New York, New York–(Newsfile Corp. – December 1, 2025) – Emerging Growth Research today announced the release of its Q3:25 quarterly update on SBC Medical Group Holdings, Inc. (NASDAQ: SBC), reiterating a Buy-Extended rating and maintaining its 12-month price target of $9.00, representing significant upside from the Company’s recent closing price of $3.57 on November 28, 2025.
The quarterly update highlights SBC’s sequential stabilization in revenue and operating profit during Q3:25, strong cash position, and the Company’s positioning for renewed growth beginning in early 2026 as it works through near-term competitive pressures.
Key Highlights from the Q3:25 Update Report:
-
Revenue Stabilization: Q3:25 revenue of $43.4 million remained flat sequentially versus Q2:25, while down (18)% year-over-year due to revised franchising fee structures. Management expects stabilization to continue through Q1:26 before returning to historical growth rates.
-
Operating Profit Growth: Operating profit rose to $15.9 million in Q3:25, up from $13.8 million in Q3:24 and $14.6 million sequentially in Q2:25, demonstrating effective cost management despite revenue pressures.
-
Strong Volume Growth: The Company added 34 new clinic locations year-over-year (reaching 258 total clinics) and grew annual customer visits to 6.5 million with a 72% repeat rate. Average revenue per visit increased to $298 in Q3:25 from $275 in Q1:25.
-
Robust Balance Sheet: SBC ended Q3:25 with $127 million in cash, plus $83 million in accounts receivable and $15 million in prepaid expenses, against only $21 million in long-term debt. Net cash represents approximately 40% of the Company’s current market capitalization.
-
Path to Growth: Management anticipates revenue will resume its historical +10% to +15% CAGR beginning in 2026, supported by domestic organic growth, the goal of expanding from 258 to 1,000 clinics over ten years, and strategic M&A in Japan, Southeast Asia, and the United States.
-
Enhanced Liquidity Initiatives: SBC became a Russell 3000 constituent in June 2025, executed share buybacks, and is exploring additional measures including a potential dividend program and founder share liquidity events.
According to Emerging Growth Research’s analysis, SBC is navigating a temporary valley of increased competition while maintaining operational discipline and building for long-term expansion. The Company’s franchise-based model continues to generate 70%-75% gross margins with strong cash conversion, positioning it as an attractive consolidator in the fragmented global cosmetic treatment industry.
