Joint (NASDAQ:JYNT) reported fourth-quarter and full-year 2025 results while outlining progress on its “Joint 2.0” transformation plan, which management said is on track to be completed by the end of 2026. On the company’s earnings call, President and CEO Sanjiv Razdan and CFO Scott Bowman highlighted ongoing refranchising efforts, marketing changes aimed at improving new patient acquisition, and a financial framework for a future “pure-play” franchisor model.
Transformation plan and refranchising update
Razdan said the company is nearing the end of the first phase of its transformation, which was designed to reignite growth and improve profitability. He cited several milestones, including a strengthened management team with healthcare and franchise experience and continued progress in refranchising corporate-owned clinics.
During Q&A, management noted that the remaining corporate clinics—most of which are in California—are “on balance” better performers than the clinics previously sold in the Southeast.
Fourth-quarter results: revenue and profitability
Bowman said fourth-quarter revenue from continuing operations rose 3% to $15.2 million, which he attributed mainly to additional marketing funding for national advertising. He also reported:
- System-wide sales declined 3.9% to $130 million.
- Comparable sales decreased 3.8%.
- Adjusted EBITDA from consolidated operations increased 7.8% to $3.6 million.
- Consolidated net income was $1.0 million for the quarter.
On expenses, Bowman said cost of revenues fell 11% to $2.8 million due to lower regional developer royalties. Selling and marketing expenses rose 25% to $3.5 million, driven by enhanced national marketing and one-time costs related to transitioning to a new marketing agency. G&A expense increased 2% to $7.7 million, which Bowman said was mainly due to increased payroll and other costs expected to decline as refranchising is completed.
Full-year 2025 performance and clinic count
For the full year, Bowman said system-wide sales were $532 million, flat compared to the prior year, while comparable sales declined 0.4%. He reported revenue of $54.9 million, up from $52.2 million in 2024.
Profitability improved year over year. Bowman said consolidated net income increased $8.7 million to $2.9 million, compared with a $5.8 million loss in 2024. Net loss from continuing operations narrowed to $268,000 from a $1.6 million loss in 2024. Adjusted EBITDA from consolidated operations rose 13.9% to $13.0 million, while adjusted EBITDA from continuing operations improved to $3.1 million from $2.3 million.
Clinic count ended the year at 960 clinics, compared with 967 a year earlier. During 2025, the company opened 29 clinics, refranchised 41, and closed 36, ending with 885 franchise clinics and 75 company-owned clinics (including the clinics under agreement or letter of intent for sale). Bowman said improvements to pre-opening protocols helped new clinics reach break-even “in half the time compared to prior years.”
Marketing shift, new patient trends, and pricing tests
Management emphasized that new patient acquisition has been the weakest part of its “active member growth” equation. In prepared remarks, Razdan said the company shifted marketing messaging away from broad wellness and toward pain relief and improved mobility, while also shifting spending to earlier in the sales funnel and leveraging national scale. He said a national media program began in November and that the company’s clinic microsites have been migrated to a new template and “returned to growth,” with improving traffic and increases in higher-intent actions such as calls and submissions.
In Q&A, executives said conversion and attrition were “slightly better than last year,” while new patient flow remained the largest challenge. Management also discussed efforts to address retention, including a lower-frequency offering called Align One, which provides one adjustment per month for $35 with flexible add-on visits. Razdan said the company is also testing an Align Two option for two visits per month.
On pricing, management said it has been piloting $2, $5, and $10 price increases across diverse markets. Executives said the $2 increase did not show much impact and that the company is focusing more on the $5 and $10 levels, with the $10 tests showing “a little bit more benefit.” Razdan added that the company is being mindful of timing and regional impacts, noting that a large portion of its patients fall into an average household income range of $60,000 to $110,000.
Bowman also provided color on quarterly comp performance, saying comps were down the most in November and strongest in December, partly due to timing changes in year-end promotions. Asked about early 2026 trends, Bowman said results so far were similar to the fourth quarter.
Liquidity, buybacks, 2026 guidance, and pure-play franchisor targets
Joint ended 2025 with $23.6 million in unrestricted cash and a $20 million JPMorgan Chase credit facility with no borrowings, Bowman said. The company repurchased 1.1 million shares for $9.0 million in the fourth quarter at an average price of $8.45 per share. For the full year, it repurchased 1.3 million shares for $11.3 million at an average price of $8.73 per share. Bowman said $5.7 million remained under the repurchase authorization approved in November 2025.
For 2026, the company guided to:
- System-wide sales: $519 million to $552 million
- Comparable sales: -3% to 3%
- Consolidated adjusted EBITDA: $12.5 million to $13.5 million
Bowman said the company expects net clinic count at the end of 2026 to be lower than at the end of 2025, as openings are expected to be offset by closures while the portfolio is reshaped toward “stronger operators and healthier sites.” He reiterated the company’s belief that the U.S. market could support more than 1,800 clinics over time.
Looking ahead to the refranchising end-state, Bowman said the company’s revenue target as a pure-play franchisor would be approximately 11% of system-wide sales, compared to 10.3% in 2025. He also outlined an expected mid-2026 run-rate model following completion of refranchising, including:
- Gross margin: 83% to 85% of revenue (vs. 90% in 2025)
- G&A: 40% to 42% of revenue (vs. 64% in 2025)
- CapEx: ~3% of revenue
- Free cash flow conversion: 60% to 70% (free cash flow divided by adjusted EBITDA)
- Adjusted EBITDA margin: 19% to 21% (vs. 12% in 2025)
- Net income margin: 13% to 15% (vs. 3% in 2025)
Management said it does not plan to spend more marketing dollars than it brings in, adding that incremental marketing dollars are being funded by franchisees shifting some local marketing dollars to national efforts. Bowman also said the company’s 2026 guidance does not include a pricing increase because tests are still underway.
Razdan closed by saying management is beginning to spend more time on “Joint 3.0,” a phase expected to begin in earnest in 2027 that would prioritize growth through new channels, B2B initiatives, underpenetrated U.S. markets, and eventual international expansion, while exploring additional offerings and ways to measure quantifiable patient outcomes.
About Joint (NASDAQ:JYNT)
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.
