SBC Medical Group Holdings Incorporated, formerly known as Pono Capital Two, Inc., reported significant financial developments in its latest 10-Q filing for the period ending September 30, 2024. The company, which focuses on providing management services to medical corporations and clinics, experienced notable increases in revenue and profitability compared to the previous fiscal period.

For the three months ended September 30, 2024, total revenues reached $53.1 million, up from $47.3 million in the same period of 2023. For the nine months, revenues increased to $161.0 million from $131.2 million year-over-year. Gross profit for the third quarter also saw a substantial rise, totaling $43.2 million compared to $33.5 million in the prior year, while gross profit for the nine-month period increased from $93.9 million to $122.2 million.

Despite the revenue growth, income from operations for the third quarter decreased to $13.8 million from $20.0 million in 2023. Net income for the third quarter fell to $2.8 million from $8.1 million, while net income for the nine months rose to $40.1 million from $24.3 million. The decline in quarterly net income was attributed to increased operational costs and strategic investments.

The company’s total assets increased to $296.5 million as of September 30, 2024, up from $258.8 million at the end of 2023. This growth was driven by an increase in cash and cash equivalents, which rose to $137.4 million from $103.0 million. Total stockholders’ equity also saw a significant increase, reaching $205.5 million compared to $143.8 million at the end of the previous fiscal year.

Strategically, SBC Medical Group completed a merger with SBC USA on September 17, 2024, which resulted in SBC USA becoming a wholly owned subsidiary. The merger provided the company with net cash of $11.7 million and involved the assumption of various liabilities. Additionally, the company completed the acquisition of SBC Japan in September 2023, further expanding its international footprint.

The company reported a net cash increase from operating activities of $27.9 million for the nine months ended September 30, 2024, compared to $22.8 million in the prior year. However, net cash used in investing activities shifted to $(5.6) million from a positive $8.7 million in 2023, reflecting changes in investment strategies.

Overall, SBC Medical Group Holdings Incorporated demonstrated robust revenue growth and strategic expansion through acquisitions, despite facing challenges in operational income and net profit in the most recent quarter.