Third Quarter 2025 Highlights
- Total revenues were $43 million, representing an 18% year-over-year decrease.
- Income from operations was $16 million, representing a 15% year-over-year increase.
- Net Income attributable to SBC Medical Group was $13 million , representing an 353% year-over-year increase.
- Earnings per share, which is defined as net income attributable to the Company divided by the weighted average number of outstanding shares, was $0.12 for the three months ended September 30, 2025, compared to $0.03 in the same period of 2024.
- EBITDA1, which is calculated by adding depreciation and amortization expense and impairment loss to income from operations was $17 million, representing a 12% year-over-year increase. EBITDA margin1 was 38% for the third quarter of 2025, compared to 28% for third quarter of 2024.
- Return on equity, which is defined as net income attributable to the Company divided by the average shareholder’s equity as of September 30, 2025, was 23% representing a year-over-year increase of 17 percentage points.
- Number of Franchise Locations2 was 258 as of September 30, 2025, representing an increase of 34 locations from September 30, 2024.
- Number of customers3 in the last twelve months ended September 30, 2025, was 6.5 million, representing a 14% year-over-year increase.
- Repeat rate for customers4 who visited franchisee’s clinics twice or more was 72%.
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1 EBITDA and EBITDA Margin are non-GAAP financial measures. For more information on non-GAAP financial measures, please see the section “Use of Non-GAAP Financial Measures” and the table captioned “Unaudited Reconciliations of GAAP and Non-GAAP Results.” |
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2 The figures take into accounts of the franchising of SBC brand clinics, Rize Clinic, Gorilla Clinic, AHH, JUN CLINIC |
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3 The customer count includes customers of SBC brand clinics, Rize Clinic, Gorilla Clinic, AHH Clinic, and JUN CLINIC. The applicable periods are from October 1, 2024, to September 30, 2025. |
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4 The figures include franchising of SBC brand clinics, Rize Clinic, and Gorilla Clinic, but does not take account of customers of AHH clinics and JUN CLINIC excluding free counseling. The percentage of customers who visited our franchisee’s clinics twice or more. |
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- Total revenues were $134 million, representing a 17% year-over-year decrease.
- Income from operations was $55 million, representing a 17% year-over-year decrease.
- Net Income attributable to SBC Medical Group was $37 million, representing a 8% year-over-year decrease.
- Earnings per share, which is defined as net income attributable to the Company divided by the weighted average number of outstanding shares, was $0.36 for the nine months ended September 30, 2025, compared to $0.42 in the same period of 2024.
- EBITDA1, which is calculated by adding depreciation and amortization expense and impairment loss to income from operations was $57 million, representing a 17% year-over-year decrease. EBITDA margin was 42% for the first nine months of 2025, compared to 43% for the same period in 2024.
Profitability improved significantly during the quarter. Income from operations increased by 15% year over year, net profit rose by 353%, and income from operations margin strengthened to 37%. These improvements were mainly driven by the absence of IPO-related and stock-based compensation expenses recorded in the prior year, indicating that our cost structure is normalizing toward a sustainable level.
Looking ahead, we will continue to pursue sustainable growth toward 2026 by focusing on delivering high-quality solutions, advancing multi-brand initiatives in the dermatology segment, and building a stronger business foundation in overseas markets.”
Third Quarter 2025 Financial Results
Total revenues were $43 million, representing a decrease of 18% year-over-year. The decrease was primarily driven by a revised fee structure for clinic services that reduced franchising revenue, combined with decreased procurement revenue due to reduced orders for medical materials and lower management services revenue due to the discontinuation of clinic operation staff supporting services.
Net income attributable to SBC Medical Group for the three months ended September 30, 2025 was $13 million, compared to $3 million in the same period of 2024. The increase was primarily due to substantially lower operating expenses due to the absence of stock-based compensation costs related to the prior year's listing process and reduced income tax expense from the absence of non-deductible stock-based compensation.
EBITDA1 was $17 million, an increase of 12% , primarily due to the lower operating expenses offsetting the decrease in revenue from the termination of staffing services, deconsolidation of Kijimadairakanko Inc. and Skynet Academy Co., Ltd., and fee structure revision.
Conference Call
The Company will hold a conference call on Monday, November 17, 2025 at 5 pm Eastern Time (or Monday, November 18, 2025 at 7 am Japan Time) to discuss the financial results and take questions live.
Please register in advance of the conference using the link provided below.
https://edge.media-server.com/mmc/p/e2znwqtx/
It will automatically direct you to the registration page of “Q3 2025 Financial Results”. Please follow the steps to enter your registration details, then click “Submit.”. Upon registration, you will be able to access the dedicated Conference Call viewing site. In addition to viewing the conference call, this site provides access to information about the speakers as well as past investor relations materials.
Starting 10 minutes before the conference call begins, you will be able to view the earnings presentation materials on the site. The materials will also be available for download.
A replay of the conference call will be accessible until November 17, 2026.
Additionally, the earnings release, accompanying slides, and an archived webcast of this conference call will be available at the Company’s Investor Relations website at https://ir.sbc-holdings.com/
About SBC Medical
SBC Medical Group Holdings Incorporated is a comprehensive medical group operating a wide range of franchise businesses across diverse medical fields, including advanced aesthetic medicine, dermatology, orthopedics, fertility treatment, dentistry, AGA (hair restoration), and ophthalmology. The Company manages a diverse portfolio of clinic brands and is actively expanding its global presence, particularly in the United States and Asia, through both direct operations and medical tourism initiatives.
In September 2024, the Company was listed on Nasdaq, and in June 2025, it was selected for inclusion in the Russell 3000® Index, a broad benchmark of the U.S. equity market. Guided by its Group Purpose “Contributing to the well-being of people around the world through medical innovation,” SBC Medical Group Holdings Incorporated continues to provide safe, trusted, and high-quality medical services while steadily expanding its global network.
For more information, visit https://sbc-holdings.com/
Use of Non-GAAP Financial Measures
The Company uses non-GAAP measures, such as EBITDA and EBITDA margin, in evaluating its operating results and for financial and operational decision-making purposes. The Company believes that the non-GAAP financial measures help identify underlying trends in its business. The Company believes that the non-GAAP financial measures provide useful information about the Company’s results of operations, enhance the overall understanding of the Company’s past performance and future prospects and allow for greater visibility with respect to key metrics used by the Company’s management in its financial and operational decision-making.
The non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. The non-GAAP financial measures have limitations as analytical tools, and when assessing the Company’s operating performance, cash flows or liquidity, investors should not consider them in isolation, or as a substitute for net loss, cash flows provided by operating activities or other consolidated statements of operations and cash flows data prepared in accordance with U.S. GAAP.
The Company mitigates these limitations by reconciling the non-GAAP financial measures to the most comparable U.S. GAAP performance measures, all of which should be considered when evaluating the Company’s performance.
For more information on the non-GAAP financial measures, please see the table captioned “Unaudited Reconciliations of GAAP and Non-GAAP Results.”
Forward Looking Statements
This press release contains forward-looking statements. Forward-looking statements are not historical facts or statements of current conditions, but instead represent only the Company’s beliefs regarding future events and performance, many of which, by their nature, are inherently uncertain and outside of the Company’s control. These forward-looking statements reflect the Company’s current views with respect to, among other things, the Company’s financial performance; growth in revenue and earnings; business prospects and opportunities; and capital deployment plans and liquidity. In some cases, forward-looking statements can be identified by the use of words such as “may,” “should,” “expects,” “anticipates,” “contemplates,” “estimates,” “believes,” “plans,” “projected,” “predicts,” “potential,” or “hopes” or the negative of these or similar terms. The Company cautions readers not to place undue reliance upon any forward-looking statements, which are current only as of the date of this release and are subject to various risks, uncertainties, assumptions, or changes in circumstances that are difficult to predict or quantify. The forward-looking statements are based on management’s current expectations and are not guarantees of future performance. The Company does not undertake or accept any obligation to release publicly any updates or revisions to any forward-looking statements to reflect any change in its expectations or any change in events, conditions, or circumstances on which any such statement is based, except as required by law. Factors that may cause actual results to differ materially from current expectations may emerge from time to time, and it is not possible for the Company to predict all of them; such factors include, among other things, changes in global, regional, or local economic, business, competitive, market and regulatory conditions, and those listed under the heading “Risk Factors” and elsewhere in the Company’s filings with the U.S. Securities and Exchange Commission (the “SEC”), which are accessible on the SEC’s website at www.sec.gov.
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SBC MEDICAL GROUP HOLDINGS INCORPORATED UNAUDITED CONSOLIDATED BALANCE SHEETS |
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September 30, 2025 |
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December 31, 2024 |
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ASSETS |
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Current assets: |
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Cash and cash equivalents |
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$ |
127,431,318 |
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$ |
125,044,092 |
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Accounts receivable |
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2,609,108 |
|
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1,413,433 |
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Accounts receivable – related parties |
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58,585,273 |
|
|
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28,846,680 |
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Inventories |
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1,677,668 |
|
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1,494,891 |
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Finance lease receivables, current – related parties |
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9,757,901 |
|
|
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5,992,585 |
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Income tax recoverable |
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841,677 |
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— |
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Customer loans receivable, current |
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11,593,195 |
|
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|
10,382,537 |
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Prepaid expenses and other current assets |
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14,707,082 |
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11,276,802 |
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Total current assets |
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227,203,222 |
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184,451,020 |
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Non-current assets: |
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Property and equipment, net |
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6,995,263 |
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8,771,902 |
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Intangible assets, net |
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23,302,796 |
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1,590,052 |
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Long-term investments, net |
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4,608,439 |
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3,049,972 |
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Goodwill, net |
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4,924,699 |
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4,613,784 |
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Cryptocurrencies |
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570,286 |
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|
— |
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Finance lease receivables, non-current – related parties |
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14,709,715 |
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8,397,582 |
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Operating lease right-of-use assets |
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4,886,486 |
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5,267,056 |
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Finance lease right-of-use assets |
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478,742 |
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|
— |
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Deferred tax assets |
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607,731 |
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|
9,798,071 |
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Customer loans receivable, non-current |
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6,553,611 |
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|
5,023,551 |
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Long-term prepayments |
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396,242 |
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1,745,801 |
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Long-term investments in MCs – related parties |
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18,869,390 |
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17,820,910 |
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Other assets |
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7,256,463 |
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15,553,453 |
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Total non-current assets |
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94,159,863 |
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81,632,134 |
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Total assets |
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$ |
321,363,085 |
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$ |
266,083,154 |
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LIABILITIES AND STOCKHOLDERS’ EQUITY |
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Current liabilities: |
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Accounts payable |
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$ |
17,258,372 |
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$ |
13,875,179 |
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Accounts payable – related parties |
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2,842,877 |
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|
659,044 |
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Current portion of long-term loans |
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3,044,470 |
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|
96,824 |
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Notes and other payables, current – related parties |
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1,637,370 |
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|
26,255 |
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Advances from customers |
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1,030,416 |
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|
820,898 |
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Advances from customers – related parties |
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6,957,477 |
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11,739,533 |
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Income tax payable |
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766,796 |
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|
18,705,851 |
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Operating lease liabilities, current |
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3,545,667 |
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|
4,341,522 |
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Finance lease liabilities, current |
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147,603 |
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— |
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Accrued liabilities and other current liabilities |
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4,561,978 |
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|
8,103,194 |
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Due to related party |
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2,791,808 |
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2,823,590 |
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Total current liabilities |
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44,584,834 |
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61,191,890 |
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Non-current liabilities: |
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|
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Long-term loans |
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18,078,324 |
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|
6,502,682 |
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Notes and other payables, non-current – related parties |
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— |
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|
5,334 |
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Deferred tax liabilities |
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|
7,769,090 |
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|
|
926,023 |
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Operating lease liabilities, non-current |
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|
1,564,370 |
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|
1,241,526 |
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Finance lease liabilities, non-current |
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|
136,677 |
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|
— |
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Other liabilities |
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|
1,170,589 |
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|
1,193,541 |
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Total non-current liabilities |
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28,719,050 |
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|
|
9,869,106 |
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Total liabilities |
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73,303,884 |
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|
71,060,996 |
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Stockholders’ equity: |
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Preferred stock ($0.0001 par value, 20,000,000 shares authorized; no shares issued and outstanding as of September 30, 2025 and December 31, 2024) |
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— |
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— |
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Common stock ($0.0001 par value, 400,000,000 shares authorized, 103,881,251 and 103,020,816 shares issued, 102,576,943 and 102,750,816 shares outstanding as of September 30, 2025 and December 31, 2024, respectively) |
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10,388 |
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10,302 |
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Additional paid-in capital |
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72,196,114 |
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|
62,513,923 |
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Treasury stock (at cost, 1,304,308 and 270,000 shares as of September 30, 2025 and December 31, 2024, respectively) |
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(7,749,997 |
) |
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(2,700,000 |
) |
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Retained earnings |
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226,248,329 |
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189,463,007 |
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Accumulated other comprehensive loss |
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(42,716,542 |
) |
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(54,178,075 |
) |
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Total SBC Medical Group Holdings Incorporated stockholders’ equity |
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247,988,292 |
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195,109,157 |
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Non-controlling interests |
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70,909 |
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(86,999 |
) |
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Total stockholders’ equity |
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248,059,201 |
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|
195,022,158 |
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Total liabilities and stockholders’ equity |
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$ |
321,363,085 |
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$ |
266,083,154 |
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The accompanying notes are an integral part of these unaudited consolidated financial statements. |
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SBC MEDICAL GROUP HOLDINGS INCORPORATED UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME |
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For the Three Months Ended September 30, |
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For the Nine Months Ended September 30, |
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2025 |
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2024 |
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2025 |
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2024 |
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Revenues, net – related parties |
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$ |
39,617,548 |
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$ |
51,209,243 |
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$ |
123,819,591 |
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$ |
152,718,488 |
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Revenues, net |
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|
3,735,687 |
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|
|
1,875,640 |
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|
10,221,192 |
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|
8,276,517 |
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Total revenues, net |
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43,353,235 |
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|
53,084,883 |
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|
134,040,783 |
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|
160,995,005 |
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Cost of revenues (including cost of revenues from related parties of $4,018,377 and $2,039,492 for the three months ended September 30, 2025 and 2024, and $12,144,907 and $7,452,954 for the nine months ended September 30, 2025 and 2024, respectively) |
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12,741,748 |
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9,845,793 |
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35,685,635 |
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38,816,865 |
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Gross profit |
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30,611,487 |
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|
43,239,090 |
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|
98,355,148 |
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122,178,140 |
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Operating expenses: |
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Selling, general and administrative expenses (including selling, general and administrative expenses from related parties of $154,063 and nil for the three months ended September 30, 2025 and 2024, and $569,830 and nil for the nine months ended September 30, 2025 and 2024, respectively) |
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14,730,247 |
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16,597,032 |
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