The Joint (JYNT) Q1 2026 earnings summary

Executive summary

• Revenue for Q1 2026 grew 13–13.3% year-over-year to $14.8 million, driven by higher franchise, advertising, and IT/software fees, and reflecting early benefits from refranchising and portfolio optimization initiatives.

• Net income from continuing operations was $1.1 million, reversing a prior year loss, while consolidated net income rose to $1.3 million, up 34% year-over-year.

• Adjusted EBITDA from continuing operations increased to $2.2 million from $46,000 in Q1 2025, with consolidated Adjusted EBITDA up 22% to $3.5 million.

• Major refranchising efforts completed, reducing company-owned clinics to three and transforming into a pure-play franchisor, with 868 franchised clinics and 75 company-owned or managed clinics at quarter-end.

• Free cash flow and operating cash flow improved by $2.2–$2.3 million year-over-year, supporting share repurchases and regional developer territory buybacks.

Financial highlights

• System-wide sales were $126.1 million, down 4.9% year-over-year, with comparable sales declining 4.2%.

• Cost of revenues decreased 8–8.4% to $2.7 million, mainly due to lower regional developer royalties.

• Selling and marketing expenses rose 6% to $3.7 million; general and administrative expenses increased 2–2.5% to $7.1 million, with $300,000 in non-recurring expenses.

• Basic and diluted EPS from continuing operations were $0.08, up from $(0.03) in Q1 2025; EPS from consolidated operations rose to $0.09 per diluted share.

• Cash and cash equivalents at quarter-end were $20.7 million, with an undrawn $20 million credit line available through August 2029.

Outlook and guidance

• 2026 guidance reiterated: system-wide sales of $519–$552 million, comp sales between -3% and +3%, adjusted EBITDA of $12.5–$13.5 million, and 30–35 new franchise clinic openings.

• Expect slightly negative comps in Q2, turning positive in Q3 and Q4, with Q4 higher than Q3.

• Net clinic count expected to decline in 2026 due to portfolio optimization and closures of underperforming clinics.

• Gross margin projected at 83–85%, G&A at 40–42% of revenues, adjusted EBITDA margin at 19–21%, and net income margin at 13–15%.

• Free cash flow conversion expected at 60–70% of adjusted EBITDA; CapEx projected at 3% of revenues.