SBC Medical Group Reports Q1 2025 Financial Results with Revenue Decline but Increased Net Income

SBC Medical Group Holdings Incorporated reported its financial results for the first quarter of 2025, revealing total revenues of $47.3 million, a decrease of approximately 13.7% from $54.8 million in the same period of 2024. The decline in revenue was primarily attributed to a reduction in net revenues from related parties, which fell to $45.3 million from $50.5 million year-over-year. Despite the drop in revenue, the company achieved a net income of $21.5 million, up from $18.8 million in the prior year, reflecting a 9.3% increase. This resulted in a net income per share of $0.21, compared to $0.20 for the same period last year.

The company’s operational performance showed a significant improvement in gross profit, which totaled $37.7 million, although it was slightly lower than the $39.5 million reported in the first quarter of 2024. Operating expenses decreased to $13.5 million from $15.1 million, contributing to a stable income from operations of $24.2 million, down marginally from $24.5 million in the previous year. The company also reported a notable increase in other income, primarily due to a gain on the redemption of life insurance policies amounting to $8.7 million, which was not present in the prior year.

SBC Medical Group has been actively pursuing strategic developments, including the acquisition of L’Ange Cosmetique Co., Ltd. and Shobikai Co., Ltd. in April 2023, which have since become wholly owned subsidiaries. The company also underwent a significant corporate restructuring with the completion of a reverse recapitalization in September 2024, which has positioned it for future growth. As of March 31, 2025, the company reported total assets of $284.6 million, an increase from $266.1 million at the end of 2024, driven by higher cash and cash equivalents, which rose to $132.1 million.

In terms of operational metrics, SBC Medical Group's customer engagement appears stable, with a slight increase in accounts receivable from related parties, which rose to $30.6 million from $28.8 million. The company’s employee headcount has also seen a modest increase, reflecting its ongoing expansion efforts. The total stockholders' equity increased to $226.4 million from $195.1 million, bolstered by retained earnings that grew to $211.0 million, indicating a solid foundation for future investments.

Looking ahead, SBC Medical Group Holdings has expressed optimism about its growth trajectory, citing ongoing efforts to enhance its service offerings and expand its market presence. The company plans to leverage its recent acquisitions and the benefits of its corporate restructuring to drive revenue growth and improve profitability in the coming quarters. Management remains focused on optimizing operational efficiencies and exploring new market opportunities to sustain its competitive edge in the medical services sector.