JYNT

Image source: The Motley Fool. Thursday, Aug. 6, 2026 at 5:00 p.m. ET President and Chief Executive Officer - Sanjiv Razdan Chief Financial Officer - Scott Bowman Investor Relations - Richard Land Need a quote from a Motley Fool analyst? Email [email protected] Operator: Thank you for standing by. My name is Rebecca, and I will be your conference operator today. At this time, I would like to welcome everyone to The Joint Corporation Second Quarter 2026 Financial Results Conference Call. [Operator Instructions] I will now turn the call over to Richard Land with Alliance Advisors Investor Relations. Please go ahead. Richard Land: Thank you, Rebecca, and good afternoon, everyone. Joining us on the call today are President and CEO, Sanjiv Razdan; and CFO, Scott Bowman. Please note we are using a slide presentation that can be found on The Joint's Investor Relations website. This afternoon, The Joint Corp issued a press release for the second quarter ended June 30, 2026. If you do not already have a copy, it can also be found on the company's website. Please be advised that today's discussion, including any financial and related guidance to be provided, consists of forward-looking statements as defined by securities laws. These statements are based on information currently available to us and involve risks and uncertainties that could cause actual future results, performance and business prospects and opportunities to differ materially from those expressed in or implied by these statements. Some important factors that could cause such differences are discussed in the risk factor section of The Joint Corp's filing with the Securities and Exchange Commission. Forward-looking statements speak only as of the date the statements are made, and the company assumes no obligation to update them except to the extent required by applicable securities laws. Management uses non-GAAP financial measures such as EBITDA, adjusted EBITDA, free cash flow, and system-wide sales. A description of these measures is included in the press release issued earlier this afternoon, and reconciliations to the most directly comparable GAAP measures are included in the appendix to the presentation and press release, both of which are available in the investors tab of our website. With that, I'll now turn the call over to Sanjiv Razdan. Sanjiv, please go ahead. Sanjiv Razdan: Thank you, Richard. Good afternoon, everyone. The second quarter was a period of continued execution of our Joint 2.0 initiative, with our results reflecting the progress we are making toward a stronger, more profitable financial profile as a capital-light, pure-play franchisor. This was underscored by a $560,000 year-over-year improvement in consolidated net income and a $1.4 million increase in adjusted EBITDA from continuing operations, reflecting the improved operating leverage of the current business. Meanwhile, we delivered 152% year-over-year growth in cash flow from operating activities, resulting in a $1.6 million increase in free cash flow. These improvements were driven by continued progress on our refranchising initiative, disciplined capital allocation, and significant improvement in our patient retention levels. First, on refranchising, our 3 previously announced clinic sale bundles are progressing well, with buyers already operating the clinics under management service agreements, while lease assignments are completed and remaining ownership transfers are finalized. Taken together, these transactions mean The Joint effectively operates today as a capital-light, pure-play franchisor. Second, on patient retention, we posted our best quarterly retention rate in over 5 years, a direct result of the new flexible and expanded plan options introduced earlier this year. These initiatives are working as intended, reducing attrition while making our offerings more attractive to patients. And third, on capital allocation, we remained disciplined during the quarter, repurchasing approximately $677,000 of shares while also investing in the business and completing 3 regional developer territory buybacks in the quarter, bringing the year-to-date total to 4. Together, these actions reflect our conviction in the long-term value of this business and our commitment to disciplined, balanced capital deployment. Combined with our progress on optimizing the clinic portfolio, they're driving higher profitability and stronger free cash flow. Turning to Slide 5, I'll touch on some of our Q2 financial highlights, which reflect the combined benefit of this execution. Revenue grew 14% year-over-year to $15.2 million. Adjusted EBITDA from continuing operations was $1.5 million compared to $88,000 in Q2 2025, an increase of $1.4 million, underscoring the operating leverage we are generating as we shift to a more royalty and fee-based franchise revenue. Consolidated net income increased to $653,000 compared to $93,000 in Q2 2025. And cash flow from operating activities grew 152% year-over-year to $2.2 million, driving a $1.6 million increase in free cash flow to $1.9 million. Turning to slide 6, now I'd like to provide a little bit more background on the status of our refranchising efforts. Since entering into the sale agreement covering the Southern California clinic bundle, ownership has been transferred for 32 clinics to date, and the remaining 13 clinics are being operated by the buyer under management service agreements while lease assignments are finalized. For the Northern California bundle, a signed asset purchase agreement is in place for 4 clinics. And finally, for the Southeast bundle, a signed asset purchase agreement is in place -- I beg your pardon. And finally, for the Southeast bundle, ownership has been transferred for 6 clinics to date, with the remaining 15 clinics also operating under management service agreements pending lease reassignments. Once ownership transfers are finalized across these clinic bundles, we will have only 3 remaining company-owned or managed clinics, effectively positioning the company to realize the full benefits of our pure-play, capital-light franchisor model. Turning to slide 7. While our refranchising efforts nearly behind us, we have more capacity to concentrate on driving growth through franchise system support, new patient acquisition, and long-term network development. We see a significant opportunity to further strengthen new patient acquisition and to win back lapsed patients. This, along with patient retention, remains our primary near-term focus, and we're leaning into targeted marketing and optimized membership offerings to capture demand more effectively. We've done extensive research recently on our consumer base, and that work is sharpening our focus on the patient and user experience. For example, as a result of these consumer insights, we are piloting a proprietary set of clinical care protocols which, amongst other things, will provide quantifiable mobility scores to our patients. Our 2025 class of 29 clinic openings continue to outperform prior year cohorts, and the new clinics so far this year are performing even better. In addition, we are working to bring on well-capitalized franchisees with strong multi-site operating experience to support our portfolio optimization efforts as well as to drive net new clinic growth. Also, as we directly engage franchisees previously supported by regional developers, we are finding opportunities to elevate both the quality of operations and the pace of clinic development. As mentioned on our last call, our longer-term journey will prioritize growth through new channels, expansion into underpenetrated U.S. markets, and potential entry into our first international markets. This longer-term strategy is expected to address shifting consumer trends, including growing interest in longevity, health span, mindfulness, sleep quality, posture, and non-invasive whole-body care. Chiropractic care and The Joint's unique model is exceptionally well positioned against this backdrop. Moving to slide 8. Now turning to our -- to our marketing efforts and how we are driving top-line momentum. Our messaging continues to center on chiropractic care for pain relief, helping patients improve their mobility and get back to doing the things they love. And we're increasingly emphasizing the quality of the patient experience alongside this. This message tends to attract patients who stay with us longer. We have seen sequential improvement in active member growth each month this year. We are also increasing focus on our MVPs, or most valuable patients, by exploring ways to personalize their experience, bringing additional value to membership, and ultimately driving LTV, or long-term value. Another focus is on winning back lapsed patients who are familiar with The Joint and have benefited from our membership model in the past. On the digital side, our ongoing SEO and AI visibility optimization work is driving higher organic traffic and lead quality. Our AI visibility score has held steady in the high 70s, keeping us ahead of competitors on key search topics. Meanwhile, we are seeing continued positive trends in traffic and high intent actions on our local clinic micro sites. During Q2, we expanded our offering of more flexible plans to drive conversion and longer-term retention. Lastly, in July, we rolled out our $5 and $10 pricing increases to additional clinics, bringing the total number of clinics that have opted to take pricing to over 500. Feedback to date continues to indicate no meaningful patient pushback, and we are using this data to ensure pricing changes support revenue optimization without impacting patient acquisition or retention. Turning to slide 9, I'll speak to how these initiatives are translating into comps and retention. Comp sales were negative 2.8% in the second quarter, an improvement compared to the first quarter. As I mentioned, our flexible membership options drove our best patient retention rate in over 5 years this quarter and pricing optimization efforts also continued. Together with improving active member trends, these factors are driving consistent recovery in comp trends. We expect comp sales trends to improve throughout the balance of this year. Growing our active member base remains a central driver of comp sales improvement, and we will continue to drive growth through stronger lead generation, improved retention, and winning back lapsed patients. With that, I'll turn it over to Scott, our CFO. Scott Bowman: Thanks, Sanjiv. First, I'll review some key operating metrics. System-wide sales in the second quarter were $128 million, a decline of 3.7% compared to the same period last year. Comp sales were negative 2.8%, a 140 basis point improvement from the first quarter, consistent with the strengthening trends Sanjiv discussed earlier. Meanwhile, adjusted EBITDA from consolidated operations was $3.2 million, in line with the same period last year. Turning to slide 12, I'll review results from continuing operations for the second quarter unless otherwise specified. Revenue grew 14% to $15.2 million, reflecting the shift to our pure-play franchisor revenue model. Cost of revenues was $2.5 million, down 11% compared to the same period last year, primarily reflecting lower regional developer royalty costs as we continue to reacquire RD territories. Selling and marketing expenses were $4.9 million, an increase of 40% compared to the same period last year, driven by a shift in local marketing to national marketing, which has funded incremental investments in patient acquisition and brand initiatives. Meanwhile, G&A expenses decreased 2% to $7.6 million compared to $7.7 million in the same period last year. Included in G&A expenses is approximately $500,000 that relates to expenses incurred for RD buybacks and expenses that will not be recurring post-refranchising. Net loss from continuing operations was $251,000 compared to a loss of $990,000 in the same period last year. While consolidated net income was $653,000 compared to $93,000 in the prior year period. And lastly, adjusted EBITDA from continuing operations was $1.5 million compared to $88,000 in the same period last year, a clear reflection of the operating leverage we are generating in our new franchisor model. Now, onto the balance sheet and capital allocation. Unrestricted cash at the end of the second quarter was $22.2 million compared to $23.6 million at the end of 2025. We maintain our $20 million line of credit with JPMorgan Chase, which remains fully undrawn and is available through August 2029. During the quarter, we repurchased approximately 82,000 shares for consideration of $677,000 at an average price of $8.23 per share. We now have $3.8 million remaining under the $12 million authorization approved in November 2025. As Sanjiv mentioned, we also completed 3 RD territory buybacks during the quarter, further optimizing our portfolio economics. As with prior buybacks, we are already seeing stronger performance in these markets post-transaction. Through the buybacks of the 4 RD territories we have completed year-to-date, we expect to realize approximately $630,000 in reduced RD royalties on an annualized basis, partially offset by internal costs to manage these territories. On to slide 14, let's discuss our clinic count. Total clinic count was 941 at the end of the second quarter. During the quarter, we opened 5 clinics, closed 7 clinics, and refranchised 29 clinics, reflecting our previously discussed strategy to optimize the portfolio for quality and performance. Meanwhile, our new clinics in 2026 have continued to outperform similar to 2025 and are reaching their breakeven point even earlier at under 6 months. As Sanjiv noted, our refranchising efforts are now substantially complete with the sale of our 3 previously announced clinic bundles progressing well. On slide 15, with refranchising largely complete, I would like to touch on our pure-play franchisor financial model. Under this new operating model, The Joint is now reshaped with a capital-light operating model with lower G&A expense and higher profitability margins. We expect to achieve this model starting in the back half of 2026 once the transfer of ownership of the remaining clinics is fully complete. I would like to remind everyone that these are not our long-term targets. They are the starting point once the full benefit of refranchising is realized, and we intend to build on these improvements in 2027 and beyond. As a reminder, our expected starting points for this new model are as follows: gross margin between 83% and 85% of revenues, G&A expense between 40% and 42% of revenues, CapEx of approximately 3% of revenues, and free cash flow conversion, which we define as free cash flow divided by adjusted EBITDA, between 60% and 70%. These starting points would result in an estimated adjusted EBITDA margin of 19% to 21% and net income margin of 13% to 15%. On to slide 16, we are reiterating our full year 2026 financial guidance as originally provided in March 2026. Our operating model improvements are progressing as expected, and with improving comp sale trends observed in recent months, we continue to expect system-wide sales of from $519 million to $552 million, comp sales in the range of negative 3% to positive 3%, consolidated adjusted EBITDA in the range of $12.5 million to $13.5 million. We expect comp sales to improve in the second half of the year, with the fourth quarter expected to be higher than the third quarter. We have more visibility on new franchise clinic openings for the year, which we now expect to be in the range of 22 to 26. This compares to prior guidance of 30 to 35 new clinics. New clinic openings will continue to be offset by closures as we reshape the portfolio around stronger operators and healthier sites, meaning that on a net basis, our clinic count at the end of the 2026 year will be lower than 2025. Our clinic portfolio optimization is giving us a stronger, more durable foundation for future growth, and we continue to see potential for more than 1,800 franchise clinics in the U.S. alone. Finally, on slide 17, I'll briefly speak to our capital allocation. As highlighted by our activities in the second quarter, we remain committed to disciplined capital allocation that prioritizes investments in growth initiatives, share repurchases, and repurchases of RD territories. With that, I'll turn it back over to Sanjiv. Sanjiv Razdan: Thanks, Scott. Q2 was a quarter defined by continued execution. Our disciplined capital allocation, our best patient retention in over 5 years, and the nearing completion of our refranchising initiatives are together building towards the stronger capital-light financial profile we will deliver. We are securing a strong foundation to launch The Joint 3.0 with a growing national brand, more active members, stronger patient retention, and lifetime value, and an innovation pipeline to improve the patient experience. Meanwhile, our capital allocation including share repurchases, RD buybacks, and disciplined investment in growth initiatives reflects our conviction in the long-term value of this business and our commitment to delivering returns for stockholders. And finally, we are also building a business that is well aligned with aging demographics and consumer expectations for where healthcare and wellness are heading. This growing consumer demand for longevity, health span, and noninvasive whole body care creates a unique opportunity for The Joint to address this demand at scale. With that, operator, we are ready for Q&A. Operator: [Operator Instructions] Your first question comes from the line of Nicholas Sherwood with Maxim Group. Your line is open. Nicholas Sherwood: My first question is, one of the things that you've spoken about in the past is making sure that you're optimizing your digital marketing strategy for sort of AI search engine optimization. And there's been a lot of things out there, how click rates on Google are going to 0 in some cases. How are you operating in this new AI search environment and making sure that you're getting customers to click through onto your website? Sanjiv Razdan: First of all, I want to acknowledge, Nicholas, that the AI search environment is just incredibly rapidly changing and is vitally important for us. The way that we stay ahead of this is in 3 ways. Number one, we have the benefit of about 260 local franchisees and operators who are giving us feedback right at the local level on how our search is showing up in their trade zones, and that allows us to just stay on top of things. Second thing we do is that we have a digital marketing team that stays on top of the algorithm changes that are happening in the marketplace, not just with Google, which continues to remain dominant, but also all the other platforms now where consumers are searching for us through some kind of AI-enabled search. So we have dedicated resources that are constantly staying on top of the algorithm changes that drive those searches. The third thing is that we have a measurement system in place which is objective. We look at it through a couple of different measurement systems to make sure that we're not just reliant on internal ways of looking at it. And so as a result of those 3 ways that I've described to you, it gives us enough insight and allows our team to then take corrective action if we need to, to stay on top of it. For -- when we started this journey sometime, I would say, late last year, our AI score, search score was in the low 70s, 71 to be precise. And for the last several months now, we have been in the high 70s and -- which is a pretty competitive number when we compare it with others who are considered to be strong in the category. Nicholas Sherwood: Understood. I appreciate the detail. And then my second question is, looking at the -- getting lapsed patients to return, are they -- are these patients lapsing because either they find themselves cured, maybe that they just feel like they need to go do something else, such as traditional physical therapy? Or is it a cost issue? Kind of what is the mix between those 3 for lapsed patients, and how do you attack getting them back into your clinics? Sanjiv Razdan: Great question. We find invariably that the reasons for our patients to lapse are 1 of 3. Number one, I am no longer in pain. Number two, I may not have the same amount of time to come back for a regular adjustment as when I did when I was in pain or discomfort. Number three, relative to the first 2, I no longer wish to invest that same level of money in getting regular adjustments. So those tend to be for us pain, time, money, the 3 biggest drivers of patients lapsing. What we found as we've done consumer research is that unlike several brands where the lapsed patients tend to have some degree of disgruntlement with the concept, our lapsed patients actually have fond memories of getting pain relief and are very willing to reconsider us. And I think that's a good insight for us. Clearly, what -- as we've realized this, we are actively making sure that we are looking to target some of our digital marketing and local marketing efforts towards winning back those lapsed patients. In fact, our August promotion right now is targeted towards them just as we speak. And we're very hopeful that's going to work for us and, in fact, allow us to acquire more patients into the active member funnel for us at a lower cost of acquisition over time. Scott Bowman: And I'll just add a comment on to that as well. We talked about the flexible options a lot that we've rolled out. And that's a big win, too, for these patients. Typically, these patients will lapse from a wellness plan, 4 visits a month for a certain price, depending on location. With this Align One plan that we have, you pay $35, you get 1 visit per month for that, and then you can pay an additional $25 if you need additional visits. That has been a big win for us, because what that has done is given these patients another option to choose from other than the standard wellness plan. And as a result of that, our conversion rate for those lapsed patients has gone up several hundred basis points. With this new flexible option, we actually have 2 of those. And so that's been an unlock for us here in the last few months. Operator: Your next question comes from the line of George Kelly with ROTH Capital Partners. George Kelly: I have a few for you. So first, I was wondering if you could provide more detail just on your comp performance -- maybe not sure if you want to give sort of the trends throughout the quarter. And any comment on July would be helpful as well. And then the second question is about pricing. Can you give a breakdown of how much pricing benefited 2Q? And maybe your expectations -- I know more clinics have rolled out the new pricing, maybe your expectations on pricing in the back half of the year. Scott Bowman: Sure. Yes. As far as comps go, we did see a little bit better comps towards the end of the quarter and coming into the third quarter. But -- and so, we're encouraged. If you look at the back half of the year, we've indicated that we think that our comps will be better. And so they were slightly better at the end of the quarter. And so we felt pretty good coming into the third quarter as well. And that's why we kind of reiterated that we think that comps will be higher in the back half. Related to your pricing question, so we had some pricing initiatives earlier in the year and then we had some more at the end of June rollout. And so the way that we look at it, it looks like it's helping in the low single-digit range in terms of pricing. We have a lot of other initiatives going on out there with new offerings and things like that. But isolated just to the wellness plan, it looks like it's about a low single-digit impact. And as we look into the second half, with more clinics with the new pricing, we see that it'll likely be at the high end of that low single-digit range, based on at least our estimates right now. Sanjiv Razdan: And just -- George, just to -- this is Sanjiv. Just to remind everyone, when we take pricing, what we've been doing is taking pricing only for new patients. So in a membership model for us, it takes time for that pricing impact to catch up when the bulk of the patients then are on that most current pricing model. George Kelly: Okay, yep, that's helpful. And can you comment on July comp performance? Scott Bowman: Yes, what I would say, George, is July comps are a bit better than closing out Q2. So not dramatically different, but sequentially a little better than the end of Q2. George Kelly: Okay. Great. And then the second topic I wanted to cover is, you've had this slide in your deck now for a few quarters, the pro forma profitability slide. And I noticed that this time around, you noted in this slide that it's really a starting point. And I think in your prepared remarks, Scott, you talked about there being opportunity for sort of continual margin improvement. So I was wondering if you could provide more context, a, about where you're finding or believe that there could be more opportunity? Is it really just about growth and scale and leveraging your cost structure? Or are there more places where you think you could sort of directly take cost out? And then the second part of the question is about expectations. I don't know how far sort of in front you want to get. Maybe you don't want to get too far ahead here. But like how should we think about '27 and '28? You've said that I think it's 19% to 21% EBITDA margin targets when the refranchising is done. I don't know if you'd be willing to give what those numbers could look like over the near to medium term? Scott Bowman: Yes. Good question, George. We're not ready to guide to '27 and '28, but I'll give you some -- a little bit of color that hopefully will help. So the model that is in the earnings deck, I wanted to make sure that everybody understood that this is a starting point for us. And what I was trying to accomplish was to give everyone the structure of what we would expect to see once refranchising is complete, okay? Not -- it wasn't like a forward projection of what we want to be a year or 2 years from now. It's kind of point in time, what we would expect, okay? And the expectation was that was a starting point. And as we continue to increase sales, this platform and framework will give us a good opportunity to leverage these additional sales to expand our profitability margin, okay? So that's what I was trying to set this out for. And so this model I think, will allow us the way that we have our G&A structure now, it can withstand some increase in revenue and sales. And so that's why I feel confident that as we add sales, we can leverage this model. From a refranchising standpoint, in my prepared remarks, I tried to give some color on some of those expenses that we don't expect to recur. The RD buybacks and some of those costs to get through the refranchising, about $0.5 million in the quarter will not recur. And so once we get past the refranchising, that will become more clear. And that will allow us to head towards that G&A target that I have in the deck. As far as overall cost structure post-refranchising, yes, I think there's some areas we can continue to optimize, and I think that will become more clear as we get past refranchising and we kind of see what the go-forward kind of model will be from a structure standpoint. And from an expense standpoint with the legal costs that we spend and other costs that we spend, it'll be more clear once we get all of the ownership transfers done. So hopefully that gives you something to understand. Sanjiv Razdan: Just to clarify one more time, I think that $0.5 million that we're saying was associated with RD buybacks and some one-time expenses related to refranchising. It is currently sitting in our SG&A, and we don't expect to have that repeat. George Kelly: Understood. And then last one for me is just on refranchising. What are the remaining proceeds on those clinics that have not yet transferred ownership? Like what are you expecting to get when they do? And when do you expect that process to be complete? Scott Bowman: Yes. So we're still working through the process to complete, and it is a rather lengthy process just because we have to work with the landlords to execute the lease assignments to transfer the ownership. In the meantime, we have these management service agreements. And so as far as the remaining proceeds to go, it'll be a little bit less of $500,000 or maybe a little less when all said and done to collect the remaining proceeds. Operator: I will now turn the call back over to Sanjiv Razdan for closing remarks. Sanjiv Razdan: Thank you all for joining us today. Have a great day. And remember, at The Joint, we always have your back. Operator: Ladies and gentlemen, that concludes today's call. Thank you all for joining. You may now disconnect. Before you buy stock in The Join Corp., consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and The Join Corp. wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $400,209!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,375,393!* Now, it’s worth noting Stock Advisor’s total average return is 964% — a market-crushing outperformance compared to 215% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of August 13, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Joint Corp (JYNT) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Transitioned effectively to a capital-light, pure-play franchisor model, driving a $1.4 million year-over-year increase in adjusted EBITDA from continuing operations. Achieved the highest quarterly patient retention rate in over five years by introducing flexible membership plans that reduce attrition and broaden patient appeal. Optimized the clinic portfolio through strategic refranchising of three major bundles, leaving only three company-owned clinics remaining once final transfers conclude. Improved operating leverage by shifting revenue mix toward higher-margin royalty and fee-based income while reducing regional developer royalty costs. Leveraged consumer research to pilot clinical care protocols, including quantifiable mobility scores, to enhance the patient experience and long-term value. Maintained disciplined capital allocation through share repurchases and the buyback of four regional developer territories to capture higher system economics. Expects comp sales trends to improve sequentially throughout the second half of 2026, with the fourth quarter projected to outperform the third quarter. Anticipates reaching the full financial benefits of the pure-play franchisor model in late 2026, targeting a starting adjusted EBITDA margin of 19% to 21%. Plans to drive top-line growth by winning back lapsed patients through targeted digital marketing and personalized experiences for 'most valuable patients'. Projects 22 to 26 new franchise clinic openings for the full year 2026, focusing on well-capitalized multi-site operators to ensure site quality. Long-term strategy prioritizes expansion into underpenetrated U.S. markets and potential international entry to align with global wellness and longevity trends. Identified approximately $500,000 in non-recurring G&A expenses related to regional developer buybacks and refranchising activities that will not persist post-transition. Completed three regional developer territory buybacks in Q2, contributing to a year-to-date total of four buybacks expected to realize $630,000 in annualized royalty savings. Implemented $5 and $10 price increases across over 500 clinics with management reporting no meaningful patient pushback to date. Acknowledged the complexity of lease assignments as a primary factor in the timing of final ownership transfers for refranchised clinic bundles. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management utilizes a three-pronged approach: local franchisee feedback, a dedicated digital team monitoring algorithms, and objective third-party measurement systems. Reported an improvement in their AI visibility score from the low 70s to the high 70s, maintaining a competitive edge in organic traffic and lead quality. Identified the primary reasons for patient attrition as the resolution of pain, time constraints, and cost considerations. Introduced the 'Align One' plan ($35 for one visit) to capture patients who find the standard 4-visit wellness plan too frequent or expensive, resulting in a conversion rate increase of several hundred basis points. Clarified that the 19% to 21% EBITDA margin target is a 'starting point' rather than a long-term ceiling. Management believes the current G&A structure can withstand significant revenue growth, allowing for further margin expansion as the system scales beyond 2026.

This article first appeared on GuruFocus. Release Date: August 06, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. The Joint Corp (NASDAQ:JYNT) reported a 14% year-over-year revenue increase to $15.2 million, driven by the shift to a pure-play franchisor model. Adjusted EBITDA from continuing operations surged by $1.4 million to $1.5 million, reflecting significant operating leverage and improved profitability. The company achieved its best patient retention rate in over five years, a direct result of new flexible and expanded membership plan options. Cash flow from operating activities grew 152% year-over-year to $2.2 million, leading to a $1.6 million increase in free cash flow to $1.9 million. The refranchising initiative is nearly complete, positioning The Joint Corp (NASDAQ:JYNT) as a capital-light franchisor with a projected adjusted EBITDA margin of 19-21% and net income margin of 13-15%. System-wide sales declined 3.7% year-over-year to $128 million, indicating continued top-line pressure despite comp sales improvements. The company lowered its full-year 2026 new clinic opening guidance to 22-26, down from the prior range of 30-35, and expects net clinic count to be lower than 2025. Selling and marketing expenses increased 40% year-over-year to $4.2 million, driven by a shift to national marketing, which could pressure near-term margins. The company still reported a net loss from continuing operations of $251,000, although this was an improvement from a $990,000 loss in the prior year. The refranchising process is complex and lengthy, with remaining ownership transfers and lease assignments still pending, and the company expects only about $500,000 or less in remaining proceeds from these transactions. Warning! GuruFocus has detected 4 Warning Signs with JYNT. Is JYNT fairly valued? Test your thesis with our free DCF calculator. Q: Can you provide more detail on your comp sales performance, including the trend throughout the quarter and any comment on July? Also, can you break down how much pricing benefited Q2 and your expectations for pricing in the back half of the year? A: Scott Bowman (CFO): We saw slightly better comps towards the end of the quarter and coming into Q3, which is why we reiterated that comps will be higher in the back half. Regarding pricing, it is helping in the low single-digit range. As we look into the second half, with more clinics adopting the new pricing, we expect it to be at the high end of that low single-digit range. Sanjeev Razdan (CEO) added that pricing is only taken for new patients, so it takes time for the impact to catch up in the membership model. Q: You've had a slide on pro forma profitability for a few quarters, but this time you noted it's a starting point. Where do you see opportunities for continual margin improvement, and how should we think about 2027 and 2028? A: Scott Bowman (CFO): We are not ready to guide for 2027 and 2028, but the model in the deck is a starting point once refranchising is complete, not a long-term projection. As we increase sales, this framework will allow us to leverage additional sales to expand profitability margins. We have about $0.5 million in one-time expenses in Q2 related to RD buybacks and refranchising that will not recur, which will help us head towards our G&A target. There are areas to continue optimizing, which will become clearer once ownership transfers are done. Q: What are the remaining proceeds from the clinics that have not yet transferred ownership in the refranchising process, and when do you expect the process to be complete? A: Scott Bowman (CFO): We are still working through the process, which is lengthy because we have to work with landlords to execute lease assignments. In the meantime, the clinics are operating under management service agreements. The remaining proceeds to collect will be a little less than $500,000 when all is said and done. Q: How are you operating in the new AI search environment, given concerns about click rates on Google going to zero, and how are you ensuring customers click through to your website? A: Sanjeev Razdan (CEO): We stay ahead in three ways: First, we have about 260 local franchisees giving us feedback on how our search shows up in their trade zones. Second, our digital marketing team stays on top of algorithm changes across Google and other AI-enabled search platforms. Third, we have an objective measurement system using multiple tools. Our AI visibility score has improved from 71 late last year to the high 70s, which is competitive against others in the category. Q: Are lapsed patients leaving because they feel cured, because they need to do something else like physical therapy, or is it a cost issue? How do you attack getting them back? A: Sanjeev Razdan (CEO): The three biggest drivers of patients lapsing are pain (no longer in pain), time (can't commit to regular adjustments), and money (don't want to invest the same level). Unlike other brands, our lapsed patients have fond memories of getting pain relief and are willing to reconsider us. We are targeting our August promotion towards them. The new flexible options, like the alignment plan at $35 per month for one visit plus $25 for additional visits, have increased conversion rates for lapsed patients by several hundred basis points. Q: Can you comment on July comp performance specifically? A: Scott Bowman (CFO): July comps are a bit better than the closing of Q2. Not dramatically different, but sequentially a little better than the end of Q2. Q: Regarding the $0.5 million in expenses related to RD buybacks and refranchising, can you clarify where that sits in the financials? A: Scott Bowman (CFO): That $0.5 million is currently sitting in our SG&A (G&A expenses). We do not expect that to repeat once we get past the refranchising process. Q: With the refranchising efforts nearly complete, what is the expected impact on the company's financial model and profitability? A: Scott Bowman (CFO): Once refranchising is complete in the back half of 2026, we expect a capital-light operating model with gross margins between 83-85% of revenues, G&A expenses between 40-42% of revenues, capex of approximately 3% of revenues, and free cash flow conversion between 60-70%. This would result in an estimated adjusted EBITDA margin of 19-21% and net income margin of 13-15%. These are starting points, not long-term targets, and we intend to build on these improvements in 2027 and beyond. Q: Can you provide an update on the status of the refranchising efforts for the three clinic bundles? A: Sanjeev Razdan (CEO): For the Southern California bundle, ownership has been transferred for 32 clinics, with the remaining 13 operating under management service agreements. For the Northern California bundle, a signed asset purchase agreement is in place for 4 clinics. For the Southeast bundle, ownership has been transferred for 6 clinics, with the remaining 15 operating under management service agreements. Once all transfers are finalized, we will have only 3 remaining company-owned or managed clinics, positioning us as a pure-play capital-light franchisor. Q: What is the company's guidance for new clinic openings in 2026, and how does that compare to prior guidance? A: Scott Bowman (CFO): We now expect new franchise clinic openings to be in the range of 22 to 26 for the year, compared to prior guidance of 30 to 35. New clinic openings will be offset by closures as we reshape the portfolio around stronger operators and healthier sites, meaning the net clinic count at the end of 2026 will be lower than 2025. We continue to see potential for more than 1,800 franchise clinics in the US alone. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Interested in The Joint Corp.? Here are five stocks we like better. Joint’s second-quarter financial performance improved significantly: Revenue rose 14% year over year to $15.2 million, while adjusted EBITDA increased to $1.5 million and free cash flow reached $1.9 million. Patient retention also reached its highest level in more than five years. The company is nearing completion of its shift to a capital-light franchisor model. Clinic transfers are progressing, and Joint expects only three company-owned or managed clinics to remain once the transactions are complete, with the new financial model expected to be fully implemented in the second half of 2026. Full-year 2026 financial guidance was reaffirmed, but the clinic-opening outlook was reduced. Joint maintained its system-wide sales, same-store sales and adjusted EBITDA targets, while lowering expected new franchise openings to 22–26 from 30–35 amid portfolio reshaping and anticipated closures. Joint (NASDAQ:JYNT) reported second-quarter results that reflected progress in its shift toward a capital-light, pure-play franchisor model, while management said patient retention improved to its highest level in more than five years. Revenue increased 14% year over year to $15.2 million for the quarter ended June 30. Consolidated net income rose to $653,000 from $93,000 in the prior-year period, while adjusted EBITDA from continuing operations increased to $1.5 million from $88,000. Cash flow from operating activities rose 152% to $2.2 million, and free cash flow increased by $1.6 million to $1.9 million. → Meta’s Earnings Drop Shows Wall Street Wants More Than Ad Growth President and CEO Sanjiv Razdan said the results reflected execution on the company’s “Joint 2.0” initiative, including refranchising company-operated clinics, improving patient retention and maintaining disciplined capital allocation. The company said its three previously announced clinic-sale bundles are progressing, with buyers operating certain clinics under management service agreements while lease assignments and ownership transfers are completed. In Southern California, ownership has transferred for 32 clinics, while 13 remaining clinics are operated by the buyer under management service agreements. In Northern California, the company has signed an asset purchase agreement covering four clinics. In the Southeast, ownership has transferred for six clinics, while the buyer operates 15 remaining clinics under management service agreements. → Visa’s BioCatch Deal Could Make Fraud Prevention a Bigger Business Once the transfers are finalized, The Joint expects to have three company-owned or managed clinics remaining. Razdan said that position would effectively make the company a capital-light, pure-play franchisor. CFO Scott Bowman said the company expects to receive about $500,000 or slightly less in remaining proceeds from the clinic transfers. He said the timeline depends on working with landlords to complete lease assignments. → Ulta's Growth Is Real, But So Are the Risks The company expects the new financial model to be fully in place in the second half of 2026 after the remaining transfers are completed. Its stated starting points for the model include gross margin of 83% to 85% of revenue, general and administrative expenses of 40% to 42% of revenue, capital expenditures of about 3% of revenue, free-cash-flow conversion of 60% to 70%, adjusted EBITDA margin of 19% to 21%, and net income margin of 13% to 15%. Bowman emphasized that these figures are starting points rather than long-term targets. He said management expects additional sales growth to provide an opportunity to leverage the company’s cost structure and expand margins over time, though the company did not provide guidance for 2027 or 2028. Same-store sales declined 2.8% in the second quarter, improving by 140 basis points from the first quarter. System-wide sales were $128 million, down 3.7% year over year. Razdan said flexible and expanded membership-plan options introduced earlier in the year contributed to the company’s strongest quality retention rate in more than five years. He said The Joint is focusing on patient acquisition, retaining active members and winning back former patients. During the question-and-answer session, Razdan identified pain relief, time constraints and affordability as the three principal reasons patients lapse. He said consumer research found that lapsed patients generally retain positive memories of receiving pain relief and may be willing to return. Bowman said the company’s flexible plans have increased conversion rates among lapsed patients by several hundred basis points. One option allows patients to pay $35 for one visit per month and $25 for additional visits, offering an alternative to the standard wellness plan. The company also expanded $5 and $10 pricing increases in July, bringing the number of clinics that have adopted higher pricing to more than 500. Razdan said the price changes have been applied to new patients, meaning their impact builds gradually as more members enroll at current rates. Bowman said pricing appeared to contribute in the low-single-digit range during the quarter and could be toward the high end of that range in the second half. Management said digital marketing initiatives, including search-engine optimization and AI-search visibility efforts, are supporting organic traffic and lead quality. Razdan said The Joint’s AI visibility score had risen from 71 late last year to the high 70s in recent months. Unrestricted cash totaled $22.2 million at quarter-end, compared with $23.6 million at the end of 2025. The company’s $20 million JPMorgan Chase line of credit remained fully undrawn and is available through August 2029. During the quarter, The Joint repurchased about 82,000 shares for $677,000, or an average price of $8.23 per share. It had $3.8 million remaining under its $12 million share-repurchase authorization. The company also completed three regional developer territory buybacks in the quarter, bringing the year-to-date total to four. Management expects the four completed transactions to reduce regional developer royalties by about $630,000 annually, partly offset by internal territory-management costs. The clinic count stood at 941 at the end of the quarter. The company opened five clinics, closed seven and refranchised 29. Bowman said 2026 openings are reaching break-even in less than six months and are outperforming comparable cohorts. The Joint reiterated its full-year 2026 outlook for system-wide sales of $519 million to $552 million, same-store sales between negative 3% and positive 3%, and consolidated adjusted EBITDA of $12.5 million to $13.5 million. Management said it expects same-store sales to improve in the second half, with fourth-quarter performance stronger than the third quarter. Bowman said July same-store sales were modestly better than the end of the second quarter. The company reduced its expected number of new franchise-clinic openings to 22 to 26 from prior guidance of 30 to 35. Closures are expected to offset openings as the company reshapes its portfolio around stronger operators and sites, resulting in a lower year-end clinic count than in 2025. The Joint Chiropractic, Inc, doing business as Joint (NASDAQ: JYNT), is a franchisor and operator of outpatient chiropractic clinics in the United States. Under its flagship The Joint Chiropractic brand, the company offers membership-based, cash-focused spinal adjustment services designed to promote accessible, routine care for neck and back discomfort. By removing insurance requirements and offering walk-in visits, Joint aims to streamline the patient experience and reduce cost barriers to ongoing chiropractic treatment. Joint's growth strategy centers on partnering with franchisees to expand its network of clinics. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Joint Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

- Consolidated Net Income Increases $560,000 to $653,000; Adjusted EBITDA From Continuing Operations Increases by $1.4 Million - - Cash Flow from Operating Activities Rises 152% to $2.2 Million, Driving Free Cash Flow of $1.9 million - - Delivered on Capital Allocation Priorities with Regional Developer Territory Buybacks and $677,000 in Share Repurchases - SCOTTSDALE, Ariz., Aug. 06, 2026 (GLOBE NEWSWIRE) -- The Joint Corp. (NASDAQ: JYNT), the nation's largest franchisor of chiropractic care through The Joint Chiropractic® network, today reported financial results for the second quarter ended June 30, 2026. The following figures represent continuing operations unless otherwise stated. Second Quarter 2026 Financial Highlights Revenues grew to $15.2 million, a 14% increase compared to the second quarter of 2025. System-wide sales1 were $128.0 million, a 3.7% decrease compared to the second quarter of 2025. Reported comp sales2 of (2.8)%, a 140-basis point improvement compared to the first quarter of 2026. Net income from consolidated operations was $653,000, compared to $93,000 in the second quarter of 2025. Net loss from continuing operations was $251,000, compared to a net loss of $1.0 million in the second quarter of 2025. Adjusted EBITDA (a non-GAAP metric) from consolidated operations was $3.2 million, in line with $3.2 million in the second quarter of 2025. Adjusted EBITDA from continuing operations was $1.5 million, compared to $88,000 in the second quarter of 2025. Cash flow from operating activities improved to $2.2 million compared to $869,000 in the second quarter of 2025, and free cash flow (a non-GAAP metric) was $1.9 million compared to $364,000 in the second quarter of 2025. Repurchased 82,000 shares for total consideration of approximately $677,000, at an average of $8.23 per share during the second quarter. Completed three regional developer (“RD”) territory buybacks in the second quarter. Second Quarter 2026 Operating Highlights Total clinic count was 941 at June 30, 2026. Increased adoption of the Company’s more flexible plan options continues to drive significantly stronger patient retention rate. “In the second quarter, we continued to see the benefits of our Joint 2.0 strategy take hold, with our actions to optimize the clinic portfolio, streamline our operating structure, and elevate the patient experience driving improved operating efficiency and strong free cash flow,” said President and Chief Executive Officer of The Joint Corp., Sanjiv Razdan. “We are encouraged with another quarter of revenue growth, as well as the improvement in comp trends compared to the first quarter. We are also seeing the early benefits of our flexible membership options, which contributed to strengthening patient retention. In addition, our national marketing initiative is leveraging consumer research to uncover emerging patient trends, ensuring our offerings align with what patients are seeking from chiropractic care. “As we enter the second half of 2026, we expect our pure-play franchisor model to drive margin improvement, profitability and continued free cash flow. Our balance sheet remains strong, with $22.2 million in unrestricted cash, which combined with our improving cash generation, positions us to continue to execute on our capital allocation priorities including share repurchases and RD territory buybacks. In addition, we are investing in growth-focused initiatives to deepen patient relationships and improve outcomes across the network. Together, these efforts reinforce our commitment to build sustainable, long-term value for our franchise partners, patients, and stockholders.” Update on Refranchising Efforts The Company has substantially completed the refranchising initiative under its Joint 2.0 strategy through three previously announced clinic sale bundles: Southern California Bundle: As of August 5, 2026, the buyer has assumed ownership of 32 clinics, with the remaining 13 clinics currently operated by the buyer under Management Service Agreements pending finalization of lease assignments. Northern California Bundle: A signed Asset Purchase Agreement is in place for these four clinics. Southeast Bundle: As of August 5, 2026, the buyers have assumed ownership of six clinics, with the remaining 15 clinics currently operated by the buyers under Management Service Agreements pending finalization of lease reassignments. As a result of these refranchising efforts, The Joint Corp. now effectively operates as a capital-light, pure-play franchisor, allowing management to concentrate fully on driving growth through franchise system support, new patient acquisition, and long-term network development. Financial Results for Second Quarter Ended June 30, 2026 Compared to June 30, 2025 Revenue totaled $15.2 million in the second quarter of 2026, compared to $13.3 million in the second quarter of 2025, reflecting the shift to the Company's pure play franchisor revenue model. Cost of revenues was $2.5 million, down approximately 11% compared to the prior-year period, primarily due to lower RD royalty costs as the Company continues to reacquire RD territories. Selling and marketing expenses were $4.9 million, an increase of 40% compared to the second quarter of 2025, primarily due to incremental investments in brand awareness and patient acquisition. Depreciation and amortization expenses were $423,000. General and administrative expenses decreased 2% to $7.6 million compared to $7.7 million in the second quarter of 2025, underscoring ongoing operating discipline within the leaner post-refranchising structure. Consolidated net income was $653,000, compared to $93,000 in the prior-year period. Net loss from continuing operations was $251,000, compared to a net loss of $1.0 million in the second quarter of 2025. Consolidated EPS was $0.05 per diluted share, compared to $0.01 per diluted share in the second quarter of 2025. Adjusted EBITDA from consolidated operations was $3.2 million, in line with $3.2 million in the second quarter of 2025. Adjusted EBITDA from continuing operations was $1.5 million, compared to $88,000 in the prior-year period. Balance Sheet and Stock Repurchase Program Unrestricted cash was $22.2 million at June 30, 2026, an increase compared to $20.7 million at March 31, 2026. The Company maintains a currently undrawn line of credit with JP Morgan Chase, which provides immediate access to $20 million through August 2029. During the second quarter of 2026, the Company repurchased approximately 82,000 shares for total consideration of approximately $677,000, at an average price of $8.23 per share. As of June 30, 2026, the Company had $3.8 million remaining under the $12 million stock repurchase program authorized in November 2025. Financial Results for Six Months Ended June 30, 2026 Compared to June 30, 2025 Revenue was $30.0 million in the first six months of 2026, up 14% compared to $26.3 million in the same period in 2025. Consolidated net income was $2.0 million, compared to $1.1 million in the six months ended June 30, 2025. Net income from continuing operations was $851,000, compared to a net loss of $1.5 million in the six months ended June 30, 2025. Consolidated EPS was $0.14 per diluted share, compared to $0.07 per diluted share in the prior-year period. Adjusted EBITDA from consolidated operations increased to $6.6 million and Adjusted EBITDA from continuing operations improved to $3.7 million, compared to Adjusted EBITDA from consolidated operations of $6.1 million and Adjusted EBITDA from continuing operations of $134,000 in the six months ended June 30, 2025. 2026 Guidance The Company reiterated its 2026 financial guidance as originally provided on March 12, 2026, as follows: System-wide sales are expected to be between $519 million and $552 million. System-wide comp sales for clinics open 13 months or more are expected to be in the range of (3)% to 3%. Consolidated Adjusted EBITDA is expected to be in the range of $12.5 million to $13.5 million. New franchised clinic openings, excluding the impact of refranchised clinics, are now expected to be in the range of 22 to 26. The Company is working with franchise owners to optimize the performance of the existing franchised clinic base. This will include closing underperforming clinics this year, which will result in the overall clinic count at 2026 year end being lower than 2025 year end. Conference Call The Joint Corp. management will host a conference call at 5:00 p.m. ET on Thursday, August 6, 2026, after the market close. Shareholders and interested participants may listen to a live broadcast of the conference call by dialing (800) 715-9871 or (646) 307-1963 and using conference ID: 5033381 approximately 15 minutes prior to the start time. The live webcast of the call, including the accompanying slide presentation, can be accessed directly here. A replay of the webcast will be archived on the Company’s investor relations website for approximately one year. An audio replay of the conference call will be available through Thursday, August 13, 2026, and can be accessed by dialing (855) 669-9658 or (412) 317-0088 and entering conference ID 4782858. About The Joint Corp. (NASDAQ: JYNT) The Joint Corp. (NASDAQ: JYNT) revolutionized access to chiropractic care when it introduced its retail healthcare business model in 2010. Today, it is the nation’s largest operator, manager and franchisor of chiropractic clinics through The Joint Chiropractic network. The Company is making quality care convenient and affordable, while eliminating the need for insurance, for millions of patients seeking pain relief and ongoing wellness. Headquartered in Scottsdale and with over 940 locations nationwide and more than 14 million patient visits annually, The Joint Chiropractic is a key leader in the chiropractic industry. The brand is consistently named to Franchise Times’ annual “Top 400” and “Fast & Serious” list of smartest growing brands. Entrepreneur named The Joint “No. 1 in Chiropractic Services,” and it is regularly ranked on the publication’s “Franchise 500®,” “Fastest-Growing Franchises,” and “Best of the Best” lists, as well as its “Top Franchise for Veterans” and “Top Brands for Multi-Unit Owners” rankings. SUCCESS® named the Company one of the “Top 50 Franchises”. The Joint Chiropractic is an innovative force where healthcare meets retail. For more information, visit www.thejoint.com. To learn about franchise opportunities, visit www.thejointfranchise.com. Business Structure The Joint Corp. is a franchisor of clinics and an operator of clinics in certain states. In Arkansas, California, Colorado, Connecticut, Delaware, District of Columbia, Florida, Illinois, Kansas, Kentucky, Maryland, Michigan, Minnesota, New Jersey, New York, North Carolina, Oregon, Pennsylvania, Tennessee, Washington, and West Virginia, The Joint Corp. and its franchisees provide management services to affiliated professional chiropractic practices. Commonly Discussed Performance Metrics This release includes a presentation of commonly discussed performance metrics. System-wide sales include revenues at all clinics, whether operated by the company or by franchisees. While franchised sales are not recorded as revenues by the company, management believes the information is important in understanding the company’s financial performance because these sales are the basis on which the company calculates and records royalty fees and are indicative of the financial health of the franchisee base. Comp sales include the revenues from both company-owned or managed clinics and franchised clinics that in each case have been open at least 13 full months and exclude any clinics that have closed. Non-GAAP Financial Information This release also includes a presentation of non-GAAP financial measures. EBITDA and Adjusted EBITDA are presented because they are important measures used by management to assess financial performance, as management believes they provide a more transparent view of the company’s underlying operating performance and operating trends. Free cash flow is presented as a supplemental measure of liquidity. Reconciliation of historical net income/(loss) to EBITDA, Adjusted EBITDA and free cash flow is presented in the tables below. The company defines EBITDA as net income/(loss) before net interest, tax expense, depreciation, and amortization expenses. The company defines Adjusted EBITDA as EBITDA before acquisition-related expenses (which includes contract termination costs associated with reacquired RD rights), net (gain)/loss on disposition or impairment, stock-based compensation expenses, costs related to restatement filings, restructuring costs, and litigation expenses (consisting of legal and related fees for specific proceedings that arise outside of the ordinary course of our business). The company defines free cash flow as net cash provided by (used in) operating activities less capital expenditures. EBITDA, Adjusted EBITDA and free cash flow do not represent and should not be considered alternatives to net income or cash flows from operations, as determined by accounting principles generally accepted in the United States (“GAAP”). While EBITDA and Adjusted EBITDA are used as measures of financial performance and free cash flow is used as a measure of liquidity, they are not necessarily comparable to other similarly titled captions of other companies due to potential inconsistencies in the methods of calculation. EBITDA, Adjusted EBITDA and free cash flow should be reviewed in conjunction with the company’s financial statements filed with the Securities and Exchange Commission (the “SEC”). Please refer to the reconciliations of non-GAAP financial measures to their GAAP equivalents located at the end of this release. This release includes forward-looking guidance for certain non-GAAP financial measures, including Adjusted EBITDA. These measures will differ from net income (loss), determined in accordance with GAAP, in ways similar to those described in the reconciliations at the end of this release. We are not able to provide, without unreasonable effort, guidance for net income (loss), determined in accordance with GAAP, or a reconciliation of guidance for Adjusted EBITDA to the most directly comparable GAAP measure because the company is not able to predict with reasonable certainty the amount or nature of all items that will be included in net income (loss). Forward-Looking Statements This press release contains statements about future events and expectations that constitute forward-looking statements. Forward-looking statements are based on our beliefs, assumptions and expectations of industry trends, our future financial and operating performance and our growth plans, taking into account the information currently available to us. These statements are not statements of historical fact. Words such as "anticipates," "believes," "continues," "estimates," "expects," "goal," "objective," "intends," "may," "opportunity," "plans," "potential," "near-term," "long-term," "projections," "assumptions," "projects," "guidance," "forecasts," "outlook," "target," "trends," "should," "could," "would," "will," and similar expressions are intended to identify such forward-looking statements. Specific forward-looking statements made in this press release include, among others, our belief that in the second quarter, we continued to see the benefits of our Joint 2.0 strategy take hold, with our actions to optimize the clinic portfolio, streamline our operating structure, and elevate the patient experience driving improved operating efficiency and strong free cash flow; our belief that we are encouraged with another quarter of revenue growth, as well as the strengthening of comp trends as we exited the second quarter; our belief that we are seeing the early benefits of our flexible membership options, which contributed to strengthening patient retention; our belief that our national marketing initiative is leveraging consumer research to uncover emerging patient trends, ensuring our offerings align with what patients are seeking from chiropractic care; our expectation that as we enter the second half of 2026, our pure-play franchisor model will drive margin improvement, profitability and continued free cash flow; our belief that our balance sheet remains strong, with $22.2 million in unrestricted cash, which combined with our improving cash generation, positions us to continue to execute on our capital allocation priorities including share repurchases and RD territory buybacks; our plan to invest in growth-focused initiatives to deepen patient relationships and improve outcomes across the network and our belief that, together, these efforts reinforce our commitment to build sustainable, long-term value for our franchise partners, patients, and stockholders; and our reiterated 2026 guidance for system-wide sales, system-wide comp sales, consolidated Adjusted EBITDA, new franchised clinic openings, and overall clinic count. Forward-looking statements involve risks and uncertainties that may cause our actual results to differ materially from the expectations of future results we express or imply in any forward-looking statements, and you should not place undue reliance on such statements. Factors that could contribute to these differences include, but are not limited to, our inability to identify and recruit enough qualified chiropractors and other personnel to staff our clinics, due in part to the nationwide labor shortage and an increase in operating expenses due to measures we may need to take to address such shortage; inflation, leading to increased labor costs and interest rates, as well as changes to import tariffs and increased gas prices, may lead to reduced discretionary spending, all of which may negatively impact our business; our failure to profitably operate company-owned or managed clinics; our failure to refranchise as planned; short-selling strategies and negative opinions posted on the internet, which could drive down the market price of our common stock and result in class action lawsuits; our failure to remediate future material weaknesses in our internal control over financial reporting, which could negatively impact our ability to accurately report our financial results, prevent fraud, or maintain investor confidence; and other factors described in our filings with the SEC, including in the section entitled “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2025 filed with the SEC on March 13, 2026 and subsequent filings with the SEC. We qualify any forward-looking statements entirely by these cautionary factors. We assume no obligation to update or revise any forward-looking statements for any reason or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future. Comparisons of results for current and any prior periods are not intended to express any future trends or indications of future performance, unless expressed as such, and should only be viewed as historical data. Investor Contact:Richard Land, Alliance Advisors IR, [email protected] (212)-838-3777 – Financial Tables Follow – 1 System-wide sales include revenues at all clinics, whether operated or managed by the company or by franchisees. While franchised sales are not recorded as revenues by the company, management believes the information is important in understanding the company’s financial performance, because these revenues are the basis on which the company calculates and records royalty fees and are indicative of the financial health of the franchisee base.2 Comp sales include the revenues from both company-owned or managed clinics and franchised clinics that in each case have been open at least 13 full months and exclude any clinics that have closed.

SCOTTSDALE, Ariz., July 23, 2026 (GLOBE NEWSWIRE) -- The Joint Corp. (NASDAQ: JYNT), the nation's largest franchisor of chiropractic care through The Joint Chiropractic® network, announced it will report its 2026 second quarter financial results on Thursday, August 6, 2026, after the market close and host a conference call and simultaneous webcast at 5:00 p.m. ET that day. During the call, The Joint Corp. President and CEO Sanjiv Razdan and CFO Scott Bowman will review the Company’s financial results and provide a business update, followed by a question-and-answer session. Shareholders and interested participants may listen to a live broadcast of the conference call by dialing (800) 715-9871 or (646) 307-1963 and using conference ID: 5033381 approximately 15 minutes prior to the start time. The live webcast of the call, including the accompanying slide presentation, can be accessed directly here. A replay of the webcast will be archived on the Company’s investor relations website for approximately one year. An audio replay of the conference call will be available through Thursday, August 13, 2026, and can be accessed by dialing (855) 669-9658 or (412) 317-0088 and entering conference ID 4782858. About The Joint Corp. (NASDAQ: JYNT)The Joint Corp. (NASDAQ: JYNT) revolutionized access to chiropractic care when it introduced its retail healthcare business model in 2010. Today, it is the nation’s largest operator, manager and franchisor of chiropractic clinics through The Joint Chiropractic network. The company is making quality care convenient and affordable, while eliminating the need for insurance, for millions of patients seeking pain relief and ongoing wellness. Headquartered in Scottsdale and with over 950 locations nationwide and more than 14 million patient visits annually, The Joint Chiropractic is a key leader in the chiropractic industry. The brand is consistently named to Franchise Times’ annual “Top 400” and “Fast & Serious” list of smartest growing brands. Entrepreneur named The Joint “No. 1 in Chiropractic Services,” and it is regularly ranked on the publication’s “Franchise 500®,” “Fastest-Growing Franchises,” and “Best of the Best” lists, as well as its “Top Franchise for Veterans” and “Top Brands for Multi-Unit Owners” rankings. SUCCESS® named the company one of the “Top 50 Franchises”. The Joint Chiropractic is an innovative force where healthcare meets retail. For more information, visit www.thejoint.com. To learn about franchise opportunities, visit www.thejointfranchise.com. The Joint Business StructureThe Joint Corp. is a franchisor of clinics and an operator of clinics in certain states. In Arkansas, California, Colorado, Connecticut, Delaware, District of Columbia, Florida, Illinois, Kansas, Kentucky, Maryland, Michigan, Minnesota, New Jersey, New York, North Carolina, Oregon, Pennsylvania, Tennessee, Washington, and West Virginia, The Joint Corp. and its franchisees provide management services to affiliated professional chiropractic practices. Investor Contact:Richard Land, Alliance Advisors IR, [email protected], 212-838-3777

The Joint Corp. (JYNT) came out with quarterly earnings of $0.08 per share, beating the Zacks Consensus Estimate of $0.03 per share. This compares to a loss of $0.03 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +166.67%. A quarter ago, it was expected that this company would post earnings of $0.05 per share when it actually produced earnings of $0.06, delivering a surprise of +20%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. The Joint, which belongs to the Zacks Medical - HMOs industry, posted revenues of $14.82 million for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 5.82%. This compares to year-ago revenues of $13.08 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. The Joint shares have added about 0.9% since the beginning of the year versus the S&P 500's gain of 7.6%. While The Joint has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for The Joint was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.06 on $14.35 million in revenues for the coming quarter and $0.32 on $59.12 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Medical - HMOs is currently in the top 22% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the broader Zacks Medical sector, CorMedix (CRMD), has yet to report results for the quarter ended March 2026. The results are expected to be released on May 14. This pharmaceutical and medical device company is expected to post quarterly earnings of $0.35 per share in its upcoming report, which represents a year-over-year change of +16.7%. The consensus EPS estimate for the quarter has been revised 35.7% lower over the last 30 days to the current level. CorMedix's revenues are expected to be $109.85 million, up 181.1% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The Joint Corp. (JYNT) : Free Stock Analysis Report CorMedix Inc (CRMD) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

- First Quarter Revenues Grew 13%, Net Income Rose 34% and Adjusted EBITDA Increased 22% Year over Year - - Repurchased $1.1 Million of Shares - SCOTTSDALE, Ariz., May 07, 2026 (GLOBE NEWSWIRE) -- The Joint Corp. (NASDAQ: JYNT), the nation's largest franchisor of chiropractic care through The Joint Chiropractic® network, today reported financial results for the first quarter ended March 31, 2026. The following figures represent continuing operations unless otherwise stated. First Quarter 2026 Financial Highlights Grew revenues to $14.8 million, a 13% increase compared to the first quarter of 2025. Reported system-wide sales1 of $126.1 million, a decline of 4.9%. Reported comp sales2 of (4.2)%. Net income from consolidated operations improved 34% to $1.3 million from $1.0 million in the first quarter of 2025. Reported net income from continuing operations of $1.1 million compared to a net loss from continuing operations of $506,000 in the first quarter of 2025. Increased Adjusted EBITDA from consolidated operations 22% to $3.5 million from $2.9 million in the first quarter of 2025. Adjusted EBITDA from continuing operations was $2.2 million, compared to $46,000 in the first quarter of 2025. Cash flow from operating activities improved to $(1.5) million compared to $(3.7) million in the first quarter of 2025, and free cash flow (a non-GAAP metric) improved to $(1.7) million compared to $(4.0) million in the first quarter of 2025. Repurchased 137,000 shares for total consideration of $1.1 million, at an average of $8.35 per share. First Quarter 2026 and Recent Operating Highlights Total clinic count was 943 at March 31, 2026, compared to 960 at December 31, 2025. Opened three clinics and closed 20 clinics for a total of 868 franchised clinics and 75 company-owned or managed clinics at March 31, 2026, compared to 885 franchised clinics and 75 company-owned or managed clinics at December 31, 2025. Repurchased the rights to three regional developer territories, two of which were finalized in April. Introduced new sales initiative tests across B2B and direct-to-patient channels. Update on Refranchising Efforts The net effect of the below refranchising efforts effectively positions the Company as a pure-play franchisor, as only three of its 943 clinics will be company-owned or managed following completion of the transactions. April 2026: The Company signed an Asset Purchase Agreement for the sale of 45 company-owned or managed clinics located in Southern California to Elite Chiro Group for $2.3 million. As of April 27, 2026, Elite Chiro Group assumed business operations of 32 of these clinics under Management Service Agreements that will remain in effect until lease assignments are completed to permit the ownership transfer, and assumed ownership of the remaining 13 company-owned or managed clinics. March 2026: The Company signed a Letter of Intent for the sale of five company-owned or managed clinics in Northern California. “During the first quarter of 2026, we continued to build a more efficient and profitable platform, advancing our refranchising efforts, optimizing our clinic portfolio, and tightening our operating structure across the system,” said President and Chief Executive Officer of The Joint Corp., Sanjiv Razdan. “In April, we entered into an agreement for the sale of 45 of our company‑owned or managed clinics, effectively completing our Joint 2.0 refranchising initiative, with fewer than 1% of our remaining clinic portfolio being company‑owned or managed. At the same time, we remain active with our capital allocation priorities with continued share repurchases, as well as the recent completion of three regional developer buybacks that further optimize our portfolio economics.” “We also continued to build momentum across the business with new initiatives that strengthen patient engagement and support top‑line growth, along with disciplined cost management. Together, these efforts drove a 34% year-over-year increase in consolidated net income, a 22% increase in Adjusted EBITDA and a $2.3 million improvement in free cash flow, underscoring the strength and potential of our evolving operating model. Looking ahead, we remain focused on consistent execution as we deliver sustainable, long‑term value against growing consumer demand for longevity, health span, and non‑invasive whole‑body care.” Financial Results for First Quarter Ended March 31, 2026 Compared to March 31, 2025 Revenue totaled $14.8 million in the first quarter of 2026, compared to $13.1 million in the first quarter of 2025, reflecting the early benefits of refranchising and portfolio optimization initiatives. Cost of revenue was $2.7 million, down 8% compared to the prior-year period, primarily due to lower regional developer royalties. Selling and marketing expenses were $3.7 million, an increase of 6% compared to the first quarter of 2025, driven primarily by more clinics classified in continuing operations compared to the prior-year period. Depreciation and amortization expenses increased $35,000 over the same period, while general and administrative expenses increased 2% to $7.1 million. Included in general and administrative expenses is approximately $300,000 that relates to expenses that will not be incurred upon the completion of our refranchising strategy. Income tax expense was $11,000, compared to $13,000 in the first quarter of 2025. Consolidated net income increased to $1.3 million, compared to $1.0 million in the first quarter of 2025. Net income from continuing operations was $1.1 million, compared to a net loss of $506,000 in the first quarter of 2025. Consolidated EPS was $0.09 per diluted share, compared to $0.06 per diluted share in the first quarter of 2025. Adjusted EBITDA from consolidated operations increased 22% to $3.5 million and Adjusted EBITDA from continuing operations improved to $2.2 million, compared to $46,000 in the first quarter of 2025. Balance Sheet and Cash Flow Unrestricted cash was $20.7 million at March 31, 2026, compared to $23.6 million at December 31, 2025. The Company maintains a currently undrawn line of credit with JP Morgan Chase, which per a recent extension of the maturity date grants immediate access to $20 million through August 2029. During the first quarter of 2026, the company repurchased approximately 137,000 shares for total consideration of $1.1 million, at an average price per share of $8.35. As of March 31, 2026, the Company has $4.5 million remaining under the $12 million stock repurchase program authorized in November 2025. 2026 Guidance The Company reiterated 2026 guidance as originally provided on March 12, 2026, as follows: System-wide sales are expected to be between $519 million and $552 million. System-wide comp sales for clinics open 13 months or more are expected to be in the range of (3)% to 3%. Consolidated Adjusted EBITDA is expected to be in the range of $12.5 million and $13.5 million. New franchised clinic openings, excluding the impact of refranchised clinics, are expected to be in the range of 30 to 35. The Company is working with franchise owners to optimize the performance of the existing franchised clinic base. This may include closing underperforming clinics this year, which will result in the overall clinic count at 2026 year end being lower than 2025 year end. Conference Call The Joint Corp. management will host a conference call at 5:00 p.m. ET on Thursday, May 7, 2026, after the market close. Stockholders and interested participants may listen to a live broadcast of the conference call by dialing (833) 630-0823 or (412) 317-1831 and ask to be joined into the ‘The Joint’ call approximately 15 minutes prior to the start time. The live webcast of the call with an accompanying slide presentation can be accessed in the IR events section of The Joint’s website at https://ir.thejoint.com/events and will be available for approximately one year. An audio archive can be accessed for one week by dialing (855) 669-9658 or (412) 317-0088 and entering conference ID 6402682. About The Joint Corp. (NASDAQ: JYNT) The Joint Corp. (NASDAQ: JYNT) revolutionized access to chiropractic care when it introduced its retail healthcare business model in 2010. Today, it is the nation’s largest operator, manager and franchisor of chiropractic clinics through The Joint Chiropractic network. The Company is making quality care convenient and affordable, while eliminating the need for insurance, for millions of patients seeking pain relief and ongoing wellness. Headquartered in Scottsdale and with over 940 locations nationwide and more than 14 million patient visits annually, The Joint Chiropractic is a key leader in the chiropractic industry. The brand is consistently named to Franchise Times’ annual “Top 400” and “Fast & Serious” list of 40 smartest growing brands. Entrepreneur named The Joint “No. 1 in Chiropractic Services,” and it is regularly ranked on the publication’s “Franchise 500,” the “Fastest-Growing Franchises,” and the “Best of the Best” lists, as well as its “Top Franchise for Veterans” and “Top Brands for Multi-Unit Owners” lists. SUCCESS named the Company as one of the “Top 50 Franchises” in 2024. The Joint Chiropractic is an innovative force, where healthcare meets retail. For more information, visit www.thejoint.com. To learn about franchise opportunities, visit www.thejointfranchise.com. Business Structure The Joint Corp. is a franchisor of clinics and an operator of clinics in certain states. In Arkansas, California, Colorado, Connecticut, Delaware, District of Columbia, Florida, Illinois, Kansas, Kentucky, Maryland, Michigan, Minnesota, New Jersey, New York, North Carolina, Oregon, Pennsylvania, Tennessee, Washington, and West Virginia, The Joint Corp. and its franchisees provide management services to affiliated professional chiropractic practices. Commonly Discussed Performance Metrics This release includes a presentation of commonly discussed performance metrics. System-wide sales include revenues at all clinics, whether operated by the company or by franchisees. While franchised sales are not recorded as revenues by the company, management believes the information is important in understanding the company’s financial performance because these sales are the basis on which the company calculates and records royalty fees and are indicative of the financial health of the franchisee base. Comp sales include the revenues from both company-owned or managed clinics and franchised clinics that in each case have been open at least 13 full months and exclude any clinics that have closed. Non-GAAP Financial Information This release also includes a presentation of non-GAAP financial measures. EBITDA and Adjusted EBITDA are presented because they are important measures used by management to assess financial performance, as management believes they provide a more transparent view of the company’s underlying operating performance and operating trends. Free cash flow is presented as a supplemental measure of liquidity. Reconciliation of historical net income/(loss) to EBITDA, Adjusted EBITDA and free cash flow is presented in the tables below. The company defines EBITDA as net income/(loss) before net interest, tax expense, depreciation, and amortization expenses. The company defines Adjusted EBITDA as EBITDA before acquisition-related expenses (which includes contract termination costs associated with reacquired regional developer rights), net (gain)/loss on disposition or impairment, stock-based compensation expenses, costs related to restatement filings, restructuring costs, and litigation expenses (consisting of legal and related fees for specific proceedings that arise outside of the ordinary course of our business). The company defines free cash flow as net cash provided by (used in) operating activities less capital expenditures. EBITDA, Adjusted EBITDA and free cash flow do not represent and should not be considered alternatives to net income or cash flows from operations, as determined by accounting principles generally accepted in the United States (“GAAP”). While EBITDA and Adjusted EBITDA are used as measures of financial performance and free cash flow is used as a measure of liquidity, they are not necessarily comparable to other similarly titled captions of other companies due to potential inconsistencies in the methods of calculation. EBITDA, Adjusted EBITDA and free cash flow should be reviewed in conjunction with the company’s financial statements filed with the Securities and Exchange Commission (the “SEC”). Please refer to the reconciliations of non-GAAP financial measures to their GAAP equivalents located at the end of this release. This release includes forward-looking guidance for certain non-GAAP financial measures, including Adjusted EBITDA. These measures will differ from net income (loss), determined in accordance with GAAP, in ways similar to those described in the reconciliations at the end of this release. We are not able to provide, without unreasonable effort, guidance for net income (loss), determined in accordance with GAAP, or a reconciliation of guidance for Adjusted EBITDA to the most directly comparable GAAP measure because the company is not able to predict with reasonable certainty the amount or nature of all items that will be included in net income (loss). Forward-Looking Statements This press release contains statements about future events and expectations that constitute forward-looking statements. Forward-looking statements are based on our beliefs, assumptions and expectations of industry trends, our future financial and operating performance and our growth plans, taking into account the information currently available to us. These statements are not statements of historical fact. Words such as "anticipates," "believes," "continues," "estimates," "expects," "goal," "objective," "intends," "may," "opportunity," "plans," "potential," "near-term," "long-term," "projections," "assumptions," "projects," "guidance," "forecasts," "outlook," "target," "trends," "should," "could," "would," "will," and similar expressions are intended to identify such forward-looking statements. Specific forward-looking statements made in this press release include, among others, our belief that the net effect of the refranchising efforts related to the Asset Purchase Agreement and the Letter of Intent effectively positions the Company as a pure-play franchisor, as only three of its 943 clinics will be company-owned or managed following completion of the transactions; our belief that during the first quarter of 2026, we continued to build a more efficient and profitable platform, advancing our refranchising efforts, optimizing our clinic portfolio, and tightening our operating structure across the system; our belief that we remain active with our capital allocation priorities with continued share repurchases during the first quarter, as well as the recent completion of three regional developer buybacks that further optimize our portfolio economics; our belief that we continued to build momentum across the business with new initiatives that strengthen patient engagement and support top‑line growth, along with disciplined cost management and that, together, these efforts drove a 34% year-over-year increase in consolidated net income, a 22% increase in Adjusted EBITDA and a $2.3 million improvement in free cash flow, underscoring the strength and potential of our evolving operating model; our intention to remain focused on consistent execution as we deliver sustainable, long‑term value against growing consumer demand for longevity, health span, and non‑invasive whole‑body care; and our reiterated 2026 guidance for system-wide sales, system-wide comp sales, consolidated Adjusted EBITDA, and new franchised clinic openings. Forward-looking statements involve risks and uncertainties that may cause our actual results to differ materially from the expectations of future results we express or imply in any forward-looking statements, and you should not place undue reliance on such statements. Factors that could contribute to these differences include, but are not limited to, our inability to identify and recruit enough qualified chiropractors and other personnel to staff our clinics, due in part to the nationwide labor shortage and an increase in operating expenses due to measures we may need to take to address such shortage; inflation, leading to increased labor costs and interest rates, as well as changes to import tariffs and increased gas prices, may lead to reduced discretionary spending, all of which may negatively impact our business; our failure to profitably operate company-owned or managed clinics; our failure to refranchise as planned; short-selling strategies and negative opinions posted on the internet, which could drive down the market price of our common stock and result in class action lawsuits; our failure to remediate future material weaknesses in our internal control over financial reporting, which could negatively impact our ability to accurately report our financial results, prevent fraud, or maintain investor confidence; and other factors described in our filings with the SEC, including in the section entitled “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2025 filed with the SEC on March 13, 2026 and subsequent filings with the SEC. We qualify any forward-looking statements entirely by these cautionary factors. We assume no obligation to update or revise any forward-looking statements for any reason or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future. Comparisons of results for current and any prior periods are not intended to express any future trends or indications of future performance, unless expressed as such, and should only be viewed as historical data. Investor Contact: Richard Land, Alliance Advisors IR, [email protected] (212)-838-3777 – Financial Tables Follow – ___________________ 1 System-wide sales include revenues at all clinics, whether operated or managed by the company or by franchisees. While franchised sales are not recorded as revenues by the company, management believes the information is important in understanding the company’s financial performance, because these revenues are the basis on which the company calculates and records royalty fees and are indicative of the financial health of the franchisee base. 2 Comp sales include the revenues from both company-owned or managed clinics and franchised clinics that in each case have been open at least 13 full months and exclude any clinics that have closed.

Transitioned toward a pure-play franchisor model by reducing company-owned clinics from 135 to just three remaining locations. Attributed Q1 performance improvements to higher-margin royalty and fee-based revenue streams following refranchising efforts. Pivoted marketing strategy to focus on pain relief and mobility to attract patients with higher lifetime value and longer retention profiles. Optimized digital presence through AI visibility improvements, which now exceed industry benchmarks and drive higher-quality organic leads. Implemented a new 'AlignOne' plan to reduce attrition by offering a lower-frequency, one-visit-per-month option for members who would otherwise cancel. Enhanced unit-level economics through a $10 price increase across 300 clinics, with management reporting no meaningful pushback on conversion or retention. Launched B2B partnership programs and CareCredit integration to expand the patient acquisition funnel and improve access to care. Anticipates sequential improvement in comp sales throughout 2026, transitioning from slightly negative in Q2 to positive in Q3 and Q4. Plans to launch 'The Joint Corp. 3.0' in 2027, focusing on B2B channels, international expansion, and quantifiable patient outcomes via a 'Joint Move Score'. Expects to roll out pricing optimization across the remaining clinic portfolio starting in the third quarter of 2026. Projects a long-term U.S. market potential of over 1,800 franchise clinics, supported by faster breakeven times for new openings under enhanced protocols. Assumes a capital-light financial profile post-refranchising with target G&A between 40% and 42% of revenues. Completed three regional developer (RD) territory buybacks to capture a greater share of long-term royalty economics, expected to save $450,000 annually. Identified $300,000 in quarterly G&A expenses that will be eliminated once the refranchising strategy is fully concluded. Noted that total clinic count decreased to 943 as the company prioritizes portfolio quality and closes underperforming sites. Acknowledged ongoing macro headwinds, specifically general cost-of-living pressures, as the primary driver for negative 4.2% Q1 comp sales. Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management clarified that most clinics are already being operated by buyers under management services agreements that mirror franchise economics. The final legal closing of these deals is primarily dependent on the administrative process of reassigning leases, expected within the next few months. Management reported that price increases apply only to new patients, which has resulted in little to no pushback. Key performance indicators, including conversion rates and attrition, have remained stable or improved despite the higher price point. Interest is coming from both existing franchisees 'doubling down' and new operators, including a new-to-system buyer for the Southern California bundle. New clinics opened in 2025 are reaching breakeven in half the time of previous historical run rates due to better site selection and pre-opening protocols. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here.

Interested in The Joint Corp.? Here are five stocks we like better. Refranchising nearly complete — The Joint is becoming a "pure-play franchisor": management has reduced company-owned/managed clinics from 135 to just three remaining after signing deals (including a 45-clinic Southern California sale), with lease assignments expected to finish in the coming months. Q1 results show materially improved profitability: revenue from continuing operations rose 13% to $14.8M, adjusted EBITDA from continuing operations jumped to $2.2M (vs. $46k a year ago) and net income was $1.1M versus a $506k loss in Q1 2025, while consolidated adjusted EBITDA grew 22% to $3.5M despite weaker system-wide sales. Operational and capital actions target comp recovery and shareholder returns: pricing, marketing and retention initiatives have driven four months of improving member trends (Q1 comps -4.2% improving to about -3% YTD), the company repurchased $1.1M of stock, completed RD territory buybacks, extended its credit facility to Aug 2029, and reiterated full-year 2026 guidance. The Joint (NASDAQ:JYNT) reported first-quarter 2026 results that management said reflect improving profitability as the company nears completion of its “Joint 2.0” transformation into a “pure-play franchisor.” President and CEO Sanjiv Razdan highlighted progress on refranchising, marketing initiatives aimed at improving patient trends, and early moves to position the business for what the company calls “Joint 3.0” beginning in 2027. Razdan said the company made “meaningful progress” with Joint 2.0 and described refranchising as “effectively complete.” In April, the company entered into an agreement to sell 45 company-owned or managed clinics in Southern California. When combined with two other signed refranchising agreements pending closing, Razdan said just three clinics across the company’s portfolio will remain company-owned or managed, down from 135 at the start of the initiative. → Insider Sales: Top AST SpaceMobile Insider Cuts Postion Over 30% Razdan called the refranchising milestone “defining,” adding that with the effort nearly finished, “The Joint is now, in every meaningful sense, a pure-play franchisor.” CFO Scott Bowman said the timing of closing depends largely on lease assignments. “Over the next couple of months, we should be very near completion of that lease assignment process,” Bowman said. Razdan added that “all but six or seven” of the clinics involved are already being operated by the buyers—either with leases transferred or under management services agreements that “mirror the economics of a pure franchisor model.” He also noted a separate “small cluster” of five clinics in Northern California under a letter of intent, with an asset purchase agreement expected to be signed shortly. → Years in the Making, AMD’s Upside Movement Has Just Begun Razdan said the company’s financial results are benefiting from increased cost discipline and a greater mix of royalty- and fee-based franchise revenue. Revenue from continuing operations grew 13% year-over-year to $14.8 million. Adjusted EBITDA from continuing operations was $2.2 million, up from $46,000 in the prior-year quarter. Net income from continuing operations was $1.1 million versus a net loss of $506,000 in Q1 2025. Bowman said system-wide sales in the first quarter were $126 million, down 4.9% year-over-year, with comp sales of -4.2%. Despite the comp decline, he said adjusted EBITDA from consolidated operations grew 22% to $3.5 million. → Light Speed Returns: Corning Cashes In on NVIDIA Growth On expenses within continuing operations, Bowman reported: Cost of revenues of $2.7 million, down 8%, “primarily due to lower regional developer royalties.” Selling and marketing expense of $3.7 million, up 6%, driven by the transition of clinics to continuing operations. G&A expense of $7.1 million, up 2%; Bowman said about $300,000 of this relates to expenses that “will not be incurred upon the completion of our refranchising strategy.” Bowman said the company expects G&A to decline as a percentage of revenue as the transition to a franchise model concludes. In Q&A, he confirmed the $300,000 figure was quarterly and said it should go away after refranchising is complete. He also noted the quarter included a $600,000 restructuring charge, “most of that…was in G&A,” and it was added back for adjusted EBITDA. Total clinic count was 943 at the end of the first quarter, down from 960 at year-end 2025. Bowman said the company opened three clinics and closed 20 in the quarter, ending with 868 franchise clinics and 75 company-owned or managed clinics. He characterized the closures as part of the company’s portfolio optimization strategy “for quality and performance.” Razdan said management remains confident in its previously issued guidance for 30 to 35 new franchise clinic openings in 2026, with the cadence “skewed towards the back half of the year.” He attributed improved performance in newer clinics to stronger franchisees, more rigorous site selection, and enhanced opening protocols, saying 2025 openings are “tracking to breakeven times at half the time of the run rate.” He added that early 2026 openings are tracking “at an even faster run rate,” though he cautioned it is still early. Razdan said the company is seeing interest from both new and existing franchisees and identified the Northeast as a focus area where the brand has been “traditionally under-penetrated.” He also noted that the Southern California corporate clinic bundle was sold to a franchisee “completely new to our system.” Management emphasized that comp sales remain pressured by macro conditions, but said trends are expected to improve through 2026. Razdan said Q1 comp sales of -4.2% reflected “continued macro headwinds,” including cost-of-living pressures. However, he noted the company has seen four consecutive months of month-on-month improvement in active member count per clinic beginning in January. Bowman said comps at the end of Q1 were “similar to the full quarter -4.2%,” but improved in April. “Quarter to date, we’re running about -3%,” he said, attributing improving trends to better new patient attraction, conversion, and retention. Razdan detailed several initiatives he said are contributing to improving member trends, including a shift in external messaging toward pain relief, a change in marketing mix by transferring “$500 per clinic per month from local marketing to national advertising,” and improvements in SEO and “AI visibility,” with the company’s AI visibility score improving to between 78 and 80 from about 70 earlier in the process. On retention, Razdan said the minimum contract term was extended from two months to three months with “zero pushback,” and described a new “Align One” plan—positioned as an option for members seeking to cancel a four-visits-per-month wellness plan—that offers one visit per month at $35 or $39 depending on geography, with the ability to buy additional visits. Razdan said the plan has shown “significantly lower attrition,” and that usage is “closer to two visits per month” on average. The company also discussed pricing optimization. Razdan said $5 to $10 price increases have been rolled out across approximately 300 clinics, with the rest of the portfolio expected to begin implementing pricing starting in the third quarter. In Q&A, Bowman said the company is “leveraging the $10 price increase more” and confirmed the price increases are for new patients only, with existing plan members staying at their current prices. Bowman said the company has seen “little or no pushback,” adding that conversion rates have not declined and attrition has improved in the test markets. Bowman said unrestricted cash was $20.7 million at quarter-end, down from $23.6 million at year-end 2025. The company’s $20 million JPMorgan Chase line of credit remained undrawn, and Bowman said the maturity was extended in early May by two years to August 2029. During the quarter, The Joint repurchased about 137,000 shares for $1.1 million at an average price of $8.35 per share, leaving $4.5 million remaining under a $12 million authorization approved in November 2025. Razdan and Bowman also highlighted regional developer (RD) territory buybacks. Bowman said the company recently completed three RD territory buybacks and expects approximately $450,000 in reduced RD royalties on an annualized basis, partially offset by internal costs to manage the territories. In Q&A, Bowman said 12 RD territories remain, and management will continue evaluating opportunities. For full-year 2026, Bowman reiterated guidance originally issued in March: system-wide sales of $519 million to $552 million, comp sales of -3% to +3%, consolidated adjusted EBITDA of $12.5 million to $13.5 million, and 30 to 35 new franchise clinic openings. He said management expects “slightly negative comps in Q2,” followed by positive comps in Q3 and Q4, with Q4 expected to be higher than Q3. Looking beyond Joint 2.0, Razdan said the company is increasingly focused on Joint 3.0, beginning “in earnest” in 2027, with priorities including B2B initiatives, expansion into under-penetrated U.S. markets, and a “potential entry into our first international market.” The Joint Chiropractic, Inc, doing business as Joint (NASDAQ: JYNT), is a franchisor and operator of outpatient chiropractic clinics in the United States. Under its flagship The Joint Chiropractic brand, the company offers membership-based, cash-focused spinal adjustment services designed to promote accessible, routine care for neck and back discomfort. By removing insurance requirements and offering walk-in visits, Joint aims to streamline the patient experience and reduce cost barriers to ongoing chiropractic treatment. Joint's growth strategy centers on partnering with franchisees to expand its network of clinics. The article "Joint Q1 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for May 2026.