Core Viewpoint - Emerging Growth Research maintains a Buy-Extended rating for SBC Medical Group Holdings, Inc. with a 12-month price target of $9.00, indicating significant upside potential from its recent closing price of $3.57 on November 28, 2025 [1][2]. Financial Performance - Q3:25 revenue was $43.4 million, flat sequentially compared to Q2:25, but down 18% year-over-year due to changes in franchising fee structures. Management expects stabilization to continue through Q1:26 before returning to historical growth rates [6]. - Operating profit increased to $15.9 million in Q3:25, up from $13.8 million in Q3:24 and $14.6 million sequentially in Q2:25, reflecting effective cost management despite revenue pressures [6]. Growth and Expansion - The company added 34 new clinic locations year-over-year, reaching a total of 258 clinics, and annual customer visits grew to 6.5 million with a 72% repeat rate. Average revenue per visit increased to $298 in Q3:25 from $275 in Q1:25 [6]. - Management anticipates revenue will resume its historical compound annual growth rate (CAGR) of +10% to +15% starting in 2026, supported by domestic organic growth and plans to expand from 258 to 1,000 clinics over the next ten years, along with strategic mergers and acquisitions in Japan, Southeast Asia, and the United States [6]. Financial Position - SBC ended Q3:25 with a strong balance sheet, holding $127 million in cash, $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 [6]. - The firm's discounted cash flow (DCF) analysis indicates a fair value of $8.88 per share, rounded to $9.00, with a sensitivity range of $7.33 to $12.51 per share based on terminal growth and discount rate assumptions [5]. Market Position - SBC operates a franchise-based model that generates gross margins of 70%-75% with strong cash conversion, positioning it as an attractive consolidator in the fragmented global cosmetic treatment industry [4]. - The company became a Russell 3000 constituent in June 2025 and is exploring additional liquidity initiatives, including potential share buybacks and a dividend program [6].