Emerging Growth Research Reiterates Buy-Extended Rating on SBC Medical Group Holdings, Inc. with $9.00 Price Target Following Q3:25 Results
Newsfile
December 01, 2025 7:35PM GMT
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.
The firm's DCF analysis produces a fair value of $8.88 per share (rounded to $9.00), with sensitivity analysis indicating a range of $7.33 to $12.51 per share depending on terminal growth and discount rate assumptions. Net of cash, SBC shares are trading at an enterprise value of just $1 to $2 per share.
For a copy of the full Q3:25 quarterly update report, please visit:
or
- https://www.EmergingGrowth.com/profile/sbc/ (on the right side of the page as you scroll down)
About SBC Medical Group Holdings, Inc.
Founded in 2000 as Shonan Beauty Clinic in Japan, SBC Medical Group Holdings, Inc. (NASDAQ: SBC) has grown into a leading global healthcare management company specializing in cosmetic treatments. Through its franchise model, SBC operates across dermatology, aesthetic surgery, hair removal, orthopedics, ophthalmology, fertility, dentistry, and related services. With operations concentrated in Japan and growing footprints in Vietnam, Thailand, and Singapore, SBC continues to pursue international expansion.
For more information, please visit https://sbc-holdings.com/en.
Contact:
Emerging Growth Research
Research@EmergingGrowth.com
www.EmergingGrowth.com
Forward-Looking Statements
This press release contains forward-looking statements concerning business operations and financial performance as well as plans, objectives, and expectations for SBC Medical Group Holdings, Inc. that are subject to risks and uncertainties. All statements other than statements of historical fact are forward-looking statements. These include but are not limited to statements regarding revenue stabilization, the timing of anticipated growth resumption in 2026, margin expectations, clinic expansion targets, M&A strategy, and valuation projections. Actual results could differ materially due to competitive, regulatory, operational, or market risks.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/276500
