Executive Summary

Q2 2025 revenue was $13.27M (+5% y/y), consolidated net income was $0.09M (vs. -$3.60M y/y), and consolidated Adjusted EBITDA rose 52% to $3.24M . System-wide sales grew 2.6% to $129.6M and comp sales were 1.4% .
Against S&P Global consensus, revenue was essentially in line ($13.27M actual vs $13.32M estimate) while EPS from continuing ops missed (-$0.06 vs -$0.02)*. Management cut 2025 system-wide sales and comp guidance but raised Adjusted EBITDA guidance on cost controls (see Guidance Changes) .
Strategic pivot accelerated: refranchised 37 clinics for $11.2M (portfolio now 92% franchised), acquired Northwest RD rights for $2.8M, launched a mobile app, and authorized a $5M buyback .
Near-term stock drivers: lowered top-line outlook (traffic softness/new patient counts), refranchising progress and higher EBITDA guide, restatement of 2024 and Q1’25 financials (non-cash, no Adjusted EBITDA impact) .

What Went Well and What Went Wrong

What Went Well

Refranchising progress and portfolio mix: 37 clinics refranchised; 92% of clinics now franchised, expected to lift operating leverage and royalty mix . CEO: “We are increasing momentum in becoming a pure play franchisor…leveraging capital to increase shareholder value.”
Profitability traction despite modest comps: consolidated Adjusted EBITDA +52% to $3.2M; G&A down 1% y/y amid cost actions tied to refranchising . CFO highlighted “diligent overhead reduction” as basis for raising full-year Adjusted EBITDA guidance .
Capital allocation/t tech enablement: $5M repurchase program authorized; unrestricted cash rose to $29.8M by quarter-end; mobile app launched with ~10% active-patient adoption in early rollout .

What Went Wrong

Demand softness concentrated in new patient traffic: Management lowered system-wide sales and comp outlook due to “softer” recent trends and macro headwinds; conversion and attrition were stable, but new patient counts lagged .
Top-line growth below plan: Q2 comps +1.4% and system-wide +2.6% reflect muted demand; brand/SEO work to counter AI-driven search behavior shifts still in early innings .
Restatement overhang and limited FS: Company intends to restate FY’24 and Q1’25 (non-cash impairment methodology for clinics held for sale), providing only limited statements this quarter; no expected impact to Adjusted EBITDA, but signals internal control weakness being remediated .

Financial Results

Quarterly P&L Snapshot (Continuing operations unless noted)

Metric	Q4 2024	Q1 2025	Q2 2025
Revenue ($)	$14,447,457	$13,077,590	$13,270,270
Net Income (Loss) – Continuing Ops ($)	$986,413	$(506,021)	$(989,635)
Diluted EPS – Continuing Ops ($)	$0.06	$(0.03)	$(0.06)
Consolidated Net Income ($)	$(2,715,285)	$801,430	$93,363
Adjusted EBITDA – Consolidated ($)	$3,318,684	$2,854,989	$3,239,193
Adjusted EBITDA – Continuing Ops ($)	$2,081,864	$46,394	$88,049

Notes: Q2 revenue +5% y/y ($13.27M vs $12.61M) and continuing EPS improved y/y (-$0.06 vs -$0.11) . Consolidated Adjusted EBITDA up 52% y/y to $3.24M .

Q2 Revenue Mix vs. Q2 2024 (Continuing ops)

Line Item	Q2 2025	Q2 2024
Royalty Fees ($)	$8,133,122	$7,846,328
Franchise Fees ($)	$768,100	$719,103
Advertising Fund Revenue ($)	$2,332,695	$2,240,839
Software Fees ($)	$1,481,661	$1,415,036
Other Revenues ($)	$554,692	$388,730
Total Revenues ($)	$13,270,270	$12,610,036

Operating Expenses (Q2 2025 vs. Q2 2024, Continuing ops)

Metric	Q2 2025	Q2 2024
Total Cost of Revenues ($)	$2,772,607	$2,812,389
Selling & Marketing ($)	$3,483,844	$3,440,391
Depreciation & Amortization ($)	$402,295	$342,454
G&A ($)	$7,745,251	$7,793,465
Loss from Operations ($)	$(1,138,167)	$(1,779,325)

KPIs and Footprint

KPI	Q1 2025	Q2 2025
System-wide Sales ($M)	$132.6	$129.6
Comp Sales (%)	3%	1.4%
Franchise Licenses Sold (#)	9	13
Refranchised Clinics (#)	2	37
Total Clinics (#)	969	967
Franchised Clinics (#)	847	885
Corporate Clinics (#)	122	82
Unrestricted Cash ($M)	$21.9	$29.8

Actuals vs. S&P Global Consensus (Q2 2025)

Metric	Actual	Consensus	Surprise
Revenue ($)	$13,270,270	$13,321,400*	-$51,130
Primary EPS (Continuing) ($)	$(0.06) [2 sop]	$(0.0233)*	$(0.0367)

*Values retrieved from S&P Global.

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
System-wide Sales ($M)	FY 2025	$550–$570	$530–$550	Lowered
Comp Sales (13+ months)	FY 2025	Mid-single digits	Low-single digits	Lowered
Consolidated Adjusted EBITDA ($M)	FY 2025	$10.0–$11.5	$10.8–$11.8	Raised
New Franchised Clinic Openings (#)	FY 2025	30–40	30–35	Narrowed lower high-end

Management cited softer recent trends tied to new patient traffic and macro headwinds; cost controls enabled the EBITDA raise .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q4’24 and Q1’25)	Current Period (Q2’25)	Trend
Pure-play franchisor & refranchising	2025 will be a transition year; refranchising to lower overhead and increase operating leverage . Q1 reiterated plan and classified corporate clinics as discontinued ops .	37 clinics refranchised; portfolio 92% franchised; aim to exit 2025 as pure-play; more refranchising planned .	Accelerating execution
Brand strategy: shift to pain relief	Planned brand refresh and stronger digital marketing for H2’25 .	“Life Unpaused” campaign launched in July; pivot to pain-relief messaging; earlier funnel spend; SEO/AI search adaptation underway .	From planning to rollout
Dynamic revenue management (pricing)	Introduced concept; focused on balanced affordability and nominal, frequent increases .	July “kickstart plan”; continue nominal price increases; test-and-learn by location .	Activation phase
Patient-facing technology	Planned mobile app to extend LTV and engagement .	Mobile app launched; ~10% of active patients using; roadmap includes personalization and gamification .	Early adoption; expanding
Macro & demand	2024 comps 4%; cautious on consumer . Q1 comps 3% .	New patient traffic soft; comps 1.4%; stable conversion/attrition; SEO & brand awareness to drive funnel .	Near-term headwind
Capital allocation	Liquidity solid; $20M LOC .	$5M buyback authorized (through 2027); RD rights buyback (Northwest) to reduce RD commissions .	Sharper focus on ROI
Regulatory/Accounting	N/A in Q4’24 PR.	Restatement of FY’24 & Q1’25 (non-cash impairment methodology); no Adj EBITDA impact; ICFR weakness being remediated .	Overhang, manageable per guidance

Management Commentary

“We are increasing momentum in becoming a pure play franchisor with 92% franchised clinics in our portfolio…leveraging capital to increase shareholder value.” – CEO Sanjiv Razdan .
“We are pivoting from a broad-based wellness positioning to the sharper concept of pain relief…shifting our marketing spend to an earlier point in the sales funnel…investing in our marketing infrastructure to improve search performance.” – CEO .
“Through diligent overhead reduction, we are increasing our consolidated adjusted EBITDA guidance” – CFO Scott Bowman .
On demand drivers: “Recent trends are a little bit softer…mainly in new patients…conversion rate is up and attrition is in line.” – CFO .
On pricing: “We plan to continue implementing nominal price increases…dynamic revenue management” and launched “kickstart plan” in July. – CEO .

Q&A Highlights

Guidance downgrade rationale: New patient traffic softness, tougher H2 comps, and macro headwinds; plan to lean into top-of-funnel brand spend and SEO to improve organic leads .
Pricing cadence: Moving from large, infrequent increases to smaller, more frequent ones; balancing affordability to avoid “sticker shock”; piloting localized price tests .
Expense trajectory: G&A expected to benefit further as refranchising completes; cautious not to cut ahead of transition .
Refranchising proceeds: ~$11.2M gross from 37 clinics; higher performers among AZ/NM set; net ~$8.3M after $2.8M RD rights buyback .
Strategic horizon: “Joint 2.0” near term focus on core and profitability; “Joint 3.0” to explore new revenue streams over next ~12 months .

Estimates Context

Q2 2025 vs S&P Global consensus: Revenue $13.27M vs $13.32M*, essentially in line; Primary EPS (continuing) -$0.06 vs -$0.0233*, a miss driven by lower comps and new patient traffic softness despite stable conversion/attrition .
Prior quarters (context): Q1 2025 revenue modestly above $13.02M* at $13.08M actual; EPS -$0.03 vs $0.0025*; Q4 2024 EPS exceeded $0.01* at ~$0.06 actual (note definitional differences for revenue in estimates vs continuing ops).
*Values retrieved from S&P Global.

Key Takeaways for Investors

Refranchising is on track and appears accretive to margin structure; royalty-driven model plus G&A rationalization underpins the raised Adjusted EBITDA guide despite softer comps .
Near-term headwind is new patient acquisition; management is executing a pivot to pain-centric branding and SEO improvements to restore top-of-funnel demand .
2025 outlook tilts defensive on revenue (lowered system-wide sales and comp guides) but constructive on profitability (higher Adjusted EBITDA guide), creating a mixed setup for the stock .
Liquidity remains strong (cash $29.8M; undrawn $20M LOC) supporting refranchising and $5M buyback, adding downside support if execution stays on course .
Accounting restatement is non-cash with no expected Adjusted EBITDA impact; investors should monitor remediation of internal controls and timing of amended filings .
Watch catalysts: continued refranchising transactions, brand campaign traction (organic leads/new patient counts), app engagement ramp, and SEO-driven improvements.

Appendix: Additional Relevant Disclosures

Q2 2025 guidance revision and metric definitions (system-wide sales, comp sales) reiterated in press release and earnings deck .
Other Q2-Q3 related announcements: binding APA for 31 clinics (AZ/NM) and 5 in Kansas City; Northwest RD rights acquisition; $5M repurchase authorization; CFO appointment (Scott Bowman) .

JOINT Corp (JYNT)·Q2 2025 Earnings Summary