The 47% earnings decline and 900 bps EBITDA margin compression signal deteriorating profitability despite a modest revenue beat. With a $23M market cap, the stock is highly sensitive to earnings trajectory — watch for any guidance updates on the conference call and monitor whether the structural franchise fee headwind is truly behind the company as management claims.
Price Chart
Executive Summary
SBC Medical Group reported Q1 2026 revenue of $43.1M (3.3% above the $41.7M consensus) but net income attributable to the company fell 47% YoY to $11.3M, with EPS of $0.11 versus $0.21 a year ago. Revenue declined 9% YoY due to a structural franchise fee revision, while EBITDA margin compressed from 52% to 43%. The stock will likely trade down on the sharp earnings decline and margin compression, despite a modest revenue beat.
Key Financial Metrics
Key Facts
- Total revenues of $43.1M, down 9% YoY from $47.3M
- Net income attributable to SBC Medical Group of $11.3M, down 47% YoY from $21.5M
- EPS of $0.11, down 48% YoY from $0.21
- EBITDA of $18.4M, down 26% YoY; EBITDA margin 43% vs 52% a year ago
- Net income margin fell to 26% from 45%
- Revenue beat the $41.7M consensus by ~3.3%
- Franchise locations grew to 284 from 251 a year ago; customer count up 10% to 6.76M
- Operating cash flow improved to $9.2M from $1.9M in the prior-year quarter
Financial Impact
Net income down 47% YoY ($11.3M vs $21.5M); EPS down 48% to $0.11; EBITDA margin down 900 bps to 43%
Risk Factors
- Continued revenue decline from structural franchise fee revision
- Further margin compression if operating expenses grow faster than revenue
- Foreign exchange exposure (Japan-based operations, USD reporting)
- Low liquidity given $23M market cap and warrant ticker (SBCWW)
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001193125-26-222720 |
| Document: sbc-20260514.htm | 0001193125-26-222720 |
| Document: 0001193125-26-222720-index-headers.html | 0001193125-26-222720 |
| Document: 0001193125-26-222720-index.html | 0001193125-26-222720 |
| Document: 0001193125-26-222720.txt | 0001193125-26-222720 |
| 8-K Data (Synthetic) | 0001193125-26-222720 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
May 28, 2026 21w ago | DEFA14A | $0.2496 $0.3349 | ▲ +34.17% | ▲ +32.44% | — |
May 14, 2026 23w ago | 8-K | $0.2496 $0.2601 | ▼ −4.21% | ▼ −0.62% | — |
Apr 22, 2026 26w ago | 8-K | $0.2496 $0.2399 | ▼ −3.89% | ▼ −8.90% | — |
US Market Status
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