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1. Company Snapshot

1.a. Company Description

The Joint Corp.develops, owns, operates, supports, and manages chiropractic clinics.The company operates in two segments, Corporate Clinics and Franchise Operations.


It operates through direct ownership, management arrangements, franchising, and regional developers.As of March 1, 2022, the company operated approximately 700 locations in the United States.The Joint Corp.


was incorporated in 2010 and is headquartered in Scottsdale, Arizona.

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1.b. Last Insights on JYNT

The Joint Corp.'s recent performance was impacted by a quarterly loss of $0.06 per share, despite beating revenue estimates. The company's Q2 2025 earnings call highlighted challenges, but also emphasized growth through its franchise model, recognized on the Franchise Times Top 400 list. However, a joint venture partnership announced by JPTE may divert attention from core operations. Additionally, a $1.1 billion joint venture by HyperCycle, though not directly related, may create market distractions.

1.c. Company Highlights

2. The Joint's Q3 2025 Earnings: A Mixed Bag

The Joint's Q3 2025 financial performance was marked by a 6% increase in revenue from continuing operations to $13.4 million, accompanied by a 36% rise in consolidated adjusted EBITDA. However, system-wide sales decreased by 1.5%, and comp sales declined by 2%. The company's EPS came in at $0.02, beating estimates of -$0.01. The revenue growth was driven by the company's efforts to improve its brand marketing campaign, with a new focus on pain relief, and strengthening its digital marketing efforts.

Publication Date: Nov -18

📋 Highlights
  • Revenue & EBITDA Growth:: Q3 revenue rose 6% to $13.4M; consolidated adjusted EBITDA surged 36% to $9.4M YTD.
  • Refranchising Momentum:: Sold 8 franchise licenses, opened 9 clinics (including Delaware debut), and refranchised 1 clinic in Q3.
  • Stock Repurchase Aggressiveness:: Spent $5M in Q3 and authorized an additional $12M for share buybacks post-quarter.
  • Cost Optimization:: Cost of revenues dropped 6% to $2.7M, while G&A expenses fell 3% to $7.3M in Q3.
  • Pricing Pilot Initiative:: Testing 3-tiered pricing for wellness plans to balance affordability and margin recovery amid inflationary pressures.

Operational Highlights

The company continued to make progress on its refranchising efforts, selling 8 franchise licenses in the third quarter and opening 9 new franchise clinics. The Joint also repurchased 228,000 shares for $2.3 million during the quarter, and the Board authorized an additional $12 million for repurchases. According to Sanjiv Razdan, "We feel confident that we're making progress" on the refranchising efforts, although the exact timeframe is uncertain due to the macro climate and lender dynamic.

Guidance Revision

The company revised its guidance for system-wide sales to range from $530 million to $534 million, with comp sales expected to be in the range of negative 1% to flat. The guidance for consolidated adjusted EBITDA was maintained at $10.8 million to $11.8 million. Analysts estimate next year's revenue growth at 7.3%, indicating a potential upside.

Valuation Metrics

The company's current valuation metrics, including a P/S Ratio of 3.41 and EV/EBITDA of 85.83, suggest that the market is pricing in a certain level of growth. With the ROE at -4.61% and ROIC at -0.24%, it is essential to monitor the company's ability to improve its profitability. The current P/E Ratio of -130.49 indicates that the company's earnings are not currently driving the stock price.

Outlook

The Joint's efforts to improve its brand marketing campaign and refranchising efforts are expected to drive growth in the coming quarters. However, the company's comp sales decline and the uncertain timeframe for completing the refranchising efforts are potential concerns. With the company's commitment to its customers and its focus on improving profitability, investors will be watching closely for signs of improvement.

3. NewsRoom

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Perma-Fix and Enforcer One Announce Joint Distribution Agreement to Deliver End-to-End PFAS Foam Transition Solutions

Dec -04

Source: globenewswire.com

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P3 Expands Footprint Through Joint Venture With Commonwealth Primary Care ACO

Dec -02

Source: businesswire.com

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Surge Announces Entering into Joint Venture with Evolution Mining Limited

Dec -02

Source: newsfilecorp.com

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Surge Announces Finalization of Terms of Joint Venture with Evolution Mining Limited

Nov -27

Source: newsfilecorp.com

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Rivian's Lucrative Joint Venture Keeps Getting Better for Investors

Nov -25

Source: fool.com

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Parkit Contributes London Industrial Property and Forms Joint Venture for Residential Redevelopment

Nov -24

Source: newsfilecorp.com

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Xiao-I Corporation Renews Contract with Major Automotive Joint Venture for Cognitive AI Services

Nov -21

Source: prnewswire.com

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Surge Announces Update on Proposed Joint Venture with Evolution Mining Limited

Nov -21

Source: newsfilecorp.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (11.60%)

6. Segments

Corporate Clinics

Expected Growth: 11.53%

The Joint Corp.'s Corporate Clinics segment growth of 11.53% is driven by increasing demand for convenient and affordable chiropractic care, expansion of corporate partnerships, and strategic clinic openings in high-traffic areas. Additionally, the company's focus on digital marketing and membership-based model contribute to the segment's growth.

Franchise

Expected Growth: 11.7%

The Joint Corp.'s 11.7% growth is driven by increasing demand for chiropractic care, expansion into new markets, and strategic partnerships. Additionally, the company's membership-based model and affordable pricing strategy have contributed to its growth. Furthermore, the growing awareness of the importance of preventative healthcare and wellness has also fueled demand for The Joint Corp.'s services.

7. Detailed Products

Chiropractic Care

The Joint Corp. offers chiropractic care services to help patients relieve pain, improve joint mobility, and enhance overall well-being.

Massage Therapy

The Joint Corp. provides massage therapy services to help patients relax, reduce stress, and alleviate muscle tension.

Digital X-Rays

The Joint Corp. offers digital X-ray services to help diagnose and treat musculoskeletal conditions.

Nutrition and Wellness

The Joint Corp. provides nutrition and wellness services to help patients achieve optimal health and wellness.

Physical Therapy

The Joint Corp. offers physical therapy services to help patients recover from injuries, manage chronic conditions, and improve mobility.

8. The Joint Corp.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The Joint Corp. faces moderate threat from substitutes, as patients have alternative options for chiropractic care, but the company's unique approach and brand recognition mitigate this threat.

Bargaining Power Of Customers

Customers have limited bargaining power due to the specialized nature of chiropractic care and The Joint Corp.'s strong brand reputation.

Bargaining Power Of Suppliers

Suppliers have limited bargaining power due to the company's large scale and diversified supply chain, reducing dependence on individual suppliers.

Threat Of New Entrants

The threat of new entrants is moderate, as starting a chiropractic care business requires significant investment and regulatory compliance, but The Joint Corp.'s established brand and economies of scale provide a competitive advantage.

Intensity Of Rivalry

The intensity of rivalry is high due to the competitive nature of the chiropractic care industry, with many established players and new entrants vying for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 18.94%
Debt Cost 3.95%
Equity Weight 81.06%
Equity Cost 11.86%
WACC 10.36%
Leverage 23.36%

11. Quality Control: The Joint Corp. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Healthcare Services Group

A-Score: 4.8/10

Value: 4.0

Growth: 2.9

Quality: 5.8

Yield: 2.0

Momentum: 9.5

Volatility: 4.7

1-Year Total Return ->

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Brookdale Senior Living

A-Score: 3.9/10

Value: 5.1

Growth: 3.1

Quality: 2.1

Yield: 0.0

Momentum: 9.0

Volatility: 4.3

1-Year Total Return ->

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Pennant

A-Score: 3.8/10

Value: 3.1

Growth: 8.2

Quality: 3.9

Yield: 0.0

Momentum: 2.0

Volatility: 5.3

1-Year Total Return ->

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AirSculpt Technologies

A-Score: 3.7/10

Value: 4.6

Growth: 4.8

Quality: 2.5

Yield: 1.0

Momentum: 8.0

Volatility: 1.3

1-Year Total Return ->

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AMN Healthcare Services

A-Score: 3.4/10

Value: 9.2

Growth: 4.7

Quality: 3.0

Yield: 0.0

Momentum: 0.0

Volatility: 3.7

1-Year Total Return ->

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Stock-Card
The Joint

A-Score: 3.2/10

Value: 3.3

Growth: 3.3

Quality: 4.9

Yield: 0.0

Momentum: 3.5

Volatility: 4.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

8.4$

Current Price

8.4$

Potential

-0.00%

Expected Cash-Flows