The Joint (JYNT) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue reached $30.2 million, up 2–3% year-over-year, with 963 clinics open as of September 30, 2024.

• Net loss for Q3 was $3.2 million, including $3.8 million in loss on disposition or impairment, compared to a $0.7 million loss in Q3 2023.

• Adjusted EBITDA for Q3 was $2.4 million, down from $2.9 million year-over-year.

• Strategic refranchising of corporate clinics is underway to generate capital, increase royalty revenue, and reduce costs, with a focus on innovation and digital initiatives.

• CEO transition occurred in October 2024, with Sanjiv Razdan appointed as President and CEO.

Financial highlights

• Q3 2024 revenue was $30.2 million (+2–3% YoY); nine months ended September 30, 2024: $90.2 million (+3.6–4% YoY).

• Q3 2024 net loss: $3.2 million ($0.21 per share); nine months net loss: $5.8 million (vs. net income of $1.3 million in prior year period).

• Adjusted EBITDA for Q3 was $2.4 million, down from $2.9 million in Q3 2023; nine months adjusted EBITDA was $8.1 million (flat YoY).

• Franchise fees and royalties rose 9–10.2% YoY to $12.7 million; company-owned clinic revenue fell 1.9–2%.

• Gross margin for Q3 2024 was $27.4 million on $30.2 million revenue.

Outlook and guidance

• 2024 system-wide sales expected between $525 million and $535 million, up from $488 million in 2023.

• System-wide comp sales for clinics open 13+ months projected to increase 3–4% (vs. 4% in 2023).

• New franchise clinic openings (excluding refranchised clinics) expected to be 55–60, down from 104 in 2023.

• 2025 expected to see fewer franchise license sales and clinic openings due to refranchising and ongoing economic headwinds.

• Management expects a volatile macroeconomic environment for the remainder of 2024, with ongoing labor shortages and inflationary pressures.