SBC Medical beats, EBITDA margin +900 bps, > management service fees, rental income

 

SBC Medical beats Q3 2026 revenue estimates with $59m, up 35% YoY, as adjusted EBITDA rises 66% to $28m and margin expands 900 bps

• Revenue $59m +35% YoY; operating income +66%; adjusted EBITDA margin 47% (+9 pts YoY).
• Basic EPS $0.15, +25% YoY; net income attributable to SBC up 22% YoY; EPS beat expectations.
• Same-clinic revenue $836m over 9 months, +7% YoY; visits +9%, customers +10%, spend/visit +4%.
• Clinic network reached 293 locations, +36 YoY, supporting both organic growth and de novo expansion.
• Growth drivers: higher management service fees, strong rental income, and newly consolidated Waku segment ($5.6m).
• Management targeting sustained margin expansion via AI-driven efficiencies and MSO scale, no specific numeric guidance.
• Longevity business roadmap through 2028; meaningful revenue contribution expected starting 2028, leveraging existing clinic network.
• U.S. strategy centered on OrangeTwist expansion and potential SBC-branded clinics within 6–12 months.
• Capital allocation prioritizes M&A and new clinics; no additional share buybacks despite large net cash.
• Governance improving but still risk: CEO owns ~80%; independent director appointments still in progress.
• Main concern: Execution and timing risk around longevity, AI, and international expansion plans.
• Strong quarter, driven by operating leverage in management services and robust same-clinic performance.

https://finviz.com/stock?t=SBC&p=d