SBC Medical Group Holdings (SBC) Noble Capital Markets June 2026 Emerging Growth Virtual Equity Conference summary

Business model and operations

• Operates as a Medical Services Organization, centrally managing marketing, procurement, technology, hiring, and training for clinics, enabling scalability and efficiency.

• Portfolio includes over 20 brands across aesthetic and general healthcare, serving 6.7 million customers annually through 284 clinics, mainly in Japan.

• Multi-brand strategy allows targeting diverse patient needs and encourages long-term relationships as patients move between brands.

• High repeat rate of 72% and average customer visits of three times per year, supporting strong customer lifetime value.

• Standardized clinic management and operational model support both cash pay and reimbursed care, with strengths in marketing and scalability.

Financial performance and fee structure

• Q1 2026 revenue was $43 million, a 9% year-over-year decline due to a fee structure revision that reduced franchising and management services revenue by $8.7 million.

• Excluding the fee structure revision and consolidation period adjustments, underlying revenue grew 11% and EBITDA increased 17% year-over-year.

• Fee structure was revised to support smaller and new clinics, shifting from a flat to a variable model, improving clinic sustainability and long-term growth.

• Average revenue per visit increased by 11%, driven by optimized pricing, improved treatment mix, and a shift toward recurring aesthetic dermatology services.

• Same clinic revenue grew 6% in Q1 2026, with growth supported by both increased customer volume and higher average sales price.

Strategic initiatives and growth plans

• Four key initiatives: longevity-focused wellness programs, expanding operational capabilities into broader healthcare, disciplined global expansion, and AI-driven efficiency.

• SBC Wellness 2.0 targets the emerging longevity market, especially through corporate channels, aiming to be a market leader in Japan.

• International expansion is selective, with partnerships in the U.S. (OrangeTwist) and Southeast Asia, while Japan remains the core market.

• AI tools leverage 26 years of data to automate bookings, marketing, staff support, and patient communications, enhancing both growth and efficiency.

• Management emphasizes continued focus on Japan for near-term growth, with global expansion as a long-term opportunity.