This article first appeared on GuruFocus .
Release Date: August 13, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Profit growth outpaced revenue growth, with adjusted EBITDA up 32% year-over-year and margin at 41%.
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Clinic network expanded to 287 locations, up 34 year-over-year, with annual customer visits up 10%.
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Same-clinic revenue grew 6% and average spend per visit rose 9%, indicating strong organic growth.
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AI-driven initiatives are enhancing operational efficiency and customer experience, with expected annual fee increases of about $15 million.
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Global expansion is progressing, including a minority stake in OrangeTwist in the U.S. and a new asset-light model in Thailand.
Negative Points
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A weaker yen negatively impacted reported results, as most business is conducted in yen.
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Non-aesthetic business remains a small portion of the mix (16%), limiting near-term diversification.
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The company's recognition in U.S. capital markets is still limited, potentially affecting valuation.
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Dependence on M&A for growth in non-aesthetic and global segments carries execution risks.
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Raising service fees in stages may face resistance from medical corporations, impacting future revenue growth.
Q & A Highlights
Q: What were the key financial highlights for the second quarter of 2026, and how did the company perform despite currency headwinds? A: Yoshiyuki Aikawa, Chairman and CEO, reported that Q2 revenue reached $49 million, up 13% year-over-year, while adjusted EBITDA grew 32% to $20 million, with a margin of 41%. He emphasized that profit growth outpaced revenue growth despite the headwind of a weaker yen, driven primarily by higher management services revenue from the expanded points business and revised service fees.
Q: Can you provide an update on the clinic network expansion and customer traffic metrics? A: The CEO stated that as of the end of June 2026, the company operated 287 locations, an increase of 34 year-over-year. The annual number of customer visits over the trailing 12 months reached 6.92 million, up 10%. Year-to-date clinic revenue rose 11%, with same-clinic revenue up 6% and average spend per visit increasing 9% in the quarter.
Q: What is the company's strategy for accelerating growth in its aesthetic dermatology business? A: Mr. Aikawa detailed a multi-brand strategy to capture diverse customer needs. This includes renaming Shonan Aesthetic Dermatology to SBC Skin Clinic to lower the barrier for basic treatments, adding locations for high-value brands like NEO Skin Clinic and JUN CLINIC, and launching two new formats: THE LASER for large-scale hair removal and SBC MEN'S FLASH for men's beard removal. First-half transaction value grew 19% year-over-year.
Q: How is the company progressing with its expansion into non-aesthetic health care? A: The CEO identified non-aesthetic health care as the second growth engine, noting that the transaction value mix is still roughly 84% aesthetic and 16% non-aesthetic, indicating significant upside. To drive this, a dedicated team was established in June 2026, led by Naoya Fujimoto, to sharpen clinic operations and use M&A to expand the number of locations.
Q: What are the key elements of the company's global expansion strategy, particularly in the United States and Southeast Asia? A: In the U.S., SBC is advancing its collaboration with OrangeTwist, a minority stake investment, sharing operating know-how and expanding the service menu. In Southeast Asia, the company is exporting an asset-light "powered by SBC" model, starting with BLEZ CLINIC in Thailand, where local partners provide capital and operations while SBC supplies procurement, standardization, and training for recurring fees, aiming for high ROIC expansion.
Q: How is AI being leveraged to strengthen the company's competitive advantage and support growth? A: Mr. Aikawa explained that AI is a foundational strategy supporting growth and efficiency. Deployed AI tools include a chatbot for round-the-clock inquiries, an AI interpreter called Talk Bridge, and a marketing AI. Future releases include a call center AI. Additionally, a site candidate recommendation AI and a knowledge-sharing AI are being used to speed up network expansion and improve the repeatability of new openings.
Q: Can you elaborate on the expected financial impact of the enhanced support functions and service fee revisions? A: The CEO stated that enhanced call center functions are expected to add roughly $11 million per year, and stronger support for the Gorilla and Rize Clinic is expected to add roughly $4 million, totaling about $15 million per year on a full-year basis. These enhancements are part of a win-win strategy to sustainably raise the average fee per clinic (AFPC) at limited additional cost.
Q: What is the company's capital and IR strategy moving forward? A: The basic policy is to pursue EPS growth and a normalization of valuation in parallel. The company is investing in organic growth and disciplined M&A, backed by ample cash. Recognizing limited recognition in U.S. capital markets, SBC is actively participating in IR conferences, increasing investor engagement, and expanding analyst coverage. The shareholder base has grown roughly 4.7 times year-over-year as of July 2026.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
