SBC Medical Q1 2026 Shows Underlying Growth Reaccelerating

As structural headwinds from last year’s fee restructuring clear, SBC Medical’s underlying growth profile is becoming more visible.

For the three months ended March 31, 2026, SBC Medical Group Holdings Incorporated (Nasdaq: SBC) reported revenue of $43.1 million and net income attributable to the Company of $11.3 million. Reported revenue declined 9% year-over-year, reflecting the April 2025 franchise fee revision that is now cycling out of the comparable base. Adjusted for those items, the underlying business grew.

On the May 14 earnings call, management quantified the underlying picture directly. The prior-year quarter included an $8.7 million one-time gain on the redemption of life insurance policies, which inflated Q1 2025 net income. Excluding the fee structure revision impact of approximately $8.7 million, underlying revenue grew roughly 11% year-over-year. Underlying EBITDA grew approximately 17%. Earnings per share was $0.11 for Q 1 2026, representing a 4% decrease.

That is the inflection.

It is also the second consecutive quarter of constructive operating data. Q4 2025 showed the first signal in average revenue per customer, which began recovering before the structural items had fully cycled. Q1 now adds underlying revenue and underlying EBITDA growth to that pattern.

Watch the full Q1 2026 earnings call presentation: https://youtu.be/AusV0Q_slaE?si=yQMGtX8-dAZIRFNl

The Operating Scorecard

The franchise network continued to expand. SBC ended Q1 with 284 franchise locations, an increase of 33 from a year earlier. Last-twelve-month customer count reached 6.76 million, up 10%. The repeat rate held at 72%. Reported EBITDA was $18.4 million at a 43% margin, in line with the full-year 2025 run-rate management has characterized as sustainable.

On the call, Chief Financial Officer Yuya Yoshida noted that the competitive environment in Japanese aesthetics has eased, average revenue per customer is recovering, and non-aesthetic verticals including AGA and dentistry are contributing growth. The Company closed the quarter with $167.3 million in cash and cash equivalents, providing dry powder for both the OrangeTwist partnership and longevity-related pilots.

OrangeTwist: From Framework to Workstreams

The most material new disclosure on the Q1 call concerned the OrangeTwist partnership. SBC’s January 2026 minority investment established the structural framework. The Q1 update defined the operational content.

Importantly, SBC is pursuing an asset-light entry into the U.S. market by embedding its operating playbook into OrangeTwist’s existing 24-location platform rather than pursuing a capital-intensive build-out. Management identified three active workstreams.

Marketing support. SBC sees room to improve customer acquisition, retention, and brand execution across the OrangeTwist footprint, drawing on SBC’s expertise in clinic-level marketing operations at scale.

AI implementation. Management flagged unit-cost improvement as a near-term opportunity, leveraging the AI infrastructure SBC began building in March under its new CTO.

Longevity proof of concept. SBC plans to pilot longevity treatment offerings at selected OrangeTwist MedSpa locations. For investors, the near-term revenue contribution is secondary. The primary value lies in testing whether SBC’s clinic optimization model can extend into higher-value wellness and preventative care categories. Success would expand the platform’s addressable market. Downside is structurally contained given the minority-stake form of the investment.

What Q2 Will Show

The April 2025 fee revision will fully exit the year-over-year comparable in Q2 2026. From that print forward, reported and underlying numbers should track each other more closely, and investors will be able to evaluate SBC without the noise from last year’s restructuring.

Three items will define how the next two quarters are read: whether the underlying growth rates SBC printed in Q1 hold up on cleaner comps, whether the OrangeTwist workstreams produce visible location-level KPIs, and whether the longevity pilot moves from concept to revenue contribution.

After completing the franchise economics reset, SBC enters the second half of 2026 with normalized comparables, a defined U.S. operating partnership via OrangeTwist, and an early longevity vector that could broaden the platform beyond traditional aesthetics.