SBC Medical Group announces $5 million share buyback

IRVINE, Calif. - SBC Medical Group Holdings (NASDAQ:SBC), a company specializing in management services for cosmetic treatment centers, has announced the approval of a share repurchase program by its Board of Directors. The program, set to begin on May 20, 2025, will allow for the repurchase of up to $5 million worth of its shares over a one-year period, ending May 20, 2026. According to InvestingPro data, the company’s stock has declined over 74% in the past year, trading significantly below its Fair Value estimate.

The decision to buy back shares comes as the company believes its current share price does not reflect the true value of its business performance and its potential for growth within the aesthetic medical market. This view appears supported by the company’s strong fundamentals, with a P/E ratio of 6.3 and a healthy gross profit margin of 76%. SBC Medical Group also sees itself as an industry leader and aims to enhance the liquidity of its shares through this initiative. InvestingPro analysis reveals 10 additional key insights about SBC’s financial health and growth prospects.

The funding for the repurchase program will come from surplus cash and future free cash flow. With a strong current ratio of 3.01 and more cash than debt on its balance sheet, the company appears well-positioned to execute this program. In line with the share repurchase, the company plans to issue shares for stock-based compensation proportionate to the number of shares bought back. SBC Medical Group is committed to a strategy that balances growth investment with shareholder returns, including the consideration of dividend distributions to improve total shareholder return.

In order to allocate funds for the share repurchase, SBC Medical Group has deferred further purchases under its Bitcoin purchase plan, which was previously announced on February 12, 2025, with a target of JPY 1 billion. Get access to comprehensive financial analysis and detailed Fair Value estimates for SBC and 1,400+ other stocks with InvestingPro’s exclusive Research Reports.

Additionally, the company is reviewing the acquisition of all shares of Risenet Co., Ltd., a provider of management support services to Rize Clinic and Gorilla Clinic, which are currently held by the company’s CEO, Yoshiyuki Aikawa. Details regarding the acquisition price, closing schedule, and impact on the company’s consolidated financials have yet to be determined. SBC Medical Group has committed to disclosing material information as decisions are made.

This announcement is based on a press release statement from SBC Medical Group Holdings. The company, headquartered in Irvine, California, and Tokyo, Japan, provides comprehensive management services to franchise clinics, including advertising, staff management, booking reservations, and procurement of medical equipment and consumables, among other services.

In other recent news, SBC Medical Group Holdings reported fourth-quarter earnings that missed analyst expectations, resulting in a significant decline in its stock. The company posted earnings per share of $0.06, falling short of the expected $0.19, and reported revenue of $44 million, which was below the consensus estimate of $56 million. This represents a 29% year-over-year decrease in revenue, attributed to a challenging competitive environment in Japan’s aesthetic medical industry. Despite this quarterly setback, SBC Medical’s full-year 2024 revenues increased by 6% to $205 million, with a 15% rise in customer numbers to 6.03 million across its 251 partner clinics. CEO Yoshiyuki Aikawa highlighted the company’s solid performance and growth over the past year, culminating in a successful Nasdaq listing. Looking forward, the company anticipates further expansion in the aesthetic dermatology market for fiscal year 2025 but expects increased competition. To support long-term growth, SBC Medical plans to implement strategic price revisions and a new franchise fee structure starting in April 2025.

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