From expanding the number of clinics to setting its sights on new markets, it’s been a busy year for SBC Medical Group Holdings Inc. (NASDAQ:SBC), the Japanese owner and operator of a chain of aesthetic medical clinics. The company made a lot of moves during the year that it says puts it in a position for growth in 2026.
To address competition and keep its leading position in the industry, SBC pursued two strategies: expanding the market by making aesthetic medicine more accessible and differentiating itself from the competition by offering advanced treatments and better pricing.
Those initiatives both paid off, enabling it to expand the number of clinics, boost repeat business and enhance customer loyalty.
Highlights for 2025 included the following:
SBC Medical’s Year Of Change
Armed with all that, SBC Medical spent the year growing, culminating in a third quarter in which the company reported a significant improvement in net profit as it returned to a more typical cost structure in the absence of IPO-related and stock-based compensation expenses.
Getting Wall Street’s Attention
Then there were SBC Medical’s stock buybacks, which it announced in the spring.
Making Buys, Entering New Markets For Growth
As part of the deal, SBC will provide management support to a new clinic focused primarily on dermatological treatments such as pigmentation and spot removal, which BLEZ is preparing to open in Bangkok. SBC said the partnership is a key component of the company’s broader Asia expansion strategy and represents a big step toward entering the growing Thai market.
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- The number of franchise locations is now 258, representing a 15% Y-o-Y increase as of 09/30/2025.
- Revised pricing led to the average revenue per customer increasing 5% in 3Q25, fueled by pricing optimization and adding higher revenue-generating customers through its multi-brand strategy
- New services which SBC expects will strengthen its position and market share within the aesthetic and specialized medical care areas. Clinics in the SBC franchise network have expanded their offerings to encompass a broad range of specialized medical services, including plastic surgery and infertility treatment.
- International expansion to Singapore and Thailand, and in early 2026, announced the first expansion in the U.S.
- Launched a new brand, “Neo Skin Clinic” and “Hada no Aozora Clinic” in Tokyo. Hada no Aozora clinics use a hybrid dermatology model integrating insurance-covered general dermatology and private-pay aesthetic treatments.
- Acquired “MB Career Lounge Co. Ltd.”, which is a privately held provider of management support services for medical institutions, specializing in consulting, training and human resources solutions
- Acquired a related subsidiary of SBC, Waqoo, to help accelerate Waqoo’s R&D and integrate its technologies and expertise to enhance its offerings in clinical areas such as AGA and orthopedics, develop new treatments and services, and strengthen SBC’s competitive position. The companies will also jointly develop and promote skincare products.
- Added to the Russell 3000 Index
This past spring, recognizing it was in a position to capitalize on the fragmented aesthetics market in Japan, SBC Medical made a big push to grow its business, leveraging its established presence in Japan, its years in business and brand name recognition. On top of having the infrastructure to support its growing number of clients, the company’s franchise clinics employed more than 500 licensed doctors who perform these advanced regenerative therapies and treatments throughout Japan, putting it in a good position to grow.
During the third quarter, SBC Medical reported average revenue per visit that was up 5% sequentially to $298, and up 8.4% from Q1 2025. SBC said the higher revenue per visit is due to the overhaul in its pricing strategy, promotions and its efforts to go after more affluent customers. SBC Medical ended the quarter with a repeat rate of 72%. As of the third quarter, the company operates 258 locations, which is up 15% year-over-year.
But it’s not just expanding its clinics and boosting its customer base that kept SBC Medical busy in 2025. The company was also added to the Russell 3000® Index, which meant automatic inclusion in either the large-cap Russell 1000 Index or small-cap Russell 2000 Index, as well as the appropriate growth and value style indexes.
The Russell indexes from global index provider FTSE Russell are widely used by investment managers and institutional investors for index funds and as benchmarks for active investment strategies, with about $18.1 trillion in assets benchmarked against the indexes globally. As of June 2024, in the U.S. alone, about $10.6 trillion in assets are benchmarked against the Russell U.S. indexes, reports SBC Medical Group. Getting included in the index increases visibility and opens SBC Medical Group up to a broader base of investors. That is particularly true among institutional and individual investors who tend to invest in index funds and ETFs that track the Russell indexes.
Underscoring its confidence in its growth plan, it announced plans to buy up to $5 million worth of shares. SBC Medical said it launched the program because it believed the stock price undervalued the business performance, growth potential and the aesthetic medical market, including SBC Medical’s position. The global cosmetic surgery and procedure market was worth $122.08 billion in 2022, and it is expected to grow at a CAGR of 14.7% from 2023 to 2030.
The company also started the year with $125 million in cash, some of which it used to make acquisitions and lay the groundwork to expand into new markets. During the year, it acquired MB Career Lounge Co. Ltd., which is a privately held provider of management support services for medical institutions, specializing in consulting, training and human resources solutions in Japan. MB Career was acquired to enhance SBC Medical’s management support services. It also joined JUN CLINIC, a network of medical and aesthetic clinics that has a high average spend per customer, to its network. By adding JUN CLINIC to its network, SBC can offer customized treatments, which it can charge more for.
To capitalize on cosmetic tourism, SBC is actively targeting Chinese consumers who are increasingly visiting Japan for cosmetic procedures. These Chinese consumers are drawn to Japan due to its reputation for advanced techniques, qualified medical staff and high-end customer experiences. To make SBC’s clinics more friendly to Chinese customers, SBC has been beefing up its staff of Chinese-speaking customer service reps and interpreters, disseminating information about its service on Chinese social media platforms and developing an app for the country. SBC is also holding events and seminars in Shanghai aimed at courting new customers.
In Singapore, SBC is expanding its collaboration with Aesthetic Healthcare Holdings Pte. Ltd., which operates multiple brands in the medical aesthetics, beauty and anti-aging industry within Singapore. SBC acquired Aesthetic Healthcare in 2024. Most recently, SBC set its sights on Thailand, inking an e-consulting agreement with BLEZ ASIA Co. Ltd. BLEZ ASIA operates more than 20 pharmacies and clinics in Thailand, and according to SBC, is widely trusted by both Japanese expatriates and local patients.
The aesthetics and cosmetic medical market in Japan is heating up as well-heeled Chinese and other Asian consumers come to Japan for their advanced cosmetic treatments and surgeries and SBC Medical is standing ready to treat them. Last year was about better positioning itself. This year is about capitalizing on all that demand. To learn more about how SBC Medical is doing that, click here.
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