The Joint Corp. JYNT shares have declined 4.2% since the company reported first-quarter 2025 results on May 8. Its weaker-than-expected earnings were caused by increased expenses under different heads, partially offset by higher system-wide sales.

JYNT reported an adjusted loss of 3 cents per share, which was wider than the Zacks Consensus Estimate of a loss of 2 cents. However, the bottom line remained stable year over year.

Revenues increased 7% year over year to $13.1 million. The top line surpassed the consensus mark by 2.5%.

The Joint Corp. Price, Consensus and EPS SurpriseThe Joint Corp. Price, Consensus and EPS Surprise

The Joint Corp. price-consensus-eps-surprise-chart | The Joint Corp. Quote

JYNT’s Q1 Performance

Royalty fees advanced 6.4% year over year to $8.1 million in the first quarter. Advertising fund revenues were $2.3 million, up 6.5% year over year. Software fees of $1.5 million improved 5.4% year over year. Franchise fees rose 26.3% year over year to $0.8 million.

The total cost of revenues amounted to almost $3 million, which escalated 9.9% year over year due to increased franchise and regional development. General and administrative expenses decreased 5.8% year over year to $6.9 million. However, total selling, general and administrative costs rose 8.8% year over year to $10.8 million.

The Joint incurred a net loss from continuing operations of $0.5 million, wider than the prior-year quarter’s $0.4 million.

System-wide sales rose 5% year over year to $132.6 million. As of March 31, 2025, the company’s total clinic count was 969, lower than the Zacks Consensus Estimate of 972. The number of franchised clinics totaled 847, which was in line with the consensus mark. However, company-owned or managed clinics were 122, lower than the consensus estimate of 125.

Adjusted EBITDA from net operations declined 18.6% year over year to $2.9 million. (Find the latest earnings estimates and surprises on Zacks Earnings Calendar.)

The Joint’s Financial Update (as of March 31, 2025)

JYNT exited the first quarter with cash and cash equivalents of $21.9 million, which decreased from $25.1 million at the end of 2024.

Total assets of $77.2 million fell from $80.4 million at the end of 2024.

There was no reported debt under the credit agreement.

Total equity of $19.9 million rose 11.1% from the 2024-end level.

The Joint used net cash in operations of $3.7 million against net cash provided of $2.8 million in the prior year.

The Joint’s 2025 Guidance Reaffirmed

The company estimates that system-wide sales will remain in the range of $550-$570 million.

Adjusted EBITDA is projected between $10 and $11.5 million.

Story Continues

It expects to open 30-40 franchised clinics in 2025, down from 57 last year.

JYNT’s Zacks Rank & Key Picks

JYNT currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader medical space are Encompass Health Corporation EHC and GeneDx Holdings Corp WGS, each sporting a Zacks Rank #1 (Strong Buy) at present. Another company, Adherex Technologies, Inc. FENC, currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Encompass Health’s current-year earnings of $5.01 per share has witnessed one upward revision in the past seven days against none in the opposite direction. Encompass Health beat earnings estimates in each of the trailing four quarters, with the average surprise being 12.3%. The consensus estimate for current-year revenues is pegged at $5.9 billion, calling for 9.5% year-over-year growth.

The Zacks Consensus Estimate for GeneDx Holdings’ current-year earnings of $1.09 per share has witnessed one upward revision in the past 30 days against no movement in the opposite direction. GeneDx Holdings beat earnings estimates in each of the trailing four quarters, with the average surprise being 145.8%. The consensus estimate for current-year revenues is pegged at $374.1 billion, calling for 22.5% year-over-year growth.

The Zacks Consensus Estimate for Adherex Technologies’ current-year earnings is pegged at 3 cents per share. Adherex Technologies has witnessed one upward revision in the past 30 days against none in the opposite direction. The consensus estimate for current-year revenues is pegged at $54.5 million, implying 14.7% year-over-year growth.

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