JOINT Corp Q1 FY2025 earnings call

• Mission: Improve quality of life through routine and affordable chiropractic care.
• Transition: Striving to become a pure-play franchisor, with 93% of corporate clinics under LOIs for refranchising.
• Franchisee event: Hosted the Pulse Summit to strengthen franchise relationships.
• Focus areas: Dynamic revenue management, digital marketing, patient-facing technology upgrades, and reducing overhead to improve profitability.

System-wide sales were $132.6 million, up 5%. Revenue from continuing operations increased 7% to $13.1 million. Adjusted EBITDA from continuing operations was $46,000 compared to $425,000 in Q1 2024. Comp sales for all clinics open thirteen months were 3% in Q1 2025 and 4% in March; comp sales for mature clinics opened forty-eight months were down 2%.

• Intend to exit 2025 as a pure-play franchisor.
• Expect 2026 growth in net new clinic openings, system-wide sales, comp sales, and adjusted EBITDA.
• Dynamic revenue management and pricing initiatives factor into the comp sales guide for 2025.

• Actual results may differ from forward-looking statements due to various risks and uncertainties detailed in SEC filings.
• Macro-economic conditions could impact new patient leads and the refranchising process.

Q: Speak about new patient ad metrics and retention metrics and trends.

A: New patient leads affected by consumer sentiment, but retention rate holding up well.

Q: Time frame for refranchising process.

A: 93% of remaining corporate clinics under LOI, intent to exit 2025 as pure-play franchisor, aiming to accelerate intra-year.

Q: Refranchising process slowdown due to macro noise.

A: No meaningful slowdown, not connected to macroeconomics.

Q: Comp growth in April and franchise vs owned comp performance.

A: No April comp number, March comp at 4%; franchise comp relatively mirrors consolidated comp, corporate clinic comp trails.

Q: Dynamic pricing tilt and timing.

A: Exploring pricing levers, testing takes 2-3 months to understand impact, strategic to evaluate full range of impacts before rolling out.

Q: Cost of spring convention and line item.

A: Cost flows through sales and marketing, smaller than full-scale convention, south of half a million.

Q: Dots between reported comp sales and mature clinics down 2%.

A: Typical spread seen, operational strategies and marketing tactics geared towards all clinics.

Q: Guidance assumptions and macro risks.

A: Dynamic revenue management, promotional activity, external messaging, digital marketing, patient-facing technology, and pricing initiatives underpin guide, macro risks considered but guide built on these strategies.