SBC Medical Group Holdings Inc. reported significant progress in its strategic transformation during the first half of 2025, with franchise locations increasing 16% year-over-year to 259 clinics and repeat customer visits growing 14%. The company's restructuring efforts, which included discontinuing its staffing business and revising fee structures, contributed to an expected 16% decline in total revenue to $91 million for the six-month period.
Chairman and CEO Yoshiyuki Aikawa stated that the second quarter results reflected planned strategic shifts aimed at positioning the company for long-term competitiveness and scalability. The network recorded 6.31 million visits over the last twelve months, demonstrating what management describes as unmatched scale in Japan's cosmetic surgery market. Despite challenging market conditions and reduced discretionary spending among Japanese consumers, SBC Medical maintained a 72% repeat rate among existing customers at its Shonan Beauty clinics.
The company's transformation strategy focuses on two key approaches: expanding market accessibility for aesthetic medicine and differentiating through advanced treatments and competitive pricing. SBC Medical is also expanding internationally, bringing its treatments to the U.S. and Singapore markets. The average revenue per visit increased 13% year-over-year to $279, indicating success in transitioning to higher-margin business models.
Recent strategic moves include the acquisition of MB Career Lounge Co. Ltd., a provider of management support services for medical institutions, to enhance SBC Medical's operational capabilities. The company also plans to integrate JUN CLINIC, a network known for high customer spending, into its existing operations. These initiatives are supported by $153 million in cash and cash equivalents as of quarter-end, providing financial flexibility for future growth investments.
Management demonstrated confidence in the company's valuation through a completed share buyback program that repurchased $5 million worth of shares between May and July 22, 2025. The company believes this program positively impacted trading volume and reflected management's view that the stock undervalued business performance and growth potential. Additionally, SBC Medical's inclusion in the Russell 3000® Index at the end of June may increase investor visibility and broaden the shareholder base.
While facing near-term revenue challenges due to restructuring, SBC Medical's expansion of franchise locations, growing customer base, and increasing repeat visitation rates position the company to capitalize on sustained demand for cosmetic procedures in aging populations. The strategic shifts appear designed to strengthen the company's leadership position in Japan's aesthetic medical market while expanding internationally through targeted acquisitions and partnerships.


