The Joint Corp. reported its first quarter 2025 financial results, with revenue from continuing operations increasing 7% to $13.1 million compared to Q1 2024. System-wide sales grew 5% to $132.6 million, demonstrating resilience in a challenging economic environment.
The company recorded a net loss from continuing operations of $506,000, or $0.03 per basic share, which widened from a net loss of $399,000 in the prior year period. Adjusted EBITDA for continuing operations significantly decreased to $46,000 from $425,000 in Q1 2024, primarily due to increased selling and marketing expenses related to digital marketing transformation efforts.
System-wide comparable sales for clinics open 13 months or more were 3% in Q1 2025, improving to 4% in March. The company reiterated its 2025 guidance for system-wide sales of $550 million to $570 million, mid-single-digit system-wide comp sales, and consolidated Adjusted EBITDA of $10.0 million to $11.5 million.
The Joint Corp. is continuing its strategic pivot to become a pure-play franchisor, implementing marketing, operations, and training initiatives to strengthen its core business and reignite growth. These efforts include a brand message refresh in the latter half of the year, dynamic pricing options, and the planned launch of a new mobile app.
Unrestricted cash stood at $21.9 million as of March 31, 2025, down from $25.1 million at December 31, 2024. Cash used in operations for the quarter was $3.7 million, which included a legal settlement payment and annual employee bonuses.
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