The Joint (JYNT) Q1 2025 earnings summary

Executive summary

• Revenue from continuing operations grew 7% year-over-year to $13.1 million in Q1 2025, with system-wide sales up 5% to $132.6 million and comp sales up 3%.

• Net loss from continuing operations was $506,000 ($0.03 per share), while net income from discontinued operations was $1.3 million.

• The company is transitioning to a pure-play franchisor model, with 93% of corporate clinics under LOI for refranchising and most expected to be sold within one year.

• Strategic initiatives include dynamic revenue management, digital marketing upgrades, a new patient-facing mobile app, and the "Life, Unpaused" brand campaign.

• Franchise Partnership Pact signed, new SVPs appointed, and awards received for franchise growth and industry ranking.

Financial highlights

• Adjusted EBITDA from continuing operations was $46,000, down from $425,000 in Q1 2024; consolidated adjusted EBITDA was $2.9 million, down from $3.5 million.

• Net loss from continuing operations was $506,000, compared to $399,000 in Q1 2024; consolidated net income was $801,000, down from $947,000.

• Unrestricted cash at quarter-end was $21.9 million, with $3.7 million used in operations, including legal settlements and bonuses.

• Selling and marketing expenses rose to $3.5 million, mainly due to digital marketing transformation and dual agency costs.

• Cost of revenues increased 10% to $3 million, reflecting higher royalties, commissions, and regional developer costs.

Outlook and guidance

• 2025 system-wide sales expected between $550 million and $570 million, up from $530.3 million in 2024.

• Comp sales for clinics open 13+ months projected to be mid-single digits, compared to 4% in 2024.

• Consolidated adjusted EBITDA guidance is $10–$11.5 million, including $4.4 million in adjustments.

• New franchise clinic openings (excluding refranchised clinics) expected to be 30–40, down from 57 in 2024.

• Management expects a volatile macroeconomic environment for 2025, with labor shortages and inflationary pressures.