SBC Medical Group Holdings Inc (SBC) 2025 Q4 法說會逐字稿

Good day, everyone, and thank you for joining SBC Medical Group Holdings Conference Call. My name is Yoshiyuki Aikawa, CEO of SBC Medical Group Holdings. Today, I will walk you through our performance for the fourth quarter and full year of fiscal 2025, followed by an update on our business strategy and capital policy.

Let me begin with highlights from our clinic operations. As of the end of December 2025, we were operating 283 locations, and the number of customers served over the trailing 12 months reached 6.63 million. While same-store sales were slightly below the prior year, total clinic revenue for the full year reached $1,163 million, representing 2% year-over-year growth.

Most encouragingly, average revenue per customer, which had been on a declining trend, rebounded significantly in the fourth quarter, reaching $316, an 11% increase year-over-year. We are now seeing both customer growth and improving unit economics moving in the same direction, which we view as a meaningful positive for the business going forward.

Turning to the charts, average revenue per visit has been recovering steadily on a quarterly basis, and total clinic revenue has begun to reflect that same upward trajectory. We are seeing genuine momentum in the underlying trend, and if this continues, we believe it will mark an important inflection point for the company's long-term growth.

Next, let me highlight key developments across our business in fiscal 2025. In our domestic core operations, we made meaningful progress on several fronts. Recovery in customer spending, continued expansion of our dermatology customer base, the establishment of the largest AGA hair loss treatment network in Japan, and further expansion in orthopedics and fertility treatment.

We also strengthened our domestic platform through a series of additions. The opening of Neo Skin Clinic and Hada no Aozora Clinic, the joining of JUN CLINIC, and the consolidation of Waku through a tender offer. These developments further expand our long-term growth foundation. Internationally, while still in the early stages, we made concrete progress by making a strategic investment in Orange Twist in the United States and forming a partnership with Blez in Thailand, our first tangible steps toward a broader global presence.

Moving on to our financial highlights. Let me walk you through our full-year 2025 performance. Full-year revenue came in at $174 million, a decrease of 15% from the prior year. This was primarily driven by the business restructuring initiatives we undertook throughout 2024, as well as the impact of the fee structure changes implemented in April 2025.

Net income attributable to our shareholders, however, grew 9% year-over-year to $51 million, and EPS increased 4% to $0.50. The key driver behind this improvement is straightforward. In the prior year, we incurred significant one-time costs associated with our listing process and asset revaluations. Those costs did not recur this year, bringing our cost structure back to a normalized level.

EBITDA was $70 million, with an EBITDA margin of 40.4%. We continue to maintain a strong level of profitability, and we believe the underlying earnings power of our business remains healthy. In summary, while revenue reflected the impact of our structural transition, our cost structure has normalized and our profitability metrics have improved. That is the defining story of fiscal year 2025.

Let me now turn to our strategy. Our core strategic pillars remain unchanged: aesthetic dermatology, non-aesthetic healthcare, and global expansion. We are however, introducing two unifying themes across these pillars, longevity and AI-driven healthcare.

Our goal is to build a healthcare platform that supports people in living longer, healthier, and more vibrant lives, bringing together aesthetic medicine and broader healthcare services under one roof. To execute on our longevity strategy. We are launching SBC Wellness 2.0, an upgraded corporate wellness platform in Japan.

Inspired by leading models in the United States, this platform will integrate biomarker analysis, AI-powered body diagnostics, personalized AI recommendations, and continuous health coaching. By offering this through corporate benefits programs, we can scale our customer base efficiently while keeping marketing costs low.

Our goal is to create an entirely new category of performance medicine. This initiative positions us to establish early leadership in Japan's emerging longevity market. The model combines recurring subscription revenue with high-margin individual medical services, while the accumulation of medical data and evidence will further sharpen our AI capabilities over time.

With our nationwide clinic network and breadth of medical services, SBC is uniquely placed to deliver a truly comprehensive platform in this space. In dermatology. Our multi-brand strategy is becoming increasingly important. As customer needs grow more segmented, no single brand can capture the full range of demand. By positioning multiple brands across different customer profiles and enabling referrals within the group, we can maximize lifetime value per customer.

We also believe that formats such as Neo Skin Clinic, which focus on aesthetic dermatology, have relatively low cultural dependency, making them well-suited for future international expansion. Our newer brands are off to a strong start.

Neo Skin Clinic is building revenue steadily in the premium segment, while JUN CLINICis attracting highly beauty-conscious customers. Through targeted segmentation and thoughtful brand positioning, we aim to capture demand across multiple customer profiles and continue expanding horizontally.

Expanding into non-aesthetic healthcare is a key strategy for both revenue diversification and long-term growth. Our competitive edge here draws directly on capabilities developed in aesthetic medicine, advanced marketing and CRM, standardized clinic operations, and service models that integrate both private pay and insurance-based care.

We intend to apply these strengths across additional medical fields. Our AGA hair loss treatment network has grown to become one of the largest in Japan. We are also expanding in orthopedics and fertility treatment, with new clinics opening in both areas.

Going forward, we will accelerate growth through a combination of organic expansion and targeted M&A, focusing on fields where our operational strengths can deliver the greatest impact. Our global expansion strategy starts from a stable and profitable domestic base in Japan.

From there, we are focused on building a strong operating platform in the United States and exploring regional expansion and B2B healthcare opportunities across Asia. Our approach is deliberate. Partner with trusted local operators, identify winning models in each market, and scale selectively from there. In the United States, we are growing our med-spa business through our strategic investment in Orange Twist.

By combining SBC's high-efficiency clinic model with Orange Twist's premium experience and strong local management, we aim to accelerate new clinic openings and expand into longevity-related services. Longer-term. We also see opportunities to bring successful models back to Japan and other Asian markets. In Southeast Asia, we will leverage Japan's geographic proximity and strong brand recognition.

Given a market structure dominated by smaller clinics, we see significant B2B healthcare opportunities in product distribution, service partnerships, and beyond. We will evaluate opportunities country by country and scale where we find a clear competitive edge.

AI is a foundational pillar supporting both growth and efficiency across the organization. By converting our extensive clinical, customer, and operational data into AI learning assets, we aim to build a competitive mode that is genuinely difficult to replicate.

AI will enable more precise recommendations, a better customer experience, and a more efficient operating model. We are deploying AI across multiple areas, automated booking and inquiry handling. AI-assisted counseling, 24-hour AI concierge services, and optimization of headquarters functions. By redesigning the customer journey end-to-end, we aim to drive revenue growth while improving scalability and reducing structural costs.

Finally, let me touch on our capital allocation policy. Our fundamental approach is to prioritize growth investments, both domestically and internationally, as the foundation of everything we do, while maximizing shareholder value. Within that framework, we will also address liquidity improvements and shareholder returns as important complementary themes, evaluating them with flexibility and disclosing updates in a timely and transparent manner. Thank you very much for your attention.