The Joint Corp. — Third Quarter 2026 Earnings Summary

Financial Performance:

• Revenue increased 1% year-over-year to $13.6 million for the third quarter of 2026, compared to $13.4 million in the third quarter of 2025.
• Net income from continuing operations increased to $1.5 million, up from $290,000 in the third quarter of 2025.
• Consolidated net loss was $117,000 for the quarter, compared to a consolidated net income of $855,000 in the prior-year period.
• Adjusted EBITDA from continuing operations increased to $2.3 million, up from $1.4 million in the third quarter of 2025.
• Adjusted EBITDA from consolidated operations was $3.3 million, in line with the $3.3 million reported in the third quarter of 2025.
• Cash flow used in operating activities was $128,000, compared to cash provided by operating activities of $1.8 million in the third quarter of 2025.
• Free cash flow was $(509,000), compared to $1.5 million in the third quarter of 2025.
• For the nine months ended September 30, 2026, revenue was $43.6 million, up 10% from $39.7 million in the same period of 2025.
• Net income from continuing operations for the nine months ended September 30, 2026, was $2.3 million, compared to a net loss of $1.2 million in the prior-year period.
• Adjusted EBITDA from continuing operations for the nine months ended September 30, 2026, was $5.9 million, up from $1.5 million in the prior-year period.
• Unrestricted cash was $18.3 million at September 30, 2026, down from $22.2 million at June 30, 2026.
• The Company maintains an undrawn line of credit with JPMorgan Chase Bank providing $20 million access through August 2029.

Guidance and Future Outlook:

• Full-year 2026 system-wide sales guidance was lowered to a range of $508 million to $512 million, down from the previous range of $519 million to $552 million.
• Full-year 2026 system-wide comp sales guidance for clinics open 13 months or more was lowered to a range of (3.5)% to (2.5)%, down from the previous range of (3)% to 3%.
• Consolidated Adjusted EBITDA guidance for 2026 remains unchanged at a range of $12.5 million to $13.5 million.
• The Company expects to close underperforming clinics in 2026, resulting in an overall clinic count approximately 50 clinics lower than the 2025 year-end count.
• Management anticipates that reacquiring Regional Developer (RD) rights will realize approximately $3.0 million in reduced RD royalties on an annualized basis, with approximately one-third of this benefit offset by internal management costs.

Business Segments and Product Lines:

• System-wide sales were $123.3 million for the third quarter, a 3.1% decrease compared to the third quarter of 2025.
• Reported comp sales were (1.9)% for the third quarter of 2026, an improvement from (2.8)% in the second quarter of 2026.
• Total clinic count was 930 at September 30, 2026, consisting of 915 franchised clinics and 15 company-owned or managed clinics.
• During the quarter, the Company opened four clinics, closed 15 clinics, and refranchised 26 clinics.
• The Company reacquired RD rights for Texas (141 franchised clinics) on October 1, 2026, for $8.0 million in cash consideration plus up to $2.0 million in potential additional payments based on gross sales metrics.
• Year-to-date 2026, the Company has reacquired RD rights to five territories (including Texas) comprising 189 franchised clinics.
• Refranchising efforts under the Joint 2.0 strategy are substantially complete: 40 of 45 clinics in the Southern California bundle, all four clinics in the Northern California bundle, and 10 of 20 clinics in the Southeast bundle have been refranchised.
• Cost of revenues decreased 10% to $2.4 million in the third quarter of 2026, primarily due to lower RD royalty costs.
• Selling and marketing expenses decreased 4% to $2.7 million in the third quarter of 2026.
• General and administrative expenses decreased 6% to $6.9 million in the third quarter of 2026.

Market and Competitive Landscape:

• The Company operates as a pure-play franchisor following its refranchising initiative, focusing on franchise system support, new patient acquisition, and network development.
• Management cites ongoing macroeconomic challenges impacting consumer spending, resulting in lower average patient spend per month and fewer new patients, which negatively impacts comp sales.
• The Company is the nation's largest franchisor of chiropractic care through The Joint Chiropractic network.

Risks and Challenges:

• Macroeconomic pressures on consumer spending are impacting system-wide sales and comp sales.
• The Company faces nationwide labor shortages, which may lead to an inability to recruit enough qualified chiropractors and personnel, potentially increasing operating expenses.
• Inflationary pressures, including increased labor costs and interest rates, may reduce discretionary spending.
• Risks include the failure to profitably operate company-owned or managed clinics and the failure to refranchise as planned.
• Potential material weaknesses in internal control over financial reporting could negatively impact financial reporting accuracy and investor confidence.
• Short-selling strategies and negative internet opinions could drive down stock prices and result in class action lawsuits.

Management Commentary and Tone:

• President and CEO Sanjiv Razdan stated that third-quarter results reflect growth in active membership count and lifetime value per active member, driven by flexible membership options.
• Management expressed confidence that the asset-light franchise model, combined with RD territory buybacks, is driving margin improvement, profitability, and cash flow.
• The Board's additional $5 million stock repurchase authorization reflects confidence that the company's initiatives will create long-term value for stockholders.
• Management believes the ability to grow active membership and stronger new clinic performance is strengthening the foundation for future growth.

Other Key Points:

• The Board of Directors authorized an additional $5.0 million for stock repurchases on November 3, 2026.
• During the third quarter, the Company repurchased 461,000 shares for approximately $3.8 million at an average price of $8.30 per share.
• Since June 3, 2025, the Company has repurchased 1,975,352 shares for a total consideration of $17 million.
• As of September 30, 2026, the Company had exhausted the full $12 million of its previous stock repurchase authorization.
• The Company's stock repurchase program does not obligate the Company to acquire any particular amount of common stock.
• A conference call regarding these results was scheduled for November 5, 2026, at 5:00 p.m. ET.