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JOINT Corp (JYNT)·Q1 2025 Earnings Summary

Executive Summary

  • Q1 2025 delivered modest top-line growth and stable KPIs: revenue from continuing operations rose 7% year over year to $13.08M, system-wide sales grew 5% to $132.6M, and comps were +3%; however, continuing ops EPS was -$0.03 as operating expense mix shifted during the transition to a pure-play franchisor .
  • Versus consensus, JYNT posted a slight revenue beat ($13.08M vs $13.02M*) but missed EPS (-$0.03 vs ~$0.00*), with management citing a February promotion and a leap-year headwind on February 2024 comparability as drivers of revenue mix and S&M spending impacts* .
  • Guidance for FY25 was reiterated: system-wide sales $550–$570M, mid-single-digit comps, consolidated Adjusted EBITDA $10.0–$11.5M, and 30–40 new franchised openings (ex-refranchise), as the company advances refranchising and growth initiatives .
  • Catalysts ahead include H2 dynamic pricing rollouts, a mobile app launch by June 30, and marketing pivot to “pain relief,” offset by macro/tariff-driven volatility in consumer sentiment (noted in April) .

What Went Well and What Went Wrong

  • What Went Well

    • Revenue from continuing operations grew 7% YoY to $13.08M; system-wide sales +5% to $132.6M; comps +3%, showing resilience despite consumer headwinds .
    • Strategic transformation progressing: 969 clinics at quarter-end (847 franchised/122 corporate); refranchising advancing toward pure-play model; “93% of corporate clinics under LOIs” per CEO on the call .
    • New growth levers initiated: dynamic revenue management (pricing tests), stronger digital marketing with a new agency, and patient-facing mobile app expected to be in app stores by June 30 .

  • What Went Wrong

    • EPS missed consensus amid elevated S&M (dual agencies during transition) and a February promotion that compressed near-term dollars to improve membership conversion; continuing ops EPS -$0.03 vs ~+$0.00* .
    • Mature clinic comps (-2% for clinics open 48+ months) lagged the consolidated comp, highlighting a continued performance gap that management aims to address via operational and marketing initiatives .
    • Consumer sentiment/tariffs: management noted April consumer softness tied to tariff headlines; near-term demand volatility remains a risk to comps and traffic .

Financial Results

Revenue, EPS, and Margins (Continuing Operations)

MetricQ3 2024Q4 2024Q1 2025
Revenue ($USD Millions)$12.65 $14.45 $13.08
Diluted EPS (Continuing Ops)$(0.03) $0.06 $(0.03)
Operating Income (Loss) ($M)$(0.49) $0.94 $(0.68)
Operating Margin %(3.9)% 6.5% (5.2)%
Net Income (Loss) – Continuing Ops ($M)$(0.41) $0.99 $(0.51)

Estimates vs. Actuals (Q1 2025)

MetricConsensus*ActualSurprise
Revenue ($USD)$13,021,000*$13,077,590 +$56,590 (~+0.4%)*
Primary EPS$0.00–$0.01 (0.0025)*$(0.03) Miss (~$0.03)*
# of Estimates (Rev / EPS)5 / 4*——

Estimates marked with * are values retrieved from S&P Global.

Revenue Mix (Continuing Ops)

Revenue Component ($USD)Q1 2024Q1 2025
Royalty Fees$7,587,547 $8,070,985
Franchise Fees$655,874 $828,519
Advertising Fund Revenue$2,166,472 $2,307,502
Software Fees$1,386,776 $1,461,967
Other Revenues$388,047 $408,617
Total Revenues$12,184,716 $13,077,590

Key KPIs

KPIQ3 2024Q4 2024Q1 2025
System-wide Sales ($USD Millions)$129.3 $145.2 $132.6
System-wide Comp Sales %4% 6% 3%
Total Clinics (Franchised / Corporate)963 (838 / 125) 967 (842 / 125) 969 (847 / 122)

Non-GAAP (Transparency)

Adjusted EBITDA ($USD)Q1 2024Q1 2025
Continuing Operations$424,708 $46,394
Discontinued Operations$3,082,007 $2,808,595
Consolidated$3,506,715 $2,854,989

Note: Adjusted EBITDA excludes items such as stock-based comp, net (gain)/loss on disposition/impairment, restructuring costs, litigation expenses; definitions and reconciliations provided by the company .

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
System-wide Sales ($M)FY 2025$550–$570 $550–$570 Maintained
Comp Sales (13+ months)FY 2025Mid-single digits Mid-single digits Maintained
Consolidated Adjusted EBITDA ($M)FY 2025$10.0–$11.5 $10.0–$11.5 Maintained
New Franchised Openings (ex-refranchise)FY 202530–40 30–40 Maintained

Earnings Call Themes & Trends

TopicPrevious Mentions (Q3 2024, Q4 2024)Current Period (Q1 2025)Trend
Refranchising / Pure-Play FranchisorRefranchising noted; strategy emphasis increased into Q4 2024 “93% of corporate clinics under LOIs”; aim to exit 2025 as pure-play franchisor Accelerating
Dynamic Revenue Management (Pricing)Initiatives signaled in Q4 2024 Pricing tests across plans/packages; single-visit increase; H2 rollout expected Ramping/testing
Digital Marketing & Brand PivotQ3: timing of ad spend; Q4: support for new campaign New agency; SEO/content/UGC; pivot to pain-centric messaging H2 Scaling
Patient-Facing TechnologyLimited prior detailMobile app beta; targeted launch by June 30; engagement push via notifications Launching
Macro/Tariffs & Consumer SentimentConsumer headwinds in 2024 April tariffs cited as damping consumer confidence/spend Persistent headwind
Mature Clinic CompsOngoing lag vs. system 48+ month comps -2% vs +3% system Gap persists

Management Commentary

  • CEO Sanjiv Razdan: “In 2025, we are augmenting our position as the leading chiropractic care provider and becoming a pure-play franchisor… stronger digital marketing… dynamic pricing options, new engaging mobile app… designed to extend memberships” .
  • CEO prepared remarks emphasized multi-year plan and refranchising: “We have signed LOIs for 93% of our corporate clinics… intend to exit 2025 as a pure-play franchisor” .
  • CFO Jake Singleton on revenue drivers and expense mix: “Leap year added a sales day to Feb 2024; Feb 2025 promotion lowered first-month membership to $45… S&M increased due to carrying 2 agencies during the transition” .
  • On patient engagement and monetization: “We expect [the mobile app] to be in the app stores by June 30... push notifications can strengthen usage and engagement” .

Q&A Highlights

  • New patient adds/retention: Organic new patient leads were softer amid consumer sentiment, while retention remained stable .
  • Refranchising timeline: 93% of corporate clinics under LOIs; company aims to be a pure franchisor exiting 2025, with pace dependent on due diligence and lease assignments .
  • Pricing uplift: Dynamic pricing could add “double-digit millions” to system-wide sales on a partial-year basis, with broader impacts weighted to H2 as tests scale .
  • S&M normalization: Elevated S&M expected again in Q2 during the agency transition; more normalized run-rate expected by Q3–Q4 .
  • Comps outlook: Mid-single-digit FY25 comp guide is “largely predicated” on pricing initiatives in H2 alongside marketing/brand efforts .

Estimates Context

  • Q1 2025 revenue modestly beat consensus ($13.08M vs $13.02M*), while EPS missed (-$0.03 vs ~$0.00–$0.01*). Near-term estimate revisions may tilt EPS lower on elevated 1H S&M and timing of pricing realization into H2, while revenue assumptions could hold given reiterated FY25 system-wide sales guidance* .
  • Consensus participation was limited (5 revenue, 4 EPS estimates), suggesting potential dispersion as the model transitions to pure franchising*.

Estimates marked with * are values retrieved from S&P Global.

Key Takeaways for Investors

  • Transition in motion: Refranchising is advancing (93% under LOIs), targeting pure-play status by year-end 2025—supportive of structurally higher margin potential as franchise royalties/fees mix up and G&A is rationalized over time .
  • Near-term P&L trade-offs: Q1 EPS miss stemmed from deliberate S&M investments (dual agencies) and a February promo to boost conversion; these should normalize/begin to pay back as H2 pricing and brand initiatives roll out .
  • H2 catalysts: Dynamic pricing, pain-centric brand campaign, and mobile app launch (by June 30) are key levers for comps, mix, and lifetime value; monitor execution pacing and franchisee adoption .
  • Demand risk: Management called out tariff-driven consumer sentiment softness in April; macro volatility remains a watch item for traffic and conversion .
  • Guidance steady post-Q1: FY25 ranges were reiterated, signaling confidence in H2 initiatives despite early-year headwinds .
  • KPI trajectory: Comps +3% and system-wide sales +5% show resilience; mature clinic comps (-2%) remain a focus for operations and marketing to close the gap .
  • Liquidity intact: Unrestricted cash $21.9M and $20M undrawn LOC support transition execution; Q1 cash from ops was impacted by a legal settlement and annual bonuses accrued in Q4 2024 .

Additional context: Subsequent to Q1, the company disclosed an intended restatement related to non-cash impairment for discontinued operations that is expected to increase Q1 2025 net income and decrease FY2024 net loss, with no expected impact on Adjusted EBITDA .

Citations

  • Q1 2025 8-K and financials:
  • Q1 2025 press release:
  • Q1 2025 earnings call transcript:
  • Prior quarters: Q4 2024 press release and recast quarterly table: ; Q3 2024 press release:
  • Additional press release (management appointments):
  • Subsequent restatement disclosure (Q2 2025 8-K):