The Joint Corp. Reports First Quarter 2025 Financial Results

- Grew revenue from continuing operations 7% compared to Q1 2024 -
- Increased system-wide sales 5% for Q1 2025, demonstrating economic resilience -

SCOTTSDALE, Ariz., May 08, 2025 (GLOBE NEWSWIRE) -- The Joint Corp. (NASDAQ: JYNT), a national operator, manager, and franchisor of chiropractic clinics, reported its financial results for the quarter ended March 31, 2025. The results of operations of the corporate clinics business segment have been classified as discontinued operations for all periods presented, and the following figures represent continuing operations unless otherwise stated.

Q1 2025 Financial Highlights

• Grew revenue to $13.1 million, up 7% compared to Q1 2024.
• Increased system-wide sales¹ 5% to $132.6 million, demonstrating economic resilience.
• Reported comp sales² of 3%.
• Reported net loss from continuing operations of $506,000, compared to $399,000 in Q1 2024.
• Adjusted EBITDA is as follows:
  
  

Q1 2025 Operating Highlights

• Sold 9 franchise licenses in Q1 2025, compared to 15 in Q1 2024, reflecting the impact of the refranchising process.
• Opened five franchised clinics; refranchised two corporate clinics; and closed one corporate clinic during Q1 2025.
• Increased the clinic count to 969 at March 31, 2025:
  847 franchised and 122 company-owned or managed.
  

President and Chief Executive Officer of The Joint Corp. Sanjiv Razdan, “In 2025, we are augmenting our position as the leading chiropractic care provider and becoming a pure-play franchisor. During this year of transition, we are implementing marketing, operations and training initiatives to strengthen our core, reignite growth, and improve clinic and company level profitability. Our stronger digital marketing will attract patients to our clinics and be amplified by our powerful brand message refresh in the latter half of the year. Our dynamic pricing options, new engaging mobile app, improved patient experience and enhanced chiropractic care wellness education are designed to extend memberships. These changes increase the potency and flexibility for our model as we navigate consumer sentiment and drive toward growth in net new clinic openings, system-wide sales, comp sales and Adjusted EBITDA.”

Financial Results for First Quarter Ended Mar. 31, 2025 Compared to Mar. 31, 2024
The results of operations of the corporate clinics business segment have been classified as discontinued operations for all periods presented, and the following figures represent continuing operations unless otherwise stated.

Revenue increased 7% to $13.1 million in the first quarter of 2025, compared to $12.2 million in the first quarter of 2024. The growth from a greater number of franchised clinics in operation offset the effects of the extra sales day in the 2024 leap year and the February 2025 promotion to drive existing patient acquisition by offering a lower rate for the first month of membership. Cost of revenue was $3.0 million, compared to $2.7 million in the first quarter of 2024, reflecting the associated higher regional developer royalties and commissions and the greater number of franchised clinics in operation.

Selling and marketing expenses were $3.5 million, compared to $2.2 million in the first quarter of 2024, reflecting the carrying costs of two agencies while implementing smooth transition to the new team that will execute the strengthened digital marketing strategy. Depreciation and amortization expenses increased 10% for the first quarter of 2025, compared to the first quarter of 2024. General and administrative expenses decreased to $6.9 million, from $7.3 million in the first quarter of 2024.

Income tax expense was $13,000, compared to $9,000 in the first quarter of 2024. Net loss from continuing operations was $506,000, or $0.03 per basic share, compared to net loss of $399,000, or $0.03 per basic share, in the first quarter of 2024. Net income from discontinued operations was $1.3 million, or $0.09 per diluted share for both periods. Net income was $801,000, or $0.05 per diluted share, compared to $947,000, or $0.06 per diluted share, in the first quarter of 2024.

Adjusted EBITDA for continuing operations, discontinued operations and consolidated operations were $46,000, $2.8 million and $2.9 million, respectively, compared to $425,000, $3.1 million and $3.5 million, respectively, in the first quarter of 2024.

Balance Sheet Liquidity
Unrestricted cash was $21.9 million at March 31, 2025, compared to $25.1 million at December 31, 2024. Cash used in operations for the quarter was $3.7 million, which included the legal settlement payment and annual employee bonuses that were accrued in the fourth quarter of 2024. The line of credit from JP Morgan Chase grants immediate access to $20 million through February 2027.

2025 Guidance
The company reiterated guidance for 2025 as follows.

• System-wide sales are expected to be between $550 million and $570 million, compared to $530.3 million in 2024.
• Comp sales for all clinics open 13 months or more are expected to be in the mid-single digits, compared to 4% in 2024.
• Consolidated Adjusted EBITDA is expected to be between $10.0 and $11.5 million, compared to $11.4 million in 2024. The 2025 Consolidated Adjusted EBITDA estimate includes an adjustment of $4.4 million related to, among other things, stock-based compensation and depreciation and amortization. The company will factor in any additional impairment or restructuring charges related to the refranchising should they occur.
• New franchised clinic openings, excluding the impact of refranchised clinics, are expected to be between 30 and 40, compared to 57 in 2024.

Conference Call
The Joint Corp. management will host a conference call at 5:00 p.m. ET on Thursday, May 8, 2025, after the market close. Stockholders and interested participants may listen to a live broadcast of the conference call by dialing 1-(833) 630-0823 or (412) 317-1831 and ask to be joined into the ‘The Joint’ call approximately 15 minutes prior to the start time.

The live webcast of the call with accompanying slide presentation can be accessed in the IR events section https://ir.thejoint.com/events and available for approximately one year. An audio archive can be accessed for one week by dialing (877) 344-7529 or (412) 317-0088 and entering conference ID 9867193.

Commonly Discussed Performance Metrics
This release includes a presentation of commonly discussed performance metrics. System-wide sales include revenues at all clinics, whether operated by the company or by franchisees. While franchised sales are not recorded as revenues by the company, management believes the information is important in understanding the company’s financial performance, because these sales are the basis on which the company calculates and records royalty fees and are indicative of the financial health of the franchisee base. Comp sales include the revenues from both company-owned or managed clinics and franchised clinics that in each case have been open at least 13 full months and exclude any clinics that have closed.

Non-GAAP Financial Information
This release also includes a presentation of non-GAAP financial measures. EBITDA and Adjusted EBITDA are presented because they are important measures used by management to assess financial performance, as management believes they provide a more transparent view of the company’s underlying operating performance and operating trends. Reconciliation of historical net income/(loss) to EBITDA and Adjusted EBITDA is presented in the table below. The company defines EBITDA as net income/(loss) before net interest, tax expense, depreciation, and amortization expenses. The company defines Adjusted EBITDA as EBITDA before acquisition-related expenses (which includes contract termination costs associated with reacquired regional developer rights), net (gain)/loss on disposition or impairment, stock-based compensation expenses, costs related to restatement filings, restructuring costs, litigation expenses (consisting of legal and related fees for specific proceedings that arise outside of the ordinary course of our business) and other income related to employee retention credits.

EBITDA and Adjusted EBITDA do not represent and should not be considered alternatives to net income or cash flows from operations, as determined by accounting principles generally accepted in the United States, or GAAP. While EBITDA and Adjusted EBITDA are used as measures of financial performance and the ability to meet debt service requirements, they are not necessarily comparable to other similarly titled captions of other companies due to potential inconsistencies in the methods of calculation. EBITDA and Adjusted EBITDA should be reviewed in conjunction with the company’s financial statements filed with the SEC.

Please refer to the reconciliations of non-GAAP financial measures to their GAAP equivalents located at the end of this release. This release includes forward-looking guidance for certain non-GAAP financial measures, including Adjusted EBITDA. These measures will differ from net income (loss), determined in accordance with GAAP, in ways similar to those described in the reconciliations at the end of this release. We are not able to provide, without unreasonable effort, guidance for net income (loss), determined in accordance with GAAP, or a reconciliation of guidance for Adjusted EBITDA to the most directly comparable GAAP measure because the Company is not able to predict with reasonable certainty the amount or nature of all items that will be included in net income (loss).

Forward-Looking Statements
This press release contains statements about future events and expectations that constitute forward-looking statements. Forward-looking statements are based on our beliefs, assumptions and expectations of industry trends, our future financial and operating performance and our growth plans, taking into account the information currently available to us. These statements are not statements of historical fact. Words such as, "anticipates," "believes," "continues," "estimates," "expects," "goal," "objectives," "intends," "may," "opportunity," "plans," "potential," "near-term," "long-term," "projections," "assumptions," "projects," "guidance," "forecasts," "outlook," "target," "trends," "should," "could," "would," "will," and similar expressions are intended to identify such forward-looking statements. Specific forward looking statements made in this press release include, among others, that in 2025, we are augmenting our position as the leading chiropractic care provider and becoming a pure-play franchisor; that during this year of transition, we are implementing marketing, operations and training initiatives to strengthen our core, reignite growth, and improve clinic and company level profitability; our belief that our stronger digital marketing will attract patients to our clinics and be amplified by our powerful brand message refresh in the latter half of the year; our belief that our dynamic pricing options, new engaging mobile app, improved patient experience and enhanced chiropractic care wellness education are designed to extend memberships; our belief that these changes increase the potency and flexibility for our model as we navigate consumer sentiment and drive toward growth in net new clinic openings, system-wide sales, comp sales and Adjusted EBITDA; and our 2025 guidance for system-wide sales, comp sales for all clinics open 13 months or more, Consolidated Adjusted EBITDA, and new franchised clinic openings, excluding the impact of refranchised clinics. Forward-looking statements involve risks and uncertainties that may cause our actual results to differ materially from the expectations of future results we express or imply in any forward-looking statements, and you should not place undue reliance on such statements. Factors that could contribute to these differences include, but are not limited to, our inability to identify and recruit enough qualified chiropractors and other personnel to staff our clinics, due in part to the nationwide labor shortage and an increase in operating expenses due to measures we may need to take to address such shortage; inflation leading to increased labor costs and interest rates, as well as changes to import tariffs, may lead to reduced discretionary spending, all of which may negatively impact our business; our failure to profitably operate company-owned or managed clinics; our failure to refranchise as planned; short-selling strategies and negative opinions posted on the internet, which could drive down the market price of our common stock and result in class action lawsuits; our failure to remediate future material weaknesses in our internal control over financial reporting, which could negatively impact our ability to accurately report our financial results, prevent fraud, or maintain investor confidence; and other factors described in our filings with the SEC, including in the section entitled “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2024 filed with the SEC on March 14, 2025 and subsequently filed current and quarterly reports. We qualify any forward-looking statements entirely by these cautionary factors. We assume no obligation to update or revise any forward-looking statements for any reason or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future. Comparisons of results for current and any prior periods are not intended to express any future trends or indications of future performance, unless expressed as such, and should only be viewed as historical data.

About The Joint Corp. (NASDAQ: JYNT)
The Joint Corp. (NASDAQ: JYNT) revolutionized access to chiropractic care when it introduced its retail healthcare business model in 2010. Today, it is the nation’s largest operator, manager and franchisor of chiropractic clinics through The Joint Chiropractic network. The company is making quality care convenient and affordable, while eliminating the need for insurance, for millions of patients seeking pain relief and ongoing wellness. Headquartered in Scottsdale and with over 950 locations nationwide and more than 14 million patient visits annually, The Joint Chiropractic is a key leader in the chiropractic industry. The brand is consistently named to Franchise Times’ annual “Top 400” and “Fast & Serious” list of 40 smartest growing brands. Entrepreneur named The Joint “No. 1 in Chiropractic Services,” and is regularly ranked on the publication’s “Franchise 500,” the “Fastest-Growing Franchises,” the “Best of the Best” lists, as well as its “Top Franchise for Veterans” and “Top Brands for Multi-Unit Owners.” SUCCESS named the company as one of the “Top 50 Franchises” in 2024. The Joint Chiropractic is an innovative force, where healthcare meets retail. For more information, visit www.thejoint.com. To learn about franchise opportunities, visit www.thejointfranchise.com.

Business Structure
The Joint Corp. is a franchisor of clinics and an operator of clinics in certain states. In Arkansas, California, Colorado, District of Columbia, Florida, Illinois, Kansas, Kentucky, Maryland, Michigan, Minnesota, New Jersey, New York, North Carolina, Oregon, Pennsylvania, Tennessee, Washington, and West Virginia, The Joint Corp. and its franchisees provide management services to affiliated professional chiropractic practices.

Media Contact:
Margie Wojciechowski, The Joint Corp., [email protected]  

Investor Contact:
Kirsten Chapman, Alliance Advisors IR, 415-433-3777, [email protected]

¹ System-wide sales include revenues at all clinics, whether operated or managed by the company or by franchisees. While franchised sales are not recorded as revenues by the company, management believes the information is important in understanding the company’s financial performance, because these revenues are the basis on which the company calculates and records royalty fees and are indicative of the financial health of the franchisee base. 

² Comp sales include the revenues from both company-owned or managed clinics and franchised clinics that in each case have been open at least 13 full months and exclude any clinics that have closed.