The Joint Corp. Q3 FY2025 earnings call

• Shifted brand marketing to focus on pain relief, amplifying with a national campaign and strengthening digital marketing with SEO and clinic microsites.
• Launched the second release of the mobile app with new features to elevate patient experience.
• Pursuing refranchising of corporate clinics to become a pure-play franchisor.
• Implemented preopening protocols for new clinics to reduce time to breakeven.
• Unveiled a dynamic revenue management initiative with the Kickstart plan and a 3-tiered pricing pilot for the wellness plan.
• Hired Debbie Gonzalez as Chief Marketing Officer in October, with experience in transforming brand strategies and digital initiatives.

Revenue from continuing operations increased 6% to $13.4 million in Q3 2025. Consolidated adjusted EBITDA increased 36% to $3.3 million. System-wide sales were down 1.5% to $127 million, with comp sales down 2%. For continuing operations, revenue grew 6% to $13.4 million, cost of revenues decreased 6%, selling and marketing expenses increased 13%, G&A expenses decreased 3%, and net income was $855,000 compared to a net loss of $3.2 million in the prior year period. Year-to-date, revenue grew 6% to $39.7 million, consolidated net income increased to $1.9 million, and adjusted EBITDA from consolidated operations expanded to $9.4 million.

• Revised 2025 system-wide sales to range $530 million to $534 million (previously $530 million to $550 million).
• Revised comp sales to be in the range of negative 1% to flat (previously low single-digit increase).
• Maintained consolidated adjusted EBITDA guidance $10.8 million to $11.8 million and new clinic openings guidance 30 to 35.
• Expect 2026 continuing operations to be more profitable than 2025.

• Macro-economic headwinds causing longer lead times for refranchising due to lender-related dynamics.
• Uncertainty in patient response to pricing changes and the effectiveness of marketing initiatives in driving new patient acquisition and improving comp sales.

Q: What time frame do you think is feasible to complete all refranchising of corporate clinics?

A: Sanjiv Razdan said macro climate impacted timing due to lender dynamics, but confident in progress though exact timing hard to predict.

Q: Can you speak more about the pricing plan pilot?

A: Sanjiv Razdan explained a 3-tiered pricing pilot with 3 different price increase levels in diverse demographics to understand patient sensitivity for revenue optimization.

Q: Can you explain comp growth trends and pricing vs comps?

A: Scott Bowman said comps were softer end of quarter and tougher compares in Q4 due to last year's higher comps.

Q: Can you be more specific about SG&A reductions and adjusted EBITDA?

A: Scott Bowman discussed G&A rightsizing, refranchising impact on royalties and fees, and ongoing efforts to reduce costs.

Q: Where is demand coming from for franchise licenses sold?

A: Sanjiv Razdan said it's a mix of existing franchisees and new franchisees.

Q: Any app metrics or pricing timing?

A: Sanjiv Razdan said app metrics are early but patient experience feedback is strong; pricing pilot results to guide Q1 2026 pricing.