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The Joint Q1 2025 Earnings Report
The Joint Corp. reported its first quarter 2025 financial results, showing a 7% increase in revenue from continuing operations and a 5% increase in system-wide sales.
Key Takeaways
The Joint Corp. reported a 7% increase in revenue from continuing operations to $13.1 million in Q1 2025, alongside a 5% rise in system-wide sales to $132.6 million, demonstrating economic resilience despite a net loss from continuing operations of $506,000.
Revenue from continuing operations grew 7% to $13.1 million compared to Q1 2024.
System-wide sales increased 5% to $132.6 million, indicating economic resilience.
Net loss from continuing operations was $506,000, compared to $399,000 in Q1 2024.
Adjusted EBITDA from continuing operations was $46,394, a decrease from $424,708 in Q1 2024.
The Joint
The Joint
Forward Guidance
The company reiterated its 2025 guidance, focusing on continued growth in system-wide sales, comp sales, and new franchised clinic openings, while aiming for consolidated Adjusted EBITDA between $10.0 million and $11.5 million.
Positive Outlook
- System-wide sales are expected to be between $550 million and $570 million, an increase from $530.3 million in 2024.
- Comp sales for all clinics open 13 months or more are expected to be in the mid-single digits, up from 4% in 2024.
- New franchised clinic openings, excluding refranchised clinics, are projected to be between 30 and 40, compared to 57 in 2024.
- The company is implementing marketing, operations, and training initiatives to strengthen its core and reignite growth.
- Stronger digital marketing and dynamic pricing options are expected to attract patients and extend memberships.
Challenges Ahead
- Consolidated Adjusted EBITDA is expected to be between $10.0 million and $11.5 million, a decrease from $11.4 million in 2024.
- The Adjusted EBITDA estimate includes a $4.4 million adjustment related to stock-based compensation and depreciation and amortization.
- Potential additional impairment or restructuring charges related to refranchising could impact Adjusted EBITDA.
- The refranchising process has impacted the number of franchise licenses sold in Q1 2025.
- The company's inability to predict with reasonable certainty the amount or nature of all items for net income (loss) guidance.