The Albany Gazette - Emerging Growth Research Releases Q2:26 Quarterly Update on SBC Medical Group; Reiterates Buy Rating and Increases Price Target to $11.00

The Quarterly Update highlights SBC Medical Group's return to revenue growth in 2026 following the completion of pricing-related headwinds experienced during 2025, while emphasizing the Company's strong cash position, expanding clinic footprint, continued international expansion, and new AI-driven growth initiatives. Emerging Growth Research believes the Company is positioned for renewed growth following the 2025 revenue decline and remains significantly undervalued relative to its long-term earnings potential.

Key Highlights from the Q2:26 Quarterly Update:

Revenue Growth Returns: Q2:26 revenue increased approximately 13% year-over-year to $49.2 million, compared with $43.4 million in Q2:25, reflecting recovery from the 2025 franchise fee reduction and the addition of acquired Waqoo operations. Sequential revenue increased approximately 14%, suggesting the 2025 revenue decline has completed.

Income from Operations and Earnings Improve: Q2:26 income from operations increased approximately 30% year-over-year to $19.0 million, compared with $14.6 million in Q2:25. Net income from continuing operations increased to $10.7 million from $2.4 million, while Adjusted EBITDA increased to $19.7 million from $15.3 million.

AI Provides Additional Growth Potential: Management expects AI initiatives implemented at the clinic level to generate up to $15 million in additional revenue annually. Emerging Growth Research incorporates only one-third of this potential contribution into its estimates, reflecting a conservative approach.

Continued Clinic Expansion: SBC's clinic network increased by 34 locations year-over-year, or approximately 13%, to 287 clinics at the end of Q2:26. Customer numbers increased approximately 10% year-over-year to 6.9 million annual visits, with a 73% repeat rate. Management's long-term objective remains to expand the network to 1,000 clinics by 2035.

Strong Cash Position: SBC ended Q2:26 with approximately $185 million in cash and only $38 million of short- and long-term commercial bank loans. Emerging Growth Research calculates net cash of approximately $147 million, representing a significant portion of the Company's current market capitalization.

International Expansion and New Growth Initiatives: SBC continues to pursue opportunities in Japan, Southeast Asia, and the United States, while developing AI-driven operational initiatives and its Wellness 2.0/Longevity strategy. The Company has also expanded internationally through acquisitions, partnerships, and investments.

Improved Trading Liquidity: Emerging Growth Research notes that SBC has taken steps to increase its public float, including becoming a Russell 3000 company and partially reducing the founder's ownership position, which management believes should improve trading liquidity over time.

Attractive Valuation: At the August 21, 2026 closing price of $4.00, SBC trades at a significant discount to Emerging Growth Research's valuation. The research firm's DCF analysis produces a value of approximately $10.66 per share, which is rounded to an $11.00 price target. Sensitivity analysis indicates a valuation range of approximately $8.80 to $14.78 per share.

Buy Rating Reiterated: Emerging Growth Research remains bullish on SBC Medical Group and believes the Company's renewed revenue growth, strong operating margins, substantial net cash position, clinic expansion, AI initiatives, and potential international M&A provide significant long-term upside. The research firm therefore reiterates its Buy rating and increases its 12-month price target to $11.00.

For a copy of the full Q2:26 Quarterly Update Report, please visit:

https://storage.googleapis.com/accesswire/media/1211337/sbcq226quarterly-update-082426.pdf

or

https://www.emerginggrowth.com/profile/sbc/ (on the right side of the page as you scroll down)

About SBC Medical Group Holdings Incorporated: SBC Medical is a Medical Services Organization providing management support across a wide range of healthcare fields, including advanced aesthetic healthcare, dermatology, orthopedics, fertility treatment, gynecology, dentistry, Hair Loss treatment (AGA), and ophthalmology. The Company manages a diverse portfolio of clinic brands and is actively expanding its global presence, particularly in the United States and Asia, through both direct operations and medical tourism initiatives. In September 2024, the Company was listed on Nasdaq, and in June 2025, it was selected for inclusion in the Russell 3000® Index, a broad benchmark of the U.S. equity market. Guided by its Group Purpose, "Contributing to the well-being of people around the world through medical innovation," SBC Medical Group Holdings Incorporated continues to provide safe, trusted, and high-quality medical services while further strengthening its international reputation for quality and trust in medical care.

About Emerging Growth Research

Emerging Growth Research is an independent equity research firm providing institutional-quality analysis on emerging and growth-stage companies. The firm delivers ongoing coverage, including quarterly updates and flash reports on material developments, designed to enhance transparency and broaden investor awareness for companies participating in the Emerging Growth Conference platform.

Contact:

Emerging Growth Research
[email protected]
www.emerginggrowth.com

Forward-Looking Statements

This press release contains forward-looking statements concerning business operations, financial performance, growth initiatives, and future expectations of SBC Medical Group Holdings, Inc. These statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected.

SOURCE: SBC Medical Group Holdings Incorporated

View the original press release on ACCESS Newswire

(A.Johnson--TAG)