The Joint Corp. Reports First Quarter 2026 Financial Results

The Joint Corp. Reports First Quarter 2026 Financial Results The Joint Corp. Reports First Quarter 2026 Financial Results GlobeNewswire May 07, 2026

         - 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

First Quarter 2026 and Recent Operating Highlights

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.

“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:

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, thejointinvestor@allianceadvisors.com (212)-838-3777

– Financial Tables Follow –

THE JOINT CORP.
CONSOLIDATED BALANCE SHEETS
 
 March 31,
2026		 December 31,
2025
ASSETS(unaudited)  
Current assets:   
Cash and cash equivalents$        20,684,014  $        23,601,810 
Restricted cash         742,730           700,058 
Accounts receivable, net         2,343,804           2,849,864 
Deferred franchise and regional development costs, current portion         903,009           945,933 
Prepaid expenses and other current assets         3,143,125           1,744,556 
Discontinued operations current assets ($1.0 million and $1.0 million attributable to VIEs, respectively)         21,774,582           22,246,318 
Total current assets         49,591,264           52,088,539 
Property and equipment, net         3,042,920           3,159,226 
Operating lease right-of-use asset         1,513,179           1,572,173 
Deferred franchise and regional development costs, net of current portion         3,478,066           3,827,129 
Deposits and other assets         296,042           319,460 
Total assets$        57,921,471  $        60,966,527 
    
LIABILITIES AND STOCKHOLDERS' EQUITY   
Current liabilities:   
Accounts payable$        961,341  $        1,588,665 
Accrued expenses         1,613,826           1,501,838 
Co-op funds liability         742,730           700,058 
Payroll liabilities         2,095,574           4,055,752 
Operating lease liability, current portion         280,253           194,179 
Deferred franchise fee revenue, current portion         2,487,723           2,519,018 
Upfront regional developer fees, current portion         240,468           277,394 
Other current liabilities         550,232           611,231 
Discontinued operations current liabilities ($6.2 million and $6.1 million attributable to VIEs, respectively)         21,198,560           21,368,446 
Total current liabilities         30,170,707           32,816,581 
Operating lease liability, net of current portion         1,762,036           1,815,527 
Deferred franchise fee revenue, net of current portion         10,207,587           10,899,271 
Upfront regional developer fees, net of current portion         286,768           355,556 
Total liabilities         42,427,098           45,886,935 
Commitments and contingencies   
Stockholders' equity:   
Series A preferred stock, $0.001 par value; 50,000 shares authorized, zero issued and outstanding, respectively         —           — 
Common stock, $0.001 par value; 20,000,000 shares authorized, 15,739,642 shares issued and 14,267,643 shares outstanding and 15,471,715 shares issued and 14,142,626 shares outstanding, respectively         15,739           15,471 
Additional paid-in capital         52,343,367           52,026,407 
Treasury stock 1,471,999 shares and 1,329,089 shares, at cost, respectively         (13,393,663)          (12,192,081)
Accumulated deficit         (23,496,070)          (24,795,205)
Total The Joint Corp. stockholders' equity         15,469,373           15,054,592 
Non-controlling Interest         25,000           25,000 
Total equity         15,494,373           15,079,592 
Total liabilities and stockholders' equity$        57,921,471  $        60,966,527 


THE JOINT CORP.
CONDENSED CONSOLIDATED INCOME STATEMENTS
(unaudited)
 
  Three Months Ended March 31,
   2026  2025 
Revenues:    
Royalty fees $        8,032,289 $        8,070,985 
Franchise fees          1,145,068          828,519 
Advertising fund revenue          3,647,083          2,307,502 
Software fees          1,534,901          1,461,967 
Other revenues          460,892          408,617 
Total revenues          14,820,233          13,077,590 
Cost of revenues:    
Franchise and regional development cost of revenues          2,269,758          2,551,235 
IT cost of revenues          452,897          420,891 
Total cost of revenues          2,722,655          2,972,126 
Selling and marketing expenses          3,716,904          3,505,150 
Depreciation and amortization          396,693          361,930 
General and administrative expenses          7,084,986          6,914,945 
Total selling, general and administrative expenses          11,198,583          10,782,025 
Net loss on disposition or impairment          25,327          1,973 
Income (loss) from continuing operations          873,668          (678,534)
Other income (loss), net          240,235          185,917 
Income (loss) from continuing operations before income tax expense          1,113,903          (492,617)
Income tax expense (benefit)          11,112          13,404 
Net income (loss) from continuing operations          1,102,791          (506,021)
Discontinued operations:    
Income (loss) from discontinued operations before income tax expense          378,713          1,577,229 
Income tax (benefit) expense from discontinued operations          182,369          103,412 
Net income (loss) from discontinued operations          196,344          1,473,817 
Net income (loss) $        1,299,135 $        967,796 
     
Net income (loss) from continuing operations per common share:    
Basic $        0.08 $        (0.03)
Diluted $        0.08 $        (0.03)
Net income (loss) from discontinued operations per common share:    
Basic $        0.01 $        0.10 
Diluted $        0.01 $        0.10 
Net income (loss) per common share:    
Basic $        0.09 $        0.06 
Diluted $        0.09 $        0.06 
     
Basic weighted average shares          14,181,109          15,186,420 
Diluted weighted average shares          14,185,152          15,263,152 


THE JOINT CORP.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
 
  Three Months Ended March 31,
   2026   2025 
Cash flows from operating activities:    
Net income $        1,299,135  $        967,796 
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation and amortization          404,449           388,316 
Net loss on disposition or impairment          403,090           1,135,330 
Net franchise fees recognized upon termination of franchise agreements          (306,594)          (100,118)
Provision for credit losses          85,216           — 
Stock-based compensation expense          280,000           293,941 
Changes in operating assets and liabilities:    
Accounts receivable          460,366           1,462,554 
Prepaid expenses and other current assets          (982,100)          (2,017,426)
Deferred franchise costs          194,015           173,864 
Deposits and other assets          23,278           15,914 
Accounts payable          (678,729)          (481,554)
Accrued expenses          527,224           (2,989,008)
Payroll liabilities          (2,122,582)          (1,075,561)
Operating leases          (805,391)          (1,278,637)
Deferred revenue          (133,506)          (245,129)
Upfront regional developer fees          (105,714)          (73,230)
Other liabilities          (18,327)          122,294 
Net cash used in operating activities          (1,476,170)          (3,700,654)
     
Cash flows from investing activities:    
Proceeds from sale of clinics          —           40,100 
Purchase of property and equipment          (234,600)          (331,505)
Net cash used in investing activities          (234,600)          (291,405)
     
Cash flows from financing activities:    
Payments of finance lease obligation          —           (4,354)
Purchases of treasury stock under employee stock plans          (56,528)          (8,440)
Purchases of common stock under share repurchase programs          (1,145,054)          — 
Proceeds from exercise of stock options          37,228           905,976 
Net cash (used in) provided by financing activities          (1,164,354)          893,182 
     
Decrease in cash, cash equivalents and restricted cash          (2,875,124)          (3,098,877)
Cash, cash equivalents and restricted cash, beginning of period          24,301,868           25,996,436 
Cash, cash equivalents and restricted cash, end of period $        21,426,744  $        22,897,559 
     
Reconciliation of cash, cash equivalents and restricted cash: March 31, 2026 March 31, 2025
Cash and cash equivalents $        20,684,014  $        21,918,175 
Restricted cash          742,730           979,384 
Cash, cash equivalents and restricted cash, end of period $        21,426,744  $        22,897,559 


THE JOINT CORP.
CONSOLIDATED RECONCILIATION FROM GAAP TO NON-GAAP
(unaudited)
 
 Three Months Ended March 31,
  2026   2025 
 from
Continuing
Operations		 from
Discontinued
Operations		 Net
Operations		 from
Continuing
Operations		 from
Discontinued
Operations		 Net
Operations
Non-GAAP Financial Data:           
Net income (loss)$        1,102,791  $        196,344 $        1,299,135  $        (506,021) $        1,473,817 $        967,796 
Net interest (income) expense         (241,750)          —          (241,750)          (185,917)          239          (185,678)
Depreciation and amortization expense         396,693           7,757          404,450           361,930           26,385          388,315 
Income tax expense         11,112           182,369          193,481           13,404           103,412          116,816 
EBITDA         1,268,846           386,470          1,655,316           (316,604)          1,603,853          1,287,249 
Stock compensation expense         280,000           —          280,000           293,941           —          293,941 
Net loss on disposition or impairment         25,327           377,764          403,091           1,973           1,133,358          1,135,331 
Restructuring costs         626,886           81,206          708,092           67,084           71,384          138,468 
Litigation expenses         25,000           409,770          434,770           —           —          — 
Adjusted EBITDA$        2,226,059  $        1,255,210 $        3,481,269  $        46,394  $        2,808,595 $        2,854,989 


THE JOINT CORP.
RECONCILIATION OF CASH FLOWS USED IN OPERATING ACTIVITIES TO FREE CASH FLOW(1)
(unaudited)
 
  Three Months Ended March 31,
   2026   2025 
Cash flows used in operating activities$        (1,476,170) $        (3,700,654)
Purchase of property, plant and equipment         (234,600)          (331,505)
Free cash flow$        (1,710,770) $        (4,032,159)
     
(1) Free cash flow represents cash flows provided by (used in) operating activities less capital expenditures.
 

___________________

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.


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