months. Cash and cash equivalents were $198 million as of September 30, 2026, with Net Cash of $154 million. Aikawa said the company intends to deploy that financial position toward disciplined growth investment, with the goal of sustaining EPS growth over the medium- to long-term.