Hikaru Fukui
Head of IR & CHRO of SBC Medical Group Co., Ltd. (Japan)

Thank you very much for joining the SBC Medical Group Holdings First Quarter Earnings Briefing. Today's session will be led by Yuya Yoshida Director, CFO, COO and AI Evangelist, together with myself, Hikaru Fukui, Head of IR Department, who will start as a moderator. Thank you for being with us.

We will begin with the presentation delivered by AI avatar. The content has been reviewed and approved by management in advance. After the presentation, we will move on to the Q&A session. [Operator Instructions]. Now let us begin the presentation.

Yuya Yoshida
COO, CFO & Director

I am Yoshida, CFO of SBC Medical Group Holdings. Thank you very much for joining our conference call today despite your busy schedules. I will now present our financial results for the first quarter of 2026.

First, let me cover the Clinic highlights. Both the number of customers and average revenue per visit increased year-over-year, and total revenue rose accordingly, including same-clinic revenue we will continue to enhance service levels through our multi-brand strategy, which enables us to address diverse customer needs with precision as well as through the development of new services.

Next, the consolidated income statement. Total revenues for the first quarter of 2026 were $43 million. While this represents a 9% year-over-year decline. The primary driver was the fee structure revisions that took effect in April of last year, which had a negative impact of $6.2 million on franchising revenue and $2.4 million on Management Services revenue totaling an $8.7 million decrease. In addition, procurement revenue and rental services