By Meg Flippin Benzinga

DETROIT, MICHIGAN - August 26, 2025 (NEWMEDIAWIRE) - SBC Medical Group Holdings Inc. (NASDAQ: SBC), the Japanese owner and operator of a chain of cosmetic surgery clinics, continued to execute its strategic strategy shift during the first six months of the year, including expanding the number of franchise locations and visits among customers.

It is part of the company’s efforts to position itself as a leader in the cosmetic surgery market and includes the discontinuation of its staffing business, targeted divestitures to streamline its operations and a revision of its fee structure. While total revenue for the first half of 2025 was down 16% year-over-year to $91 million, and down 18% year-over-year in the second quarter to $43 million, that was due in large part to the restructuring and was expected.

"As anticipated and signaled in our prior guidance, Q2 2025 reflected strategic shifts aimed to position SBC Medical for long-term competitiveness and scalability,” said Yoshiyuki Aikawa, Chairman and Chief Executive Officer of SBC Medical. “We are executing our strategic plan with precision, as evidenced by our network of 259 franchise locations as of June 30, 2025, and 6.31 million visits over the last twelve months, demonstrating a scale that is unmatched in Japan.” Franchise locations were up 16% compared to last year, repeat customer visits grew 14% and unique customer visits were 10% higher. 

A Business In Transition 

Since the start of the year, SBC Medical has been in transformation mode, overhauling its pricing structure and adapting to a changing marketplace. To address competition and cement its leadership position, the company is pursuing two strategies: expanding the market by making aesthetic medicine more accessible and appealing, and differentiating itself from the competition by offering advanced treatments and better pricing while bringing its treatments to the U.S. and Singapore.

During the first half of 2025, SBC Medical reported that it had a high repeat rate of business at its Shonan Beauty clinics in the face of a decline in discretionary spending among Japanese consumers, which it says underscores the brand’s strength. As of the end of the second quarter the repeat rate among existing customers is around 72%, with the average revenue per visit at $279, up 13% year-over-year, reports SBC Medical. 

Despite the environment, the company is continuing with its key initiatives, including the integration of the acquisition of MB Career Lounge Co. Ltd., which the company inked in July. MB Career 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. SBC Medical is also moving ahead with its plans to join JUN CLINIC, a network of medical and aesthetic clinics that has a high average spend per customer, to its network.

“Looking ahead, we remain confident in our strategic roadmap, focused on optimizing our franchise model, capturing growth opportunities, transitioning to higher-margin models, and delivering lasting value to our shareholders,” said Aikawa. The company ended the second quarter with $153 million in cash and cash equivalents, which it said gives it enough firepower and borrowing capacity to fund future growth initiatives. 

Share Buyback Reflects Management’s Confidence

SBC Medical initiated a share buyback in May, which the company indicated it believes has positively impacted its daily trading volume. When SBC Medical announced the share buyback program, it said it would buy up to $5 million worth of shares. The buyback program was completed on July 22. SBC Medical said it launched the program because management believes the stock at the current share price undervalues its business performance, growth potential and its leading position in the aesthetic medical market in Japan. 

Furthermore, at the end of June, SBC Medical was added to the broad-market Russell 3000® Index. Getting included in the index may increase visibility and open the company up to a broader base of investors, and is a nod to the company’s position in the economy.

Revenue and earnings may be down in the first half of 2025, but that is not unexpected as SBC Medical repositions the company for growth. Despite a tough environment, the company is expanding, growing the number of customers and, more importantly, increasing the number of repeat visits. While it may be undergoing some near-term growth challenges, this is a company to watch, especially as the quest for beauty and youth is expected to live on for the decades to come. 

Featured image from Shutterstock.

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This content was originally published on Benzinga. Read further disclosures here.

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