Chiropractic clinic operator Joint beats Q4 revenue estimates

Overview

• US chiropractic clinic franchisor's Q4 revenue rose 3.1%, beating analyst expectations

• Adjusted EBITDA for Q4 increased 7.8% to $3.6 mln

• Company repurchased 1.1 mln shares for $9 mln in Q4

Outlook

• Joint expects 2026 system-wide sales between $519 mln and $552 mln

• Company sees 2026 comp sales for clinics open 13 months at (3)% to 3%

• Joint expects 2026 consolidated Adjusted EBITDA of $12.5 mln to $13.5 mln

Result Drivers

• REFRANCHISING TRANSITION - Co said progress in refranchising company-owned clinics and moving toward a pure-play franchisor model contributed to Q4 results

• COST CONTROL - Lower cost of revenue, mainly from reduced regional developer royalties, supported profitability in Q4

• MARKETING SHIFT - Higher selling and marketing expenses were driven by enhanced national marketing efforts and transition to a new agency

Company press release: ID:nGNX6K4wdc

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the healthcare facilities & services peer group is "buy."

• Wall Street's median 12-month price target for Joint Corp is $9.00, about 5.8% above its March 11 closing price of $8.51

• The stock recently traded at 22 times the next 12-month earnings vs. a P/E of 20 three months ago

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