SBC Medical Group Holdings Incorporated (NASDAQ:SBC) shares advanced 12.36% on Friday after the medical services company reported third-quarter 2026 earnings and revenue that exceeded analysts’ expectations, supported by revised service fees, the consolidation of Waqoo and continued expansion of its clinic network.
The company reported a 35% year-over-year increase in revenue to $58.58 million, alongside higher adjusted earnings per share, net income and adjusted EBITDA.
SBC Medical also reported an increase in patient visits and average spending per visit, while its network expanded to 293 clinics as of September 30, 2026.
SBC Medical reported adjusted earnings per share of $0.15 for the third quarter, exceeding the analyst consensus estimate of $0.12 by $0.03.
Quarterly revenue reached $58.58 million, representing a 35% increase compared with the corresponding period of 2025.
The revenue figure exceeded Wall Street expectations of approximately $48.89 million.
The company attributed the increase in revenue to service fee revisions introduced in August, the consolidation of Waqoo and continued expansion of its clinic network.
The combination of higher revenue and adjusted earnings contributed to the market reaction following the announcement.
SBC Medical identified several factors contributing to its third-quarter revenue growth.
The company implemented revisions to its service fees in August 2026, which affected revenue generated through its medical services operations.
The consolidation of Waqoo also contributed to reported revenue during the quarter.
In addition, SBC Medical continued expanding its network of affiliated clinics, increasing the number of locations through which its services are provided.
The company reported 293 clinics in its network as of September 30, 2026, an increase of 36 locations compared with the same date a year earlier.
The expanded network, together with the service fee adjustments and Waqoo consolidation, contributed to the increase in quarterly revenue.
SBC Medical reported net income attributable to the company of $16 million during the third quarter, representing a 22% increase from the corresponding period of 2025.
The company recorded a net income margin of 27%.
Adjusted EBITDA increased 66% year over year to $28 million.
The adjusted EBITDA margin reached 47%, an improvement of nine percentage points compared with the prior-year quarter.
Income from operations also increased 66% to $26 million, while the operating margin reached 45%.
The results showed increases in both reported operating income and adjusted profitability measures.
Chairman and Chief Executive Officer Yoshiyuki Aikawa commented on the company’s financial performance.
“The third quarter of 2026 marked a strong reacceleration in SBC Medical’s growth,” Aikawa said. “Following the structural reforms implemented in 2025, growth and profitability are improving in tandem, demonstrating the strength of our highly profitable MSO model.”
The company operates as a management services organisation, providing business and administrative support services to its affiliated medical clinics.
SBC Medical reported that its clinic network reached 293 locations at the end of September 2026.
This represented an increase of 36 clinics compared with September 30, 2025.
The expansion formed part of the company’s broader operating activities during the reporting period.
A larger clinic network can increase the number of locations supported by SBC Medical’s management services operations, although the financial contribution of individual locations may vary.
The company identified network expansion as one of the factors supporting its third-quarter revenue growth.
The increase in clinic locations also coincided with higher patient visit volumes across the network.
SBC Medical reported approximately 7.06 million patient visits during the trailing 12 months, representing a 9% increase compared with the preceding comparable period.
Average spending per patient visit increased 4% year over year to $290.
The figures indicated growth in both patient activity and average spending across the company’s affiliated clinic network.
These measures provide additional information about operating trends beyond the reported increase in the number of clinics.
The growth in patient visits and spending coincided with the company’s higher revenue during the third quarter.
However, SBC Medical also identified service fee revisions and the consolidation of Waqoo as contributors to its financial performance.
For the nine months ended September 30, 2026, SBC Medical reported net cash provided by operating activities of $50 million.
As of September 30, the company held $198 million in cash and cash equivalents.
SBC Medical also reported a net cash position of $154 million at the end of the quarter.
The figures provide information about the company’s liquidity and financial position following its reported increases in revenue and profitability.
The operating cash flow generated during the first nine months of 2026 also provides a measure of cash generated through the company’s business activities.
The reported cash balances may be relevant to the company’s ability to fund ongoing operations and planned business activities.
SBC Medical’s share price increase followed quarterly financial results that exceeded analysts’ expectations, together with higher operating income, adjusted EBITDA and net income.
Investors will be monitoring whether the company maintains revenue growth following the August service fee revisions and the consolidation of Waqoo.
The continued development of its clinic network will also be relevant, particularly as SBC Medical evaluates the contribution of additional locations to revenue and profitability.
Patient visit volumes, average spending per visit and operating margins will provide further measures of the company’s financial and operational performance.
The company’s reported cash position of $198 million and net cash balance of $154 million will also remain relevant to assessments of its financial resources.
SBC Medical’s third-quarter results demonstrated increases across several financial and operating measures, while its expanded clinic network and revised service fee arrangements provide benchmarks for future reporting periods.
SBC Medical Group Holdings stock price
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